China Southern Airlines Company Limited

SEHK:1055 Stock Report

Mkt Cap: HK$147.5b

We’ve recently updated our valuation analysis.

China Southern Airlines Valuation

Is 1055 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1055?

Other financial metrics that can be useful for relative valuation.

1055 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.5x
Enterprise Value/EBITDA-33.2x
PEG Ration/a

Price to Sales Ratio vs Peers

How does 1055's PS Ratio compare to its peers?

The above table shows the PS ratio for 1055 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2.3x
753 Air China
1.8x32.6%HK$178.3b
293 Cathay Pacific Airways
1.1x26.5%HK$52.2b
66 MTR
5.4x10.9%HK$261.1b
2618 JD Logistics
0.7x15.1%HK$105.8b
1055 China Southern Airlines
0.9x23.6%HK$147.5b

Price-To-Sales vs Peers: 1055 is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (2.3x).


Price to Earnings Ratio vs Industry

How does 1055's PE Ratio compare vs other companies in the Asian Airlines Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a44.6%
n/an/an/a

Price-To-Sales vs Industry: 1055 is good value based on its Price-To-Sales Ratio (0.9x) compared to the Asian Airlines industry average (1.9x)


Price to Sales Ratio vs Fair Ratio

What is 1055's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1055 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.9x
Fair PS Ratio1x

Price-To-Sales vs Fair Ratio: 1055 is good value based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (1x).


Share Price vs Fair Value

What is the Fair Price of 1055 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1055 (HK$5.47) is trading above our estimate of fair value (HK$4.35)

Significantly Below Fair Value: 1055 is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 1055 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$5.47
HK$5.39
-1.5%
18.7%HK$7.08HK$3.74n/a13
Jan ’24HK$5.08
HK$4.90
-3.5%
20.3%HK$6.85HK$3.24n/a13
Dec ’23HK$4.44
HK$4.47
+0.7%
17.3%HK$5.62HK$3.17n/a13
Nov ’23HK$4.20
HK$4.41
+4.9%
16.8%HK$5.41HK$3.13n/a13
Oct ’23HK$4.14
HK$4.54
+9.6%
14.5%HK$5.48HK$3.25n/a13
Sep ’23HK$4.11
HK$4.76
+15.7%
16.8%HK$5.92HK$3.30n/a13
Aug ’23HK$4.28
HK$4.87
+13.9%
16.9%HK$6.06HK$3.38n/a13
Jul ’23HK$4.54
HK$4.72
+3.9%
15.8%HK$5.43HK$3.40n/a13
Jun ’23HK$4.37
HK$4.79
+9.6%
13.8%HK$5.45HK$3.46n/a13
May ’23HK$4.43
HK$4.97
+12.2%
14.8%HK$6.34HK$3.49n/a15
Apr ’23HK$4.62
HK$5.22
+13.1%
13.7%HK$6.57HK$3.62n/a15
Mar ’23HK$4.95
HK$5.41
+9.3%
13.2%HK$6.61HK$3.64n/a16
Feb ’23HK$4.95
HK$5.40
+9.2%
14.3%HK$6.54HK$3.60n/a15
Jan ’23HK$4.67
HK$5.50
+17.7%
13.7%HK$6.52HK$3.59HK$5.0815
Dec ’22HK$4.33
HK$5.52
+27.5%
13.6%HK$6.54HK$3.60HK$4.4415
Nov ’22HK$4.66
HK$5.82
+25.0%
10.6%HK$6.49HK$4.50HK$4.2015
Oct ’22HK$4.40
HK$5.82
+32.3%
10.6%HK$6.62HK$4.51HK$4.1415
Sep ’22HK$4.56
HK$5.80
+27.2%
10.6%HK$6.61HK$4.50HK$4.1115
Aug ’22HK$4.09
HK$6.28
+53.5%
7.6%HK$7.24HK$5.53HK$4.2816
Jul ’22HK$4.82
HK$6.38
+32.3%
7.6%HK$7.24HK$5.58HK$4.5416
Jun ’22HK$5.35
HK$6.45
+20.7%
8.6%HK$7.32HK$5.36HK$4.3716
May ’22HK$5.28
HK$6.30
+19.3%
8.6%HK$7.20HK$5.34HK$4.4316
Apr ’22HK$5.70
HK$5.97
+4.7%
10.0%HK$6.82HK$4.60HK$4.6215
Mar ’22HK$5.35
HK$5.77
+7.9%
10.8%HK$6.90HK$4.66HK$4.9515
Feb ’22HK$4.43
HK$5.51
+24.3%
8.4%HK$6.22HK$4.69HK$4.9514
Jan ’22HK$4.62
HK$5.49
+18.9%
8.8%HK$6.35HK$4.62HK$4.6714

Analyst Forecast: Target price is lower than the current share price.


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