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Market Cap

NT$87.8b

Last Updated

2021/04/11 08:31 UTC

Data Sources

Company Financials +

Executive Summary

China Airlines, Ltd., together with its subsidiaries, provides air transportation services for passengers, cargo, and others. More Details


Snowflake Analysis

Questionable track record and overvalued.


Similar Companies

Share Price & News

How has China Airlines's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2610 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 2610's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

6.2%

2610

-0.6%

TW Airlines

1.9%

TW Market


1 Year Return

124.4%

2610

21.7%

TW Airlines

66.4%

TW Market

Return vs Industry: 2610 exceeded the TW Airlines industry which returned 22.6% over the past year.

Return vs Market: 2610 exceeded the TW Market which returned 66.6% over the past year.


Shareholder returns

2610IndustryMarket
7 Day6.2%-0.6%1.9%
30 Day14.5%0.7%4.8%
90 Day48.6%13.0%9.9%
1 Year124.4%124.4%30.1%21.7%72.2%66.4%
3 Year60.5%53.6%-18.7%-26.5%71.1%51.6%
5 Year60.6%46.6%-9.5%-21.4%132.3%91.0%

Long-Term Price Volatility Vs. Market

How volatile is China Airlines's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Airlines undervalued compared to its fair value and its price relative to the market?

627.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2610 (NT$16.2) is trading above our estimate of fair value (NT$0.68)

Significantly Below Fair Value: 2610 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2610 is poor value based on its PE Ratio (540x) compared to the XX Airlines industry average (20.6x).

PE vs Market: 2610 is poor value based on its PE Ratio (540x) compared to the TW market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2610's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2610 is good value based on its PB Ratio (0.7x) compared to the XA Airlines industry average (1.3x).


Future Growth

How is China Airlines forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

92.8%

Forecasted Transportation industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 2610's forecast earnings growth is above the savings rate (0.8%).

Earnings vs Market: Insufficient data to determine if 2610's earnings are forecast to grow faster than the TW market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if 2610's revenue is forecast to grow faster than the TW market.

High Growth Revenue: Insufficient data to determine if 2610's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 2610's Return on Equity is forecast to be high in 3 years time


Past Performance

How has China Airlines performed over the past 5 years?

-38.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2610 has high quality earnings.

Growing Profit Margin: 2610 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 2610's earnings have declined by 38.7% per year over the past 5 years.

Accelerating Growth: 2610 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 2610 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Airlines industry (-21.4%).


Return on Equity

High ROE: 2610's Return on Equity (-0.5%) is considered low.


Financial Health

How is China Airlines's financial position?


Financial Position Analysis

Short Term Liabilities: 2610's short term assets (NT$61.9B) do not cover its short term liabilities (NT$62.6B).

Long Term Liabilities: 2610's short term assets (NT$61.9B) do not cover its long term liabilities (NT$160.8B).


Debt to Equity History and Analysis

Debt Level: 2610's debt to equity ratio (205.6%) is considered high.

Reducing Debt: 2610's debt to equity ratio has increased from 171.3% to 205.6% over the past 5 years.

Debt Coverage: 2610's debt is not well covered by operating cash flow (7.8%).

Interest Coverage: 2610's interest payments on its debt are not well covered by EBIT (0.8x coverage).


Balance Sheet


Dividend

What is China Airlines's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2610's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2610's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2610's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2610's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2610 is not paying a notable dividend for the TW market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2610's dividend in 3 years as they are not forecast to pay a notable one for the TW market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Shing-Hwang Kao

0.083

Tenure

NT$8,595,000

Compensation

Mr. Shing-Hwang Kao serves as President of China Airlines, Ltd since March 18, 2021 and served as its Senior Vice President until March 18, 2021. Mr. Kao joined China Airlines, Ltd. on June 1, 2011. He ser...


CEO Compensation Analysis

Compensation vs Market: Shing-Hwang's total compensation ($USD302.17K) is about average for companies of similar size in the TW market ($USD369.22K).

Compensation vs Earnings: Insufficient data to compare Shing-Hwang's compensation with company performance.


Leadership Team

Experienced Management: 2610's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: 2610's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China Airlines, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Airlines, Ltd.
  • Ticker: 2610
  • Exchange: TSEC
  • Founded: 1959
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: NT$87.786b
  • Shares outstanding: 5.42b
  • Website: https://www.china-airlines.com

Number of Employees


Location

  • China Airlines, Ltd.
  • No.1, Hangzhan South Road
  • Dayuan District
  • Taoyuan City
  • 337
  • Taiwan

Listings


Biography

China Airlines, Ltd., together with its subsidiaries, provides air transportation services for passengers, cargo, and others. The company offers airport, mail, ground, aircraft and flight equipment mainten...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/11 08:31
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.