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2610

China Airlines TWSE:2610 Stock Report

Last Price

NT$21.95

Market Cap

NT$131.5b

7D

4.3%

1Y

25.1%

Updated

11 Aug, 2022

Data

Company Financials +
2610 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance5/6
Financial Health4/6
Dividends4/6

2610 Stock Overview

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

China Airlines Competitors

Price History & Performance

Summary of all time highs, changes and price drops for China Airlines
Historical stock prices
Current Share PriceNT$21.95
52 Week HighNT$31.95
52 Week LowNT$15.40
Beta0.81
1 Month Change-1.35%
3 Month Change-13.24%
1 Year Change25.07%
3 Year Change142.81%
5 Year Change109.05%
Change since IPO-55.47%

Recent News & Updates

Shareholder Returns

2610TW AirlinesTW Market
7D4.3%-0.1%1.3%
1Y25.1%9.2%-13.2%

Return vs Industry: 2610 exceeded the TW Airlines industry which returned 9.2% over the past year.

Return vs Market: 2610 exceeded the TW Market which returned -13.2% over the past year.

Price Volatility

Is 2610's price volatile compared to industry and market?
2610 volatility
2610 Average Weekly Movement5.8%
Airlines Industry Average Movement4.9%
Market Average Movement5.1%
10% most volatile stocks in TW Market8.4%
10% least volatile stocks in TW Market2.5%

Stable Share Price: 2610 is not significantly more volatile than the rest of TW stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 2610's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1959n/aShing-Hwang Kaohttps://www.china-airlines.com

China Airlines, Ltd., together with its subsidiaries, provides air transportation services for passengers, cargo, and others. The company offers airport, ground, aircraft and flight equipment maintenance, machine and equipment maintenance, and investment services, as well as communications and data processing services to other airlines. It is also involved in the sale of aircrafts, aircraft parts, and equipment; cleaning of aircrafts; forwarding and storage of air cargo; and sale and maintenance of hardware and software.

China Airlines Fundamentals Summary

How do China Airlines's earnings and revenue compare to its market cap?
2610 fundamental statistics
Market CapNT$131.51b
Earnings (TTM)NT$14.23b
Revenue (TTM)NT$155.73b

9.2x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2610 income statement (TTM)
RevenueNT$155.73b
Cost of RevenueNT$128.68b
Gross ProfitNT$27.05b
Other ExpensesNT$12.82b
EarningsNT$14.23b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.38
Gross Margin17.37%
Net Profit Margin9.14%
Debt/Equity Ratio132.5%

How did 2610 perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

34%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 2610 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings 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 2610?

Other financial metrics that can be useful for relative valuation.

2610 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/Revenue1.6x
Enterprise Value/EBITDA6.9x
PEG Ratio0.4x

Price to Earnings Ratio vs Peers

How does 2610's PE Ratio compare to its peers?

2610 PE Ratio vs Peers
The above table shows the PE ratio for 2610 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.7x
2618 EVA Airways
12.2x-15.6%NT$168.9b
2633 Taiwan High Speed Rail
63.2x68.0%NT$162.9b
2637 Wisdom Marine Lines Limited (Cayman)
4.6xn/aNT$49.9b
2606 U-Ming Marine Transport
6.6xn/aNT$35.5b
2610 China Airlines
9.2x21.6%NT$131.5b

Price-To-Earnings vs Peers: 2610 is good value based on its Price-To-Earnings Ratio (9.2x) compared to the peer average (21.7x).


Price to Earnings Ratio vs Industry

How does 2610's PE Ratio compare vs other companies in the Global Airlines Industry?

Price-To-Earnings vs Industry: 2610 is good value based on its Price-To-Earnings Ratio (9.2x) compared to the Asian Airlines industry average (11.5x)


Price to Earnings Ratio vs Fair Ratio

What is 2610's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2610 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.2x
Fair PE Ratio13.5x

Price-To-Earnings vs Fair Ratio: 2610 is good value based on its Price-To-Earnings Ratio (9.2x) compared to the estimated Fair Price-To-Earnings Ratio (13.5x).


Share Price vs Fair Value

What is the Fair Price of 2610 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2610 (NT$21.95) is trading below our estimate of fair value (NT$113.98)

Significantly Below Fair Value: 2610 is trading below fair value by more than 20%.


Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


21.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2610's forecast earnings growth (21.6% per year) is above the savings rate (0.7%).

Earnings vs Market: 2610's earnings (21.6% per year) are forecast to grow faster than the TW market (5.8% per year).

High Growth Earnings: 2610's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2610's revenue (12.4% per year) is forecast to grow faster than the TW market (7.2% per year).

High Growth Revenue: 2610's revenue (12.4% per year) is forecast to grow slower 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


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Past Performance

How has China Airlines performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


39.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2610 has high quality earnings.

Growing Profit Margin: 2610's current net profit margins (9.1%) are higher than last year (0.08%).


Past Earnings Growth Analysis

Earnings Trend: 2610 has become profitable over the past 5 years, growing earnings by 39.6% per year.

Accelerating Growth: 2610's earnings growth over the past year (15379.3%) exceeds its 5-year average (39.6% per year).

Earnings vs Industry: 2610 earnings growth over the past year (15379.3%) exceeded the Airlines industry 17.2%.


Return on Equity

High ROE: 2610's Return on Equity (18.6%) is considered low.


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Financial Health

How is China Airlines's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2610's short term assets (NT$67.3B) exceed its short term liabilities (NT$58.4B).

Long Term Liabilities: 2610's short term assets (NT$67.3B) do not cover its long term liabilities (NT$152.0B).


Debt to Equity History and Analysis

Debt Level: 2610's net debt to equity ratio (76.4%) is considered high.

Reducing Debt: 2610's debt to equity ratio has reduced from 209.9% to 132.5% over the past 5 years.

Debt Coverage: 2610's debt is well covered by operating cash flow (51.7%).

Interest Coverage: 2610's interest payments on its debt are well covered by EBIT (8.9x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.79%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2610's dividend (3.79%) is higher than the bottom 25% of dividend payers in the TW market (2.53%).

High Dividend: 2610's dividend (3.79%) is low compared to the top 25% of dividend payers in the TW market (6.58%).


Stability and Growth of Payments

Stable Dividend: 2610's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2610's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (34.5%), 2610's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (14.5%), 2610's dividend payments are thoroughly covered by cash flows.


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Management

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

1.4yrs

Average management tenure


CEO

Shing-Hwang Kao (61 yo)

1.42yrs

Tenure

NT$7,923,000

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: Insufficient data to establish whether Shing-Hwang's total compensation is reasonable compared to companies of similar size in the TW market.

Compensation vs Earnings: Shing-Hwang's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 2610's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: 2610's board of directors are considered experienced (4.2 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 10.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: China Airlines, Ltd.
  • Ticker: 2610
  • Exchange: TWSE
  • Founded: 1959
  • Industry: Airlines
  • Sector: Transportation
  • Implied Market Cap: NT$131.513b
  • Shares outstanding: 5.99b
  • Website: https://www.china-airlines.com

Number of Employees


Location

  • China Airlines, Ltd.
  • No.1, Hangzhan South Road
  • Dayuan District
  • Taoyuan City
  • 33758
  • Taiwan

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.