China Eastern AirlinesCHEAF 53 Interest Coverage is 2.90 as of Mar. 2026, which is 44% above its 10-year median of 2.01. GuruFocus rates CHEAF with a GF Score™ of 53/100 and a GF Value™ of $0.67 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 845 Transportation companies, China Eastern Airlines ranks worse than 88.99% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. China Eastern Airlines's
Operating Income
for the
three
months ended in Mar. 2026 was $300 Mil. China Eastern Airlines's Interest Expense for the
three
months ended in Mar. 2026 was $-103 Mil.
China Eastern Airlines's interest coverage for the quarter that ended in Mar. 2026 was 2.90.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. China Eastern Airlines Corp Ltd interest coverage is 1.24, which is low.
The historical rank and industry rank for China Eastern Airlines's Interest Coverage or its related term are showing as below:
CHEAF'
s Interest Coverage Range Over the Past 10 Years
Min: 0.15 Med: 2.01 Max: 2.57
Current: 1.24
CHEAF's Interest Coverage is ranked worse than 88.99% of 845
companies
in the Transportation industry
Industry Median: 5.66
vs CHEAF: 1.24
China Eastern Airlines (OTCPK:CHEAF) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
China Eastern Airlines Interest Coverage Related Terms
China Eastern Airlines Interest Coverage Historical Data
* Premium members only.
The historical data trend for China Eastern Airlines's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
CHEAF vs DAL, UAL, LUV: Interest Coverage Comparison
For the Airlines subindustry, China Eastern Airlines's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
China Eastern Airlines Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, China Eastern Airlines's Interest Coverage distribution charts can be found below:
* The bar in red indicates where China Eastern Airlines's Interest Coverage falls into.
China Eastern Airlines Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
China Eastern Airlines (CHEAF) has a Interest Coverage of 2.90 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on China Eastern Airlines and its competitors. This is 44% above median its historical median of 2.01. Over the past decade, China Eastern Airlines' Interest Coverage has ranged from 0.15 to 2.57. According to the industry distribution chart, China Eastern Airlines ranks #752 out of 845 companies in the Transportation industry, placing it in the top 89%.
Is China Eastern Airlines' Interest Coverage too high?
China Eastern Airlines' current Interest Coverage of 2.90 is 44% above median its 10-year median of 2.01. Over the past 10 years, this metric has ranged from a low of 0.15 to a high of 2.57. The Transportation industry median Interest Coverage is 5.66. China Eastern Airlines' value of 2.90 is 48.8% below this industry median. Based on the distribution chart, China Eastern Airlines ranks #752 out of 845 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, China Eastern Airlines has a GF Score™ of 53/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Eastern Airlines' Interest Coverage compare to DAL and UAL?
According to the Transportation industry distribution chart, China Eastern Airlines ranks #752 out of 845 companies for Interest Coverage. This places China Eastern Airlines in the lower half of its industry. The industry median Interest Coverage is 5.66. China Eastern Airlines' value of 2.90 is 48.8% below this benchmark. Historically, China Eastern Airlines' own Interest Coverage has ranged from 0.15 to 2.57 over the past decade. While the company's 10-year median is 2.01 vs. the industry median of 5.66, China Eastern Airlines has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Transportation company?
The median Interest Coverage among Transportation companies is 5.66, based on 845 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Eastern Airlines's current Interest Coverage of 2.90 is 48.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on China Eastern Airlines and its competitors. For the Transportation industry, the median Interest Coverage is 5.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Eastern Airlines's current Interest Coverage is 2.90, which is 44% above median its own 10-year median of 2.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Eastern Airlines stock overvalued right now?
Based on GuruFocus' analysis, China Eastern Airlines (CHEAF) is currently considered Possible Value Trap. The stock's GF Value™ is $0.67, compared to a current price of $0.47 — trading 29.8% below its estimated fair value. The current Interest Coverage is 2.90, which is 44% above median its 10-year median of 2.01 and 48.8% below the Transportation industry median of 5.66. China Eastern Airlines' overall GF Score™ is 53/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For China Eastern Airlines (CHEAF), the current Interest Coverage is 2.90 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is China Eastern Airlines (CHEAF) Overvalued in 2026?
Based on GuruFocus' analysis, China Eastern Airlines stock appears to be undervalued.
The current stock price of $0.47 is trading 29.8% below its estimated GF Value™ of $0.67.
GuruFocus considers China Eastern Airlines to be Possible Value Trap.
Key valuation signals for CHEAF:
Interest Coverage: 2.90 (44% above median its 10-year median of 2.01)
GF Value™: $0.67 vs. price of $0.47 (29.8% below fair value)
Industry Position: 48.8% below the Transportation median (#752 of 845)
No single metric tells the full story. See the CHEAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Eastern Airlines Corp Ltd principally engaged in the operation of civil aviation, including the provision of passenger, cargo, mail delivery and other extended transportation services, also manufacturing and maintenance of aircraft and aviation equipment, agency services, import and export business, tourism and hotel business; and other businesses related to air transportation. The Group has two reportable segments. Airline transportation operations mainly comprise the provision of passenger, cargo, mail delivery, and ground services. Other services, including tour operations, air catering, and other miscellaneous services, are not included within the airline transportation operations segment. Geographically, the company operates Domestic, Regional and International.
53GF Score
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