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Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Air China's annualizedNet Income for the quarter that ended in Mar. 2026 was €861 Mil. Air China's average total tangible assets for the quarter that ended in Mar. 2026 was €41,195 Mil. Therefore, Air China's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 2.09%.
The historical rank and industry rank for Air China's Return-on-Tangible-Asset or its related term are showing as below:
HAM:AD2'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -13.24 Med: -0.21 Max: 3.22
Current: 0.59
During the past 13 years, Air China's highest Return-on-Tangible-Asset was 3.22%. The lowest was -13.24%. And the median was -0.21%.
HAM:AD2's Return-on-Tangible-Asset is ranked worse than 76.81% of 1009
companies
in the Transportation industry
Industry Median: 3.78
vs HAM:AD2: 0.59
Air China (HAM:AD2) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Air China Return-on-Tangible-Asset Related Terms
Air China Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Air China's Return-on-Tangible-Asset 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.
HAM:AD2 vs DAL, UAL, LUV: Return-on-Tangible-Asset Comparison
For the Airlines subindustry, Air China's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.
Air China Return-on-Tangible-Asset vs Transportation Industry
For the Transportation industry and Industrials sector, Air China's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Air China's Return-on-Tangible-Asset falls into.
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 2.09% mean?
Air China (HAM:AD2) has a Return-on-Tangible-Asset of 2.09% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Air China and its competitors. According to the industry distribution chart, Air China ranks #775 out of 1009 companies in the Transportation industry, placing it in the top 76.8%.
Is Air China's Return-on-Tangible-Asset too high?
Air China's current Return-on-Tangible-Asset is 2.09%. The Transportation industry median Return-on-Tangible-Asset is 3.78. Air China's value of 2.09% is 44.7% below this industry median. Based on the distribution chart, Air China ranks #775 out of 1009 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Air China has a GF Score™ of 57/100, reflecting its overall financial health beyond just this single metric.
How does Air China's Return-on-Tangible-Asset compare to DAL and UAL?
According to the Transportation industry distribution chart, Air China ranks #775 out of 1009 companies for Return-on-Tangible-Asset. This places Air China in the lower half of its industry. The industry median Return-on-Tangible-Asset is 3.78. Air China's value of 2.09% is 44.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Transportation company?
The median Return-on-Tangible-Asset among Transportation companies is 3.78, based on 1,009 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Air China's current Return-on-Tangible-Asset of 2.09% is 44.7% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Air China and its competitors. For the Transportation industry, the median Return-on-Tangible-Asset is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air China's current Return-on-Tangible-Asset is 2.09%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air China stock overvalued right now?
Air China (HAM:AD2) has a current Return-on-Tangible-Asset of 2.09%. The stock's GF Value™ is €0.65, compared to a current price of €0.44 — trading 32.2% below its estimated fair value. The current Return-on-Tangible-Asset is 2.09% and 44.7% below the Transportation industry median of 3.78. Air China's overall GF Score™ is 57/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Air China (HAM:AD2), the current Return-on-Tangible-Asset is 2.09% 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 Air China (HAM:AD2) Overvalued in 2026?
Based on GuruFocus' analysis, Air China stock appears to be undervalued.
The current stock price of €0.44 is trading 32.2% below its estimated GF Value™ of €0.65.
Key valuation signals for HAM:AD2:
Return-on-Tangible-Asset: 2.09%
GF Value™: €0.65 vs. price of €0.44 (32.2% below fair value)
Industry Position: 44.7% below the Transportation median (#775 of 1009)
No single metric tells the full story. See the HAM:AD2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Air China Ltd is based in Beijing and principally provides airline and related services, which include aircraft engineering and airport ground handling. The majority of the company's revenue comes from airline operations, with a smaller portion generated from rental income. Company has two segments (a) The airline operations segment which mainly comprises the provision of air passenger and air cargo services; and (b) The other operations segment which comprises the provision of aircraft engineering and other airline-related services. Geographically, majority of its revenue is derived from Mainland China followed by International segment and Hong Kong SAR, Macau SAR and Taiwan.
57GF Score
Get the complete analysis for HAM:AD2
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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