Air ChinaAIRYY 69 Return-on-Tangible-Equity is 20.69% as of Mar. 2026. GuruFocus rates AIRYY with a GF Score™ of 69/100 and a GF Value™ of $15.99 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 975 Transportation companies, Air China ranks worse than 63.18% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Air China's annualized net income for the quarter that ended in Mar. 2026 was $995 Mil. Air China's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $4,808 Mil. Therefore, Air China's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 20.69%.
The historical rank and industry rank for Air China's Return-on-Tangible-Equity or its related term are showing as below:
AIRYY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -103.04 Med: -2.68 Max: 11.54
Current: 5.92
During the past 13 years, Air China's highest Return-on-Tangible-Equity was 11.54%. The lowest was -103.04%. And the median was -2.68%.
AIRYY's Return-on-Tangible-Equity is ranked worse than 63.18% of 975
companies
in the Transportation industry
Industry Median: 9
vs AIRYY: 5.92
Air China (OTCPK:AIRYY) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Air China Return-on-Tangible-Equity Related Terms
Air China Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Air China's Return-on-Tangible-Equity 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.
AIRYY vs DAL, UAL, LUV: Return-on-Tangible-Equity Comparison
For the Airlines subindustry, Air China's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Transportation Industry
For the Transportation industry and Industrials sector, Air China's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Air China's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 20.69% mean?
Air China (AIRYY) has a Return-on-Tangible-Equity of 20.69% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Air China and its competitors. According to the industry distribution chart, Air China ranks #616 out of 975 companies in the Transportation industry, placing it in the top 63.2%.
Is Air China's Return-on-Tangible-Equity too high?
Air China's current Return-on-Tangible-Equity is 20.69%. The Transportation industry median Return-on-Tangible-Equity is 9.00. Air China's value of 20.69% is 129.9% above this industry median. Based on the distribution chart, Air China ranks #616 out of 975 companies in the Transportation industry, which is below the industry midpoint. Overall, Air China has a GF Score™ of 69/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Air China's Return-on-Tangible-Equity compare to DAL and UAL?
According to the Transportation industry distribution chart, Air China ranks #616 out of 975 companies for Return-on-Tangible-Equity. This places Air China in the lower half of its industry. The industry median Return-on-Tangible-Equity is 9.00. Air China's value of 20.69% is 129.9% above 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-Equity for a Transportation company?
The median Return-on-Tangible-Equity among Transportation companies is 9.00, based on 975 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Air China's current Return-on-Tangible-Equity of 20.69% is 129.9% above 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Air China and its competitors. For the Transportation industry, the median Return-on-Tangible-Equity is 9.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air China's current Return-on-Tangible-Equity is 20.69%. 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?
Based on GuruFocus' analysis, Air China (AIRYY) is currently considered Possible Value Trap. The stock's GF Value™ is $15.99, compared to a current price of $10.40 — trading 35% below its estimated fair value. The current Return-on-Tangible-Equity is 20.69% and 129.9% above the Transportation industry median of 9.00. Air China's overall GF Score™ is 69/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Air China (AIRYY), the current Return-on-Tangible-Equity is 20.69% 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 (AIRYY) Overvalued in 2026?
Based on GuruFocus' analysis, Air China stock appears to be undervalued.
The current stock price of $10.40 is trading 35% below its estimated GF Value™ of $15.99.
GuruFocus considers Air China to be Possible Value Trap.
Key valuation signals for AIRYY:
Return-on-Tangible-Equity: 20.69%
GF Value™: $15.99 vs. price of $10.40 (35% below fair value)
Industry Position: 129.9% above the Transportation median (#616 of 975)
No single metric tells the full story. See the AIRYY 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.
69GF Score
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