ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. China Eastern Airlines's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.32%.
As of today (2026-06-25), China Eastern Airlines's WACC % is 3.44%. China Eastern Airlines's ROC % is 0.38% (calculated using TTM income statement data).
China Eastern Airlines earns returns that do not match up to its cost of capital. It will destroy value as it grows.
China Eastern Airlines (OTCPK:CHEAF) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, China Eastern Airlines's WACC % is 3.44%. China Eastern Airlines's ROC % is 0.38% (calculated using TTM income statement data).
China Eastern Airlines earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
* 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:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 ROC % of 2.32% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on China Eastern Airlines and its competitors.
Is China Eastern Airlines' ROC % too high?
China Eastern Airlines' current ROC % is 2.32%. The Transportation industry median ROC % is 4.69. China Eastern Airlines' value of 2.32% is 50.5% below this industry median. 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' ROC % compare to DAL and UAL?
China Eastern Airlines' ROC % of 2.32% can be compared against companies in the Transportation industry. The industry median ROC % is 4.69. China Eastern Airlines' value of 2.32% is 50.5% 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 ROC % for a Transportation company?
The median ROC % among Transportation companies is 4.69, based on 994 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Eastern Airlines's current ROC % of 2.32% is 50.5% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on China Eastern Airlines and its competitors. For the Transportation industry, the median ROC % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Eastern Airlines's current ROC % is 2.32%. 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 ROC % is 2.32% and 50.5% below the Transportation industry median of 4.69. 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 ROC % calculated?
ROC % is calculated from a company's financial statements. For China Eastern Airlines (CHEAF), the current ROC % is 2.32% 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:
ROC %: 2.32%
GF Value™: $0.67 vs. price of $0.47 (29.8% below fair value)
Industry Position: 50.5% below the Transportation median
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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