Air France-KLMAFRAF 69 ROE % is -177.32% as of Mar. 2026. GuruFocus rates AFRAF with a GF Score™ of 69/100 and a GF Value™ of $11.67 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 991 Transportation companies, Air France-KLM ranks better than 99.9% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Air France-KLM's annualized net income for the quarter that ended in Mar. 2026 was $-1,327 Mil. Air France-KLM's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $748 Mil. Therefore, Air France-KLM's annualized ROE % for the quarter that ended in Mar. 2026 was -177.32%.
The historical rank and industry rank for Air France-KLM's ROE % or its related term are showing as below:
AFRAF'
s ROE % Range Over the Past 10 Years
Min: 12.65 Med: 17.33 Max: 335.59
Current: Negative Equity
During the past 13 years, Air France-KLM's highest ROE % was 335.59%. The lowest was 12.65%. And the median was 17.33%.
AFRAF's ROE % is ranked better than 99.9% of 991
companies
in the Transportation industry
Industry Median: 7.6
vs AFRAF: Negative Equity
Air France-KLM (OTCPK:AFRAF) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Air France-KLM ROE % Related Terms
Air France-KLM ROE % Historical Data
* Premium members only.
The historical data trend for Air France-KLM's ROE % 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.
For the Airlines subindustry, Air France-KLM's ROE %, along with its competitors' market caps and ROE % 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 France-KLM ROE % vs Transportation Industry
For the Transportation industry and Industrials sector, Air France-KLM's ROE % distribution charts can be found below:
* The bar in red indicates where Air France-KLM's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Air France-KLM (AFRAF) has a ROE % of -177.32% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Air France-KLM and its competitors. Over the past decade, Air France-KLM's ROE % has ranged from 12.65 to 335.59. According to the industry distribution chart, Air France-KLM ranks #1 out of 991 companies in the Transportation industry, placing it in the top 0.099999999999994%.
Is Air France-KLM's ROE % too high?
Air France-KLM's current ROE % is -177.32%. Over the past 10 years, this metric has ranged from a low of 12.65 to a high of 335.59. Based on the distribution chart, Air France-KLM ranks #1 out of 991 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Air France-KLM has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Air France-KLM's ROE % compare to DAL and UAL?
According to the Transportation industry distribution chart, Air France-KLM ranks #1 out of 991 companies for ROE %. This places Air France-KLM in the top 0% of its industry — outperforming the majority of peers. The industry median ROE % is 7.60. Historically, Air France-KLM's own ROE % has ranged from 12.65 to 335.59 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Transportation company?
The median ROE % among Transportation companies is 7.60, based on 991 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Air France-KLM and its competitors. For the Transportation industry, the median ROE % is 7.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air France-KLM's current ROE % is -177.32%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air France-KLM stock overvalued right now?
Based on GuruFocus' analysis, Air France-KLM (AFRAF) is currently considered Modestly Overvalued. The stock's GF Value™ is $11.67, compared to a current price of $13.38 — trading 14.7% above its estimated fair value. The current ROE % is -177.32%. Air France-KLM's overall GF Score™ is 69/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Air France-KLM (AFRAF), the current ROE % is -177.32% 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 Air France-KLM (AFRAF) Overvalued in 2026?
Based on GuruFocus' analysis, Air France-KLM stock appears to be overvalued.
The current stock price of $13.38 is trading 14.7% above its estimated GF Value™ of $11.67.
GuruFocus considers Air France-KLM to be Modestly Overvalued.
Key valuation signals for AFRAF:
ROE %: -177.32%
GF Value™: $11.67 vs. price of $13.38 (14.7% above fair value)
No single metric tells the full story. See the AFRAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Air France-KLM is a European airline group engaged in businesses that include passenger and cargo transportation, low-cost operations, and aircraft maintenance. The group has four segments: network, maintenance, Transavia, and other. The network segment derives key revenue for the passenger and cargo network, mainly coming from passenger transportation services on scheduled flights with the group's airline code. The company's geographic markets include France, Benelux, Europe, and the rest of the world, with the majority of revenue coming from France, including its overseas division.
69GF Score
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