The historical rank and industry rank for China Southern Airlines Co's ROE % or its related term are showing as below:
SHSE:600029'
s ROE % Range Over the Past 10 Years
Min: -60.15 Med: -1.15 Max: 12.75
Current: 8.72
During the past 13 years, China Southern Airlines Co's highest ROE % was 12.75%. The lowest was -60.15%. And the median was -1.15%.
SHSE:600029's ROE % is ranked better than 54.79% of 991
companies
in the Transportation industry
Industry Median: 7.62
vs SHSE:600029: 8.72
China Southern Airlines Co (SHSE:600029) 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.
* 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, China Southern Airlines Co'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.
China Southern Airlines Co ROE % vs Transportation Industry
For the Transportation industry and Industrials sector, China Southern Airlines Co's ROE % distribution charts can be found below:
* The bar in red indicates where China Southern Airlines Co'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.
China Southern Airlines Co (SHSE:600029) has a ROE % of 16.31% 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 China Southern Airlines Co and its competitors. According to the industry distribution chart, China Southern Airlines Co ranks #448 out of 991 companies in the Transportation industry, placing it in the top 45.2%.
Is China Southern Airlines Co's ROE % too high?
China Southern Airlines Co's current ROE % is 16.31%. The Transportation industry median ROE % is 7.62. China Southern Airlines Co's value of 16.31% is 114% above this industry median. Based on the distribution chart, China Southern Airlines Co ranks #448 out of 991 companies in the Transportation industry, which is above the industry midpoint. Overall, China Southern Airlines Co has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Southern Airlines Co's ROE % compare to DAL and UAL?
According to the Transportation industry distribution chart, China Southern Airlines Co ranks #448 out of 991 companies for ROE %. This puts China Southern Airlines Co in the upper half of its industry. The industry median ROE % is 7.62. China Southern Airlines Co's value of 16.31% is 114% 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 ROE % for a Transportation company?
The median ROE % among Transportation companies is 7.62, 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. China Southern Airlines Co's current ROE % of 16.31% is 114% 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 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 China Southern Airlines Co and its competitors. For the Transportation industry, the median ROE % is 7.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Southern Airlines Co's current ROE % is 16.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Southern Airlines Co stock overvalued right now?
Based on GuruFocus' analysis, China Southern Airlines Co (SHSE:600029) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥6.31, compared to a current price of ¥5.41 — trading 14.3% below its estimated fair value. The current ROE % is 16.31% and 114% above the Transportation industry median of 7.62. China Southern Airlines Co's overall GF Score™ is 64/100 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 China Southern Airlines Co (SHSE:600029), the current ROE % is 16.31% 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 Southern Airlines Co (SHSE:600029) Overvalued in 2026?
Based on GuruFocus' analysis, China Southern Airlines Co stock appears to be undervalued.
The current stock price of ¥5.41 is trading 14.3% below its estimated GF Value™ of ¥6.31.
GuruFocus considers China Southern Airlines Co to be Modestly Undervalued.
Key valuation signals for SHSE:600029:
ROE %: 16.31%
GF Value™: ¥6.31 vs. price of ¥5.41 (14.3% below fair value)
Industry Position: 114% above the Transportation median (#448 of 991)
No single metric tells the full story. See the SHSE:600029 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Southern Airlines Co Ltd is based in Guangzhou principally engaged in airline operations. The Group also operates certain airline-related businesses, including the provision of aircraft maintenance and air catering services. The Group has two reportable operating segments: airline transportation operations and other segments. Airline transportation operations comprise the Group's passenger and cargo, and mail operations. Other segments include cargo handling, hotel and tour operation, ground services, air catering services, and other miscellaneous services. Geographically, the company operates in the Domestic, Hong Kong, Macau, and Taiwan, and International markets.
64GF Score
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