China Southern Airlines Co., Ltd.
China Southern Airlines Co., Ltd. is one of the largest airline companies in Asia, providing extensive air transportation services both domestically and internationally. As a prominent air carrier, its primary purpose is to facilitate the movement of passengers and cargo across various continents, connecting China with the rest of the world. The airline operates in numerous sectors, including passenger air travel, air cargo, and related aviation services. Known for its vast route network, China Southern Airlines serves destinations across Asia, Europe, the Americas, and Australia, making it a critical player in the global aviation industry. The company boasts a modern fleet of aircraft, maintaining strategic partnerships and alliances to enhance its operational reach. Headquartered in Guangzhou, it plays a significant role in supporting the economic growth in regions it serves by improving connectivity and accessibility. In the financial market, China Southern Airlines is recognized for its contributions to the travel and tourism sector, influencing related industries such as hospitality, commerce, and infrastructure development. Its significance is underscored by its capacity to facilitate international trade, boost tourism, and support the aviation industry's framework through innovation and service excellence.
¥4.70
+¥0.02 (+0.43%)
Price from 2 days ago
Operating margin is thin at 4.84%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 4.6%, steady but not accelerating.
At 94x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Net debt of ¥201.35B represents 9.8x FCF, leverage limits flexibility.
94.0x earnings, 4.9x FCF. The market is pricing in years of above-average growth. If that thesis breaks, downside from multiple compression alone could be 30%+. This is a stock where you're paying for the future, not the present.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (FY)
¥182.26B
▲ +4.6% YoY
Net Income (FY)
¥2.69B
▲ +1643.5% YoY
Op. Margin
4.84%
▲ +1.6pp YoY
ROIC
1.84%
▲ +0.8pp YoY
Cash Flow & Balance Sheet
FCF (FY)
¥20.44B
▲ +33.6% YoY
Op. Cash Flow (FY)
¥38.21B
▲ +27.8% YoY
Net Debt
¥201.35B
Cash & Equiv.
¥19.83B
3Y CAGR: +27.9%
Continue Research
Is China Southern Airlines Co. (CHKIF) overvalued?
At a P/E of 94.0 and a price-to-free-cash-flow of 4.9, China Southern Airlines Co. (CHKIF) trades below a two-stage DCF intrinsic value of about CNY 7.23 per share, so at CNY 4.70 the stock looks undervalued (53.8% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, China Southern Airlines Co. scores 49/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is China Southern Airlines Co.'s fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about CNY 7.23 per share for CHKIF, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around CNY 5.42. At today's CNY 4.70, that puts the stock about 53.8% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is China Southern Airlines Co. a high-quality business?+
China Southern Airlines Co. scores 49 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 4.8% operating margin and a 1.8% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Is China Southern Airlines Co. a good stock to buy right now?+
That depends on valuation and quality together, not either alone. CHKIF currently trades below its estimated intrinsic value and scores 49/100 on quality (mixed). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.
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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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