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China Southern Airlines Company Limited (1055) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

China Southern Airlines Company Limited

1055Market cap $12BPrice $0.4

Country🇨🇳China

SectorIndustrials

IndustryAirlines

Flies more passengers than any other airline in Asia, moving over 150 million people a year across China's vast domestic network and beyond. It's the backbone of China's air travel, even though tight margins keep profits razor-thin.

In Bastion Portfolios?

52W Return-35%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+27%10

Revenue Forecast

Rev CAGR (1y)+14%7

Rev CAGR (3y)+6%5

Rev CAGR (5y)+5%4

Earnings Forecast

EPS Growth Y+1Loss1

EPS Growth Y+20%5

EPS Growth Y+3+204%10

Quality

Margins

EBIT Margin2%2

Net Income Margin-1%2

Free Cash Flow Margin2%3

Debt

Net Debt/EBITDA6.81

Efficiency

ROE-4%2

ROA0%2

Earnings Stability22

GEAR+WEAK24

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)810

P/E Ratio (Forward 3y)610

P/BV2.66

EV Multiples

EV/EBITDA Fwd116

EV/EBIT Fwdna–

Yield

Free Cash Flow Yield5.1%6

Dividend Yieldna–

Momentum

Short term

1 month return-7%4

3 month return-17%2

YTD return-51%1

Mid term

Price vs 52wHigh43%1

1 year return-28%2

Long term

3 year return-27%1

5 year return-39%2

Risk Shield

Price Risk

Beta0.39

Volatility44%4

Free Cash Flow

Free Cash Flow Margin2%3

Free Cash Flow Yield5.1%6

Quality

ROCE2%2

Earnings Stability22

Net Debt/EBITDA6.81

02Growth

Is it actually growing, and how fast?

1055China Southern Airlines Company

Revenue FY25$26.1B

GROWTH RATING↗

AVERAGE51 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+27%10

Revenue, next 1Y+14%7

Revenue, next 3Y, CAGR+6%5

Revenue, next 5Y, CAGR+5%4

EARNINGS FORECAST▾SCORE

EPS growth, FY26ELoss1

EPS growth, FY27E0%5

EPS growth, FY28E+204%10

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 27%/yr over the last 3 years, ahead of 90% of companies worldwide.10/10

WATCH

A mid-pack grower, ahead of 51% of companies worldwide.

Revenue is set to grow 6%/yr over the next 3 years, in line with the market.5/10

Revenue grew 27%/yr over the last 3 years; forecasts see it cooling to 6%/yr.

Over five years revenue is set to grow 5%/yr, behind 60% of companies worldwide.4/10

WEAKNESSES

The company is loss-making, so its revenue growth is not backed by profit yet.

BOTTOM LINE

Top-Line Rocket

A middle-of-the-pack grower that is slowing. The one thing to watch: the company is not profitable yet.

03Price Momentum

Is the market behind it right now?

1055China Southern Airlines Company

Total return Current−26.2%

Price return Current−29.8%

MOMENTUM RATING↗

VERY WEAK5 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-7%4

3-month return-17%2

YTD return-51%1

MID & LONG-TERM▾SCORE

% of 52-week high43%1

1-year return-28%2

3-year return-27%1

5-year return-39%2

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Returns sit at the market level over the past month (-7%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-27% over three years and -39% over five), behind 80% of the market.

It's down 28% over the past year, now 57% below its 52-week high. That is lagging the market.

The stock is underperforming over three months (-17%) and so far this year (-51%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on China Southern. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

1055China Southern Airlines Company

Revenue FY25$26.1B

GROWTH RATING↗

AVERAGE51 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+27%10

Revenue, next 1Y+14%7

Revenue, next 3Y, CAGR+6%5

Revenue, next 5Y, CAGR+5%4

EARNINGS FORECAST▾SCORE

EPS growth, FY26ELoss1

EPS growth, FY27E0%5

EPS growth, FY28E+204%10

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 27%/yr over the last 3 years, ahead of 90% of companies worldwide.10/10

WATCH

A mid-pack grower, ahead of 51% of companies worldwide.

Revenue is set to grow 6%/yr over the next 3 years, in line with the market.5/10

Revenue grew 27%/yr over the last 3 years; forecasts see it cooling to 6%/yr.

Over five years revenue is set to grow 5%/yr, behind 60% of companies worldwide.4/10

WEAKNESSES

The company is loss-making, so its revenue growth is not backed by profit yet.

BOTTOM LINE

Top-Line Rocket

A middle-of-the-pack grower that is slowing. The one thing to watch: the company is not profitable yet.

03Price Momentum

Is the market behind it right now?

1055China Southern Airlines Company

Total return Current−26.2%

Price return Current−29.8%

MOMENTUM RATING↗

VERY WEAK5 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-7%4

3-month return-17%2

YTD return-51%1

MID & LONG-TERM▾SCORE

% of 52-week high43%1

1-year return-28%2

3-year return-27%1

5-year return-39%2

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Returns sit at the market level over the past month (-7%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-27% over three years and -39% over five), behind 80% of the market.

It's down 28% over the past year, now 57% below its 52-week high. That is lagging the market.

The stock is underperforming over three months (-17%) and so far this year (-51%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on China Southern. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community