Air China (Germany) Buy Hold or Sell Recommendation
| AD2 Stock | EUR 0.63 0.02 3.28% |
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding Air China Limited is 'Strong Sell'. Macroaxis provides Air China buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding AD2 positions.
Check out Air China Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as Air and provide practical buy, sell, or hold advice based on investors' constraints. Air China Limited. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Air |
Execute Air China Buy or Sell Advice
The Air recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Air China Limited. Macroaxis does not own or have any residual interests in Air China Limited or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Air China's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Solid | Details | |
Volatility | Out of control | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | About Average | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Air China Trading Alerts and Improvement Suggestions
| Air China Limited has some characteristics of a very speculative penny stock | |
| Air China Limited appears to be risky and price may revert if volatility continues | |
| Air China Limited has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations | |
| Air China Limited has accumulated 53.12 B in total debt with debt to equity ratio (D/E) of 121.5, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Air China Limited has a current ratio of 0.3, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Air China until it has trouble settling it off, either with new capital or with free cash flow. So, Air China's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Air China Limited sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Air to invest in growth at high rates of return. When we think about Air China's use of debt, we should always consider it together with cash and equity. | |
| The entity reported the revenue of 74.53 B. Net Loss for the year was (16.64 B) with loss before overhead, payroll, taxes, and interest of (11.36 B). | |
| About 63.0% of Air China shares are held by company insiders |
Air China Returns Distribution Density
The distribution of Air China's historical returns is an attempt to chart the uncertainty of Air China's future price movements. The chart of the probability distribution of Air China daily returns describes the distribution of returns around its average expected value. We use Air China Limited price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Air China returns is essential to provide solid investment advice for Air China.
| Mean Return | 1.05 | Value At Risk | -5.56 | Potential Upside | 8.47 | Standard Deviation | 4.75 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Air China historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Air China Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Air China or Industrials sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Air China's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Air stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 1.04 | |
β | Beta against Dow Jones | 0.02 | |
σ | Overall volatility | 4.68 | |
Ir | Information ratio | 0.21 |
Air China Volatility Alert
Air China Limited shows above-average downside volatility for the selected time horizon. Air China Limited is a potential penny stock. Although Air China may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Air China Limited. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Air instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.Air China Fundamentals Vs Peers
Comparing Air China's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Air China's direct or indirect competition across all of the common fundamentals between Air China and the related equities. This way, we can detect undervalued stocks with similar characteristics as Air China or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Air China's fundamental indicators could also be used in its relative valuation, which is a method of valuing Air China by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Air China to competition |
| Fundamentals | Air China | Peer Average |
| Return On Equity | -0.73 | -0.31 |
| Return On Asset | -0.0668 | -0.14 |
| Profit Margin | (0.58) % | (1.27) % |
| Operating Margin | (0.53) % | (5.51) % |
| Current Valuation | 44.9 B | 16.62 B |
| Shares Outstanding | 4.56 B | 571.82 M |
| Shares Owned By Insiders | 62.63 % | 10.09 % |
| Shares Owned By Institutions | 13.15 % | 39.21 % |
| Price To Earning | 13.20 X | 28.72 X |
| Price To Book | 2.73 X | 9.51 X |
| Price To Sales | 0.32 X | 11.42 X |
| Revenue | 74.53 B | 9.43 B |
| Gross Profit | (11.36 B) | 27.38 B |
| EBITDA | 4.6 B | 3.9 B |
| Net Income | (16.64 B) | 570.98 M |
| Cash And Equivalents | 1.01 B | 2.7 B |
| Cash Per Share | 0.07 X | 5.01 X |
| Total Debt | 53.12 B | 5.32 B |
| Debt To Equity | 121.50 % | 48.70 % |
| Current Ratio | 0.31 X | 2.16 X |
| Book Value Per Share | 2.42 X | 1.93 K |
| Cash Flow From Operations | 12.89 B | 971.22 M |
| Earnings Per Share | (0.35) X | 3.12 X |
| Price To Earnings To Growth | 4.35 X | 4.89 X |
| Number Of Employees | 88.39 K | 18.84 K |
| Beta | 0.94 | -0.15 |
| Market Capitalization | 21.97 B | 19.03 B |
| Total Asset | 298.42 B | 29.47 B |
| Annual Yield | 0.01 % | |
| Five Year Return | 1.54 % | |
| Net Asset | 298.42 B |
Air China Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Air . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Daily Balance Of Power | 9.2 T | |||
| Rate Of Daily Change | 1.03 | |||
| Day Median Price | 0.63 | |||
| Day Typical Price | 0.63 | |||
| Price Action Indicator | 0.01 | |||
| Period Momentum Indicator | 0.02 | |||
| Relative Strength Index | 56.92 |
About Air China Buy or Sell Advice
When is the right time to buy or sell Air China Limited? Buying financial instruments such as Air Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Other Information on Investing in Air Stock
Air China financial ratios help investors to determine whether Air Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Air with respect to the benefits of owning Air China security.