China Airlines, Ltd. (2610.TW) stock analysis

In our weekly check, China Airlines, Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 7, red flags: 3.

About China Airlines, Ltd.

China Airlines, Ltd. is an Industrials company (Airlines, Airports & Air Services) based in Taiwan, listed on TAI as 2610.TW.

What our checks show for 2610.TW

Red flags

• Free cash flow is negative (-6% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 80% from a peak. Would you have held through that?
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Net debt is 1.5x a year of EBITDA (debt/equity 1.24). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 0.9 points over 5 years, to 5.9%: the company keeps less of each sale as profit.
• Analysts expect only about 3.3% a year of growth in revenue.
• The net margin is only 5.9%: little room if costs rise.
• Recovering from its deepest fall took about 1.6 years.
• The share count grew by 10.8% in 2 years: each shareholder owns a smaller slice.
• Return on capital (ROCE) is only 7.1%.

Strengths

• Operating cash flow is 4.07x net profit: the profit arrives as real cash.
• Earnings per share grew 80.6% a year over the last 3 years.
• Net profit grew 80.7% a year over the last 3 years.
• The dividend takes 37% of profit: there is a cushion.
• The price is 9.2 times earnings (P/E), reasonable for its growth.
• Beta 0.32: the stock usually moves less than the market.

Next earnings report: 2026-11-11

Similar companies

2618.TW · DAL · THYAO.IS · AENA.MC · UAL · SWIGGY.BO

Questions

What grade does China Airlines, Ltd. (2610.TW) have?

In our weekly check, China Airlines, Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 7, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 2610.TW stock?

This week's biggest flags for China Airlines, Ltd.: Weak free cash flow, Deep past fall, Heavy stock pay. In total 10 of 25 checks show a warning or a red flag.

What does China Airlines, Ltd. do?

China Airlines, Ltd. is an Industrials company (Airlines, Airports & Air Services) based in Taiwan, listed on TAI as 2610.TW.

When does China Airlines, Ltd. report earnings next?

The next earnings report is expected on 2026-11-11. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

Open the full analysis