DELTA AIR LINES INC (DAL)
US2473617023 - Common Stock
DAL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 24 industry peers in the Passenger Airlines industry. While DAL is still in line with the averages on profitability rating, there are concerns on its financial health. DAL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
DAL had positive earnings in the past year.
Of the past 5 years DAL 4 years were profitable.
DAL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DAL's Return On Assets of 6.68% is amongst the best of the industry. DAL outperforms 91.67% of its industry peers.
DAL has a Return On Equity of 44.92%. This is amongst the best in the industry. DAL outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 10.41%, DAL belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.68% | ||
| ROE | 44.92% | ||
| ROIC | 10.41% |
ROA(3y)2.82%
ROA(5y)-0.27%
ROE(3y)22.91%
ROE(5y)-141.52%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
DAL's Profit Margin of 8.48% is amongst the best of the industry. DAL outperforms 91.67% of its industry peers.
DAL's Profit Margin has declined in the last couple of years.
DAL has a better Operating Margin (10.86%) than 87.50% of its industry peers.
DAL's Operating Margin has been stable in the last couple of years.
DAL has a Gross Margin of 50.56%. This is comparable to the rest of the industry: DAL outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of DAL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.86% | ||
| PM (TTM) | 8.48% | ||
| GM | 50.56% |
OM growth 3YN/A
OM growth 5Y-1.27%
PM growth 3YN/A
PM growth 5Y-2.16%
GM growth 3Y23.18%
GM growth 5Y-0.72%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DAL is still creating some value.
DAL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DAL has been reduced compared to 5 years ago.
Compared to 1 year ago, DAL has an improved debt to assets ratio.
2.2 Solvency
DAL has an Altman-Z score of 1.22. This is a bad value and indicates that DAL is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.22, DAL is doing good in the industry, outperforming 62.50% of the companies in the same industry.
DAL has a Debt/Equity ratio of 1.48. This is a high value indicating a heavy dependency on external financing.
DAL has a Debt to Equity ratio of 1.48. This is comparable to the rest of the industry: DAL outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.22 |
ROIC/WACC1.3
WACC8.01%
2.3 Liquidity
DAL has a Current Ratio of 0.41. This is a bad value and indicates that DAL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.41, DAL is not doing good in the industry: 79.17% of the companies in the same industry are doing better.
DAL has a Quick Ratio of 0.41. This is a bad value and indicates that DAL is not financially healthy enough and could expect problems in meeting its short term obligations.
DAL has a worse Quick ratio (0.36) than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
DAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.61%, which is quite impressive.
Measured over the past 5 years, DAL shows a small growth in Earnings Per Share. The EPS has been growing by 2.04% on average per year.
Looking at the last year, DAL shows a quite strong growth in Revenue. The Revenue has grown by 9.34% in the last year.
DAL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.49% yearly.
EPS 1Y (TTM)37.61%
EPS 3YN/A
EPS 5Y2.04%
EPS growth Q2Q80%
Revenue 1Y (TTM)9.34%
Revenue growth 3Y50.3%
Revenue growth 5Y5.49%
Revenue growth Q2Q-1.54%
3.2 Future
DAL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.27% yearly.
DAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.72% yearly.
EPS Next Y4.32%
EPS Next 2Y9.99%
EPS Next 3Y11.72%
EPS Next 5Y12.27%
Revenue Next Year4.62%
Revenue Next 2Y4.74%
Revenue Next 3Y4.54%
Revenue Next 5Y2.72%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DAL is valuated reasonably with a Price/Earnings ratio of 8.18.
Compared to the rest of the industry, the Price/Earnings ratio of DAL indicates a rather cheap valuation: DAL is cheaper than 83.33% of the companies listed in the same industry.
DAL is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.98, which indicates a rather cheap valuation of DAL.
75.00% of the companies in the same industry are more expensive than DAL, based on the Price/Forward Earnings ratio.
DAL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 6.98 |
4.2 Price Multiples
DAL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DAL is cheaper than 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of DAL may justify a higher PE ratio.
PEG (NY)1.89
PEG (5Y)4.01
EPS Next 2Y9.99%
EPS Next 3Y11.72%
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, DAL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.79, DAL pays a better dividend. On top of this DAL pays more dividend than 83.33% of the companies listed in the same industry.
With a Dividend Yield of 0.76, DAL pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
The dividend of DAL decreases each year by -27.81%.
DAL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-27.81%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
3.83% of the earnings are spent on dividend by DAL. This is a low number and sustainable payout ratio.
DP3.83%
EPS Next 2Y9.99%
EPS Next 3Y11.72%
DELTA AIR LINES INC
NYSE:DAL (5/17/2024, 7:04:00 PM)
After market: 52.55 -0.15 (-0.28%)52.7
+0.19 (+0.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap34.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 6.98 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.89
PEG (5Y)4.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.68% | ||
| ROE | 44.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.86% | ||
| PM (TTM) | 8.48% | ||
| GM | 50.56% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)37.61%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y4.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.34%
Revenue growth 3Y50.3%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y