DELTA AIR LINES INC (DAL)
US2473617023 - Common Stock
Overall DAL gets a fundamental rating of 5 out of 10. We evaluated DAL 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
In the past year DAL was profitable.
DAL had positive earnings in 4 of the past 5 years.
DAL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DAL has a Return On Assets of 6.68%. This is amongst the best in the industry. DAL outperforms 91.67% of its industry peers.
With an excellent Return On Equity value of 44.92%, DAL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
With an excellent Operating Margin value of 10.86%, DAL belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Operating Margin of DAL has remained more or less at the same level.
DAL has a Gross Margin (50.56%) which is in line with its industry peers.
DAL's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DAL is creating some value.
Compared to 1 year ago, DAL has more shares outstanding
DAL has less shares outstanding than it did 5 years ago.
DAL has a better debt/assets ratio than last year.
2.2 Solvency
DAL has an Altman-Z score of 1.21. This is a bad value and indicates that DAL is not financially healthy and even has some risk of bankruptcy.
DAL has a Altman-Z score (1.21) which is in line with its industry peers.
A Debt/Equity ratio of 1.48 is on the high side and indicates that DAL has dependencies on debt financing.
DAL's Debt to Equity ratio of 1.48 is in line compared to the rest of the industry. DAL outperforms 45.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.21 |
ROIC/WACC1.2
WACC8.67%
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.
DAL has a Current ratio of 0.41. This is in the lower half of the industry: DAL underperforms 79.17% of its industry peers.
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's Quick ratio of 0.36 is on the low side compared to the rest of the industry. DAL is outperformed by 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.
DAL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.34%.
Measured over the past years, DAL shows a small growth in Revenue. The Revenue has been growing by 5.49% on average per year.
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 Q2Q7.75%
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 9.77% yearly.
The Revenue is expected to grow by 2.65% on average over the next years.
EPS Next Y4.32%
EPS Next 2Y9.99%
EPS Next 3Y11.72%
EPS Next 5Y9.77%
Revenue Next Year4.62%
Revenue Next 2Y4.74%
Revenue Next 3Y4.54%
Revenue Next 5Y2.65%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 7.75, which indicates a rather cheap valuation of DAL.
Based on the Price/Earnings ratio, DAL is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.92, DAL is valued rather cheaply.
The Price/Forward Earnings ratio is 6.61, which indicates a rather cheap valuation of DAL.
DAL's Price/Forward Earnings ratio is rather cheap when compared to the industry. DAL is cheaper than 87.50% of the companies in the same industry.
DAL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 6.61 |
4.2 Price Multiples
DAL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DAL is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.31 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of DAL may justify a higher PE ratio.
PEG (NY)1.79
PEG (5Y)3.8
EPS Next 2Y9.99%
EPS Next 3Y11.72%
5. Dividend
5.1 Amount
DAL has a yearly dividend return of 0.84%, which is pretty low.
Compared to an average industry Dividend Yield of 6.91, DAL pays a better dividend. On top of this DAL pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, DAL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
The dividend of DAL decreases each year by -27.81%.
DAL has been paying a dividend for at least 10 years, so it has 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 (4/26/2024, 7:04:00 PM)
After market: 49.87 -0.05 (-0.1%)49.92
+0.04 (+0.08%)
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 Cap32.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 7.75 | ||
| Fwd PE | 6.61 | ||
| 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)1.79
PEG (5Y)3.8
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