DELTA AIR LINES INC (DAL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DAL - US2473617023 - Common Stock
71.27 USD
+1.46 (+2.09%)
71.1 USD
-0.17 (-0.24%)
Overall DAL gets a fundamental rating of 5 out of 10. We evaluated DAL against 21 industry peers in the Passenger Airlines industry. DAL has only an average score on both its financial health and profitability. DAL has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
DAL had positive earnings in the past year.
DAL had a positive operating cash flow in the past year.
DAL had positive earnings in 4 of the past 5 years.
Of the past 5 years DAL 4 years had a positive operating cash flow.
1.2 Ratios
DAL has a Return On Assets of 5.81%. This is amongst the best in the industry. DAL outperforms 85.71% of its industry peers.
DAL has a Return On Equity of 24.60%. This is amongst the best in the industry. DAL outperforms 85.71% of its industry peers.
With an excellent Return On Invested Capital value of 9.24%, DAL belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DAL is in line with the industry average of 8.38%.
The 3 year average ROIC (8.72%) for DAL is below the current ROIC(9.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.81% | ||
| ROE | 24.6% | ||
| ROIC | 9.24% |
ROA(3y)4.22%
ROA(5y)-0.83%
ROE(3y)28.04%
ROE(5y)-143.21%
ROIC(3y)8.72%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 7.36%, DAL belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
DAL's Profit Margin has declined in the last couple of years.
DAL's Operating Margin of 9.65% is fine compared to the rest of the industry. DAL outperforms 76.19% of its industry peers.
DAL's Operating Margin has declined in the last couple of years.
DAL's Gross Margin of 50.76% is in line compared to the rest of the industry. DAL outperforms 42.86% of its industry peers.
In the last couple of years the Gross Margin of DAL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.65% | ||
| PM (TTM) | 7.36% | ||
| GM | 50.76% |
OM growth 3YN/A
OM growth 5Y-7.25%
PM growth 3Y81.6%
PM growth 5Y-11.17%
GM growth 3Y9.2%
GM growth 5Y-1.79%
2. Health
2.1 Basic Checks
DAL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for DAL has been increased compared to 1 year ago.
Compared to 5 years ago, DAL has more shares outstanding
The debt/assets ratio for DAL has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.45, we must say that DAL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.45, DAL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of DAL is 4.84, which is a neutral value as it means it would take DAL, 4.84 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DAL (4.84) is better than 90.48% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that DAL is somewhat dependend on debt financing.
DAL's Debt to Equity ratio of 0.68 is amongst the best of the industry. DAL outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.84 | ||
| Altman-Z | 1.45 |
ROIC/WACC1.02
WACC9.08%
2.3 Liquidity
A Current Ratio of 0.40 indicates that DAL may have some problems paying its short term obligations.
With a Current ratio value of 0.40, DAL is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
A Quick Ratio of 0.34 indicates that DAL may have some problems paying its short term obligations.
DAL has a Quick ratio of 0.34. This is in the lower half of the industry: DAL underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
DAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.48%, which is quite good.
Measured over the past years, DAL shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.42% on average per year.
The Revenue has been growing slightly by 4.33% in the past year.
The Revenue has been growing slightly by 5.57% on average over the past years.
EPS 1Y (TTM)9.48%
EPS 3Y129.66%
EPS 5Y-3.42%
EPS Q2Q%14%
Revenue 1Y (TTM)4.33%
Revenue growth 3Y27.27%
Revenue growth 5Y5.57%
Sales Q2Q%4.13%
3.2 Future
DAL is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.93% yearly.
The Revenue is expected to grow by 2.77% on average over the next years.
EPS Next Y-1.85%
EPS Next 2Y8.31%
EPS Next 3Y9.18%
EPS Next 5Y-6.93%
Revenue Next Year3.2%
Revenue Next 2Y4.49%
Revenue Next 3Y4.69%
Revenue Next 5Y2.77%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.65, which indicates a very decent valuation of DAL.
Based on the Price/Earnings ratio, DAL is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
DAL is valuated cheaply when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.86, the valuation of DAL can be described as very reasonable.
Based on the Price/Forward Earnings ratio, DAL is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.78. DAL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 9.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DAL is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DAL indicates a somewhat cheap valuation: DAL is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.14 | ||
| EV/EBITDA | 6.6 |
4.3 Compensation for Growth
The decent profitability rating of DAL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.31%
EPS Next 3Y9.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.06%, DAL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.81, DAL pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.06, DAL pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
5.2 History
The dividend of DAL decreases each year by -17.61%.
DAL has paid a dividend for at least 10 years, which is a reliable track record.
DAL has decreased its dividend recently.
Dividend Growth(5Y)-17.61%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
8.94% of the earnings are spent on dividend by DAL. This is a low number and sustainable payout ratio.
The Dividend Rate of DAL has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP8.94%
EPS Next 2Y8.31%
EPS Next 3Y9.18%
71.27
+1.46 (+2.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners82.83%
Inst Owner Change-0.47%
Ins Owners0.33%
Ins Owner Change-1.77%
Market Cap46.54B
Revenue(TTM)62.92B
Net Income(TTM)4.63B
Analysts83.57
Price Target72.48 (1.7%)
Short Float %2.54%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Yearly Dividend0.5
Dividend Growth(5Y)-17.61%
DP8.94%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.89%
Min EPS beat(2)1.25%
Max EPS beat(2)10.53%
EPS beat(4)4
Avg EPS beat(4)8.85%
Min EPS beat(4)1.25%
Max EPS beat(4)19.21%
EPS beat(8)6
Avg EPS beat(8)7.83%
EPS beat(12)9
Avg EPS beat(12)5.77%
EPS beat(16)11
Avg EPS beat(16)6.97%
Revenue beat(2)0
Avg Revenue beat(2)-0.42%
Min Revenue beat(2)-0.79%
Max Revenue beat(2)-0.05%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-1%
Max Revenue beat(4)0.8%
Revenue beat(8)2
Avg Revenue beat(8)-0.64%
Revenue beat(12)4
Avg Revenue beat(12)0.66%
Revenue beat(16)8
Avg Revenue beat(16)1.44%
PT rev (1m)0.07%
PT rev (3m)6.3%
EPS NQ rev (1m)-7.18%
EPS NQ rev (3m)2.27%
EPS NY rev (1m)-0.92%
EPS NY rev (3m)5.11%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)2.15%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 9.86 | ||
| P/S | 0.74 | ||
| P/FCF | 15.14 | ||
| P/OCF | 5.83 | ||
| P/B | 2.47 | ||
| P/tB | 15.01 | ||
| EV/EBITDA | 6.6 |
EPS(TTM)6.12
EY8.59%
EPS(NY)7.23
Fwd EY10.14%
FCF(TTM)4.71
FCFY6.61%
OCF(TTM)12.22
OCFY17.14%
SpS96.36
BVpS28.83
TBVpS4.75
PEG (NY)N/A
PEG (5Y)N/A
Graham Number63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.81% | ||
| ROE | 24.6% | ||
| ROCE | 11.82% | ||
| ROIC | 9.24% | ||
| ROICexc | 9.98% | ||
| ROICexgc | 14.9% | ||
| OM | 9.65% | ||
| PM (TTM) | 7.36% | ||
| GM | 50.76% | ||
| FCFM | 4.89% |
ROA(3y)4.22%
ROA(5y)-0.83%
ROE(3y)28.04%
ROE(5y)-143.21%
ROIC(3y)8.72%
ROIC(5y)N/A
ROICexc(3y)9.58%
ROICexc(5y)N/A
ROICexgc(3y)15.08%
ROICexgc(5y)N/A
ROCE(3y)11.15%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y-4.42%
ROICexc growth 3YN/A
ROICexc growth 5Y-3.95%
OM growth 3YN/A
OM growth 5Y-7.25%
PM growth 3Y81.6%
PM growth 5Y-11.17%
GM growth 3Y9.2%
GM growth 5Y-1.79%
F-Score6
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.84 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 195.07% | ||
| Cap/Sales | 7.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.91% | ||
| Profit Quality | 66.39% | ||
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 1.45 |
F-Score6
WACC9.08%
ROIC/WACC1.02
Cap/Depr(3y)244.69%
Cap/Depr(5y)195.74%
Cap/Sales(3y)10.03%
Cap/Sales(5y)10.41%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.48%
EPS 3Y129.66%
EPS 5Y-3.42%
EPS Q2Q%14%
EPS Next Y-1.85%
EPS Next 2Y8.31%
EPS Next 3Y9.18%
EPS Next 5Y-6.93%
Revenue 1Y (TTM)4.33%
Revenue growth 3Y27.27%
Revenue growth 5Y5.57%
Sales Q2Q%4.13%
Revenue Next Year3.2%
Revenue Next 2Y4.49%
Revenue Next 3Y4.69%
Revenue Next 5Y2.77%
EBIT growth 1Y8.43%
EBIT growth 3YN/A
EBIT growth 5Y-2.08%
EBIT Next Year37.95%
EBIT Next 3Y19.62%
EBIT Next 5Y16.47%
FCF growth 1Y159.19%
FCF growth 3Y453.65%
FCF growth 5Y-3.73%
OCF growth 1Y12.23%
OCF growth 3Y34.97%
OCF growth 5Y-0.97%
DELTA AIR LINES INC / DAL FAQ
What is the fundamental rating for DAL stock?
ChartMill assigns a fundamental rating of 5 / 10 to DAL.
What is the valuation status for DAL stock?
ChartMill assigns a valuation rating of 6 / 10 to DELTA AIR LINES INC (DAL). This can be considered as Fairly Valued.
How profitable is DELTA AIR LINES INC (DAL) stock?
DELTA AIR LINES INC (DAL) has a profitability rating of 6 / 10.
What is the valuation of DELTA AIR LINES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DELTA AIR LINES INC (DAL) is 11.65 and the Price/Book (PB) ratio is 2.47.
What is the earnings growth outlook for DELTA AIR LINES INC?
The Earnings per Share (EPS) of DELTA AIR LINES INC (DAL) is expected to decline by -1.85% in the next year.