DELTA AIR LINES INC (DAL) Stock Fundamental Analysis
NYSE:DAL - New York Stock Exchange, Inc. - US2473617023 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to DAL. DAL was compared to 23 industry peers in the Passenger Airlines industry. DAL has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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
In the past year DAL was profitable.
DAL had a positive operating cash flow in the past year.
Of the past 5 years DAL 4 years were profitable.
Of the past 5 years DAL 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.73%, DAL belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
With an excellent Return On Equity value of 23.69%, DAL belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
The Return On Invested Capital of DAL (9.77%) is better than 82.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DAL is below the industry average of 11.08%.
The last Return On Invested Capital (9.77%) for DAL is above the 3 year average (8.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 23.69% | ||
| ROIC | 9.77% |
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
The Profit Margin of DAL (5.91%) is better than 78.26% of its industry peers.
In the last couple of years the Profit Margin of DAL has declined.
DAL has a Operating Margin of 9.61%. This is in the better half of the industry: DAL outperforms 65.22% of its industry peers.
DAL's Operating Margin has declined in the last couple of years.
DAL's Gross Margin of 50.63% is in line compared to the rest of the industry. DAL outperforms 47.83% of its industry peers.
In the last couple of years the Gross Margin of DAL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.61% | ||
| PM (TTM) | 5.91% | ||
| GM | 50.63% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DAL is creating some value.
DAL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, DAL has more shares outstanding
Compared to 1 year ago, DAL has an improved debt to assets ratio.
2.2 Solvency
DAL has an Altman-Z score of 1.25. This is a bad value and indicates that DAL is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.25, DAL is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
The Debt to FCF ratio of DAL is 5.60, which is a neutral value as it means it would take DAL, 5.60 years of fcf income to pay off all of its debts.
DAL has a Debt to FCF ratio of 5.60. This is amongst the best in the industry. DAL outperforms 86.96% of its industry peers.
A Debt/Equity ratio of 0.83 indicates that DAL is somewhat dependend on debt financing.
DAL's Debt to Equity ratio of 0.83 is fine compared to the rest of the industry. DAL outperforms 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 1.25 |
ROIC/WACC1.12
WACC8.74%
2.3 Liquidity
A Current Ratio of 0.38 indicates that DAL may have some problems paying its short term obligations.
The Current ratio of DAL (0.38) is worse than 78.26% of its industry peers.
A Quick Ratio of 0.33 indicates that DAL may have some problems paying its short term obligations.
The Quick ratio of DAL (0.33) is worse than 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
The earnings per share for DAL have decreased by -4.19% in the last year.
DAL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.42% yearly.
The Revenue has been growing slightly by 4.91% in the past year.
DAL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.57% yearly.
EPS 1Y (TTM)-4.19%
EPS 3Y129.73%
EPS 5Y-3.42%
EPS Q2Q%2.22%
Revenue 1Y (TTM)4.91%
Revenue growth 3Y27.27%
Revenue growth 5Y5.57%
Sales Q2Q%3.3%
3.2 Future
The Earnings Per Share is expected to grow by 11.61% on average over the next years. This is quite good.
Based on estimates for the next years, DAL will show a small growth in Revenue. The Revenue will grow by 2.98% on average per year.
EPS Next Y-11.59%
EPS Next 2Y3.67%
EPS Next 3Y7.15%
EPS Next 5Y11.61%
Revenue Next Year0.78%
Revenue Next 2Y3.46%
Revenue Next 3Y3.91%
Revenue Next 5Y2.98%
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.
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
DAL is valuated reasonably with a Price/Earnings ratio of 8.10.
Compared to the rest of the industry, the Price/Earnings ratio of DAL indicates a rather cheap valuation: DAL is cheaper than 82.61% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, DAL is valued rather cheaply.
A Price/Forward Earnings ratio of 7.55 indicates a rather cheap valuation of DAL.
Based on the Price/Forward Earnings ratio, DAL is valued a bit cheaper than 69.57% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, DAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 7.55 |
4.2 Price Multiples
DAL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DAL is cheaper than 69.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DAL is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.56 | ||
| EV/EBITDA | 5.38 |
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 2Y3.67%
EPS Next 3Y7.15%
5. Dividend
5.1 Amount
DAL has a Yearly Dividend Yield of 1.19%.
Compared to an average industry Dividend Yield of 2.85, DAL pays a better dividend. On top of this DAL pays more dividend than 82.61% of the companies listed in the same industry.
With a Dividend Yield of 1.19, DAL pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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
9.73% of the earnings are spent on dividend by DAL. This is a low number and sustainable payout ratio.
DP9.73%
EPS Next 2Y3.67%
EPS Next 3Y7.15%
49.98
-1.21 (-2.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners82.96%
Inst Owner Change1.93%
Ins Owners0.35%
Ins Owner Change14.81%
Market Cap32.63B
Analysts81.48
Price Target58.24 (16.53%)
Short Float %3.41%
Short Ratio1.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Yearly Dividend0.5
Dividend Growth(5Y)-17.61%
DP9.73%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.81%
Min EPS beat(2)4.41%
Max EPS beat(2)19.21%
EPS beat(4)2
Avg EPS beat(4)4.98%
Min EPS beat(4)-2.51%
Max EPS beat(4)19.21%
EPS beat(8)6
Avg EPS beat(8)8.08%
EPS beat(12)7
Avg EPS beat(12)3.13%
EPS beat(16)11
Avg EPS beat(16)12.58%
Revenue beat(2)1
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-1%
Max Revenue beat(2)0.8%
Revenue beat(4)1
Avg Revenue beat(4)-0.75%
Min Revenue beat(4)-1.52%
Max Revenue beat(4)0.8%
Revenue beat(8)2
Avg Revenue beat(8)-0.68%
Revenue beat(12)6
Avg Revenue beat(12)1.52%
Revenue beat(16)10
Avg Revenue beat(16)2.82%
PT rev (1m)-25.77%
PT rev (3m)-29.81%
EPS NQ rev (1m)-0.78%
EPS NQ rev (3m)-28.95%
EPS NY rev (1m)0.89%
EPS NY rev (3m)-28.48%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-6.02%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-6.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 7.55 | ||
| P/S | 0.53 | ||
| P/FCF | 11.56 | ||
| P/OCF | 4.08 | ||
| P/B | 2.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.38 |
EPS(TTM)6.17
EY12.34%
EPS(NY)6.62
Fwd EY13.25%
FCF(TTM)4.32
FCFY8.65%
OCF(TTM)12.24
OCFY24.5%
SpS94.85
BVpS23.66
TBVpS-0.43
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.73% | ||
| ROE | 23.69% | ||
| ROCE | 12.49% | ||
| ROIC | 9.77% | ||
| ROICexc | 10.59% | ||
| ROICexgc | 16.5% | ||
| OM | 9.61% | ||
| PM (TTM) | 5.91% | ||
| GM | 50.63% | ||
| FCFM | 4.56% |
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
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.6 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 205.77% | ||
| Cap/Sales | 8.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.47% | ||
| Profit Quality | 77.16% | ||
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 1.25 |
F-Score6
WACC8.74%
ROIC/WACC1.12
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)-4.19%
EPS 3Y129.73%
EPS 5Y-3.42%
EPS Q2Q%2.22%
EPS Next Y-11.59%
EPS Next 2Y3.67%
EPS Next 3Y7.15%
EPS Next 5Y11.61%
Revenue 1Y (TTM)4.91%
Revenue growth 3Y27.27%
Revenue growth 5Y5.57%
Sales Q2Q%3.3%
Revenue Next Year0.78%
Revenue Next 2Y3.46%
Revenue Next 3Y3.91%
Revenue Next 5Y2.98%
EBIT growth 1Y-7.19%
EBIT growth 3YN/A
EBIT growth 5Y-2.08%
EBIT Next Year47.35%
EBIT Next 3Y17.4%
EBIT Next 5YN/A
FCF growth 1Y130.16%
FCF growth 3Y453.65%
FCF growth 5Y-3.73%
OCF growth 1Y17.11%
OCF growth 3Y34.97%
OCF growth 5Y-0.97%