DELTA AIR LINES INC (DAL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DAL - US2473617023 - Common Stock
72.31 USD
+1.02 (+1.43%)
72.452 USD
+0.14 (+0.2%)
Taking everything into account, DAL scores 4 out of 10 in our fundamental rating. DAL was compared to 22 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 valuation in line with the averages, but it does not seem to be growing.
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
The Return On Assets of DAL (5.81%) is better than 86.36% of its industry peers.
With an excellent Return On Equity value of 24.60%, DAL belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.24%, DAL belongs to the top of the industry, outperforming 86.36% 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 81.82% of the companies in the same industry.
In the last couple of years the Profit Margin of DAL has declined.
Looking at the Operating Margin, with a value of 9.65%, DAL is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
DAL's Operating Margin has declined in the last couple of years.
DAL has a Gross Margin (50.76%) which is in line with 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DAL is destroying value.
The number of shares outstanding for DAL has been increased compared to 1 year ago.
DAL has more shares outstanding than it did 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 1.46. This is a bad value and indicates that DAL is not financially healthy and even has some risk of bankruptcy.
DAL has a better Altman-Z score (1.46) than 68.18% of its industry peers.
DAL has a debt to FCF ratio of 4.84. This is a neutral value as DAL would need 4.84 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.84, DAL belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that DAL is somewhat dependend on debt financing.
DAL has a better Debt to Equity ratio (0.68) than 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.84 | ||
| Altman-Z | 1.46 |
ROIC/WACC0.99
WACC9.29%
2.3 Liquidity
DAL has a Current Ratio of 0.40. 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 0.40, DAL is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
DAL has a Quick Ratio of 0.40. 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 0.34 is on the low side compared to the rest of the industry. DAL is outperformed by 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.48% over the past year.
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.
Looking at the last year, DAL shows a small growth in Revenue. The Revenue has grown by 4.33% in the last year.
Measured over the past years, DAL shows a small growth in Revenue. The Revenue has been growing by 5.57% on average per year.
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.
DAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.77% yearly.
EPS Next Y-3.62%
EPS Next 2Y8.31%
EPS Next 3Y9.63%
EPS Next 5Y-6.93%
Revenue Next Year3%
Revenue Next 2Y4.42%
Revenue Next 3Y4.67%
Revenue Next 5Y2.77%
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 decreasing.
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
Based on the Price/Earnings ratio of 11.82, the valuation of DAL can be described as reasonable.
DAL's Price/Earnings ratio is rather cheap when compared to the industry. DAL is cheaper than 86.36% of the companies in the same industry.
When comparing the Price/Earnings ratio of DAL to the average of the S&P500 Index (27.19), we can say DAL is valued rather cheaply.
A Price/Forward Earnings ratio of 10.01 indicates a reasonable valuation of DAL.
72.73% of the companies in the same industry are more expensive than DAL, based on the Price/Forward Earnings ratio.
DAL is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 10.01 |
4.2 Price Multiples
DAL's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DAL indicates a somewhat cheap valuation: DAL is cheaper than 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.36 | ||
| EV/EBITDA | 6.71 |
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 3Y9.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.08%, DAL has a reasonable but not impressive dividend return.
DAL's Dividend Yield is a higher than the industry average which is at 0.88.
Compared to an average S&P500 Dividend Yield of 1.94, DAL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
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.
The dividend of DAL decreased 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.
DAL's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP8.94%
EPS Next 2Y8.31%
EPS Next 3Y9.63%
72.31
+1.02 (+1.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners82.88%
Inst Owner Change0%
Ins Owners0.29%
Ins Owner Change-2.99%
Market Cap47.22B
Revenue(TTM)62.92B
Net Income(TTM)4.63B
Analysts83.57
Price Target75.3 (4.13%)
Short Float %3.42%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
Yearly Dividend0.5
Dividend Growth(5Y)-17.61%
DP8.94%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)3.97%
PT rev (3m)10.43%
EPS NQ rev (1m)-3.63%
EPS NQ rev (3m)-1.52%
EPS NY rev (1m)-1.8%
EPS NY rev (3m)2.56%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)1.56%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 10.01 | ||
| P/S | 0.75 | ||
| P/FCF | 15.36 | ||
| P/OCF | 5.92 | ||
| P/B | 2.51 | ||
| P/tB | 15.23 | ||
| EV/EBITDA | 6.71 |
EPS(TTM)6.12
EY8.46%
EPS(NY)7.23
Fwd EY9.99%
FCF(TTM)4.71
FCFY6.51%
OCF(TTM)12.22
OCFY16.89%
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 | 1.46 |
F-Score6
WACC9.29%
ROIC/WACC0.99
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-3.62%
EPS Next 2Y8.31%
EPS Next 3Y9.63%
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%
Revenue Next 2Y4.42%
Revenue Next 3Y4.67%
Revenue Next 5Y2.77%
EBIT growth 1Y8.43%
EBIT growth 3YN/A
EBIT growth 5Y-2.08%
EBIT Next Year37.65%
EBIT Next 3Y19.56%
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 4 / 10 to DAL.
What is the valuation status of DELTA AIR LINES INC (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 are the PE and PB ratios of DELTA AIR LINES INC (DAL) stock?
The Price/Earnings (PE) ratio for DELTA AIR LINES INC (DAL) is 11.82 and the Price/Book (PB) ratio is 2.51.
What is the financial health of DELTA AIR LINES INC (DAL) stock?
The financial health rating of DELTA AIR LINES INC (DAL) is 3 / 10.