DELTA AIR LINES INC (DAL) Stock Fundamental Analysis
USA - NYSE:DAL - US2473617023 - Common Stock
56.74 USD
-0.97 (-1.68%)
56.84 USD
+0.1 (+0.18%)
Taking everything into account, DAL scores 4 out of 10 in our fundamental rating. DAL was compared to 21 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
DAL had positive earnings in the past year.
In the past year DAL had a positive cash flow from operations.
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's Return On Assets of 5.72% is amongst the best of the industry. DAL outperforms 85.71% of its industry peers.
The Return On Equity of DAL (25.72%) is better than 90.48% of its industry peers.
DAL has a Return On Invested Capital of 9.08%. This is amongst the best in the industry. DAL outperforms 80.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DAL is significantly below the industry average of 14.49%.
The last Return On Invested Capital (9.08%) for DAL is above the 3 year average (8.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.72% | ||
| ROE | 25.72% | ||
| ROIC | 9.08% |
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 7.24%, DAL belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
In the last couple of years the Profit Margin of DAL has declined.
DAL's Operating Margin of 9.34% 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 has a Gross Margin (50.92%) which is comparable to the rest of the industry.
DAL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.34% | ||
| PM (TTM) | 7.24% | ||
| GM | 50.92% |
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.
The number of shares outstanding for DAL has been increased compared to 5 years ago.
The debt/assets ratio for DAL has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.32, we must say that DAL is in the distress zone and has some risk of bankruptcy.
DAL's Altman-Z score of 1.32 is fine compared to the rest of the industry. DAL outperforms 66.67% of its industry peers.
DAL has a debt to FCF ratio of 6.46. This is a slightly negative value and a sign of low solvency as DAL would need 6.46 years to pay back of all of its debts.
DAL has a Debt to FCF ratio of 6.46. This is amongst the best in the industry. DAL outperforms 80.95% of its industry peers.
DAL has a Debt/Equity ratio of 0.74. This is a neutral value indicating DAL is somewhat dependend on debt financing.
The Debt to Equity ratio of DAL (0.74) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 6.46 | ||
| Altman-Z | 1.32 |
ROIC/WACC1.01
WACC9.03%
2.3 Liquidity
DAL has a Current Ratio of 0.38. This is a bad value and indicates that DAL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.38, DAL is doing worse than 80.95% of the companies in the same industry.
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 80.95% 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 -3.43% 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.
Looking at the last year, DAL shows a small growth in Revenue. The Revenue has grown by 3.01% in the last 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)-3.43%
EPS 3Y129.66%
EPS 5Y-3.42%
EPS Q2Q%-11.02%
Revenue 1Y (TTM)3.01%
Revenue growth 3Y27.27%
Revenue growth 5Y5.57%
Sales Q2Q%0.65%
3.2 Future
Based on estimates for the next years, DAL will show a very negative growth in Earnings Per Share. The EPS will decrease by -12.89% on average per year.
DAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.99% yearly.
EPS Next Y-6.62%
EPS Next 2Y6.06%
EPS Next 3Y8.26%
EPS Next 5Y-12.89%
Revenue Next Year2.12%
Revenue Next 2Y3.97%
Revenue Next 3Y4.38%
Revenue Next 5Y2.99%
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 9.60, which indicates a very decent valuation of DAL.
DAL's Price/Earnings ratio is rather cheap when compared to the industry. DAL is cheaper than 85.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.06, DAL is valued rather cheaply.
DAL is valuated reasonably with a Price/Forward Earnings ratio of 8.19.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DAL indicates a somewhat cheap valuation: DAL is cheaper than 76.19% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.64, DAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 8.19 |
4.2 Price Multiples
DAL's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, DAL is valued a bit cheaper than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.89 | ||
| EV/EBITDA | 5.88 |
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 2Y6.06%
EPS Next 3Y8.26%
5. Dividend
5.1 Amount
DAL has a Yearly Dividend Yield of 1.26%. Purely for dividend investing, there may be better candidates out there.
DAL's Dividend Yield is a higher than the industry average which is at 2.72.
With a Dividend Yield of 1.26, DAL pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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
8.67% 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.
DP8.67%
EPS Next 2Y6.06%
EPS Next 3Y8.26%
56.74
-0.97 (-1.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners82.97%
Inst Owner Change-0.32%
Ins Owners0.33%
Ins Owner Change-1.54%
Market Cap37.05B
Analysts82.22
Price Target68.18 (20.16%)
Short Float %2.87%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Yearly Dividend0.5
Dividend Growth(5Y)-17.61%
DP8.67%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.23%
Min EPS beat(2)1.25%
Max EPS beat(2)19.21%
EPS beat(4)3
Avg EPS beat(4)5.59%
Min EPS beat(4)-2.51%
Max EPS beat(4)19.21%
EPS beat(8)6
Avg EPS beat(8)6.92%
EPS beat(12)8
Avg EPS beat(12)4.69%
EPS beat(16)11
Avg EPS beat(16)11.19%
Revenue beat(2)0
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-1%
Max Revenue beat(2)-0.79%
Revenue beat(4)1
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-1.52%
Max Revenue beat(4)0.8%
Revenue beat(8)2
Avg Revenue beat(8)-0.76%
Revenue beat(12)5
Avg Revenue beat(12)1.29%
Revenue beat(16)9
Avg Revenue beat(16)1.94%
PT rev (1m)1.24%
PT rev (3m)12.12%
EPS NQ rev (1m)1.96%
EPS NQ rev (3m)9.8%
EPS NY rev (1m)0%
EPS NY rev (3m)5.02%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)2.41%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 8.19 | ||
| P/S | 0.6 | ||
| P/FCF | 15.89 | ||
| P/OCF | 5 | ||
| P/B | 2.12 | ||
| P/tB | 21.58 | ||
| EV/EBITDA | 5.88 |
EPS(TTM)5.91
EY10.42%
EPS(NY)6.93
Fwd EY12.21%
FCF(TTM)3.57
FCFY6.29%
OCF(TTM)11.34
OCFY19.98%
SpS94.84
BVpS26.71
TBVpS2.63
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.72% | ||
| ROE | 25.72% | ||
| ROCE | 11.61% | ||
| ROIC | 9.08% | ||
| ROICexc | 9.73% | ||
| ROICexgc | 14.69% | ||
| OM | 9.34% | ||
| PM (TTM) | 7.24% | ||
| GM | 50.92% | ||
| FCFM | 3.77% |
ROA(3y)4.22%
ROA(5y)-0.83%
ROE(3y)28.04%
ROE(5y)-143.21%
ROIC(3y)8.72%
ROIC(5y)N/A
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-Score5
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 6.46 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 201.79% | ||
| Cap/Sales | 8.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.21% | ||
| Profit Quality | 52% | ||
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.33 | ||
| Altman-Z | 1.32 |
F-Score5
WACC9.03%
ROIC/WACC1.01
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)-3.43%
EPS 3Y129.66%
EPS 5Y-3.42%
EPS Q2Q%-11.02%
EPS Next Y-6.62%
EPS Next 2Y6.06%
EPS Next 3Y8.26%
EPS Next 5Y-12.89%
Revenue 1Y (TTM)3.01%
Revenue growth 3Y27.27%
Revenue growth 5Y5.57%
Sales Q2Q%0.65%
Revenue Next Year2.12%
Revenue Next 2Y3.97%
Revenue Next 3Y4.38%
Revenue Next 5Y2.99%
EBIT growth 1Y-6.5%
EBIT growth 3YN/A
EBIT growth 5Y-2.08%
EBIT Next Year32.6%
EBIT Next 3Y18.51%
EBIT Next 5Y16.47%
FCF growth 1Y189.33%
FCF growth 3Y453.65%
FCF growth 5Y-3.73%
OCF growth 1Y7.29%
OCF growth 3Y34.97%
OCF growth 5Y-0.97%