DELTA AIR LINES INC (DAL) Stock Fundamental Analysis
NYSE:DAL - New York Stock Exchange, Inc. - US2473617023 - Common Stock - Currency: USD
DAL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 22 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.
In the past year DAL had a positive cash flow from operations.
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
DAL's Return On Assets of 4.73% is amongst the best of the industry. DAL outperforms 81.82% of its industry peers.
With an excellent Return On Equity value of 23.69%, DAL belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
The Return On Invested Capital of DAL (9.77%) is better than 81.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DAL is in line with the industry average of 8.55%.
The 3 year average ROIC (8.72%) for DAL is below the current ROIC(9.77%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 5.91%, DAL is doing good in the industry, outperforming 77.27% of the companies in the same industry.
In the last couple of years the Profit Margin of DAL has declined.
The Operating Margin of DAL (9.61%) is better than 68.18% of its industry peers.
DAL's Operating Margin has declined in the last couple of years.
DAL has a Gross Margin (50.63%) which is in line with its industry peers.
DAL's Gross Margin has declined in the last couple of years.
| 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.
The number of shares outstanding for DAL has been increased compared to 5 years ago.
DAL has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.24, we must say that DAL is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DAL (1.24) is better than 63.64% of its industry peers.
DAL has a debt to FCF ratio of 5.60. This is a neutral value as DAL would need 5.60 years to pay back of all of its debts.
DAL has a better Debt to FCF ratio (5.60) than 81.82% of its industry peers.
A Debt/Equity ratio of 0.83 indicates that DAL is somewhat dependend on debt financing.
DAL has a Debt to Equity ratio of 0.83. This is in the better half of the industry: DAL outperforms 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 1.24 |
ROIC/WACC1.08
WACC9.05%
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.
DAL has a Current ratio of 0.38. This is in the lower half of the industry: DAL underperforms 77.27% of its industry peers.
DAL has a Quick 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.
DAL has a Quick ratio of 0.33. This is amonst the worse of the industry: DAL underperforms 81.82% 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.
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.
DAL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.91%.
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
Based on estimates for the next years, DAL will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.38% on average per year.
The Revenue is expected to grow by 2.98% on average over the next years.
EPS Next Y-11.09%
EPS Next 2Y4.1%
EPS Next 3Y7.25%
EPS Next 5Y8.38%
Revenue Next Year0.97%
Revenue Next 2Y3.59%
Revenue Next 3Y4.04%
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
A Price/Earnings ratio of 8.12 indicates a reasonable valuation of DAL.
Based on the Price/Earnings ratio, DAL is valued cheaper than 86.36% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.28. DAL is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.51, which indicates a rather cheap valuation of DAL.
DAL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DAL is cheaper than 68.18% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, DAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.12 | ||
| Fwd PE | 7.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DAL indicates a somewhat cheap valuation: DAL is cheaper than 63.64% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DAL is valued a bit cheaper than 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.59 | ||
| EV/EBITDA | 5.21 |
4.3 Compensation for Growth
DAL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.1%
EPS Next 3Y7.25%
5. Dividend
5.1 Amount
DAL has a Yearly Dividend Yield of 1.53%.
Compared to an average industry Dividend Yield of 2.81, DAL pays a better dividend. On top of this DAL pays more dividend than 81.82% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.42, DAL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
5.2 History
The dividend of DAL decreases each year by -17.61%.
DAL has been paying a dividend for at least 10 years, so it has 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
9.73% of the earnings are spent on dividend by DAL. This is a low number and sustainable payout ratio.
DP9.73%
EPS Next 2Y4.1%
EPS Next 3Y7.25%
50.13
+1.13 (+2.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners82.67%
Inst Owner Change2%
Ins Owners0.34%
Ins Owner Change16.45%
Market Cap32.73B
Analysts82.22
Price Target60.81 (21.3%)
Short Float %3.39%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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)4.42%
PT rev (3m)-22.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.84%
EPS NY rev (1m)0.57%
EPS NY rev (3m)-23.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.27%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)-6.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.12 | ||
| Fwd PE | 7.51 | ||
| P/S | 0.53 | ||
| P/FCF | 11.59 | ||
| P/OCF | 4.09 | ||
| P/B | 2.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.21 |
EPS(TTM)6.17
EY12.31%
EPS(NY)6.68
Fwd EY13.32%
FCF(TTM)4.32
FCFY8.63%
OCF(TTM)12.24
OCFY24.43%
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 | 1.24 |
F-Score6
WACC9.05%
ROIC/WACC1.08
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-11.09%
EPS Next 2Y4.1%
EPS Next 3Y7.25%
EPS Next 5Y8.38%
Revenue 1Y (TTM)4.91%
Revenue growth 3Y27.27%
Revenue growth 5Y5.57%
Sales Q2Q%3.3%
Revenue Next Year0.97%
Revenue Next 2Y3.59%
Revenue Next 3Y4.04%
Revenue Next 5Y2.98%
EBIT growth 1Y-7.19%
EBIT growth 3YN/A
EBIT growth 5Y-2.08%
EBIT Next Year32.34%
EBIT Next 3Y18.84%
EBIT Next 5Y16.27%
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%