DELTA AIR LINES INC (DAL) Stock Fundamental Analysis
USA - NYSE:DAL - US2473617023 - Common Stock
57.13 USD
+1.37 (+2.46%)
57.01 USD
-0.12 (-0.21%)
Overall DAL gets a fundamental rating of 5 out of 10. We evaluated DAL against 21 industry peers in the Passenger Airlines industry. Both the profitability and the financial health of DAL get a neutral evaluation. Nothing too spectacular is happening here. DAL is valued correctly, 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.
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
Looking at the Return On Assets, with a value of 5.81%, DAL belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
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.
Looking at the Return On Invested Capital, with a value of 9.24%, DAL belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DAL is significantly below the industry average of 13.75%.
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
DAL's Profit Margin of 7.36% is amongst the best of the industry. DAL outperforms 80.95% of its industry peers.
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.
In the last couple of years the Operating Margin of DAL has declined.
With a Gross Margin value of 50.76%, DAL perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
DAL's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, DAL has more shares outstanding
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
DAL has an Altman-Z score of 1.36. This is a bad value and indicates that DAL is not financially healthy and even has some risk of bankruptcy.
DAL's Altman-Z score of 1.36 is fine compared to the rest of the industry. DAL outperforms 71.43% of its industry peers.
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 85.71% of its industry peers.
DAL has a Debt/Equity ratio of 0.68. This is a neutral value indicating DAL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.68, DAL belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.84 | ||
| Altman-Z | 1.36 |
ROIC/WACC1.06
WACC8.68%
2.3 Liquidity
A Current Ratio of 0.40 indicates that DAL may have some problems paying its short term obligations.
DAL has a Current ratio of 0.40. This is amonst the worse of the industry: DAL underperforms 80.95% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.34, DAL is doing worse than 80.95% of the companies in the same industry.
| 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.
DAL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.33%.
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
The Earnings Per Share is expected to decrease by -6.93% on average over the next years.
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-0.94%
EPS Next 2Y8.74%
EPS Next 3Y9.29%
EPS Next 5Y-6.93%
Revenue Next Year3.15%
Revenue Next 2Y4.53%
Revenue Next 3Y4.71%
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.
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
The Price/Earnings ratio is 9.33, which indicates a very decent valuation of DAL.
Compared to the rest of the industry, the Price/Earnings ratio of DAL indicates a rather cheap valuation: DAL is cheaper than 80.95% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.51. DAL is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.84, the valuation of DAL can be described as very cheap.
DAL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DAL is cheaper than 71.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DAL to the average of the S&P500 Index (34.98), we can say DAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 7.84 |
4.2 Price Multiples
DAL's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, DAL is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.14 | ||
| EV/EBITDA | 5.53 |
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 2Y8.74%
EPS Next 3Y9.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.25%, DAL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.00, DAL pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.25, DAL pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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
DAL pays out 8.94% of its income as dividend. This is a 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 2Y8.74%
EPS Next 3Y9.29%
57.13
+1.37 (+2.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners81.79%
Inst Owner Change-0.52%
Ins Owners0.33%
Ins Owner Change-3.01%
Market Cap37.30B
Revenue(TTM)62.92B
Net Income(TTM)4.63B
Analysts83.57
Price Target72.43 (26.78%)
Short Float %2.64%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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)6.22%
PT rev (3m)7.53%
EPS NQ rev (1m)1.67%
EPS NQ rev (3m)11.04%
EPS NY rev (1m)5.41%
EPS NY rev (3m)12.19%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)2.61%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 7.84 | ||
| P/S | 0.59 | ||
| P/FCF | 12.14 | ||
| P/OCF | 4.68 | ||
| P/B | 1.98 | ||
| P/tB | 12.03 | ||
| EV/EBITDA | 5.53 |
EPS(TTM)6.12
EY10.71%
EPS(NY)7.28
Fwd EY12.75%
FCF(TTM)4.71
FCFY8.24%
OCF(TTM)12.22
OCFY21.38%
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 | 1.36 |
F-Score6
WACC8.68%
ROIC/WACC1.06
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-0.94%
EPS Next 2Y8.74%
EPS Next 3Y9.29%
EPS Next 5Y-6.93%
Revenue 1Y (TTM)4.33%
Revenue growth 3Y27.27%
Revenue growth 5Y5.57%
Sales Q2Q%4.13%
Revenue Next Year3.15%
Revenue Next 2Y4.53%
Revenue Next 3Y4.71%
Revenue Next 5Y2.77%
EBIT growth 1Y8.43%
EBIT growth 3YN/A
EBIT growth 5Y-2.08%
EBIT Next Year35.33%
EBIT Next 3Y19.26%
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 9.33 and the Price/Book (PB) ratio is 1.98.
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 -0.94% in the next year.