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 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
DAL had positive earnings in the past year.
DAL had a positive operating cash flow in the past year.
DAL had positive earnings in 4 of the past 5 years.
Of the past 5 years DAL 4 years had a positive operating cash flow.
1.2 Ratios
DAL has a Return On Assets of 4.73%. This is amongst the best in the industry. DAL outperforms 82.61% of its industry peers.
DAL has a Return On Equity of 23.69%. This is amongst the best in the industry. DAL outperforms 86.96% of its industry peers.
DAL has a Return On Invested Capital of 9.77%. This is in the better half of the industry: DAL outperforms 78.26% of its industry peers.
DAL had an Average Return On Invested Capital over the past 3 years of 8.72%. This is in line with the industry average of 10.40%.
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
DAL has a better Profit Margin (5.91%) than 78.26% of its industry peers.
In the last couple of years the Profit Margin of DAL has declined.
DAL's Operating Margin of 9.61% is fine compared to the rest of the industry. DAL outperforms 65.22% 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 comparable to the rest of the industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DAL is still 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 1.25, we must say that DAL is in the distress zone and 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.
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.
Looking at the Debt to FCF ratio, with a value of 5.60, DAL belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
A Debt/Equity ratio of 0.83 indicates that DAL is somewhat dependend on debt financing.
The Debt to Equity ratio of DAL (0.83) is better than 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 1.25 |
ROIC/WACC1.08
WACC9.06%
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's Current ratio of 0.38 is on the low side compared to the rest of the industry. DAL is outperformed by 73.91% 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 worse Quick ratio (0.33) than 78.26% 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%.
The Revenue has been growing slightly by 5.57% on average over the past years.
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
DAL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.00% yearly.
The Revenue is expected to grow by 2.98% on average over the next years.
EPS Next Y-11.59%
EPS Next 2Y3.67%
EPS Next 3Y7.15%
EPS Next 5Y10%
Revenue Next Year0.85%
Revenue Next 2Y3.51%
Revenue Next 3Y3.96%
Revenue Next 5Y2.98%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
A Price/Earnings ratio of 8.38 indicates a reasonable valuation of DAL.
86.96% of the companies in the same industry are more expensive than DAL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.59. DAL is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.81 indicates a rather cheap valuation of DAL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DAL indicates a somewhat cheap valuation: DAL is cheaper than 65.22% of the companies listed in the same industry.
DAL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 7.81 |
4.2 Price Multiples
DAL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DAL is cheaper than 60.87% of the companies in the same industry.
60.87% of the companies in the same industry are more expensive than DAL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.95 | ||
| 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 1.23%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.76, 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 1.23, DAL pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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.
DAL has decreased its dividend recently.
Dividend Growth(5Y)-17.61%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DAL pays out 9.73% of its income as dividend. This is a sustainable payout ratio.
DP9.73%
EPS Next 2Y3.67%
EPS Next 3Y7.15%
51.68
+0.48 (+0.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners82.96%
Inst Owner Change2%
Ins Owners0.35%
Ins Owner Change15.26%
Market Cap33.74B
Analysts82.22
Price Target60.01 (16.12%)
Short Float %3.6%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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)4.49%
PT rev (3m)-28.32%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-29%
EPS NY rev (1m)0.89%
EPS NY rev (3m)-28.47%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-6.02%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-6.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 7.81 | ||
| P/S | 0.54 | ||
| P/FCF | 11.95 | ||
| P/OCF | 4.22 | ||
| P/B | 2.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.38 |
EPS(TTM)6.17
EY11.94%
EPS(NY)6.62
Fwd EY12.81%
FCF(TTM)4.32
FCFY8.37%
OCF(TTM)12.24
OCFY23.69%
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
WACC9.06%
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-11.59%
EPS Next 2Y3.67%
EPS Next 3Y7.15%
EPS Next 5Y10%
Revenue 1Y (TTM)4.91%
Revenue growth 3Y27.27%
Revenue growth 5Y5.57%
Sales Q2Q%3.3%
Revenue Next Year0.85%
Revenue Next 2Y3.51%
Revenue Next 3Y3.96%
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 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%