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DELTA AIR LINES INC (DAL) Stock Fundamental Analysis

NYSE:DAL - New York Stock Exchange, Inc. - US2473617023 - Common Stock - Currency: USD

56.3301  +0.66 (+1.19%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to DAL. 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 is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

6

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.
DAL Yearly Net Income VS EBIT VS OCF VS FCFDAL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B -10B

1.2 Ratios

Looking at the Return On Assets, with a value of 5.72%, DAL belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
With an excellent Return On Equity value of 25.72%, DAL belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.08%, DAL belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DAL is in line with the industry average of 8.50%.
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 RankSector 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
DAL Yearly ROA, ROE, ROICDAL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -200 -400 -600 -800

1.3 Margins

DAL's Profit Margin of 7.24% is amongst the best of the industry. DAL outperforms 81.82% of its industry peers.
DAL's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 9.34%, DAL is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
In the last couple of years the Operating Margin of DAL has declined.
DAL has a Gross Margin (50.92%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DAL has declined.
Industry RankSector 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%
DAL Yearly Profit, Operating, Gross MarginsDAL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 60 -60

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DAL is destroying value.
The number of shares outstanding for DAL has been increased compared to 1 year ago.
The number of shares outstanding for DAL has been increased compared to 5 years ago.
Compared to 1 year ago, DAL has an improved debt to assets ratio.
DAL Yearly Shares OutstandingDAL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
DAL Yearly Total Debt VS Total AssetsDAL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

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.
Looking at the Altman-Z score, with a value of 1.32, DAL is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
The Debt to FCF ratio of DAL is 6.46, which is on the high side as it means it would take DAL, 6.46 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.46, DAL belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
A Debt/Equity ratio of 0.74 indicates that DAL is somewhat dependend on debt financing.
DAL's Debt to Equity ratio of 0.74 is fine compared to the rest of the industry. DAL outperforms 72.73% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF 6.46
Altman-Z 1.32
ROIC/WACC0.98
WACC9.22%
DAL Yearly LT Debt VS Equity VS FCFDAL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B

2.3 Liquidity

A Current Ratio of 0.38 indicates that DAL may have some problems paying its short term obligations.
DAL has a worse Current ratio (0.38) than 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.
The Quick ratio of DAL (0.33) is worse than 77.27% of its industry peers.
Industry RankSector Rank
Current Ratio 0.38
Quick Ratio 0.33
DAL Yearly Current Assets VS Current LiabilitesDAL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

3

3. Growth

3.1 Past

The earnings per share for DAL have decreased by -3.43% in the last year.
The Earnings Per Share has been decreasing by -3.42% on average over the past years.
The Revenue has been growing slightly by 3.01% in the past 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)-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%8.05%

3.2 Future

The Earnings Per Share is expected to grow by 8.38% on average over the next years. This is quite good.
DAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.98% yearly.
EPS Next Y-11.7%
EPS Next 2Y3.26%
EPS Next 3Y6.54%
EPS Next 5Y8.38%
Revenue Next Year1.44%
Revenue Next 2Y3.78%
Revenue Next 3Y4.16%
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.
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.
DAL Yearly Revenue VS EstimatesDAL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20B 40B 60B
DAL Yearly EPS VS EstimatesDAL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 5 -5 -10

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 9.53 indicates a reasonable valuation of DAL.
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.
The average S&P500 Price/Earnings ratio is at 27.53. DAL is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.58, the valuation of DAL can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DAL is on the same level as its industry peers.
DAL is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.71, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.53
Fwd PE 8.58
DAL Price Earnings VS Forward Price EarningsDAL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

63.64% of the companies in the same industry are more expensive than DAL, based on the Enterprise Value to EBITDA ratio.
DAL's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 15.77
EV/EBITDA 5.79
DAL Per share dataDAL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

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 2Y3.26%
EPS Next 3Y6.54%

4

5. Dividend

5.1 Amount

DAL has a Yearly Dividend Yield of 1.33%. 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 2.75.
Compared to an average S&P500 Dividend Yield of 2.34, DAL's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.33%

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
DAL Yearly Dividends per shareDAL Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2023 2024 2025 0.5 1

5.3 Sustainability

DAL pays out 8.67% of its income as dividend. This is a sustainable payout ratio.
DP8.67%
EPS Next 2Y3.26%
EPS Next 3Y6.54%
DAL Yearly Income VS Free CF VS DividendDAL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -5B -10B
DAL Dividend Payout.DAL Dividend Payout, showing the Payout Ratio.DAL Dividend Payout.PayoutRetained Earnings

DELTA AIR LINES INC

NYSE:DAL (7/23/2025, 3:28:03 PM)

56.3301

+0.66 (+1.19%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)07-10 2025-07-10/bmo
Earnings (Next)10-08 2025-10-08/bmo
Inst Owners82.67%
Inst Owner Change1.65%
Ins Owners0.34%
Ins Owner Change14.73%
Market Cap36.78B
Analysts82.22
Price Target66.63 (18.28%)
Short Float %3.49%
Short Ratio2.02
Dividend
Industry RankSector Rank
Dividend Yield 1.33%
Yearly Dividend0.5
Dividend Growth(5Y)-17.61%
DP8.67%
Div Incr Years1
Div Non Decr Years1
Ex-Date07-31 2025-07-31 (0.1875)
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)1
Avg Revenue beat(2)2.75%
Min Revenue beat(2)-1%
Max Revenue beat(2)6.51%
Revenue beat(4)2
Avg Revenue beat(4)1.2%
Min Revenue beat(4)-1.52%
Max Revenue beat(4)6.51%
Revenue beat(8)3
Avg Revenue beat(8)0.15%
Revenue beat(12)6
Avg Revenue beat(12)1.89%
Revenue beat(16)10
Avg Revenue beat(16)2.39%
PT rev (1m)11.04%
PT rev (3m)-15.07%
EPS NQ rev (1m)-5.27%
EPS NQ rev (3m)-5.27%
EPS NY rev (1m)-0.68%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)1.21%
Revenue NQ rev (3m)1.08%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)0.63%
Valuation
Industry RankSector Rank
PE 9.53
Fwd PE 8.58
P/S 0.59
P/FCF 15.77
P/OCF 4.97
P/B 2.11
P/tB 21.42
EV/EBITDA 5.79
EPS(TTM)5.91
EY10.49%
EPS(NY)6.57
Fwd EY11.66%
FCF(TTM)3.57
FCFY6.34%
OCF(TTM)11.34
OCFY20.13%
SpS94.84
BVpS26.71
TBVpS2.63
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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
WACC9.22%
ROIC/WACC0.98
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-11.7%
EPS Next 2Y3.26%
EPS Next 3Y6.54%
EPS Next 5Y8.38%
Revenue 1Y (TTM)3.01%
Revenue growth 3Y27.27%
Revenue growth 5Y5.57%
Sales Q2Q%8.05%
Revenue Next Year1.44%
Revenue Next 2Y3.78%
Revenue Next 3Y4.16%
Revenue Next 5Y2.98%
EBIT growth 1Y-6.5%
EBIT growth 3YN/A
EBIT growth 5Y-2.08%
EBIT Next Year32.34%
EBIT Next 3Y18.84%
EBIT Next 5Y16.27%
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%