DELTA AIR LINES INC (DAL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DAL - US2473617023 - Common Stock
58.57 USD
+2.6 (+4.65%)
58.64 USD
+0.07 (+0.12%)
DAL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 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
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.
DAL has a better Return On Invested Capital (9.24%) than 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 13.75%.
The last Return On Invested Capital (9.24%) for DAL is above the 3 year average (8.72%), which is a sign of increasing profitability.
| 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 has a better Profit Margin (7.36%) than 80.95% of its industry peers.
In the last couple of years the Profit Margin of DAL has declined.
DAL has a better Operating Margin (9.65%) than 76.19% of its industry peers.
DAL's Operating Margin has declined in the last couple of years.
DAL has a Gross Margin (50.76%) which is in line with its industry peers.
In the last couple of years the Gross Margin of DAL has declined.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DAL is still creating some value.
The number of shares outstanding for DAL has been increased compared to 1 year ago.
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
Based on the Altman-Z score of 1.36, we must say that DAL is in the distress zone and 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.
DAL has a debt to FCF ratio of 4.84. This is a neutral value as DAL would need 4.84 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 4.84, DAL belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that DAL is somewhat dependend on debt financing.
DAL has a Debt to Equity ratio of 0.68. This is amongst the best in the industry. DAL outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.84 | ||
| Altman-Z | 1.36 |
ROIC/WACC1.08
WACC8.52%
2.3 Liquidity
DAL has a Current 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 Current ratio, with a value of 0.40, DAL is doing worse than 80.95% of the companies in the same industry.
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.
With a Quick ratio value of 0.34, DAL is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.4 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
DAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.48%, which is quite good.
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 4.33% in the last 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)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
Based on estimates for the next years, DAL will show a decrease in Earnings Per Share. The EPS will decrease by -6.93% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 9.57, 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.
When comparing the Price/Earnings ratio of DAL to the average of the S&P500 Index (25.45), we can say DAL is valued rather cheaply.
DAL is valuated reasonably with a Price/Forward Earnings ratio of 8.04.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DAL indicates a somewhat cheap valuation: DAL is cheaper than 71.43% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.46. DAL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.57 | ||
| Fwd PE | 8.04 |
4.2 Price Multiples
DAL's Enterprise Value to EBITDA ratio is in line with the industry average.
DAL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DAL is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.44 | ||
| EV/EBITDA | 5.55 |
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 2Y8.74%
EPS Next 3Y9.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.34%, DAL has a reasonable but not impressive dividend return.
DAL's Dividend Yield is a higher than the industry average which is at 2.99.
With a Dividend Yield of 1.34, DAL pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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
8.94% 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.
DP8.94%
EPS Next 2Y8.74%
EPS Next 3Y9.29%
58.57
+2.6 (+4.65%)
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 Cap38.24B
Revenue(TTM)62.92B
Net Income(TTM)4.63B
Analysts83.57
Price Target72.43 (23.66%)
Short Float %2.64%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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 | 9.57 | ||
| Fwd PE | 8.04 | ||
| P/S | 0.61 | ||
| P/FCF | 12.44 | ||
| P/OCF | 4.79 | ||
| P/B | 2.03 | ||
| P/tB | 12.33 | ||
| EV/EBITDA | 5.55 |
EPS(TTM)6.12
EY10.45%
EPS(NY)7.28
Fwd EY12.44%
FCF(TTM)4.71
FCFY8.04%
OCF(TTM)12.22
OCFY20.86%
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
WACC8.52%
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)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 9.57 and the Price/Book (PB) ratio is 2.03.
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.