DELTA AIR LINES INC (DAL) Stock Fundamental Analysis
NYSE:DAL - New York Stock Exchange, Inc. - US2473617023 - Common Stock - Currency: USD
Taking everything into account, DAL scores 4 out of 10 in our fundamental rating. DAL was compared to 22 industry peers in the Passenger Airlines industry. There are concerns on the financial health of DAL while its profitability can be described as average. 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.
Of the past 5 years DAL 4 years were profitable.
DAL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 5.72%, DAL belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
DAL has a Return On Equity of 25.72%. This is amongst the best in the industry. DAL outperforms 90.91% of its industry peers.
The Return On Invested Capital of DAL (9.08%) is better than 81.82% 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 9.65%.
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 Rank | Sector 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
1.3 Margins
DAL has a better Profit Margin (7.24%) than 81.82% of its industry peers.
DAL's Profit Margin has declined in the last couple of years.
DAL has a Operating Margin of 9.34%. This is in the better half of the industry: DAL outperforms 72.73% of its industry peers.
DAL's Operating Margin has declined in the last couple of years.
DAL has a Gross Margin (50.92%) which is comparable to the rest of the industry.
DAL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
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.
Compared to 5 years ago, DAL has more shares outstanding
DAL has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.34, we must say that DAL is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DAL (1.34) is better than 63.64% of its industry peers.
DAL has a debt to FCF ratio of 6.46. This is a slightly negative value and a sign of low solvency as DAL would need 6.46 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 6.46, DAL belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
DAL has a Debt/Equity ratio of 0.74. This is a neutral value indicating DAL is somewhat dependend on debt financing.
The Debt to Equity ratio of DAL (0.74) is better than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 6.46 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.99
WACC9.19%
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 77.27% of its industry peers.
A Quick Ratio of 0.33 indicates that DAL may have some problems paying its short term obligations.
With a Quick ratio value of 0.33, DAL is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
DAL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.43%.
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%0.65%
3.2 Future
The Earnings Per Share is expected to grow by 8.38% on average over the next years. This is quite good.
Based on estimates for the next years, DAL will show a small growth in Revenue. The Revenue will grow by 2.98% on average per year.
EPS Next Y-11.7%
EPS Next 2Y3.26%
EPS Next 3Y6.54%
EPS Next 5Y8.38%
Revenue Next Year2.1%
Revenue Next 2Y3.98%
Revenue Next 3Y4.33%
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
DAL is valuated reasonably with a Price/Earnings ratio of 9.98.
Compared to the rest of the industry, the Price/Earnings ratio of DAL indicates a rather cheap valuation: DAL is cheaper than 86.36% of the companies listed in the same industry.
DAL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.93.
Based on the Price/Forward Earnings ratio of 8.98, the valuation of DAL can be described as reasonable.
63.64% of the companies in the same industry are more expensive than DAL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of DAL to the average of the S&P500 Index (35.31), we can say DAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 8.98 |
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 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.51 | ||
| EV/EBITDA | 6.05 |
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 2Y3.26%
EPS Next 3Y6.54%
5. Dividend
5.1 Amount
DAL has a Yearly Dividend Yield of 1.40%. 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 2.39, DAL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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
8.67% of the earnings are spent on dividend by DAL. This is a low number and sustainable payout ratio.
DP8.67%
EPS Next 2Y3.26%
EPS Next 3Y6.54%
58.96
-0.46 (-0.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners82.97%
Inst Owner Change1.81%
Ins Owners0.33%
Ins Owner Change-2.13%
Market Cap38.50B
Analysts82.86
Price Target67.35 (14.23%)
Short Float %3.5%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
Yearly Dividend0.5
Dividend Growth(5Y)-17.61%
DP8.67%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)0
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-1%
Max Revenue beat(2)-0.79%
Revenue beat(4)1
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-1.52%
Max Revenue beat(4)0.8%
Revenue beat(8)2
Avg Revenue beat(8)-0.76%
Revenue beat(12)5
Avg Revenue beat(12)1.29%
Revenue beat(16)9
Avg Revenue beat(16)1.94%
PT rev (1m)10.75%
PT rev (3m)15.65%
EPS NQ rev (1m)13.69%
EPS NQ rev (3m)7.69%
EPS NY rev (1m)0%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)0.84%
Revenue NQ rev (3m)1.94%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 8.98 | ||
| P/S | 0.62 | ||
| P/FCF | 16.51 | ||
| P/OCF | 5.2 | ||
| P/B | 2.21 | ||
| P/tB | 22.42 | ||
| EV/EBITDA | 6.05 |
EPS(TTM)5.91
EY10.02%
EPS(NY)6.57
Fwd EY11.14%
FCF(TTM)3.57
FCFY6.06%
OCF(TTM)11.34
OCFY19.23%
SpS94.84
BVpS26.71
TBVpS2.63
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.34 |
F-Score5
WACC9.19%
ROIC/WACC0.99
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%0.65%
Revenue Next Year2.1%
Revenue Next 2Y3.98%
Revenue Next 3Y4.33%
Revenue Next 5Y2.98%
EBIT growth 1Y-6.5%
EBIT growth 3YN/A
EBIT growth 5Y-2.08%
EBIT Next Year32.6%
EBIT Next 3Y18.51%
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%