Delta Air Lines, Inc.
Delta Air Lines, Inc. Fundamental Analysis
Delta Air Lines, Inc. (DAL) shows moderate financial fundamentals with a PE ratio of 10.02, profit margin of 6.87%, and ROE of 23.14%. The company generates $65.7B in annual revenue with weak year-over-year growth of 2.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze DAL's fundamental strength across five key dimensions:
Efficiency Score
WeakDAL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDAL trades at attractive valuation levels.
Growth Score
ModerateDAL shows steady but slowing expansion.
Financial Health Score
ModerateDAL shows balanced financial health with some risks.
Profitability Score
ModerateDAL maintains healthy but balanced margins.
Key Financial Metrics
Is DAL Expensive or Cheap?
P/E Ratio
DAL trades at 10.02 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DAL's PEG of 0.46 indicates potential undervaluation.
Price to Book
The market values Delta Air Lines, Inc. at 2.20 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.73 times EBITDA. This is generally considered low.
How Well Does DAL Make Money?
Net Profit Margin
For every $100 in sales, Delta Air Lines, Inc. keeps $6.87 as profit after all expenses.
Operating Margin
Core operations generate 8.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.14 in profit for every $100 of shareholder equity.
ROA
Delta Air Lines, Inc. generates $5.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Delta Air Lines, Inc. produces operating cash flow of $8.46B, showing steady but balanced cash generation.
Free Cash Flow
Delta Air Lines, Inc. produces free cash flow of $3.95B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $6.01 in free cash annually.
FCF Yield
DAL converts 8.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.46
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.70
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.42
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How DAL Stacks Against Its Sector Peers
| Metric | DAL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.02 | 26.45 | Better (Cheaper) |
| ROE | 23.14% | 1289.00% | Weak |
| Net Margin | 6.87% | -41634.00% (disorted) | Weak |
| Debt/Equity | 0.70 | 0.71 | Neutral |
| Current Ratio | 0.42 | 10.09 | Weak Liquidity |
| ROA | 5.30% | -1505238.00% (disorted) | Weak |
DAL outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Delta Air Lines, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
263.79%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
139.66%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
315.86%
Industry Style: Cyclical, Value, Infrastructure
High Growth