XTRA:LHA

Stock Analysis Report

Executive Summary

Deutsche Lufthansa AG operates as an aviation company in Germany and internationally.


Snowflake Analysis

Good value with questionable track record.


Similar Companies

Share Price & News

How has Deutsche Lufthansa's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LHA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-17.5%

LHA

-8.7%

DE Airlines

-2.7%

DE Market


1 Year Return

-61.2%

LHA

-45.6%

DE Airlines

-20.4%

DE Market

Return vs Industry: LHA underperformed the German Airlines industry which returned -43.7% over the past year.

Return vs Market: LHA underperformed the German Market which returned -17.2% over the past year.


Shareholder returns

LHAIndustryMarket
7 Day-17.5%-8.7%-2.7%
30 Day-32.7%-35.7%-18.4%
90 Day-48.6%-52.7%-26.7%
1 Year-59.6%-61.2%-43.6%-45.6%-18.1%-20.4%
3 Year-41.7%-47.4%-42.1%-47.6%-19.1%-25.9%
5 Year-28.0%-37.3%-38.0%-46.1%-19.5%-30.4%

Price Volatility Vs. Market

How volatile is Deutsche Lufthansa's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Deutsche Lufthansa undervalued compared to its fair value and its price relative to the market?

3.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LHA (€8.56) is trading above our estimate of fair value (€7.96)

Significantly Below Fair Value: LHA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LHA is good value based on its PE Ratio (3.4x) compared to the Airlines industry average (5.9x).

PE vs Market: LHA is good value based on its PE Ratio (3.4x) compared to the German market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: LHA is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: LHA is good value based on its PB Ratio (0.4x) compared to the XE Airlines industry average (0.8x).


Next Steps

Future Growth

How is Deutsche Lufthansa forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LHA's forecast earnings growth (12.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: LHA's earnings (12.1% per year) are forecast to grow slower than the German market (14.5% per year).

High Growth Earnings: LHA's earnings are forecast to grow, but not significantly.

Revenue vs Market: LHA's revenue (0.6% per year) is forecast to grow slower than the German market (4.1% per year).

High Growth Revenue: LHA's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LHA's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

How has Deutsche Lufthansa performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LHA has high quality earnings.

Growing Profit Margin: LHA's current net profit margins (3.3%) are lower than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: LHA's earnings have grown by 12.6% per year over the past 5 years.

Accelerating Growth: LHA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LHA had negative earnings growth (-43.9%) over the past year, making it difficult to compare to the Airlines industry average (-17%).


Return on Equity

High ROE: LHA's Return on Equity (12.1%) is considered low.


Next Steps

Financial Health

How is Deutsche Lufthansa's financial position?


Financial Position Analysis

Short Term Liabilities: LHA's short term assets (€11.3B) do not cover its short term liabilities (€16.0B).

Long Term Liabilities: LHA's short term assets (€11.3B) do not cover its long term liabilities (€16.4B).


Debt to Equity History and Analysis

Debt Level: LHA's debt to equity ratio (70%) is considered high.

Reducing Debt: LHA's debt to equity ratio has increased from 67.8% to 70% over the past 5 years.

Debt Coverage: LHA's debt is well covered by operating cash flow (56.2%).

Interest Coverage: LHA's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet

Inventory Level: LHA has a high level of physical assets or inventory.

Debt Coverage by Assets: LHA's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

What is Deutsche Lufthansa's current dividend yield, its reliability and sustainability?

5.70%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LHA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LHA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LHA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LHA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: LHA is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LHA's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Carsten Spohr (53yo)

5.92s

Tenure

€5,812,000

Compensation

Mr. Carsten Spohr has been the Chairman of the Executive Board and Chief Executive Officer of Deutsche Lufthansa Aktiengesellschaft since May 1, 2014 and has been its Member of Management Board since Janua ...


CEO Compensation Analysis

Compensation vs Market: Carsten's total compensation ($USD6.39M) is above average for companies of similar size in the German market ($USD3.67M).

Compensation vs Earnings: Carsten's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Carsten Spohr
Chairman of the Executive Board & CEO5.92yrs€5.81mno data
Ulrik Svensson
CFO & Member of Executive Board3.25yrs€3.05mno data
Harry Hohmeister
Head of Commercial Passenger Airlines & Member of the Executive Board6.75yrs€3.06mno data
Detlef Kayser
Chief Officer Airline of Resources & Operations Standards and Member of the Executive Board1.25yrs€3.02mno data
Thorsten Dirks
Member of the Executive Board & Chief Officer of IT3.25yrs€3.06mno data
Michael Niggemann
Chief Officer of Corporate Human Ressources & Legal Affairs and Member of the Executive Boardno datano datano data
Christina Foerster
Member of the Executive Board and Customer & Corporate Responsibility0.25yrno datano data
Roland Schtz
Chief Information Officer4.17yrsno datano data
Dennis Weber
Head of Investor Relationsno datano datano data
Uwe Mueller
Head of Sales - Germany9yrsno datano data

3.7yrs

Average Tenure

54.5yo

Average Age

Experienced Management: LHA's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jürgen Weber
Honorary Chairman of the Supervisory Board6.92yrsno datano data
Karl-Ludwig Kley
Chairman of Supervisory Board2.58yrs€300.00kno data
Monika Ribar
Member of Supervisory Board6yrs€110.00kno data
Herbert Hainer
Member of Supervisory Board10yrs€120.00kno data
Matthias Wissmann
Member of Supervisory Board11.67yrs€80.00kno data
Stephan Sturm
Member of Supervisory Board5yrs€140.00kno data
Martin Koehler
Member of Supervisory Board10.08yrs€100.00kno data
Jörg Cebulla
Employee Representative Member of Supervisory Board4.42yrs€110.00kno data
Christine Behle
Deputy Chairwoman of the Supervisory Board6.92yrs€140.00kno data
Christina Weber
Employee Representative Member of Supervisory Board6.92yrs€110.00kno data

6.9yrs

Average Tenure

61.5yo

Average Age

Experienced Board: LHA's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Deutsche Lufthansa AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Deutsche Lufthansa AG
  • Ticker: LHA
  • Exchange: XTRA
  • Founded:
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: €3.829b
  • Shares outstanding: 478.19m
  • Website: https://www.lufthansagroup.com

Number of Employees


Location

  • Deutsche Lufthansa AG
  • Venloer Strasse 151-153
  • Cologne
  • North Rhine-Westphalia
  • 50672
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DLAK.YOTCPK (Pink Sheets LLC)ADR EACH REPR 1 ORD NPV LVL1 (BNY)USUSDJan 1975
LHABDB (Deutsche Boerse AG)ADR EACH REPR 1 ORD NPV LVL1 (BNY)DEEURJan 1975
DLAK.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDSep 1997
LHADB (Deutsche Boerse AG)YesRegistered SharesDEEURSep 1997
0H4ALSE (London Stock Exchange)YesRegistered SharesGBEURSep 1997
LHAXTRA (XETRA Trading Platform)YesRegistered SharesDEEURSep 1997
LHADBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBEURSep 1997
LUFTHANSABUSE (Budapest Stock Exchange)YesRegistered SharesHUHUFSep 1997
LHABIT (Borsa Italiana)YesRegistered SharesITEURSep 1997
LHASWX (SIX Swiss Exchange)YesRegistered SharesCHCHFSep 1997
LHAWBAG (Wiener Boerse AG)YesRegistered SharesATEURSep 1997

Biography

Deutsche Lufthansa AG operates as an aviation company in Germany and internationally. The company’s Network Airlines segment offers passenger services through a route network of 273 destinations in 86 countries. Its Eurowings segment provides passenger services through a route network of 192 destinations in 60 countries. The company’s Logistics Business segment offers transport services for various cargoes, including living animals, valuable cargo, post and dangerous goods, and temperature-sensitive goods serving approximately 300 destinations in 100 countries. Its Maintenance, Repair and Overhaul Services (MRO) segment provides maintenance, repair, and overhaul services for civilian commercial aircraft serving original equipment manufacturers and aircraft leasing companies, operators of VIP jets, and airlines, as well as develops and manufactures cabin and digital products. The company’s Catering Business segment engages in-flight sales and entertainment, in-flight service equipment, and the associated logistics services, as well as consulting services; and operates airport lounges. As of December 31, 2019, it had a fleet of 763 aircraft. Deutsche Lufthansa AG is headquartered in Cologne, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 06:10
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.