DB:LHA

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Reasonable growth potential and fair value.


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

-4.3%

LHA

-5.9%

DE Airlines

0.2%

DE Market


1 Year Return

-41.6%

LHA

-52.1%

DE Airlines

4.5%

DE Market

Return vs Industry: LHA exceeded the German Airlines industry which returned -52.1% over the past year.

Return vs Market: LHA underperformed the German Market which returned 3.9% over the past year.


Shareholder returns

LHAIndustryMarket
7 Day-4.3%-5.9%0.2%
30 Day-16.2%-12.5%6.4%
90 Day-2.0%-14.1%16.9%
1 Year-41.6%-41.6%-44.3%-52.1%6.8%4.5%
3 Year-55.8%-58.9%-65.2%-56.6%3.0%-5.0%
5 Year-22.1%-32.2%-28.1%-40.4%9.9%-4.8%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LHA (€8.72) is trading below our estimate of fair value (€24.22)

Significantly Below Fair Value: LHA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LHA is unprofitable, so we can't compare its PE Ratio to the XE Airlines industry average.

PE vs Market: LHA is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LHA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LHA is good value based on its PB Ratio (0.6x) compared to the XE Airlines industry average (1.2x).


Next Steps

Future Growth

How is Deutsche Lufthansa forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

116.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LHA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: LHA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LHA's is expected to become profitable in the next 3 years.

Revenue vs Market: LHA's revenue (13.8% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: LHA's revenue (13.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LHA is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Deutsche Lufthansa performed over the past 5 years?

0.01%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LHA is currently unprofitable.

Growing Profit Margin: LHA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LHA is unprofitable, but has reduced losses over the past 5 years at a rate of 0.01% per year.

Accelerating Growth: Unable to compare LHA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LHA is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (-20.2%).


Return on Equity

High ROE: LHA has a negative Return on Equity (-7.24%), as it is currently unprofitable.


Next Steps

Financial Health

How is Deutsche Lufthansa's financial position?


Financial Position Analysis

Short Term Liabilities: LHA's short term assets (€11.4B) do not cover its short term liabilities (€18.8B).

Long Term Liabilities: LHA's short term assets (€11.4B) do not cover its long term liabilities (€17.0B).


Debt to Equity History and Analysis

Debt Level: LHA's debt to equity ratio (108.3%) is considered high.

Reducing Debt: LHA's debt to equity ratio has increased from 96.4% to 108.3% over the past 5 years.

Debt Coverage: LHA's debt is well covered by operating cash flow (47.3%).

Interest Coverage: LHA is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

1.42%

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 recent payouts.

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

4.4yrs

Average management tenure


CEO

Carsten Spohr (54yo)

6.17yrs

Tenure

€5,812,000

Compensation

Mr. Carsten Spohr serves as Member to the Supervisory Board of Münchener Rückversicherungs-Gesellschaft AG since April 29, 2020. Mr. Spohr has been the Chairman of the Executive Board and Chief Executive O ...


CEO Compensation Analysis

Compensation vs Market: Carsten's total compensation ($USD6.58M) is above average for companies of similar size in the German market ($USD3.68M).

Compensation vs Earnings: Carsten's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Carsten Spohr
Chairman of the Executive Board & CEO6.17yrs€5.81mno data
Harry Hohmeister
Head of Commercial Passenger Airlines & Member of the Executive Board7yrs€3.06mno data
Detlef Kayser
Chief Officer Airline of Resources & Operations Standards and Member of the Executive Board1.5yrs€3.02mno data
Thorsten Dirks
Member of the Executive Board & Chief Officer of IT3.5yrs€3.06mno data
Michael Niggemann
Chief Officer of Corporate Human Resources & Legal Affairs and Member of the Executive Boardno datano datano data
Christina Foerster
Member of the Executive Board and Head of Customer & Corporate Responsibility0.50yrno datano data
Roland Schtz
Chief Information Officer4.42yrsno datano data
Dennis Weber
Head of Investor Relationsno datano datano data
Uwe Mueller
Head of Sales - Germany9.25yrsno datano data
Reiner Siebert
Head of Insurance12.75yrsno datano data
Ronald Schulz
Senior Director and Head of Liaison Office for the Russian Federation & CIS3.67yrsno datano data
Steffan Harbarth
Chief Commercial Officer for Munich Hub4.42yrsno datano data

4.4yrs

Average Tenure

55yo

Average Age

Experienced Management: LHA's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jürgen Weber
Honorary Chairman of the Supervisory Board7.17yrsno datano data
Karl-Ludwig Kley
Chairman of Supervisory Board2.83yrs€300.00kno data
Monika Ribar
Member of Supervisory Board6.25yrs€110.00kno data
Stephan Sturm
Member of Supervisory Board5.25yrs€140.00kno data
Martin Koehler
Member of Supervisory Board10.33yrs€100.00kno data
Carsten Knobel
Member of Supervisory Board2.5yrs€110.00kno data
Jörg Cebulla
Employee Representative Member of Supervisory Board4.67yrs€110.00kno data
Christine Behle
Deputy Chairwoman of the Supervisory Board7.17yrs€140.00kno data
Christina Weber
Employee Representative Member of Supervisory Board7.17yrs€110.00kno data
Miriam Sapiro
Member of Supervisory Board2.75yrs€80.00kno data
Alexander Behrens
Employee Representative Member of Supervisory Board2.17yrs€110.00kno data
Christian Hirsch
Employee Representative Member of Supervisory Board2.17yrs€80.00kno data

5.0yrs

Average Tenure

61yo

Average Age

Experienced Board: LHA's board of directors are considered experienced (5 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 been diluted in the past year, with total shares outstanding growing by 25.8%.


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: DB
  • Founded:
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: €5.219b
  • Shares outstanding: 597.74m
  • 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 Analysis2020/07/13 21:35
End of Day Share Price2020/07/13 00:00
Earnings2020/03/31
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.