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Deutsche Lufthansa

DB:LHA
Snowflake Description

Very undervalued established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LHA
DB
€7B
Market Cap
  1. Home
  2. DE
  3. Transportation
Company description

Deutsche Lufthansa AG operates as an aviation company in Germany and internationally. The last earnings update was 57 days ago. More info.


Add to Portfolio Compare Print
  • Deutsche Lufthansa has significant price volatility in the past 3 months.
LHA Share Price and Events
7 Day Returns
-2.7%
DB:LHA
-2.2%
Europe Airlines
1.5%
DE Market
1 Year Returns
-29.5%
DB:LHA
-32.9%
Europe Airlines
-5.8%
DE Market
LHA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Deutsche Lufthansa (LHA) -2.7% -15.9% -25.2% -29.5% 39.8% -3.8%
Europe Airlines -2.2% -5.2% -15.2% -32.9% 18.8% 8.9%
DE Market 1.5% 1.3% 2.2% -5.8% 17.6% 8.7%
1 Year Return vs Industry and Market
  • LHA outperformed the Airlines industry which returned -32.9% over the past year.
  • LHA underperformed the Market in Germany which returned -5.8% over the past year.
Price Volatility
LHA
Industry
5yr Volatility vs Market

Value

 Is Deutsche Lufthansa undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Deutsche Lufthansa to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Deutsche Lufthansa.

DB:LHA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:LHA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Airlines Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.846 (1 + (1- 30%) (130.61%))
1.415
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.41
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.415 * 5.96%)
8.66%

Discounted Cash Flow Calculation for DB:LHA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Deutsche Lufthansa is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:LHA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 8.66%)
2019 67.82 Analyst x10 62.42
2020 845.86 Analyst x11 716.40
2021 984.53 Analyst x9 767.39
2022 1,031.00 Analyst x1 739.56
2023 1,168.00 Analyst x1 771.05
2024 1,251.06 Est @ 7.11% 760.06
2025 1,314.20 Est @ 5.05% 734.78
2026 1,361.52 Est @ 3.6% 700.57
2027 1,396.77 Est @ 2.59% 661.43
2028 1,423.04 Est @ 1.88% 620.16
Present value of next 10 years cash flows €6,533.81
DB:LHA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €1,423.04 × (1 + 0.23%) ÷ (8.66% – 0.23%)
€16,914.20
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €16,914.20 ÷ (1 + 8.66%)10
€7,371.15
DB:LHA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €6,533.81 + €7,371.15
€13,904.96
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €13,904.96 / 475.21
€29.26
DB:LHA Discount to Share Price
Calculation Result
Value per share (EUR) From above. €29.26
Current discount Discount to share price of €14.71
= -1 x (€14.71 - €29.26) / €29.26
49.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Deutsche Lufthansa is available for.
Intrinsic value
50%
Share price is €14.71 vs Future cash flow value of €29.26
Current Discount Checks
For Deutsche Lufthansa to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Deutsche Lufthansa's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Deutsche Lufthansa's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Deutsche Lufthansa's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Deutsche Lufthansa's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:LHA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in EUR €3.93
DB:LHA Share Price ** DB (2019-06-25) in EUR €14.71
Europe Airlines Industry PE Ratio Median Figure of 13 Publicly-Listed Airlines Companies 9.03x
Germany Market PE Ratio Median Figure of 425 Publicly-Listed Companies 19.8x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Deutsche Lufthansa.

DB:LHA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= DB:LHA Share Price ÷ EPS (both in EUR)

= 14.71 ÷ 3.93

3.74x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Deutsche Lufthansa is good value based on earnings compared to the Europe Airlines industry average.
  • Deutsche Lufthansa is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Deutsche Lufthansa's expected growth come at a high price?
Raw Data
DB:LHA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 3.74x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
11.6%per year
Europe Airlines Industry PEG Ratio Median Figure of 11 Publicly-Listed Airlines Companies 0.56x
Germany Market PEG Ratio Median Figure of 272 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

DB:LHA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 3.74x ÷ 11.6%

0.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Deutsche Lufthansa is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Deutsche Lufthansa's assets?
Raw Data
DB:LHA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in EUR €20.28
DB:LHA Share Price * DB (2019-06-25) in EUR €14.71
Europe Airlines Industry PB Ratio Median Figure of 16 Publicly-Listed Airlines Companies 1.47x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.8x
DB:LHA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= DB:LHA Share Price ÷ Book Value per Share (both in EUR)

= 14.71 ÷ 20.28

0.72x

* Primary Listing of Deutsche Lufthansa.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Deutsche Lufthansa is good value based on assets compared to the Europe Airlines industry average.
X
Value checks
We assess Deutsche Lufthansa's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Airlines industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Airlines industry average (and greater than 0)? (1 check)
  5. Deutsche Lufthansa has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Deutsche Lufthansa expected to grow at an attractive rate?
  • Deutsche Lufthansa's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Deutsche Lufthansa's earnings growth is positive but not above the Germany market average.
  • Deutsche Lufthansa's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:LHA Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:LHA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 11.6%
DB:LHA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 2.9%
Europe Airlines Industry Earnings Growth Rate Market Cap Weighted Average 13.8%
Europe Airlines Industry Revenue Growth Rate Market Cap Weighted Average 6%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.6%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:LHA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:LHA Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 40,944 5,398 2,367 2
2022-12-31 39,749 5,231 2,354 2
2021-12-31 38,483 4,856 2,066 14
2020-12-31 37,523 4,608 1,873 16
2019-12-31 36,291 3,814 1,515 10
DB:LHA Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-03-31 36,170 3,930 1,860
2018-12-31 35,920 4,109 2,163
2018-09-30 36,074 4,792 2,247
2018-06-30 35,925 5,272 2,363
2018-03-31 35,428 5,457 2,369
2017-12-31 35,651 5,368 2,340
2017-09-30 34,601 4,651 1,778
2017-06-30 33,619 4,279 2,019
2017-03-31 32,657 3,792 1,716
2016-12-31 31,710 3,246 1,776
2016-09-30 31,628 3,287 1,801
2016-06-30 31,739 3,059 1,173

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Deutsche Lufthansa's earnings are expected to grow by 11.6% yearly, however this is not considered high growth (20% yearly).
  • Deutsche Lufthansa's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:LHA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Deutsche Lufthansa Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LHA Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 4.98 4.98 4.98 1.00
2022-12-31 4.95 4.95 4.95 1.00
2021-12-31 4.32 5.27 2.76 14.00
2020-12-31 3.90 4.94 2.52 18.00
2019-12-31 2.95 4.41 2.09 17.00
DB:LHA Past Financials Data
Date (Data in EUR Millions) EPS *
2019-03-31 3.93
2018-12-31 4.58
2018-09-30 4.76
2018-06-30 5.02
2018-03-31 5.04
2017-12-31 4.98
2017-09-30 3.79
2017-06-30 4.31
2017-03-31 3.67
2016-12-31 3.81
2016-09-30 3.88
2016-06-30 2.53

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Deutsche Lufthansa is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Deutsche Lufthansa's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Deutsche Lufthansa has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Deutsche Lufthansa performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Deutsche Lufthansa's growth in the last year to its industry (Airlines).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Deutsche Lufthansa has delivered over 20% year on year earnings growth in the past 5 years.
  • Deutsche Lufthansa's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Deutsche Lufthansa's 1-year earnings growth is negative, it can't be compared to the Europe Airlines industry average.
Earnings and Revenue History
Deutsche Lufthansa's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Deutsche Lufthansa Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LHA Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 36,170.00 1,860.00 439.00
2018-12-31 35,920.00 2,163.00 439.00
2018-09-30 36,074.00 2,247.00 400.00
2018-06-30 35,925.00 2,363.00 400.00
2018-03-31 35,428.00 2,369.00 400.00
2017-12-31 35,651.00 2,340.00 400.00
2017-09-30 34,601.00 1,778.00 387.00
2017-06-30 33,619.00 2,019.00 387.00
2017-03-31 32,657.00 1,716.00 387.00
2016-12-31 31,710.00 1,776.00 387.00
2016-09-30 31,628.00 1,801.00 358.00
2016-06-30 31,739.00 1,173.00 358.00
2016-03-31 32,005.00 1,265.00 358.00
2015-12-31 32,062.00 1,698.00 358.00
2015-09-30 31,701.00 1,321.00 333.00
2015-06-30 31,220.00 1,088.00 333.00
2015-03-31 30,532.00 732.00 333.00
2014-12-31 30,021.00 55.00 333.00
2014-09-30 29,905.00 548.00 328.00
2014-06-30 29,750.00 437.00 328.00
2014-03-31 29,882.00 519.00 328.00
2013-12-31 30,048.00 313.00 328.00
2013-09-30 30,107.00 778.00 308.00
2013-06-30 30,116.00 975.00 308.00
2013-03-31 30,170.00 1,130.00 308.00
2012-12-31 30,161.00 1,192.00 308.00
2012-09-30 30,075.00 502.00 325.00
2012-06-30 29,588.00 379.00 325.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Deutsche Lufthansa has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Deutsche Lufthansa used its assets less efficiently than the Europe Airlines industry average last year based on Return on Assets.
  • Deutsche Lufthansa has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Deutsche Lufthansa's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Airlines industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Deutsche Lufthansa has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Deutsche Lufthansa's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Deutsche Lufthansa's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Deutsche Lufthansa's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Deutsche Lufthansa's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Deutsche Lufthansa's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Deutsche Lufthansa Company Filings, last reported 2 months ago.

DB:LHA Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 9,742.00 6,194.00 3,320.00
2018-12-31 9,573.00 3,003.00 3,235.00
2018-09-30 11,445.00 6,531.00 4,081.00
2018-06-30 9,826.00 6,632.00 4,104.00
2018-03-31 8,604.00 6,675.00 4,629.00
2017-12-31 9,110.00 3,067.00 3,948.00
2017-09-30 8,572.00 6,938.00 6,460.00
2017-06-30 7,347.00 7,215.00 6,118.00
2017-03-31 6,810.00 7,283.00 5,389.00
2016-12-31 7,149.00 2,847.00 4,026.00
2016-09-30 4,852.00 5,769.00 3,614.00
2016-06-30 3,632.00 6,547.00 4,091.00
2016-03-31 4,819.00 6,080.00 3,387.00
2015-12-31 5,845.00 2,898.00 3,151.00
2015-09-30 6,182.00 6,170.00 3,881.00
2015-06-30 5,783.00 5,846.00 3,483.00
2015-03-31 2,579.00 6,023.00 3,133.00
2014-12-31 4,031.00 2,723.00 2,808.00
2014-09-30 4,719.00 5,907.00 3,645.00
2014-06-30 4,964.00 5,348.00 3,734.00
2014-03-31 5,224.00 5,284.00 3,674.00
2013-12-31 6,108.00 3,122.00 4,830.00
2013-09-30 5,595.00 6,408.00 5,389.00
2013-06-30 5,167.00 6,566.00 5,369.00
2013-03-31 4,577.00 6,863.00 5,175.00
2012-12-31 4,839.00 3,828.00 5,078.00
2012-09-30 8,434.00 6,941.00 4,898.00
2012-06-30 7,881.00 6,868.00 4,573.00
  • Deutsche Lufthansa's level of debt (69.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (101.2% vs 69.5% today).
  • Debt is well covered by operating cash flow (58%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 15.7x coverage).
X
Financial health checks
We assess Deutsche Lufthansa's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Deutsche Lufthansa has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.44%
Current annual income from Deutsche Lufthansa dividends. Estimated to be 5.73% next year.
If you bought €2,000 of Deutsche Lufthansa shares you are expected to receive €109 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Deutsche Lufthansa's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.44%).
  • Deutsche Lufthansa's dividend is above the markets top 25% of dividend payers in Germany (3.81%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:LHA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
Europe Airlines Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 5.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 328 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:LHA Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 1.05 1.00
2022-12-31 1.00 1.00
2021-12-31 0.95 17.00
2020-12-31 0.85 19.00
2019-12-31 0.73 20.00
DB:LHA Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-03-14 0.800 4.226
2018-03-23 0.800 3.652
2017-03-16 0.500 2.298
2016-03-18 0.500 4.200
2015-10-29 0.000 0.000
2015-07-30 0.000 0.000
2015-05-05 0.000 0.000
2015-02-20 0.000 0.000
2014-03-13 0.450 3.070
2013-10-31 0.000 0.000
2013-08-02 0.000 0.000
2013-05-02 0.000 0.000
2013-02-19 0.000 0.000
2012-08-03 0.250 2.085
2012-05-09 0.250 2.782
2011-03-17 0.600 5.340
2011-03-16 0.600 4.412
2010-10-28 0.000 0.000
2010-07-29 0.000 0.000
2010-05-05 0.000 0.000
2010-04-30 0.000 0.000
2010-03-02 0.000 0.000
2009-03-11 0.700 6.748

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Deutsche Lufthansa's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.7x coverage).
X
Income/ dividend checks
We assess Deutsche Lufthansa's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Deutsche Lufthansa afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Deutsche Lufthansa has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Deutsche Lufthansa's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Carsten Spohr
COMPENSATION €4,371,000
AGE 52
TENURE AS CEO 5.1 years
CEO Bio

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 January 01, 2011. Mr. Spohr serves as the Chief Executive Officer of Lufthansa Passenger Airlines at Deutsche Lufthansa AG. Mr. Spohr served as an Interim Chief Financial Officer of Deutsche Lufthansa Aktiengesellschaft since August 31, 2016 until January 1, 2017. Mr. Spohr served as the Head of Passenger Business at Deutsche Lufthansa Aktiengesellschaft. He served as the Chief Executive Officer and Chairman of the Management Board at Lufthansa Cargo AG from January 15, 2007 to December 31, 2010 and its Member of the Management Board until December 31, 2010. He served as the Chief Executive Officer and Executive Board at Lufthansa German Airlines from January 2011 to May 1, 2014. Mr. Spohr served as an Executive Vice President Services and Human Resources on the Board of Lufthansa Passenger Airlines. He also served as Head of Services and Human Resources and Member of Executive Board at Lufthansa German Airlines at Deutsche Lufthansa Aktiengesellschaft until January 14, 2007. From 1995 to 1998, Mr. Spohr served as Personal Assistant to the then Chief Executive Officer and Chairman of Lufthansa, Jürgen Weber, prior to assuming responsibility in August 1998 for Lufthansa's partnerships in Europe as Head of Regional Partner Management. He has been with the Lufthansa Group since 1994. Since February 2000, Mr. Spohr served as Vice President of Alliance with the responsibility for managing and coordinating Lufthansa cooperation partners worldwide, including the Star Alliance and regional partners. In July 2003, he assumed responsibility for Lufthansa passenger business strategy and airline holdings. In October 2004, he served to the Management Board of Lufthansa Passenger Airlines, where he was responsible for cabin crews, hub management and human resources at Lufthansa Passenger Airlines. He serves as the Chairman of Supervisory Board of Lufthansa Technik AG. Mr. Spohr serves as the Chairman at Lufthansa German Airlines since January 1, 2011. He serves as Member of Supervisory Board of SN Airholding SA / NV, Belgium. He has been a Member of the Supervisory Board at ThyssenKrupp AG since April 19, 2013. Mr. Spohr serves as a Member of Advisory Board at Dr. August Oetker KG. He served as a Member of the Advisory Council at DFS Deutsche Flugsicherung GmbH. He served as a Member of Economic Advisory Board at Fraport AG. He obtained degree in industrial engineering at Karlsruhe University and qualified on the Lufthansa flight training course with a commercial airline pilot's license. In 1994, he completed a management training course at Deutsche Aerospace AG, Munich.

CEO Compensation
  • Carsten's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Carsten's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Deutsche Lufthansa management team in years:

5.1
Average Tenure
54.5
Average Age
  • The average tenure for the Deutsche Lufthansa management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Carsten Spohr

TITLE
Chairman of the Executive Board & CEO
COMPENSATION
€4M
AGE
52
TENURE
5.1 yrs

Ulrik Svensson

TITLE
CFO & Member of Executive Board
COMPENSATION
€3M
AGE
57
TENURE
2.4 yrs

Harry Hohmeister

TITLE
Chief Commercial Officer Network Airlines & Member of Executive Board
COMPENSATION
€3M
AGE
54
TENURE
5.9 yrs

Bettina Volkens

TITLE
Chief Officer of Corporate HR & Legal Affairs and Member of the Executive Board
COMPENSATION
€3M
AGE
55
TENURE
5.9 yrs

Thorsten Dirks

TITLE
Chief Commercial Officer of Eurowings & Member of the Executive Board
COMPENSATION
€3M
AGE
55
TENURE
2.4 yrs

Detlef Kayser

TITLE
Chief Officer Airline of Resources & Operations Standards and Member of the Executive Board
AGE
53
TENURE
0.4 yrs

Roland Schtz

TITLE
Chief Information Officer
AGE
49
TENURE
3.3 yrs

Dennis Weber

TITLE
Head of Investor Relations

Uwe Mueller

TITLE
Head of Sales - Germany
TENURE
8.2 yrs

Reiner Siebert

TITLE
Head of Insurance
AGE
61
TENURE
11.7 yrs
Board of Directors Tenure

Average tenure and age of the Deutsche Lufthansa board of directors in years:

6.1
Average Tenure
60.5
Average Age
  • The tenure for the Deutsche Lufthansa board of directors is about average.
Board of Directors

Karl-Ludwig Kley

TITLE
Chairman of Supervisory Board
COMPENSATION
€280K
AGE
67
TENURE
1.8 yrs

Christine Behle

TITLE
Deputy Chairwoman of the Supervisory Board
COMPENSATION
€140K
AGE
50
TENURE
6.1 yrs

Jürgen Weber

TITLE
Honorary Chairman of the Supervisory Board
AGE
77
TENURE
6.1 yrs

Stephan Sturm

TITLE
Member of Supervisory Board
COMPENSATION
€140K
AGE
55
TENURE
4.2 yrs

Jörg Cebulla

TITLE
Employee Representative Member of Supervisory Board
COMPENSATION
€100K
AGE
52
TENURE
3.6 yrs

Matthias Wissmann

TITLE
Member of Supervisory Board
COMPENSATION
€80K
AGE
69
TENURE
10.8 yrs

Martin Koehler

TITLE
Member of Supervisory Board
COMPENSATION
€80K
AGE
61
TENURE
9.3 yrs

Herbert Hainer

TITLE
Member of Supervisory Board
COMPENSATION
€100K
AGE
64
TENURE
9.2 yrs

Christina Weber

TITLE
Employee Representative Member of Supervisory Board
COMPENSATION
€100K
AGE
60
TENURE
6.1 yrs

Monika Ribar

TITLE
Member of Supervisory Board
COMPENSATION
€110K
AGE
59
TENURE
5.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Deutsche Lufthansa's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Deutsche Lufthansa has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Deutsche Lufthansa AG (FRA:LHA) Might Not Be A Great Investment

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Deutsche Lufthansa: 0.093 = €2.3b ÷ (€43b - €18b) (Based on the trailing twelve months to March 2019.) So, Deutsche Lufthansa has an ROCE of 9.3%. … Deutsche Lufthansa's Current Liabilities And Their Impact On Its ROCE Current liabilities are short term bills and invoices that need to be paid in 12 months or less. … What We Can Learn From Deutsche Lufthansa's ROCE Deutsche Lufthansa's ROCE does look good, but the level of current liabilities also contribute to that.

Simply Wall St -

How Financially Strong Is Deutsche Lufthansa AG (FRA:LHA)?

On top of this, LHA has produced €3.9b in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 43%, meaning that LHA’s operating cash is sufficient to cover its debt. … We can check to see whether LHA is able to meet its debt obligations by looking at the net interest coverage ratio. … Next Steps: Although LHA’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet debt obligations which means its debt is being efficiently utilised.

Simply Wall St -

Read This Before You Buy Deutsche Lufthansa AG (FRA:LHA) Because Of Its P/E Ratio

The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Deutsche Lufthansa: P/E of 4.47 = €17.55 ÷ €3.93 (Based on the year to March 2019.) Is A High P/E Ratio Good? … Deutsche Lufthansa saw earnings per share decrease by 22% last year. … How Does Deutsche Lufthansa's Debt Impact Its P/E Ratio?

Simply Wall St -

Is Deutsche Lufthansa AG (FRA:LHA) Potentially Underrated?

In the case of Deutsche Lufthansa AG (FRA:LHA), there's is a well-regarded dividend payer that has been a rockstar for income investors, currently trading at an attractive share price. … Very undervalued average dividend payer LHA is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. … DB:LHA Historical Dividend Yield, May 12th 2019 Next Steps: For Deutsche Lufthansa, I've compiled three essential aspects you should further examine: Future Outlook: What are well-informed industry analysts predicting for LHA’s future growth?

Simply Wall St -

How Did Deutsche Lufthansa AG's (FRA:LHA) 23% ROE Fare Against The Industry?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Deutsche Lufthansa has a return on equity of 23% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Deutsche Lufthansa AG (FRA:LHA) Trading At A 46% Discount?

I will use the Discounted Cash Flow (DCF) model! … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. … We're using the 2-stage growth model, which simply means we take in account two stages of company's growth

Simply Wall St -

Why Deutsche Lufthansa AG (FRA:LHA) Is A Star In A Falling Market

Today I want to bring to light the market's darling - Deutsche Lufthansa AG. … Looking at its size, financial health and track record, I believe there's an opportunity with Deutsche Lufthansa during these volatile times. … Generally, large-cap stocks are well-resourced and well-established meaning that a bear market will cause it to rejig some short-term capital allocations, but stock market volatility is hardly detrimental to its financial health and business operations

Simply Wall St -

How Does Deutsche Lufthansa AG (FRA:LHA) Fare As A Dividend Stock?

There is a lot to be liked about Deutsche Lufthansa AG (FRA:LHA) as an income stock. … The company currently pays out a dividend yield of 3.9% to shareholders, making it a relatively attractive dividend stock. … Let's take a look at Deutsche Lufthansa in more detail.

Simply Wall St -

What Investors Should Know About Deutsche Lufthansa AG's (FRA:LHA) Financial Strength

the key to their continued success lies in its financial health. … I will provide an overview of Deutsche Lufthansa’s financial liquidity and leverage to give you an idea of Deutsche Lufthansa’s position to take advantage of potential acquisitions or comfortably endure future downturns. … Check out our latest analysis for Deutsche Lufthansa

Simply Wall St -

At €20.54, Is It Time To Put Deutsche Lufthansa AG (FRA:LHA) On Your Watch List?

received a lot of attention from a substantial price movement on the DB over the last few months, increasing to €23.51 at one point, and dropping to the lows of €18.91. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … A question to answer is whether Deutsche Lufthansa's current trading price of €20.54 reflective of the actual value of the?

Simply Wall St -

Company Info

Description

Deutsche Lufthansa AG operates as an aviation company in Germany and internationally. The company operates through Network Airlines, Eurowings, and Aviation Services. The Network Airlines segment offers passenger services through a route network of 287 destinations in 86 countries. The Eurowings segment provides passenger services through a route network of 197 destinations in 62 countries. The Aviation Services segment offers a range of cargo transport services for various cargos, including live animals, valuable cargo, mail, dangerous goods, and temperature-sensitive cargo serving approximately 300 destinations in approximately 100 countries. This segment also 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 products and digital products. In addition, it offers catering, in-flight sales and entertainment, in-flight service equipment, and the associated logistics services; and consulting services, as well as operates airport lounges. Further, this segment provides consulting and IT services for the aviation industry; aviation and transport insurance, and reinsurance products, as well as risk management services; training courses in simulator training, emergency and service drill, or e-learning; and business travel management solutions in the area of payment and analysis of corporate travel. As of December 31, 2018, it had a fleet of 763 aircraft. Deutsche Lufthansa AG is headquartered in Cologne, Germany.

Details
Name: Deutsche Lufthansa AG
LHA
Exchange: DB
Founded:
€6,987,973,769
475,210,729
Website: http://www.lufthansagroup.com
Address: Deutsche Lufthansa AG
Linnicher Str. 48,
Cologne,
North Rhine-Westphalia, 50933,
Germany
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
DB LHA Registered Shares Deutsche Boerse AG DE EUR 08. Sep 1997
OTCPK DLAK.F Registered Shares Pink Sheets LLC US USD 08. Sep 1997
XTRA LHA Registered Shares XETRA Trading Platform DE EUR 08. Sep 1997
LSE 0H4A Registered Shares London Stock Exchange GB EUR 08. Sep 1997
SWX LHA Registered Shares SIX Swiss Exchange CH CHF 08. Sep 1997
BIT LHA Registered Shares Borsa Italiana IT EUR 08. Sep 1997
WBAG LHA Registered Shares Wiener Boerse AG AT EUR 08. Sep 1997
BUSE LUFTHANSA Registered Shares Budapest Stock Exchange HU HUF 08. Sep 1997
BATS-CHIXE LHAD Registered Shares BATS 'Chi-X Europe' GB EUR 08. Sep 1997
OTCPK DLAK.Y ADR EACH REPR 1 ORD NPV LVL1 (BNY) Pink Sheets LLC US USD 06. Jan 1975
DB LHAB ADR EACH REPR 1 ORD NPV LVL1 (BNY) Deutsche Boerse AG DE EUR 06. Jan 1975
Number of employees
Current staff
Staff numbers
136,795
Deutsche Lufthansa employees.
Industry
Airlines
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 02:16
End of day share price update: 2019/06/25 00:00
Last estimates confirmation: 2019/06/25
Last earnings filing: 2019/04/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.