DB:LHA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Undervalued established dividend payer.


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


Market Performance


7 Day Return

7.3%

LHA

8.1%

DE Airlines

3.9%

DE Market


1 Year Return

-17.8%

LHA

-4.9%

DE Airlines

3.4%

DE Market

Return vs Industry: LHA underperformed the German Airlines industry which returned -4.9% over the past year.

Return vs Market: LHA underperformed the German Market which returned 3.4% over the past year.


Shareholder returns

LHAIndustryMarket
7 Day7.3%8.1%3.9%
30 Day6.1%15.2%2.1%
90 Day2.4%13.1%3.7%
1 Year-14.4%-17.8%1.1%-4.9%6.7%3.4%
3 Year52.1%37.1%27.8%14.9%18.9%8.6%
5 Year44.0%25.3%45.6%25.0%41.8%22.5%

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?

2.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: LHA (€15.42) is trading below our estimate of fair value (€15.79)

Significantly Undervalued: LHA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LHA is good value based on its PE Ratio (5.5x) compared to the Airlines industry average (8.2x).

PE vs Market: LHA is good value based on its PE Ratio (5.5x) compared to the German market (19.4x).


Price to Earnings Growth Ratio

Low 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 (0.8x) compared to the XE Airlines industry average (1.9x).


Next Steps

Future Growth

How is Deutsche Lufthansa forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LHA's forecast earnings growth (16.9% per year) is above the savings rate (0.2%).

Earnings vs Market: LHA's earnings (16.9% per year) are forecast to grow faster than the German market (12.6% per year).

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

Revenue vs Market: LHA's revenue (2.1% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: LHA's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: LHA's Return on Equity is forecast to be low in 3 years time (14.8%).


Next Steps

Past Performance

How has Deutsche Lufthansa performed over the past 5 years?

22.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LHA's earnings have grown significantly by 22.8% 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 (-44%) over the past year, making it difficult to compare to the Airlines industry average (-7%).


Return on Equity

High ROE: LHA's Return on Equity (14.9%) is considered low.


Return on Assets

ROA vs Industry: LHA's Return on Assets is below or equal to the Airlines industry average last year.


Return on Capital Employed

ROCE Improving: LHA has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Deutsche Lufthansa's financial position?


Financial Position Analysis

Short Term Liabilities: LHA's short term assets (€11.7B) do not cover its short term liabilities (€18.2B)

Long Term Liabilities: LHA's short term assets (11.7B) do not cover its long term liabilities (15.7B)


Debt to Equity History and Analysis

Debt Level: LHA's debt to equity ratio (73.7%) is considered high

Reducing Debt: LHA's debt to equity ratio has increased from 40.4% to 73.7% over the past 5 years.

Debt Coverage: LHA's debt is well covered by operating cash flow (48.4%).

Interest Coverage: LHA's interest payments on its debt are well covered by EBIT (7x 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 1.740070x debt).


Next Steps

Dividend

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

5.17%

Current Dividend Yield


Dividend Yield vs Market

company5.2%marketbottom25%1.5%markettop25%3.8%industryaverage5.0%forecastin3Years5.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LHA's dividend (5.17%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: LHA's dividend (5.17%) is in the top 25% of dividend payers in the German market (3.83%)

Stable Dividend: LHA's dividend payments have been volatile in the past 10 years.

Growing Dividend: LHA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.4%), LHA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LHA's dividends in 3 years are forecast to be well covered by earnings (24.5% payout ratio).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Carsten Spohr (53yo)

5.4yrs

Tenure

€4,371,000

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 ($USD4.86M) is about average for companies of similar size in the German market ($USD3.59M).

Compensation vs Earnings: Carsten's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.4yrs

Average Tenure

55.5yo

Average Age

Experienced Management: LHA's management team is seasoned and experienced (5.4 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

61.5yo

Average Age

Experienced Board: LHA's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Thorsten Dirks (56yo)

    Chief Commercial Officer of Eurowings & Member of the Executive Board

    • Tenure: 2.8yrs
    • Compensation: €2.77m
  • Ulrik Svensson (58yo)

    CFO & Member of Executive Board

    • Tenure: 2.8yrs
    • Compensation: €2.76m
  • Carsten Spohr (53yo)

    Chairman of the Executive Board & CEO

    • Tenure: 5.4yrs
    • Compensation: €4.37m
  • Uwe Mueller

    Head of Sales - Germany

    • Tenure: 8.5yrs
  • Reiner Siebert (62yo)

    Head of Insurance

    • Tenure: 12yrs
  • Harry Hohmeister (55yo)

    Chief Commercial Officer Network Airlines & Member of Executive Board

    • Tenure: 6.3yrs
    • Compensation: €2.77m
  • Dennis Weber

    Head of Investor Relations

    • Tenure: 0yrs
  • Bettina Volkens (56yo)

    Chief Officer of Corporate HR & Legal Affairs and Member of the Executive Board

    • Tenure: 6.3yrs
    • Compensation: €2.75m
  • Detlef Kayser (54yo)

    Chief Officer Airline of Resources & Operations Standards and Member of the Executive Board

    • Tenure: 0.8yrs
  • Roland Schtz (50yo)

    Chief Information Officer

    • Tenure: 3.7yrs

Board Members

  • Jürgen Weber (78yo)

    Honorary Chairman of the Supervisory Board

    • Tenure: 6.4yrs
  • Karl-Ludwig Kley (68yo)

    Chairman of Supervisory Board

    • Tenure: 2.1yrs
    • Compensation: €280.00k
  • Monika Ribar (60yo)

    Member of Supervisory Board

    • Tenure: 5.5yrs
    • Compensation: €110.00k
  • Herbert Hainer (65yo)

    Member of Supervisory Board

    • Tenure: 9.5yrs
    • Compensation: €100.00k
  • Matthias Wissmann (70yo)

    Member of Supervisory Board

    • Tenure: 11.2yrs
    • Compensation: €80.00k
  • Stephan Sturm (56yo)

    Member of Supervisory Board

    • Tenure: 4.5yrs
    • Compensation: €140.00k
  • Martin Koehler (62yo)

    Member of Supervisory Board

    • Tenure: 9.6yrs
    • Compensation: €80.00k
  • Jörg Cebulla (53yo)

    Employee Representative Member of Supervisory Board

    • Tenure: 3.9yrs
    • Compensation: €100.00k
  • Christine Behle (51yo)

    Deputy Chairwoman of the Supervisory Board

    • Tenure: 6.4yrs
    • Compensation: €140.00k
  • Christina Weber (61yo)

    Employee Representative Member of Supervisory Board

    • Tenure: 6.4yrs
    • Compensation: €100.00k

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: €7.352b
  • Shares outstanding: 475.21m
  • 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
LHADB (Deutsche Boerse AG)YesRegistered SharesDEEURSep 1997
0H4ALSE (London Stock Exchange)YesRegistered SharesGBEURSep 1997
LHAXTRA (XETRA Trading Platform)YesRegistered SharesDEEURSep 1997
DLAK.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDSep 1997
LUFTHANSABUSE (Budapest Stock Exchange)YesRegistered SharesHUHUFSep 1997
LHABIT (Borsa Italiana)YesRegistered SharesITEURSep 1997
LHAWBAG (Wiener Boerse AG)YesRegistered SharesATEURSep 1997
LHASWX (SIX Swiss Exchange)YesRegistered SharesCHCHFSep 1997
LHADBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBEURSep 1997

Biography

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 pa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:56
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.