Delta Air Lines
Market Cap
US$37.3b
Last Updated
2020/02/20 01:08 UTC
Data Sources
Company Financials +
Executive Summary
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States, Atlantic, Latin America, and Pacific.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record and fair value.
Similar Companies
Share Price & News
How has Delta Air Lines's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: DAL has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.0%
DAL
-2.0%
US Airlines
0.5%
US Market
1 Year Return
13.7%
DAL
4.3%
US Airlines
20.3%
US Market
Return vs Industry: DAL exceeded the US Airlines industry which returned 4.3% over the past year.
Return vs Market: DAL underperformed the US Market which returned 20.3% over the past year.
Shareholder returns
| DAL | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.0% | -2.0% | 0.5% |
| 30 Day | -3.0% | -0.9% | 2.0% |
| 90 Day | 4.3% | -1.3% | 9.4% |
| 1 Year | 17.5%13.7% | 6.1%4.3% | 22.8%20.3% |
| 3 Year | 25.0%15.9% | 5.9%1.6% | 50.1%40.4% |
| 5 Year | 41.3%27.4% | 26.8%19.5% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is Delta Air Lines's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Delta Air Lines, Inc. (NYSE:DAL) Looks Interesting, And It's About To Pay A Dividend1 week ago | Simply Wall St
Update: Delta Air Lines (NYSE:DAL) Stock Gained 30% In The Last Five Years2 weeks ago | Simply Wall St
Michael Huerta Just Bought Shares In Delta Air Lines, Inc. (NYSE:DAL)Valuation
Is Delta Air Lines undervalued compared to its fair value and its price relative to the market?
19.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DAL ($58.51) is trading below our estimate of fair value ($72.53)
Significantly Below Fair Value: DAL is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: DAL is good value based on its PE Ratio (8x) compared to the Airlines industry average (8.5x).
PE vs Market: DAL is good value based on its PE Ratio (8x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: DAL is poor value based on its PEG Ratio (4x)
Price to Book Ratio
PB vs Industry: DAL is overvalued based on its PB Ratio (2.4x) compared to the US Airlines industry average (1.5x).
Next Steps
Future Growth
How is Delta Air Lines forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
2.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DAL's forecast earnings growth (2% per year) is above the savings rate (1.7%).
Earnings vs Market: DAL's earnings (2% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: DAL's earnings are forecast to grow, but not significantly.
Revenue vs Market: DAL's revenue (3.6% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: DAL's revenue (3.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DAL's Return on Equity is forecast to be high in 3 years time (21.9%)
Next Steps
Past Performance
How has Delta Air Lines performed over the past 5 years?
11.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DAL has high quality earnings.
Growing Profit Margin: DAL's current net profit margins (10.1%) are higher than last year (8.9%).
Past Earnings Growth Analysis
Earnings Trend: DAL's earnings have grown by 11.2% per year over the past 5 years.
Accelerating Growth: DAL's earnings growth over the past year (21.1%) exceeds its 5-year average (11.2% per year).
Earnings vs Industry: DAL earnings growth over the past year (21.1%) underperformed the Airlines industry 41.3%.
Return on Equity
High ROE: DAL's Return on Equity (31%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Delta Air Lines's financial position?
Financial Position Analysis
Short Term Liabilities: DAL's short term assets ($8.2B) do not cover its short term liabilities ($20.2B).
Long Term Liabilities: DAL's short term assets ($8.2B) do not cover its long term liabilities ($29.0B).
Debt to Equity History and Analysis
Debt Level: DAL's debt to equity ratio (70.6%) is considered high.
Reducing Debt: DAL's debt to equity ratio has reduced from 111.5% to 70.6% over the past 5 years.
Debt Coverage: DAL's debt is well covered by operating cash flow (77.7%).
Interest Coverage: DAL's interest payments on its debt are well covered by EBIT (22.1x coverage).
Balance Sheet
Inventory Level: DAL has a high level of physical assets or inventory.
Debt Coverage by Assets: DAL's debt is not covered by short term assets (assets are 0.8x debt).
Next Steps
Dividend
What is Delta Air Lines's current dividend yield, its reliability and sustainability?
2.75%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: DAL's dividend (2.75%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: DAL's dividend (2.75%) is low compared to the top 25% of dividend payers in the US market (3.73%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, DAL has been paying a dividend for less than 10 years.
Growing Dividend: DAL's dividend payments have increased, but the company has only paid a dividend for 7 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (20.6%), DAL's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DAL's dividends in 3 years are forecast to be well covered by earnings (24.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.0yrs
Average management tenure
CEO
Ed Bastian (61yo)
3.8yrs
Tenure
US$14,982,448
Compensation
Mr. Edward H. Bastian, also known as Ed, has been the Chief Executive Officer of Delta Air Lines, Inc. since May 2, 2016. Mr. Bastian served as President of Delta Air Lines, Inc. from September 01, 2007 to ...
CEO Compensation Analysis
Compensation vs Market: Ed's total compensation ($USD14.98M) is above average for companies of similar size in the US market ($USD10.78M).
Compensation vs Earnings: Ed's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3.8yrs | US$14.98m | 0.064% $23.8m | |
| President | 3.8yrs | US$8.46m | 0.050% $18.5m | |
| Executive VP & CFO | 7.9yrs | US$5.75m | 0.079% $29.3m | |
| Senior EVP & COO | 5.9yrs | US$8.44m | 0.019% $7.2m | |
| Executive VP | 4.6yrs | US$4.12m | 0.018% $6.8m | |
| Principal Accounting Officer | 0.7yrs | no data | 0.0039% $1.4m | |
| Senior Vice President of Technical Operations | 0yrs | no data | no data | |
| Executive VP & Chief Information Officer | 4yrs | no data | 0.011% $4.3m | |
| Vice President of Investor Relations | 0yrs | no data | no data | |
| Senior Vice President of Corporate Safety | 0yrs | no data | no data |
4.0yrs
Average Tenure
57yo
Average Age
Experienced Management: DAL's management team is considered experienced (4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3.8yrs | US$14.98m | 0.064% $23.8m | |
| Independent Director | 12.8yrs | US$305.79k | 0.0076% $2.8m | |
| Non-Executive Chairman | 3.3yrs | US$459.31k | 0.0084% $3.1m | |
| Independent Director | 8.3yrs | US$300.34k | 0.0086% $3.2m | |
| Independent Director | 3.1yrs | US$295.28k | 0.0021% $764.7k | |
| Independent Director | 5.2yrs | US$276.19k | 0.0024% $913.9k | |
| Independent Director | 7.2yrs | US$301.06k | 0.0076% $2.8m | |
| Independent Director | 4.6yrs | US$280.39k | 0.0027% $1.0m | |
| Independent Director | 7.3yrs | US$424.39k | 0.016% $6.1m | |
| Independent Director | 2.3yrs | US$287.63k | 0.0016% $585.6k |
6.2yrs
Average Tenure
62.5yo
Average Age
Experienced Board: DAL's board of directors are considered experienced (6.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: DAL insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Delta Air Lines, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Delta Air Lines, Inc.
- Ticker: DAL
- Exchange: NYSE
- Founded: 1925
- Industry: Airlines
- Sector: Transportation
- Market Cap: US$37.300b
- Shares outstanding: 637.50m
- Website: https://www.delta.com
Number of Employees
Location
- Delta Air Lines, Inc.
- PO Box 20706
- Atlanta
- Georgia
- 30320-6001
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DAL | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Apr 2007 |
| OYC | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 2007 |
| DAL * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Apr 2007 |
| DAL | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Apr 2007 |
| 0QZ4 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Apr 2007 |
| DAL | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Apr 2007 |
| DEAI34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM USD0.0001 | BR | BRL | Apr 2016 |
Biography
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States, Atlantic, Latin America, and Pacific. The company operates in two segments, Airline and Refinery. Its route network includes various hubs and markets at airports in Atlanta, Minneapolis-St. Paul, Detroit, Salt Lake City, Boston, Los Angeles, New York-LaGuardia, New York-JFK, Seattle, Amsterdam, London-Heathrow, Mexico City, Paris-Charles de Gaulle, and Seoul-Incheon. The company sells its tickets through various distribution channels, including delta.com and Fly Delta app, reservations specialists, online travel agencies, and traditional brick and mortar agencies. It also provides maintenance, repair, and overhaul services; and vacation packages to third-party consumers, as well as aircraft charters, and management and programs. The company operates through a fleet of approximately 1,000 aircraft. Delta Air Lines, Inc. was founded in 1925 and is headquartered in Atlanta, Georgia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/20 01:08 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.