NYSE:DAL

Stock Analysis Report

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Executive Summary

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally.


Snowflake Analysis

High growth potential and slightly overvalued.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.5%

DAL

7.5%

US Airlines

3.0%

US Market


1 Year Return

-54.5%

DAL

-49.1%

US Airlines

15.8%

US Market

Return vs Industry: DAL underperformed the US Airlines industry which returned -50.2% over the past year.

Return vs Market: DAL underperformed the US Market which returned 15.4% over the past year.


Shareholder returns

DALIndustryMarket
7 Day8.5%7.5%3.0%
30 Day0.3%1.1%6.0%
90 Day19.2%22.9%16.4%
1 Year-53.9%-54.5%-48.6%-49.1%18.4%15.8%
3 Year-41.2%-45.3%-42.8%-45.1%44.8%35.4%
5 Year-37.3%-43.1%-34.5%-38.1%75.7%56.7%

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

Valuation

Is Delta Air Lines 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: DAL ($27.08) is trading below our estimate of fair value ($63.9)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DAL is overvalued based on its PB Ratio (2x) compared to the US Airlines industry average (0.8x).


Next Steps

Future Growth

How is Delta Air Lines forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

112.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DAL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: DAL's revenue (25.2% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: DAL's revenue (25.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DAL's Return on Equity is forecast to be low in 3 years time (18.1%).


Next Steps

Past Performance

How has Delta Air Lines performed over the past 5 years?

-7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DAL is currently unprofitable.

Growing Profit Margin: DAL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DAL is unprofitable, and losses have increased over the past 5 years at a rate of 7.7% per year.

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

Earnings vs Industry: DAL is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (-40%).


Return on Equity

High ROE: DAL has a negative Return on Equity (-42.08%), as it is currently unprofitable.


Next Steps

Financial Health

How is Delta Air Lines's financial position?


Financial Position Analysis

Short Term Liabilities: DAL's short term assets ($18.9B) do not cover its short term liabilities ($20.2B).

Long Term Liabilities: DAL's short term assets ($18.9B) do not cover its long term liabilities ($43.4B).


Debt to Equity History and Analysis

Debt Level: DAL's debt to equity ratio (280%) is considered high.

Reducing Debt: DAL's debt to equity ratio has increased from 92.6% to 280% over the past 5 years.

Debt Coverage: DAL's debt is not well covered by operating cash flow (13.5%).

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


Balance Sheet


Next Steps

Dividend

What is Delta Air Lines's current dividend yield, its reliability and sustainability?

0.95%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate DAL'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 DAL's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: DAL is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Ed Bastian (62 yo)

4.25yrs

Tenure

US$17,325,378

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 ($USD17.33M) is above average for companies of similar size in the US market ($USD11.29M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Edward Bastian
CEO & Director4.25yrsUS$17.33m0.064%
$ 11.0m
Glen Hauenstein
President4.25yrsUS$9.92m0.050%
$ 8.6m
Paul Jacobson
Executive VP & CFO8.42yrsUS$6.28m0.079%
$ 13.6m
Wayne West
Senior EVP & COO6.42yrsUS$9.89m0.019%
$ 3.3m
Peter Carter
Executive VP5.08yrsUS$5.04m0.018%
$ 3.1m
William Carroll
Principal Accounting Officer1.17yrsno data0.0039%
$ 667.5k
Don Mitacek
Senior Vice President of Technical Operationsno datano datano data
Rahul Samant
Executive VP & Chief Information Officer4.5yrsno data0.0088%
$ 1.5m
Jill Greer
Vice President of Investor Relationsno datano datano data
John Laughter
Senior Vice President of Corporate Safetyno datano datano data
Tim Mapes
Senior VP & Chief Marketing & Communications Officer1.25yrsno datano data
Steven Sear
Executive VP of Global Sales & President of International4.5yrsno data0.015%
$ 2.7m

4.5yrs

Average Tenure

56.5yo

Average Age

Experienced Management: DAL's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Edward Bastian
CEO & Director4.25yrsUS$17.33m0.064%
$ 11.0m
Francis Blake
Independent Non-Executive Chairman3.83yrsUS$456.71k0.010%
$ 1.7m
David DeWalt
Independent Director8.75yrsUS$317.57k0.0095%
$ 1.6m
Michael Huerta
Independent Director2.33yrsUS$284.86k0.0024%
$ 419.8k
Jeanne Jackson
Independent Director3.58yrsUS$308.79k0.0070%
$ 1.2m
Sergio Rial
Independent Director5.67yrsUS$284.56k0.0032%
$ 550.5k
William Easter
Independent Director7.67yrsUS$300.30k0.0085%
$ 1.5m
David Taylor
Independent Director1yrUS$219.32k0.0026%
$ 450.7k
Kathy Waller
Independent Director5.08yrsUS$288.28k0.0036%
$ 624.5k
George Mattson
Independent Director7.83yrsUS$419.93k0.017%
$ 3.0m
Ashton Carter
Independent Director2.83yrsUS$292.73k0.0025%
$ 424.9k
Christopher Hazleton
Director1.17yrsno data0.000050%
$ 8.6k

4.5yrs

Average Tenure

62yo

Average Age

Experienced Board: DAL's board of directors are considered experienced (4.5 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.


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: 1924
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: US$17.203b
  • Shares outstanding: 635.27m
  • Website: https://www.delta.com

Number of Employees


Location

  • Delta Air Lines, Inc.
  • PO Box 20706
  • Atlanta
  • Georgia
  • 30320-6001
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DALNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2007
OYCDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2007
DAL *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 2007
DALSWX (SIX Swiss Exchange)YesCommon StockCHCHFApr 2007
0QZ4LSE (London Stock Exchange)YesCommon StockGBUSDApr 2007
DALWBAG (Wiener Boerse AG)YesCommon StockATEURApr 2007
DEAI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD0.0001BRBRLApr 2016

Biography

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/07 00:02
End of Day Share Price2020/08/06 00:00
Earnings2020/06/30
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.