NYSE:DAL

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 34.9% below its fair value

Earnings grew by 45.9% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Outstanding track record and good 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

-2.0%

DAL

-2.3%

US Airlines

0.03%

US Market


1 Year Return

0.1%

DAL

3.8%

US Airlines

18.6%

US Market

Return vs Industry: DAL underperformed the US Airlines industry which returned 3.8% over the past year.

Return vs Market: DAL underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

DALIndustryMarket
7 Day-2.0%-2.3%0.03%
30 Day-2.5%-3.2%1.7%
90 Day-3.4%3.6%5.7%
1 Year2.8%0.1%5.3%3.8%21.1%18.6%
3 Year16.5%8.4%9.2%5.0%45.6%36.2%
5 Year29.9%17.7%33.9%26.2%71.1%52.3%

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?

34.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DAL ($56.14) is trading below our estimate of fair value ($86.2)

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


Price To Earnings Ratio

PE vs Industry: DAL is good value based on its PE Ratio (7.9x) compared to the Airlines industry average (9x).

PE vs Market: DAL is good value based on its PE Ratio (7.9x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: DAL is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: DAL is overvalued based on its PB Ratio (2.4x) compared to the US Airlines industry average (1.7x).


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?

1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DAL's forecast earnings growth (1.6% per year) is below the savings rate (1.7%).

Earnings vs Market: DAL's earnings (1.6% 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 (3.7% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: DAL's revenue (3.7% 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 (24.8%)


Next Steps

Past Performance

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

0.3%

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 (7.3%).


Past Earnings Growth Analysis

Earnings Trend: DAL's earnings have grown by 0.3% per year over the past 5 years.

Accelerating Growth: DAL's earnings growth over the past year (45.9%) exceeds its 5-year average (0.3% per year).

Earnings vs Industry: DAL earnings growth over the past year (45.9%) exceeded the Airlines industry -14.4%.


Return on Equity

High ROE: DAL's Return on Equity (31.1%) 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 ($6.9B) do not cover its short term liabilities ($20.2B).

Long Term Liabilities: DAL's short term assets ($6.9B) do not cover its long term liabilities ($27.9B).


Debt to Equity History and Analysis

Debt Level: DAL's debt to equity ratio (62.8%) is considered high.

Reducing Debt: DAL's debt to equity ratio has reduced from 84.3% to 62.8% over the past 5 years.

Debt Coverage: DAL's debt is well covered by operating cash flow (92.1%).

Interest Coverage: DAL's interest payments on its debt are well covered by EBIT (21.6x 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 0.7x debt).


Next Steps

Dividend

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

2.87%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: DAL's dividend (2.87%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: DAL's dividend (2.87%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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 (20.5%), 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 (20% payout ratio).


Next Steps

Management

What is the CEO of Delta Air Lines's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Ed Bastian (61yo)

3.6yrs

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 ($USD14.98M) is above average for companies of similar size in the US market ($USD11.01M).

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


Management Age and Tenure

3.8yrs

Average Tenure

57yo

Average Age

Experienced Management: DAL's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: DAL's board of directors are considered experienced (6 years average tenure).


Insider Trading

Insider Buying: DAL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,740,08213 Nov 19
Edward Bastian
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares30,236
Max PriceUS$57.55
SellUS$1,024,47225 Jul 19
Rahul Samant
EntityIndividual
Role
Chief Information Officer
Executive VP & Chief Information Officer
Shares16,559
Max PriceUS$61.87
SellUS$647,77122 Jul 19
Wayne West
EntityIndividual
Role
Chief Operating Officer
Senior EVP & COO
Shares10,342
Max PriceUS$62.64
SellUS$3,151,35017 Jul 19
Glen Hauenstein
EntityIndividual
Role
President
President
Shares50,000
Max PriceUS$63.03
SellUS$395,53116 Jul 19
William Carroll
EntityIndividual
Role
Chief Accounting Officer
Principal Accounting Officer
Shares6,384
Max PriceUS$61.96
SellUS$479,06630 May 19
Steven Sear
EntityIndividual
Shares8,993
Max PriceUS$53.27
SellUS$54,87728 May 19
Michael Huerta
EntityIndividual
Shares1,010
Max PriceUS$54.33
SellUS$1,450,20024 Apr 19
Peter Carter
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares25,000
Max PriceUS$58.01
SellUS$1,725,00023 Apr 19
Edward Bastian
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares30,000
Max PriceUS$57.50
SellUS$1,972,00012 Apr 19
Joanne Smith
EntityIndividual
Shares34,000
Max PriceUS$58.00
SellUS$436,88012 Apr 19
Wayne West
EntityIndividual
Role
Chief Operating Officer
Senior EVP & COO
Shares7,465
Max PriceUS$58.53
BuyUS$324,59813 Mar 19
Berkshire Hathaway Inc.
EntityCompany
Shares6,500
Max PriceUS$49.94
BuyUS$265,234,14909 Mar 19
Berkshire Hathaway Inc.
EntityCompany
Shares5,368,956
Max PriceUS$49.77
SellUS$1,854,21622 Feb 19
Wayne West
EntityIndividual
Role
Chief Operating Officer
Senior EVP & COO
Shares36,000
Max PriceUS$51.51
SellUS$687,35921 Feb 19
Rahul Samant
EntityIndividual
Role
Chief Information Officer
Executive VP & Chief Information Officer
Shares13,436
Max PriceUS$51.16
SellUS$1,060,29011 Feb 19
Wayne West
EntityIndividual
Role
Chief Operating Officer
Senior EVP & COO
Shares21,000
Max PriceUS$50.49
BuyUS$249,74328 Jan 19
Francis Blake
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares5,185
Max PriceUS$48.17
BuyUS$247,06626 Dec 18
George Mattson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$49.41
BuyUS$203,64421 Dec 18
George Mattson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$50.93
BuyUS$211,46018 Dec 18
George Mattson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$52.88

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Ed Bastian (61yo)

    CEO & Director

    • Tenure: 3.6yrs
    • Compensation: US$14.98m
  • Bill Carroll (61yo)

    Principal Accounting Officer

    • Tenure: 0.5yrs
  • Glen Hauenstein (58yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$8.46m
  • Gil West (58yo)

    Senior EVP & COO

    • Tenure: 5.8yrs
    • Compensation: US$8.44m
  • Don Mitacek (56yo)

    Senior Vice President of Technical Operations

    • Tenure: 0yrs
  • Paul Jacobson (47yo)

    Executive VP & CFO

    • Tenure: 7.8yrs
    • Compensation: US$5.75m
  • John Laughter

    Senior Vice President of Corporate Safety

    • Tenure: 0yrs
  • Peter Carter (55yo)

    Executive VP

    • Tenure: 4.4yrs
    • Compensation: US$4.12m
  • Rahul Samant (52yo)

    Executive VP & Chief Information Officer

    • Tenure: 3.8yrs
  • Jill Greer

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Dan Carp (71yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$305.79k
  • Frank Blake (70yo)

    Non-Executive Chairman

    • Tenure: 3.2yrs
    • Compensation: US$459.31k
  • Dave DeWalt (55yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$300.34k
  • Ed Bastian (61yo)

    CEO & Director

    • Tenure: 3.6yrs
    • Compensation: US$14.98m
  • Jeanne Jackson (67yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$295.28k
  • Sergio Rial (59yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$276.19k
  • Bill Easter (69yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$301.06k
  • Kathy Waller (61yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$280.39k
  • George Mattson (53yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$424.39k
  • Ash Carter (64yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$287.63k

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$35.838b
  • Shares outstanding: 644.34m
  • Website: https://www.delta.com

Number of Employees


Location

  • Delta Air Lines, Inc.
  • Delta Boulevard
  • PO Box 20706
  • Atlanta
  • Georgia
  • 30320
  • 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 route net ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 00:03
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
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.