NYSE:DAL

Stock Analysis Report

Executive Summary

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States, Atlantic, Latin America, and Pacific.

Rewards

Trading at 30.5% below its fair value

Earnings are forecast to grow 1.85% per year

Earnings have grown 11.2% per year over the past 5 years

Risk Analysis

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months

Significant insider selling over the past 3 months



Snowflake Analysis

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


Market Performance


7 Day Return

-15.1%

DAL

-15.2%

US Airlines

-7.6%

US Market


1 Year Return

0.02%

DAL

-10.6%

US Airlines

10.2%

US Market

Return vs Industry: DAL exceeded the US Airlines industry which returned -10.6% over the past year.

Return vs Market: DAL underperformed the US Market which returned 10.2% over the past year.


Shareholder returns

DALIndustryMarket
7 Day-15.1%-15.2%-7.6%
30 Day-13.7%-14.5%-4.5%
90 Day-13.5%-17.5%-0.6%
1 Year2.7%0.02%-9.2%-10.6%12.5%10.2%
3 Year7.0%-0.7%-9.7%-13.4%37.1%28.3%
5 Year23.9%11.7%8.0%1.8%60.8%43.2%

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?

30.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DAL ($49.59) is trading below our estimate of fair value ($71.31)

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 (6.8x) compared to the Airlines industry average (6.9x).

PE vs Market: DAL is good value based on its PE Ratio (6.8x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: DAL is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: DAL is overvalued based on its PB Ratio (2.1x) compared to the US Airlines industry average (1.3x).


Next Steps

Future Growth

How is Delta Air Lines forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

1.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DAL's forecast earnings growth (1.8% per year) is above the savings rate (1.7%).

Earnings vs Market: DAL's earnings (1.8% per year) are forecast to grow slower than the US market (13.2% 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?

3.25%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.5%markettop25%4.0%industryaverage2.5%forecastin3Years3.6%

Current dividend yield vs market & industry

Notable Dividend: DAL's dividend (3.25%) is higher than the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: DAL's dividend (3.25%) is low compared to the top 25% of dividend payers in the US market (3.96%).


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

NamePositionTenureCompensationOwnership
Edward Bastian
CEO & Director3.8yrsUS$14.98m0.064% $20.1m
Glen Hauenstein
President3.8yrsUS$8.46m0.050% $15.7m
Paul Jacobson
Executive VP & CFO7.9yrsUS$5.75m0.079% $24.8m
Wayne West
Senior EVP & COO5.9yrsUS$8.44m0.019% $6.1m
Peter Carter
Executive VP4.6yrsUS$4.12m0.018% $5.7m
William Carroll
Principal Accounting Officer0.7yrsno data0.0039% $1.2m
Don Mitacek
Senior Vice President of Technical Operations0yrsno datano data
Rahul Samant
Executive VP & Chief Information Officer4yrsno data0.011% $3.6m
Jill Greer
Vice President of Investor Relations0yrsno datano data
John Laughter
Senior Vice President of Corporate Safety0yrsno datano data

4.0yrs

Average Tenure

57yo

Average Age

Experienced Management: DAL's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Edward Bastian
CEO & Director3.8yrsUS$14.98m0.064% $20.1m
Daniel Carp
Independent Director12.8yrsUS$305.79k0.0076% $2.4m
Francis Blake
Non-Executive Chairman3.3yrsUS$459.31k0.0084% $2.6m
David DeWalt
Independent Director8.3yrsUS$300.34k0.0086% $2.7m
Jeanne Jackson
Independent Director3.1yrsUS$295.28k0.0021% $648.1k
Sergio Rial
Independent Director5.2yrsUS$276.19k0.0024% $774.5k
William Easter
Independent Director7.2yrsUS$301.06k0.0076% $2.4m
Kathy Waller
Independent Director4.6yrsUS$280.39k0.0027% $859.9k
George Mattson
Independent Director7.3yrsUS$424.39k0.016% $5.1m
Ashton Carter
Independent Director2.3yrsUS$287.63k0.0016% $496.3k

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$31.614b
  • 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

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, 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 00:21
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
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.