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Delta Air Lines Inc DAL

Morningstar Rating
$36.64 +0.60 (1.66%)
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Company Report

Delta Is a High-Quality Airline With Some High-Quality Problems

Delta Air Lines positions itself as a premium airline, with the highest costs and revenue per seat mile in the North American market. Even in the relatively harmonious 2015-19 period after the airline industry consolidated and fuel costs fell, Delta's industry-leading operating margins declined due to increased fuel, labor, and depreciation expense on almost flat capacity. While we believe Delta will continue to garner premium revenue yields, we see the spread between those yields and its overall costs more closely resembling the industry's in the long term, especially as the levers of segmentation and the definition of a business traveler evolve.

Price vs Fair Value

DAL is trading at a 10% discount.
Price
$36.04
Fair Value
$13.00
Uncertainty
High
1-Star Price
$23.00
5-Star Price
$72.00
Economic Moat
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Capital Allocation
Ykwytskh

Bulls Say, Bears Say

Bulls

The strategy of providing premium experiences to business travelers has resonated with customers, and Delta generally earns a unit revenue premium relative to peers.

Bears

Business travel recoveries tend to lag economic recoveries, and Delta has high and evolving exposure to the business travel market.

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News

Trading Information

Previous Close Price
$36.04
Day Range
$36.3436.92
52-Week Range
$30.6049.81
Bid/Ask
$36.65 / $36.71
Market Cap
$23.58 Bil
Volume/Avg
9.3 Mil / 9.5 Mil

Key Statistics

Price/Earnings (Normalized)
5.60
Price/Sales
0.40
Dividend Yield
0.55%
Dividend Yield (Forward)
1.11%
Total Yield
0.55%

Company Profile

Atlanta-based Delta Air Lines is one of the world's largest airlines, with a network of over 300 destinations in more than 50 countries. Delta operates a hub-and-spoke network, where it gathers and distributes passengers across the globe through its biggest hubs in Atlanta, New York, Salt Lake City, Detroit, Seattle, and Minneapolis-St. Paul.
Sector
Industrials
Industry
Airlines
Stock Style Box
Mid Core
Total Number of Employees
95,000

Competitors

Valuation

Metric
DAL
LUV
AAL
Price/Earnings (Normalized)
5.6030.263.46
Price/Book Value
2.511.34
Price/Sales
0.400.620.16
Price/Cash Flow
3.268.161.72
Price/Earnings
DAL
LUV
AAL

Financial Strength

Metric
DAL
LUV
AAL
Quick Ratio
0.301.090.52
Current Ratio
0.441.210.69
Interest Coverage
6.151.391.71
Quick Ratio
DAL
LUV
AAL

Profitability

Metric
DAL
LUV
AAL
Return on Assets (Normalized)
4.75%1.69%3.54%
Return on Equity (Normalized)
49.85%5.70%
Return on Invested Capital (Normalized)
11.45%1.84%9.58%
Return on Assets
DAL
LUV
AAL

Airlines Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
RYAAY
Ryanair Holdings PLC ADRHzfzxfd$21.8 Bil
RYAOF
Ryanair Holdings PLCBkpldp$21.8 Bil
AICAF
Air China Ltd Class HPfry$16.3 Bil
AIRYY
Air China Ltd ADRLgxl$16.3 Bil
LUV
Southwest Airlines CoPbv$14.8 Bil
SINGF
Singapore Airlines LtdCydw$14.1 Bil
SINGY
Singapore Airlines Ltd ADRYqkx$14.1 Bil
UAL
United Airlines Holdings IncFxnz$12.8 Bil
AAL
American Airlines Group IncZmsx$8.0 Bil