Delta Air Lines, Inc. (DAL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Copa Holdings SA

Southwest Airlines Co.

Allegiant Travel Co.

Air Transport Services Group, Inc.

United Airlines Holdings, Inc.

SkyWest, Inc.

Delta Air Lines, Inc.

Alaska Air Group, Inc.

American Airlines Group, Inc.

JetBlue Airways Corp.

Spirit Airlines, Inc.

Why is Delta Air Lines, Inc. ?

Healthy long term growth as Net Sales has grown by an annual rate of 12.70%

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 7,403 MM
DEBT-EQUITY RATIO (HY) Lowest at 102.37 %
INTEREST COVERAGE RATIO(Q) Highest at 1,572.09

With ROCE of 21.08%, it has a very expensive valuation with a 1.65 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 11.15%, its profits have fallen by -7.9%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Airline)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Delta Air Lines, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Delta Air Lines, Inc.

79.73%

0.78

50.93%

S&P 500

22.24%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

29.96%

EBIT Growth (5y)

22.00%

EBIT to Interest (avg)

3.61

Debt to EBITDA (avg)

2.31

Net Debt to Equity (avg)

0.68

Sales to Capital Employed (avg)

1.89

Tax Ratio

20.70%

Dividend Payout Ratio

8.82%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

15.12%

ROE (avg)

21.77%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.06

EV to EBIT

9.08

EV to EBITDA

6.40

EV to Capital Employed

1.72

EV to Sales

0.83

PEG Ratio

0.95

Dividend Yield

1.07%

ROCE (Latest)

18.93%

ROE (Latest)

19.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 8,396 MM

DEBT-EQUITY RATIO (HY)

Lowest at 74.12 %

DIVIDEND PER SHARE(HY)

Highest at USD 16.84

-15What is not working for the Company

ROCE(HY)

Lowest at 25%

RAW MATERIAL COST(Y)

Grown by 13.03% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 33.29 times

OPERATING PROFIT(Q)

Lowest at USD 1,136 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.17 %

PRE-TAX PROFIT(Q)

Lowest at USD 340 MM

NET PROFIT(Q)

Lowest at USD 265 MM

EPS(Q)

Lowest at USD -0.44

Here's what is working for Delta Air Lines, Inc.

Operating Cash Flow

Highest at USD 8,396 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Lowest at 74.12 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at USD 16.84

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Depreciation

Highest at USD 635 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Delta Air Lines, Inc.

Pre-Tax Profit

At USD 340 MM has Fallen at -72.79%

over average net sales of the previous four periods of USD 1,249.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 265 MM has Fallen at -73.74%

over average net sales of the previous four periods of USD 1,008.99 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Profit

Lowest at USD 1,136 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 7.17 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 340 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 265 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -0.44

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Lowest at 33.29 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 13.03% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales