Deutsche Lufthansa AG (LHA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Deutsche Lufthansa AG

Air Berlin Plc

Why is Deutsche Lufthansa AG ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0.37%

Poor long term growth as Net Sales has grown by an annual rate of 7.24% and Operating profit at 9.50% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company declared negative results in Mar'24 after flat results in Dec'23

NET SALES(Q) At EUR 7,392 MM has Fallen at -16.6 %
OPERATING PROFIT TO INTEREST (Q) Lowest at -5.51 times
CASH AND CASH EQUIVALENTS(HY) Lowest at EUR 1,265.00 MM

Underperformed the market in the last 1 year

The stock has generated a return of 3.14% in the last 1 year, much lower than market (Germany DAX (TR)) returns of 24.35%

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 Deutsche Lufthansa AG for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Deutsche Lufthansa AG

27.72%

-1.73

34.65%

Germany DAX (TR)

18.37%

1.26

19.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.67%

EBIT Growth (5y)

13.15%

EBIT to Interest (avg)

-3.80

Debt to EBITDA (avg)

2.08

Net Debt to Equity (avg)

0.50

Sales to Capital Employed (avg)

1.11

Tax Ratio

24.20%

Dividend Payout Ratio

26.01%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

0.37%

ROE (avg)

9.11%

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

0.84

EV to EBIT

-23.16

EV to EBITDA

7.87

EV to Capital Employed

0.90

EV to Sales

0.37

PEG Ratio

0.11

Dividend Yield

4.15%

ROCE (Latest)

-3.87%

ROE (Latest)

17.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

Not enough Data to analyse Financial Trend

Here's what is working for Deutsche Lufthansa AG

Dividend Payout Ratio (DPR) - Annually

Highest at 21.44 %

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Deutsche Lufthansa AG

Net Sales - Quarterly

At EUR 7,392 MM has Fallen at -16.6 %

over average Net Sales of the previous four periods of EUR 8,861 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (EUR MM)

Profit Before Tax less Other Income (PBT) - Quarterly

At EUR -1,520 MM has Fallen at -1627.3 %

over average PBT of the previous four periods of EUR -88 MM

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (EUR MM)

Profit After Tax (PAT) - Quarterly

At EUR -721 MM has Fallen at -244.3 %

over average PAT of the previous four periods of EUR 500 MM

MOJO Watch

Near term PAT trend is very negative

PAT (EUR MM)

Operating Profit to Interest - Quarterly

Lowest at -5.51 times

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest (EUR MM)

Operating Profit (PBDIT) - Quarterly

Lowest at EUR -804 MM.

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (EUR MM)

Operating Profit Margin - Quarterly

Lowest at -10.88%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales (EUR MM)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at EUR -1,520 MM.

in the last five periods

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (EUR MM)

Profit After Tax (PAT) - Quarterly

Lowest at EUR -721 MM.

in the last five periods

MOJO Watch

Near term PAT trend is negative

PAT (EUR MM)

Earnings per Share (EPS) - Quarterly

Lowest at EUR -0.61

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (EUR)

Cash and Cash Equivalents - Half Yearly

Lowest at EUR 1,265.00 MM

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents (EUR MM)

Inventory Turnover Ratio- Half Yearly

Lowest at 36.70 times

in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio