Now trading at a price of $41.18, Delta Air Lines has moved -2.7% so far today.
Delta Air Lines returned gains of 28.6% last year, with its stock price reaching a high of $49.81 and a low of $30.6. Over the same period, the stock outperformed the S&P 500 index by 5.0%. More recently, the company's 50-day average price was $35.46. Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. Based in Atlanta, GA, the large-cap Consumer Discretionary company has 100,000 full time employees. Delta Air Lines has offered a 0.5% dividend yield over the last 12 months.
Growing Revenues With Increasing Reinvestment in the Business:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $44,438 | $47,007 | $17,095 | $29,899 | $50,582 | $57,260 |
| Revenue Growth | n/a | 5.78% | -63.63% | 74.9% | 69.18% | 13.2% |
| Operating Margins | 12% | 14% | -73% | 6% | 7% | 10% |
| Net Margins | 9% | 10% | -72% | 1% | 3% | 6% |
| Net Income (MM) | $3,935 | $4,767 | -$12,385 | $280 | $1,318 | $3,400 |
| Net Interest Expense (MM) | $220 | -$111 | $137 | -$60 | -$107 | -$32 |
| Depreciation & Amort. (MM) | $2,329 | $2,581 | $2,312 | $1,998 | $2,107 | $2,284 |
| Earnings Per Share | $5.67 | $7.3 | -$19.49 | $0.44 | $2.06 | $5.3 |
| EPS Growth | n/a | 28.75% | -366.99% | 102.26% | 368.18% | 157.28% |
| Diluted Shares (MM) | 694 | 653 | 636 | 641 | 641 | 647 |
| Free Cash Flow (MM) | $5,550 | $6,833 | -$4,796 | $1,613 | $4,492 | $5,389 |
| Capital Expenditures (MM) | $1,464 | $1,592 | $1,003 | $1,651 | $1,871 | $1,718 |
| Current Ratio | 0.34 | 0.41 | 1.09 | 0.76 | 0.5 | 0.44 |
| Total Debt (MM) | $13,630 | $15,704 | $30,546 | $31,440 | $30,146 | $27,700 |
| Net Debt / EBITDA | 1.43 | 1.3 | -2.19 | 6.05 | 4.66 | 3.13 |
Delta Air Lines's Earnings and Assets May Be Undervalued:
Delta Air Lines has a trailing twelve month P/E ratio of 6.7, compared to an average of 22.96 for the Consumer Discretionary sector. Based on its EPS guidance of $6.61, the company has a forward P/E ratio of 5.4. The 2.2% compound average growth rate of Delta Air Lines's historical and projected earnings per share yields a PEG ratio of 3.02. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Delta Air Lines in terms of its equity because its P/B ratio is 2.86 while the sector average is 4.24. The company's shares are currently trading -0.4% below their Graham number.
Analysts Give Delta Air Lines an Average Rating of Buy:
The 17 analysts following Delta Air Lines have set target prices ranging from $43.0 to $77.0 per share, for an average of $53.47 with a buy rating. As of April 2023, the company is trading -33.7% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Delta Air Lines has an average amount of shares sold short because 2.7% of the company's shares are sold short. Institutions own 71.3% of the company's shares, and the insider ownership rate stands at 0.34%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 11% stake in the company is worth $2,969,074,521.
