Fact based stock research
Delta Air Lines (NYSE:DAL)

US2473617023

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Delta Air Lines stock research in summary

delta.com

ANALYSIS: With an Obermatt Combined Rank of 84 (better than 84% compared with investment alternatives), Delta Air Lines (Airlines, USA) shares have much better financial characteristics than comparable stocks. Shares of Delta Air Lines are a good value (attractively priced) with a consolidated Value Rank of 80 (better than 80% of alternatives), show above-average growth (Growth Rank of 70) but are riskily financed (Safety Rank of 42), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 84, is a strong buy recommendation based on Delta Air Lines's financial characteristics. As the company Delta Air Lines's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 80) and above-average growth (Obermatt Growth Rank of 70), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 42) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	80
Growth Rank	70
Safety Rank	42
Combined Rank	84

Country	USA
Industry	Airlines
Index	Employee Focus US, Energy Efficient, Diversity USA, S&P 500
Size class	XX-Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Delta Air Lines

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	15	57	80	80
GROWTH
GROWTH	24	48	51	70
SAFETY
SAFETY	10	1	41	42
SENTIMENT
SENTIMENT	n/a	91	98	^new
360° VIEW
360° VIEW	n/a	48	94	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Delta Air Lines is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	15	57	80	80
GROWTH
GROWTH	24	48	51	70
SAFETY
SAFETY	10	1	41	42
COMBINED
COMBINED	7	17	62	84

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Delta Air Lines the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 80 (better than 80% compared with alternatives) for 2024, Delta Air Lines shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Delta Air Lines. Price-to-Sales (P/S) is 62, which means that the stock price compared with what market professionals expect for future sales is lower than for 62% of comparable companies, indicating a good value concerning Delta Air Lines's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 88% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 56 (dividends are expected to be higher than 56% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 61% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Delta Air Lines to 39. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 80, is a buy recommendation based on Delta Air Lines's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	78	65	75	62
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	19	52	92	88
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	6	22	34	39
DIVIDEND YIELD
DIVIDEND YIELD	1	51	61	56
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	15	57	80	80

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Delta Air Lines; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 70 (better than 70% compared with alternatives), Delta Air Lines shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Delta Air Lines. Sales Growth has a rank of 60 which means that currently, professionals expect the company to grow more than 60% of its competitors. Both Profit Growth, with a rank of 57, and Stock Returns, with a rank of 88, are also above average. But Capital Growth only has a rank of 35, which means that, currently, professionals expect the company to grow its invested capital less than 65% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 70, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	24	52	25	60
PROFIT GROWTH
PROFIT GROWTH	7	81	88	57
CAPITAL GROWTH
CAPITAL GROWTH	n/a	28	14	35
STOCK RETURNS
STOCK RETURNS	69	39	77	88
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	24	48	51	70

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Delta Air Lines.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 42 (better than 42% compared with alternatives), the company Delta Air Lines has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Delta Air Lines is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Delta Air Lines. Liquidity is at 96, meaning the company generates more profit to service its debt than 96% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 12, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 88% of its competitors. Leverage is also high at a rank of 23, which means that the company has an above-average debt-to-equity ratio. It has more debt than 77% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 42 (worse than 58% compared with alternatives), Delta Air Lines has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	31	10	12	23
REFINANCING
REFINANCING	8	5	9	12
LIQUIDITY
LIQUIDITY	7	4	96	96
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	10	1	41	42

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Delta Air Lines and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	70	95	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	64	64	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	67	82	^new
MARKET PULSE
MARKET PULSE	n/a	32	64	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	91	98	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Delta Air Lines.
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