Fact based stock research
Deutsche Lufthansa (XTRA:LHA)
DE0008232125
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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.
Deutsche Lufthansa stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 42 (worse than 58% compared with investment alternatives), Deutsche Lufthansa (Airlines, Germany) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Deutsche Lufthansa are a good value (attractively priced) with a consolidated Value Rank of 94 (better than 94% of alternatives) but show below-average growth (Growth Rank of 18), and are riskily financed (Safety Rank of 28), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 42, is a hold recommendation based on Deutsche Lufthansa's financial characteristics. As the company Deutsche Lufthansa's key financial metrics exhibit good value (Obermatt Value Rank of 94) but low growth (Obermatt Growth Rank of 18) and risky financing practices (Obermatt Safety Rank of 28), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 94% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Germany |
| Industry | Airlines |
| Index | CDAX, Human Rights, MDAX |
| Size class | XX-Large |
This stock has achievements: Top 10 Stock.
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Deutsche Lufthansa
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 46 |
|
21 |
|
90 |
|
94 |
|
| GROWTH | ||||||||
| GROWTH | 44 |
|
61 |
|
58 |
|
18 |
|
| SAFETY | ||||||||
| SAFETY | 11 |
|
1 |
|
15 |
|
28 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
57 |
|
30 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
19 |
|
43 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 42 (worse than 58% compared with investment alternatives), Deutsche Lufthansa (Airlines, Germany) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Deutsche Lufthansa are a good value (attractively priced) with a consolidated Value Rank of 94 (better than 94% of alternatives) but show below-average growth (Growth Rank of 18), and are riskily financed (Safety Rank of 28), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 42, is a hold recommendation based on Deutsche Lufthansa's financial characteristics. As the company Deutsche Lufthansa's key financial metrics exhibit good value (Obermatt Value Rank of 94) but low growth (Obermatt Growth Rank of 18) and risky financing practices (Obermatt Safety Rank of 28), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 94% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 46 |
|
21 |
|
90 |
|
94 |
|
| GROWTH | ||||||||
| GROWTH | 44 |
|
61 |
|
58 |
|
18 |
|
| SAFETY | ||||||||
| SAFETY | 11 |
|
1 |
|
15 |
|
28 |
|
| COMBINED | ||||||||
| COMBINED | 23 |
|
10 |
|
58 |
|
42 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 94 (better than 94% compared with alternatives) for 2024, Deutsche Lufthansa shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Deutsche Lufthansa. Price-to-Sales is 89 which means that the stock price compared with what market professionals expect for future sales is lower than for 89% of comparable companies, indicating a good value for Deutsche Lufthansa's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 77% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 83. Compared with other companies in the same industry, dividend yields of Deutsche Lufthansa are expected to be higher than for 61% of all competitors (a Dividend Yield rank of 61). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 94, is a buy recommendation based on Deutsche Lufthansa's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Deutsche Lufthansa based on its detailed value metrics. 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) | 77 |
|
93 |
|
85 |
|
89 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 43 |
|
3 |
|
84 |
|
77 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 27 |
|
31 |
|
68 |
|
83 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
71 |
|
61 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 46 |
|
21 |
|
90 |
|
94 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 18 (better than 18% compared with alternatives), Deutsche Lufthansa shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Deutsche Lufthansa. Only Capital Growth has a good rank of 81, which means that currently professionals expect the company to grow its invested capital more than 8% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 35 which means that currently professionals expect the company to grow less than 65% of its competitors. Profit Growth with a rank of 8 and Stock Returns with a rank of 12 are also low (below 88% of alternative investments). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 18, is a sell recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Deutsche Lufthansa is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. 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, especially since the growth performance is limited here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 33 |
|
88 |
|
72 |
|
35 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 22 |
|
49 |
|
92 |
|
8 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
63 |
|
26 |
|
81 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 31 |
|
15 |
|
26 |
|
12 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 44 |
|
61 |
|
58 |
|
18 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 28 (better than 28% compared with alternatives), the company Deutsche Lufthansa 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 Deutsche Lufthansa 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 Deutsche Lufthansa. Liquidity is at 53, meaning the company generates more profit to service its debt than 53% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 14, 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 86% of its competitors. Leverage is also high at a rank of 39, which means that the company has an above-average debt-to-equity ratio. It has more debt than 61% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 28 (worse than 72% compared with alternatives), Deutsche Lufthansa 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 | 56 |
|
10 |
|
36 |
|
39 |
|
| REFINANCING | ||||||||
| REFINANCING | 11 |
|
11 |
|
17 |
|
14 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 11 |
|
1 |
|
33 |
|
53 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 11 |
|
1 |
|
15 |
|
28 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
16 |
|
29 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
91 |
|
63 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
63 |
|
44 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
38 |
|
33 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
57 |
|
30 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Deutsche Lufthansa from November 14, 2024.
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