DELTA AIR LINES, INC. (DAL) Stock Analysis
DELTA AIR LINES, INC. (DAL) Stock Analysis
Analysis from 10-Q filed 2025-10-09. Data as of Q4 2025.
Overall Grade: F (Concerning)
DELTA AIR LINES, INC. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 10.8% | Near cost of capital |
| FCF Margin | 6.1% | Healthy cash flow |
| Debt/Equity | 0.6x | Moderate leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore DELTA AIR LINES, INC.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: DELTA AIR LINES, INC. earns 10.8% ROIC, Top 50% in Transportation
DELTA AIR LINES, INC.'s trailing-twelve-month ROIC of 10.8% ranks Top 50% in Transportation companies (sector median: 6.7%), driven by NOPAT margin of 7.4% combined with asset turnover of 0.8x. Source: 10-Q filed 2025-10-09.
| Metric | DAL | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 10.8% | Adequate | Above sector median of 6.7% |
| Return on Equity (ROE) | 28.7% | Excellent | Efficient use of shareholder equity |
| Operating Margin | 9.2% | Adequate | Moderate operational efficiency |
Cash Flow: DELTA AIR LINES, INC. generates $3.8B FCF at 6.1% margin, positive NaN/8 quarters
DELTA AIR LINES, INC. generated $3.8B in free cash flow (TTM), a 6.1% FCF margin, a margin that ranks Top 50% in Transportation. Operating cash flow exceeds net income by 1.7x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-09.
| Metric | DAL | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 6.1% | Adequate | Healthy cash generation |
| Free Cash Flow (TTM) | $3.8B | Good | Positive cash generation |
| OCF/Net Income | 1.7x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: DELTA AIR LINES, INC. at 0.6x leverage
DELTA AIR LINES, INC.'s debt-to-equity ratio of 0.6x reflects moderate leverage. Total debt of $13.3B offset by $4.5B in cash. Source: 10-Q filed 2025-10-09.
| Metric | DAL | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.6x | Good | Moderate leverage |
| Net Cash Position | $-8.8B | Warning | Net debt position |
Valuation: DELTA AIR LINES, INC. trades at 9.0x earnings
DELTA AIR LINES, INC. trades at a P/E of 9.0x. Free cash flow yield of 8.5% offers attractive cash returns relative to price.
| Metric | DAL | Rating | Context |
|---|---|---|---|
| P/E Ratio | 9.0x | Adequate | Reasonable valuation |
| EV/Sales | 0.9x | Excellent | Attractive revenue multiple |
| FCF Yield | 8.5% | Excellent | Attractive cash return |
| Dividend Yield | 1.0% | Adequate | Growth focus over income |
Capital Allocation: DELTA AIR LINES, INC. returns 1.0% shareholder yield
DELTA AIR LINES, INC.'s total shareholder yield is 1.0% (dividends 1.0% + buybacks). Source: 10-Q filed 2025-10-09.
| Metric | DAL | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 1.0% | Adequate | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $440.0M | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 10.8% | Top 50% | 1.6x above |
| Free Cash Flow Margin | 6.1% | Top 50% | 1.6x above |
| Operating Margin | 9.2% | Top 50% | 1.4x above |
| Return on Equity (ROE) | 28.7% | Top 25% | 2.7x above |
| P/E Ratio | 9.0x | N/A | - |
Financial Scorecard
| Metric | DAL | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 10.8% | Adequate | Top 50% of sector (median: 6.7%) |
| Free Cash Flow Margin | 6.1% | Adequate | Top 50% of sector (median: 3.8%) |
| Debt to Equity Ratio | 63.8% | Good | Moderate leverage |
| P/E Ratio (Price-to-Earnings) | 901.3% | Adequate | Attractively valued |
| Free Cash Flow Yield | 8.5% | Excellent | High cash return |
Frequently Asked Questions
Q: What is DELTA AIR LINES, INC.'s Return on Invested Capital (ROIC)?
DELTA AIR LINES, INC. (DAL) has a trailing twelve-month Return on Invested Capital (ROIC) of 10.8%. This compares above the sector median of 6.7%. An ROIC near 8-12% is approximately the cost of capital for most companies.
Q: What is DELTA AIR LINES, INC.'s Free Cash Flow Margin?
DELTA AIR LINES, INC. (DAL) has a free cash flow margin of 6.1%, generating $3.8 billion in free cash flow over the trailing twelve months. A FCF margin between 5-10% is typical for capital-intensive businesses.
Q: Is DELTA AIR LINES, INC. stock overvalued or undervalued?
DELTA AIR LINES, INC. (DAL) trades at a P/E ratio of 9.0x, which is above the sector median of N/A. The EV/Sales multiple is 0.9x. Free cash flow yield is 8.5%, which represents an attractive cash return to investors.
Q: Does DELTA AIR LINES, INC. pay a dividend?
DELTA AIR LINES, INC. (DAL) currently pays a dividend yield of 1.0%. Including share buybacks, the total shareholder yield is 1.0%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: How much debt does DELTA AIR LINES, INC. have?
DELTA AIR LINES, INC. (DAL) has a debt-to-equity ratio of 0.6x with total debt of $13.3 billion. Net debt position is $8.8 billion.
Q: What is DELTA AIR LINES, INC.'s revenue and earnings growth?
DELTA AIR LINES, INC. (DAL) grew revenue by 2.8% year-over-year. Earnings per share increased by 43.9% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: How does DELTA AIR LINES, INC. compare to competitors in Transportation?
Compared to other companies in Transportation, DELTA AIR LINES, INC. (DAL) shows: ROIC of 10.8% is above the sector median of 6.7% (Top 29%). FCF margin of 6.1% exceeds the sector median of 3.8% (Top 39% of sector). These rankings are based on MetricDuck's analysis of all Transportation companies with available SEC filings.
Q: What warning signs should I watch for with DELTA AIR LINES, INC.?
DELTA AIR LINES, INC. (DAL) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-10-09. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.