NEW YORK (TheStreet) -- Delta Air Lines (DAL) - Get Delta Air Lines, Inc. Report shares are down 1.96% to $39.06 today after the U.S. Department of Transportation announced on Tuesday that it was looking into a complaint that the company used deceptive practices to block the construction of a second major airport in the Atlanta metropolitan area.
The agency told Reuters that its examination of the complaint, which was filed by county commissioners and a private group looking to develop the project, is not a formal investigation.
Delta, whose largest hub, headquarters site and maintenance base is located at the Hartsfield-Jackson Atlanta International Airport, has gone on record in opposition to the new project. CEO Richard Anderson last year told the Atlanta Journal-Constitution that "With the city of Atlanta and Mayor (Kasim) Reed, we will work together to oppose any investment in that facility."
The Paulding County Commissioner, chairman of Propeller Airports and a former official at the FAA accused Delta of "harming consumers and stifling economic development in the region," in their letter to the Transportation Department.
TheStreet Ratings team rates DELTA AIR LINES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DELTA AIR LINES INC (DAL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, DAL's share price has jumped by 48.06%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DAL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The revenue growth significantly trails the industry average of 36.7%. Since the same quarter one year prior, revenues slightly increased by 6.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.82, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- Net operating cash flow has increased to $1,393.00 million or 19.98% when compared to the same quarter last year. Despite an increase in cash flow, DELTA AIR LINES INC's cash flow growth rate is still lower than the industry average growth rate of 36.11%.
- You can view the full analysis from the report here: DAL Ratings Report