Delta Air Lines, Inc.Find Ratings Reports
DELTA AIR LINES INC's gross profit margin for the fourth quarter of its fiscal year 2020 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly, but still managed to outperform when compared to the average company in its subsector. DELTA AIR LINES INC has weak liquidity. Currently, the Quick Ratio is 0.98 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 91.19% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q4 FY20||Q4 FY19|
|Net Sales ($mil)||3973.0||11439.0|
|Net Income ($mil)||-755.0||1098.0|
|Balance Sheet||Q4 FY20||Q4 FY19|
|Cash & Equiv. ($mil)||14288.0||3094.0|
|Total Assets ($mil)||72051.0||64532.0|
|Total Debt ($mil)||35548.0||17255.0|
|Profitability||Q4 FY20||Q4 FY19|
|Gross Profit Margin||-24.82||25.89|
|Return on Assets||-17.18||7.38|
|Return on Equity||-915.37||31.04|
|Debt||Q4 FY20||Q4 FY19|
|Share Data||Q4 FY20||Q4 FY19|
|Shares outstanding (mil)||637.73||642.77|
|Div / share||0.0||0.4|
|Book value / share||2.12||23.89|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.5246555E7||2.0536622E7|
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 19.55 indicates a significant premium versus the S&P 500 average of 4.02 and a significant premium versus the subsector average of 6.43. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, DELTA AIR LINES INC proves to trade at a premium to investment alternatives.
|DAL NM||Peers 18.89||DAL NA||Peers 42.29|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
DAL's P/E is negative making this valuation measure meaningless.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|DAL 9.53||Peers 19.97||DAL NA||Peers 0.00|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
DAL's ratio is negative making this valuation measure meaningless.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|DAL 19.55||Peers 6.43||DAL -366.53||Peers -695.55|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
DAL is trading at a significant premium to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
DAL is expected to have an earnings growth rate that significantly exceeds its peers.
|DAL 1.55||Peers 2.11||DAL -63.64||Peers -46.84|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
DAL is trading at a significant discount to its subsector on this measurement.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
DAL significantly trails its peers on the basis of sales growth.