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DAL Delta Air Lines, Inc. - Fundamental Analysis

NEUTRAL
DAL Stock | Fundamental Analysis & Investment Insights
NYSE Industrials Airlines
Current Price
$69.06
Analyst Target
$74.61
+8.0% Upside
52W High
$72.34
52W Low
$34.74

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Confidence Score
72%
Analysis Accuracy
Delta Air Lines exhibits mixed financial health with a weak Piotroski F-Score of 4/9 and concerning liquidity ratios, though its Altman Z-Score of 143.5 billion indicates no near-term distress risk. The stock appears reasonably valued with a P/E of 9.74 well below sector average, trading slightly above the Graham Number of $68.04 but below intrinsic value of $158.11. Strong ROE of 28.51% and solid earnings growth contrast with bearish insider activity and weakening recent EPS momentum. Analysts rate it a strong_buy, but technical trend and insider selling suggest caution despite attractive valuation multiples.

Key Strengths

Exceptionally high Altman Z-Score indicating negligible bankruptcy risk
Attractive valuation with P/E significantly below sector average of 32.77
Strong return on equity (ROE) of 28.51%, above peer average
Earnings growth of 10.2% YoY and revenue growth of 6.4% demonstrate operational momentum
Low payout ratio of 8.99% provides dividend sustainability and reinvestment flexibility

Key Risks

Weak Piotroski F-Score of 4/9 signals suboptimal financial health and stability
Critically low liquidity with current ratio of 0.40 and quick ratio of 0.26
High debt/equity ratio of 1.17, above sector average of 1.56 but concerning for cyclical airline industry
Bearish insider sentiment with $9.58M in net sales by executives over last 6 months
Most recent Q/Q EPS growth declined by 18.6%, indicating potential earnings deceleration
AI Fair Value Estimate
Based on comprehensive analysis
$75.0
+8.6% above current price

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