DEUTSCHE LUFTHANSA-REG (1LHA.MI) Stock Fundamental Analysis
BIT:1LHA - Borsa Italiana Milan - DE0008232125 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to 1LHA. 1LHA was compared to 12 industry peers in the Passenger Airlines industry. Both the profitability and financial health of 1LHA have multiple concerns. 1LHA is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year 1LHA was profitable.
In the past year 1LHA had a positive cash flow from operations.
In multiple years 1LHA reported negative net income over the last 5 years.
1LHA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.93%, 1LHA is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Return On Equity of 1LHA (8.83%) is worse than 66.67% of its industry peers.
1LHA has a Return On Invested Capital of 4.10%. This is amonst the worse of the industry: 1LHA underperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 8.83% | ||
| ROIC | 4.1% |
ROA(3y)0.12%
ROA(5y)-2.76%
ROE(3y)-7.5%
ROE(5y)-101.96%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 2.43%, 1LHA is doing worse than 66.67% of the companies in the same industry.
1LHA's Profit Margin has declined in the last couple of years.
The Operating Margin of 1LHA (3.62%) is worse than 75.00% of its industry peers.
1LHA's Operating Margin has declined in the last couple of years.
1LHA has a Gross Margin of 42.44%. This is in the lower half of the industry: 1LHA underperforms 66.67% of its industry peers.
1LHA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.62% | ||
| PM (TTM) | 2.43% | ||
| GM | 42.44% |
OM growth 3YN/A
OM growth 5Y-4.13%
PM growth 3YN/A
PM growth 5Y-4.95%
GM growth 3Y4.5%
GM growth 5Y-2.19%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1LHA is destroying value.
The number of shares outstanding for 1LHA remains at a similar level compared to 1 year ago.
Compared to 5 years ago, 1LHA has more shares outstanding
1LHA has a better debt/assets ratio than last year.
2.2 Solvency
1LHA has an Altman-Z score of 1.08. This is a bad value and indicates that 1LHA is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.08, 1LHA is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
1LHA has a debt to FCF ratio of 30.87. This is a negative value and a sign of low solvency as 1LHA would need 30.87 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 30.87, 1LHA is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 1.18 is on the high side and indicates that 1LHA has dependencies on debt financing.
1LHA has a Debt to Equity ratio of 1.18. This is in the better half of the industry: 1LHA outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 30.87 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.87
WACC4.69%
2.3 Liquidity
A Current Ratio of 0.82 indicates that 1LHA may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.82, 1LHA is in line with its industry, outperforming 58.33% of the companies in the same industry.
A Quick Ratio of 0.77 indicates that 1LHA may have some problems paying its short term obligations.
With a Quick ratio value of 0.77, 1LHA perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The earnings per share for 1LHA have decreased strongly by -50.33% in the last year.
The earnings per share for 1LHA have been decreasing by -16.50% on average. This is quite bad
The Revenue has been growing slightly by 3.77% in the past year.
Measured over the past years, 1LHA shows a decrease in Revenue. The Revenue has been decreasing by -0.06% on average per year.
EPS 1Y (TTM)-50.33%
EPS 3YN/A
EPS 5Y-16.5%
EPS Q2Q%-8%
Revenue 1Y (TTM)3.77%
Revenue growth 3Y37.65%
Revenue growth 5Y-0.06%
Sales Q2Q%4.51%
3.2 Future
1LHA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.14% yearly.
Based on estimates for the next years, 1LHA will show a small growth in Revenue. The Revenue will grow by 3.81% on average per year.
EPS Next Y-32.16%
EPS Next 2Y-7.26%
EPS Next 3Y0.83%
EPS Next 5Y4.14%
Revenue Next Year2.81%
Revenue Next 2Y3.89%
Revenue Next 3Y3.98%
Revenue Next 5Y3.81%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.19 indicates a reasonable valuation of 1LHA.
1LHA's Price/Earnings is on the same level as the industry average.
1LHA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.47.
Based on the Price/Forward Earnings ratio of 5.44, the valuation of 1LHA can be described as very cheap.
1LHA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1LHA is cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, 1LHA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 5.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1LHA is valued cheaper than 91.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1LHA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.5 | ||
| EV/EBITDA | 1.4 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.26%
EPS Next 3Y0.83%
5. Dividend
5.1 Amount
1LHA has a Yearly Dividend Yield of 4.74%, which is a nice return.
Compared to an average industry Dividend Yield of 3.15, 1LHA pays a better dividend. On top of this 1LHA pays more dividend than 100.00% of the companies listed in the same industry.
1LHA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
5.2 History
The dividend of 1LHA decreases each year by -47.55%.
Dividend Growth(5Y)-47.55%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
41.58% of the earnings are spent on dividend by 1LHA. This is a bit on the high side, but may be sustainable.
DP41.58%
EPS Next 2Y-7.26%
EPS Next 3Y0.83%
DEUTSCHE LUFTHANSA-REG
BIT:1LHA (2/5/2025, 11:32:41 AM)
6.222
-0.08 (-1.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners17.92%
Inst Owner ChangeN/A
Ins Owners15.05%
Ins Owner ChangeN/A
Market Cap7.46B
Analysts55.71
Price Target7.35 (18.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.74% |
Yearly Dividend0.02
Dividend Growth(5Y)-47.55%
DP41.58%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.38%
Min EPS beat(2)-14.23%
Max EPS beat(2)22.99%
EPS beat(4)1
Avg EPS beat(4)-22.14%
Min EPS beat(4)-74.45%
Max EPS beat(4)22.99%
EPS beat(8)4
Avg EPS beat(8)-13.2%
EPS beat(12)6
Avg EPS beat(12)-28.36%
EPS beat(16)9
Avg EPS beat(16)-16.65%
Revenue beat(2)0
Avg Revenue beat(2)-0.66%
Min Revenue beat(2)-1.04%
Max Revenue beat(2)-0.28%
Revenue beat(4)1
Avg Revenue beat(4)-1.46%
Min Revenue beat(4)-6.13%
Max Revenue beat(4)1.59%
Revenue beat(8)1
Avg Revenue beat(8)-3.21%
Revenue beat(12)4
Avg Revenue beat(12)-1.64%
Revenue beat(16)5
Avg Revenue beat(16)-1.95%
PT rev (1m)-3.78%
PT rev (3m)3.5%
EPS NQ rev (1m)-14.36%
EPS NQ rev (3m)-45.31%
EPS NY rev (1m)0.66%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)-1.01%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 5.44 | ||
| P/S | 0.2 | ||
| P/FCF | 16.5 | ||
| P/OCF | 1.86 | ||
| P/B | 0.73 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | 1.4 |
EPS(TTM)0.76
EY12.21%
EPS(NY)1.14
Fwd EY18.38%
FCF(TTM)0.38
FCFY6.06%
OCF(TTM)3.34
OCFY53.65%
SpS30.79
BVpS8.48
TBVpS7.37
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 8.83% | ||
| ROCE | 4.98% | ||
| ROIC | 4.1% | ||
| ROICexc | 6.12% | ||
| ROICexgc | 6.61% | ||
| OM | 3.62% | ||
| PM (TTM) | 2.43% | ||
| GM | 42.44% | ||
| FCFM | 1.23% |
ROA(3y)0.12%
ROA(5y)-2.76%
ROE(3y)-7.5%
ROE(5y)-101.96%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-3.1%
ROICexc growth 3YN/A
ROICexc growth 5Y-2.62%
OM growth 3YN/A
OM growth 5Y-4.13%
PM growth 3YN/A
PM growth 5Y-4.95%
GM growth 3Y4.5%
GM growth 5Y-2.19%
F-Score4
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 30.87 | ||
| Debt/EBITDA | 3.24 | ||
| Cap/Depr | 150.98% | ||
| Cap/Sales | 9.62% | ||
| Interest Coverage | 2.26 | ||
| Cash Conversion | 108.52% | ||
| Profit Quality | 50.39% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 1.08 |
F-Score4
WACC4.69%
ROIC/WACC0.87
Cap/Depr(3y)102.19%
Cap/Depr(5y)92.46%
Cap/Sales(3y)8.5%
Cap/Sales(5y)8.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-50.33%
EPS 3YN/A
EPS 5Y-16.5%
EPS Q2Q%-8%
EPS Next Y-32.16%
EPS Next 2Y-7.26%
EPS Next 3Y0.83%
EPS Next 5Y4.14%
Revenue 1Y (TTM)3.77%
Revenue growth 3Y37.65%
Revenue growth 5Y-0.06%
Sales Q2Q%4.51%
Revenue Next Year2.81%
Revenue Next 2Y3.89%
Revenue Next 3Y3.98%
Revenue Next 5Y3.81%
EBIT growth 1Y-51.13%
EBIT growth 3YN/A
EBIT growth 5Y-4.18%
EBIT Next Year46.28%
EBIT Next 3Y23.53%
EBIT Next 5Y16.28%
FCF growth 1Y-85.16%
FCF growth 3YN/A
FCF growth 5Y28.49%
OCF growth 1Y-23.28%
OCF growth 3YN/A
OCF growth 5Y3.77%