DEUTSCHE LUFTHANSA-REG (1LHA.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1LHA - DE0008232125 - Common Stock
8.788 EUR
-0.19 (-2.14%)
Overall 1LHA gets a fundamental rating of 3 out of 10. We evaluated 1LHA against 14 industry peers in the Passenger Airlines industry. 1LHA may be in some trouble as it scores bad on both profitability and health. 1LHA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1LHA was profitable.
- 1LHA had a positive operating cash flow in the past year.
- 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
- The Return On Assets of 1LHA (3.36%) is worse than 64.29% of its industry peers.
- 1LHA's Return On Equity of 14.46% is on the low side compared to the rest of the industry. 1LHA is outperformed by 71.43% of its industry peers.
- 1LHA has a worse Return On Invested Capital (4.55%) than 78.57% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1LHA is below the industry average of 9.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.36% | ||
| ROE | 14.46% | ||
| ROIC | 4.55% |
ROA(3y)2.82%
ROA(5y)-2.75%
ROE(3y)12.9%
ROE(5y)-101.96%
ROIC(3y)5.56%
ROIC(5y)N/A
1.3 Margins
- 1LHA has a Profit Margin of 4.20%. This is in the lower half of the industry: 1LHA underperforms 64.29% of its industry peers.
- 1LHA's Profit Margin has improved in the last couple of years.
- With a Operating Margin value of 3.83%, 1LHA is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of 1LHA has declined.
- 1LHA has a Gross Margin of 42.78%. This is in the lower half of the industry: 1LHA underperforms 71.43% of its industry peers.
- In the last couple of years the Gross Margin of 1LHA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.83% | ||
| PM (TTM) | 4.2% | ||
| GM | 42.78% |
OM growth 3YN/A
OM growth 5Y-2.51%
PM growth 3YN/A
PM growth 5Y1.97%
GM growth 3Y-3.25%
GM growth 5Y-1.97%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1LHA is destroying value.
- 1LHA has about the same amout of shares outstanding than it did 1 year ago.
- 1LHA has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, 1LHA has an improved debt to assets ratio.
2.2 Solvency
- 1LHA has an Altman-Z score of 1.19. This is a bad value and indicates that 1LHA is not financially healthy and even has some risk of bankruptcy.
- 1LHA has a Altman-Z score of 1.19. This is in the better half of the industry: 1LHA outperforms 71.43% of its industry peers.
- The Debt to FCF ratio of 1LHA is 16.07, which is on the high side as it means it would take 1LHA, 16.07 years of fcf income to pay off all of its debts.
- 1LHA has a worse Debt to FCF ratio (16.07) than 64.29% of its industry peers.
- 1LHA has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.06, 1LHA is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 16.07 | ||
| Altman-Z | 1.19 |
ROIC/WACC0.59
WACC7.66%
2.3 Liquidity
- 1LHA has a Current Ratio of 0.85. This is a bad value and indicates that 1LHA is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1LHA has a better Current ratio (0.85) than 78.57% of its industry peers.
- 1LHA has a Quick Ratio of 0.85. This is a bad value and indicates that 1LHA is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1LHA has a Quick ratio of 0.77. This is in the better half of the industry: 1LHA outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
- 1LHA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 80.26%, which is quite impressive.
- The Earnings Per Share has been decreasing by -8.68% on average over the past years.
- 1LHA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.95%.
- 1LHA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.63% yearly.
EPS 1Y (TTM)80.26%
EPS 3YN/A
EPS 5Y-8.68%
EPS Q2Q%-11.96%
Revenue 1Y (TTM)5.95%
Revenue growth 3Y30.76%
Revenue growth 5Y0.63%
Sales Q2Q%4.29%
3.2 Future
- The Earnings Per Share is expected to grow by 11.57% on average over the next years. This is quite good.
- The Revenue is expected to grow by 4.07% on average over the next years.
EPS Next Y-2.48%
EPS Next 2Y3.92%
EPS Next 3Y7.41%
EPS Next 5Y11.57%
Revenue Next Year6.14%
Revenue Next 2Y5.15%
Revenue Next 3Y4.88%
Revenue Next 5Y4.07%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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 6.41 indicates a rather cheap valuation of 1LHA.
- 78.57% of the companies in the same industry are more expensive than 1LHA, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, 1LHA is valued rather cheaply.
- 1LHA is valuated cheaply with a Price/Forward Earnings ratio of 7.02.
- Based on the Price/Forward Earnings ratio, 1LHA is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of 1LHA to the average of the S&P500 Index (24.26), we can say 1LHA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.41 | ||
| Fwd PE | 7.02 |
4.2 Price Multiples
- 1LHA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. 1LHA is cheaper than 85.71% of the companies in the same industry.
- 85.71% of the companies in the same industry are cheaper than 1LHA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.71 | ||
| EV/EBITDA | 2 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.92%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
- 1LHA has a Yearly Dividend Yield of 3.34%. Purely for dividend investing, there may be better candidates out there.
- 1LHA's Dividend Yield is rather good when compared to the industry average which is at 1.10. 1LHA pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 1LHA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
5.2 History
- The dividend of 1LHA decreases each year by -12.90%.
Dividend Growth(5Y)-12.9%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 22.15% of the earnings are spent on dividend by 1LHA. This is a low number and sustainable payout ratio.
DP22.15%
EPS Next 2Y3.92%
EPS Next 3Y7.41%
DEUTSCHE LUFTHANSA-REG / 1LHA.MI FAQ
What is the ChartMill fundamental rating of DEUTSCHE LUFTHANSA-REG (1LHA.MI) stock?
ChartMill assigns a fundamental rating of 3 / 10 to 1LHA.MI.
What is the valuation status of DEUTSCHE LUFTHANSA-REG (1LHA.MI) stock?
ChartMill assigns a valuation rating of 5 / 10 to DEUTSCHE LUFTHANSA-REG (1LHA.MI). This can be considered as Fairly Valued.
How profitable is DEUTSCHE LUFTHANSA-REG (1LHA.MI) stock?
DEUTSCHE LUFTHANSA-REG (1LHA.MI) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for 1LHA stock?
The Price/Earnings (PE) ratio for DEUTSCHE LUFTHANSA-REG (1LHA.MI) is 6.41 and the Price/Book (PB) ratio is 0.93.
Can you provide the financial health for 1LHA stock?
The financial health rating of DEUTSCHE LUFTHANSA-REG (1LHA.MI) is 2 / 10.