DEUTSCHE LUFTHANSA-REG(FRA:LHA) stock Fundamental Analysis

Fundamental Rating

We assign a fundamental rating of 3 out of 10 to LHA. LHA was compared to 12 industry peers in the Passenger Airlines industry. Both the profitability and financial health of LHA have multiple concerns. LHA is valued correctly, but it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

LHA had positive earnings in the past year.

LHA had a positive operating cash flow in the past year.

The reported net income has been mixed in the past 5 years: LHA reported negative net income in multiple years.

LHA had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

LHA has a Return On Assets of 1.93%. This is comparable to the rest of the industry: LHA outperforms 41.67% of its industry peers.

Looking at the Return On Equity, with a value of 8.83%, LHA is in line with its industry, outperforming 41.67% of the companies in the same industry.

With a Return On Invested Capital value of 4.10%, LHA is not doing good in the industry: 83.33% of the companies in the same industry are doing better.

		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

With a Profit Margin value of 2.43%, LHA perfoms like the industry average, outperforming 41.67% of the companies in the same industry.

In the last couple of years the Profit Margin of LHA has declined.

LHA has a Operating Margin of 3.62%. This is in the lower half of the industry: LHA underperforms 66.67% of its industry peers.

In the last couple of years the Operating Margin of LHA has declined.

LHA's Gross Margin of 42.44% is in line compared to the rest of the industry. LHA outperforms 41.67% of its industry peers.

LHA'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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LHA is destroying value.

The number of shares outstanding for LHA remains at a similar level compared to 1 year ago.

LHA has more shares outstanding than it did 5 years ago.

The debt/assets ratio for LHA has been reduced compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 1.08, we must say that LHA is in the distress zone and has some risk of bankruptcy.

LHA has a Altman-Z score of 1.08. This is comparable to the rest of the industry: LHA outperforms 58.33% of its industry peers.

LHA has a debt to FCF ratio of 30.87. This is a negative value and a sign of low solvency as LHA would need 30.87 years to pay back of all of its debts.

LHA has a Debt to FCF ratio of 30.87. This is comparable to the rest of the industry: LHA outperforms 58.33% of its industry peers.

LHA has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.

LHA's Debt to Equity ratio of 1.18 is amongst the best of the industry. LHA outperforms 83.33% 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

LHA has a Current Ratio of 0.82. This is a bad value and indicates that LHA is not financially healthy enough and could expect problems in meeting its short term obligations.

With a decent Current ratio value of 0.82, LHA is doing good in the industry, outperforming 66.67% of the companies in the same industry.

A Quick Ratio of 0.77 indicates that LHA may have some problems paying its short term obligations.

With a decent Quick ratio value of 0.77, LHA is doing good in the industry, outperforming 66.67% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.82
Quick Ratio	0.77

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for LHA have decreased strongly by -50.33% in the last year.

The earnings per share for LHA have been decreasing by -16.50% on average. This is quite bad

LHA shows a small growth in Revenue. In the last year, the Revenue has grown by 3.77%.

The Revenue has been decreasing by -0.06% on average over the past years.

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

Based on estimates for the next years, LHA will show a small growth in Earnings Per Share. The EPS will grow by 4.14% on average per year.

The Revenue is expected to grow by 3.81% on average over the next years.

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.

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.15, the valuation of LHA can be described as reasonable.

Based on the Price/Earnings ratio, LHA is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.

When comparing the Price/Earnings ratio of LHA to the average of the S&P500 Index (28.47), we can say LHA is valued rather cheaply.

A Price/Forward Earnings ratio of 5.42 indicates a rather cheap valuation of LHA.

Based on the Price/Forward Earnings ratio, LHA is valued cheaper than 83.33% of the companies in the same industry.

The average S&P500 Price/Forward Earnings ratio is at 92.74. LHA is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	8.15
Fwd PE	5.42

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, LHA is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.

LHA's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	16.43
EV/EBITDA	1.37

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-7.26%

EPS Next 3Y0.83%

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5. Dividend

5.1 Amount

LHA has a Yearly Dividend Yield of 4.74%, which is a nice return.

LHA's Dividend Yield is rather good when compared to the industry average which is at 3.15. LHA pays more dividend than 91.67% of the companies in the same industry.

Compared to an average S&P500 Dividend Yield of 2.28, LHA pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	4.74%

5.2 History

The dividend of LHA decreases each year by -47.55%.

Dividend Growth(5Y)-47.55%

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

LHA pays out 41.58% of its income as dividend. This is a bit on the high side, but may be sustainable.

DP41.58%

EPS Next 2Y-7.26%

EPS Next 3Y0.83%

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DEUTSCHE LUFTHANSA-REG

FRA:LHA (2/5/2025, 3:49:09 PM)

6.197

+0.01 (+0.24%)

Chartmill FA Rating

GICS SectorIndustrials

GICS IndustryGroupTransportation

GICS IndustryPassenger Airlines

Earnings (Last)10-29 2024-10-29/bmo

Earnings (Next)N/A N/A

Inst Owners17.92%

Inst Owner ChangeN/A

Ins Owners15.05%

Ins Owner ChangeN/A

Market Cap7.43B

Analysts55.71

Price Target7.36 (18.77%)

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)-0.24%

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	8.15
Fwd PE	5.42
P/S	0.2
P/FCF	16.43
P/OCF	1.86
P/B	0.73
P/tB	0.84
EV/EBITDA	1.37

EPS(TTM)0.76

EY12.26%

EPS(NY)1.14

Fwd EY18.46%

FCF(TTM)0.38

FCFY6.09%

OCF(TTM)3.34

OCFY53.86%

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%

DEUTSCHE LUFTHANSA-REG (LHA.DE) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens