DEUTSCHE LUFTHANSA-REG (LHA.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:LHA - DE0008232125 - Common Stock
8.682 EUR
-0.06 (-0.64%)
LHA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 14 industry peers in the Passenger Airlines industry. Both the profitability and financial health of LHA have multiple concerns. LHA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- LHA had positive earnings in the past year.
- In the past year LHA had a positive cash flow from operations.
- In multiple years LHA reported negative net income over the last 5 years.
- LHA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- LHA's Return On Assets of 3.36% is in line compared to the rest of the industry. LHA outperforms 42.86% of its industry peers.
- LHA has a Return On Equity of 14.46%. This is in the lower half of the industry: LHA underperforms 71.43% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.55%, LHA is doing worse than 78.57% of the companies in the same industry.
- LHA had an Average Return On Invested Capital over the past 3 years of 5.56%. This is below the industry average of 9.17%.
| 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
- LHA has a Profit Margin (4.20%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of LHA has grown nicely.
- LHA has a worse Operating Margin (3.83%) than 85.71% of its industry peers.
- LHA's Operating Margin has declined in the last couple of years.
- The Gross Margin of LHA (42.78%) is worse than 71.43% of its industry peers.
- LHA's Gross Margin has declined in the last couple of years.
| 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), LHA is destroying value.
- The number of shares outstanding for LHA remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, LHA has more shares outstanding
- LHA has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.18, we must say that LHA is in the distress zone and has some risk of bankruptcy.
- LHA has a Altman-Z score of 1.18. This is in the better half of the industry: LHA outperforms 71.43% of its industry peers.
- LHA has a debt to FCF ratio of 16.07. This is a negative value and a sign of low solvency as LHA would need 16.07 years to pay back of all of its debts.
- LHA's Debt to FCF ratio of 16.07 is in line compared to the rest of the industry. LHA outperforms 42.86% of its industry peers.
- A Debt/Equity ratio of 1.06 is on the high side and indicates that LHA has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.06, LHA perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 16.07 | ||
| Altman-Z | 1.18 |
ROIC/WACC0.61
WACC7.41%
2.3 Liquidity
- A Current Ratio of 0.85 indicates that LHA may have some problems paying its short term obligations.
- LHA has a Current ratio of 0.85. This is in the better half of the industry: LHA outperforms 78.57% of its industry peers.
- A Quick Ratio of 0.77 indicates that LHA may have some problems paying its short term obligations.
- LHA has a Quick ratio of 0.77. This is in the better half of the industry: LHA outperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 80.26% over the past year.
- The Earnings Per Share has been decreasing by -8.68% on average over the past years.
- Looking at the last year, LHA shows a small growth in Revenue. The Revenue has grown by 5.95% in the last year.
- Measured over the past years, LHA shows a small growth in Revenue. The Revenue has been growing by 0.63% on average per year.
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.
- Based on estimates for the next years, LHA will show a small growth in Revenue. The Revenue will grow by 4.07% on average per year.
EPS Next Y-2.33%
EPS Next 2Y4.75%
EPS Next 3Y7.82%
EPS Next 5Y11.57%
Revenue Next Year6.14%
Revenue Next 2Y5.15%
Revenue Next 3Y4.88%
Revenue Next 5Y4.07%
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 6.34 indicates a rather cheap valuation of LHA.
- 71.43% of the companies in the same industry are more expensive than LHA, based on the Price/Earnings ratio.
- LHA is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- LHA is valuated cheaply with a Price/Forward Earnings ratio of 6.82.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LHA is on the same level as its industry peers.
- LHA is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.34 | ||
| Fwd PE | 6.82 |
4.2 Price Multiples
- LHA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LHA is cheaper than 85.71% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, LHA is valued a bit more expensive than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.57 | ||
| EV/EBITDA | 1.92 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.75%
EPS Next 3Y7.82%
5. Dividend
5.1 Amount
- LHA has a Yearly Dividend Yield of 3.34%.
- LHA's Dividend Yield is rather good when compared to the industry average which is at 0.99. LHA pays more dividend than 100.00% of the companies in the same industry.
- LHA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
5.2 History
- The dividend of LHA decreases each year by -12.90%.
Dividend Growth(5Y)-12.9%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- 22.15% of the earnings are spent on dividend by LHA. This is a low number and sustainable payout ratio.
DP22.15%
EPS Next 2Y4.75%
EPS Next 3Y7.82%
DEUTSCHE LUFTHANSA-REG / LHA.DE FAQ
What is the fundamental rating for LHA stock?
ChartMill assigns a fundamental rating of 4 / 10 to LHA.DE.
What is the valuation status of DEUTSCHE LUFTHANSA-REG (LHA.DE) stock?
ChartMill assigns a valuation rating of 5 / 10 to DEUTSCHE LUFTHANSA-REG (LHA.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for DEUTSCHE LUFTHANSA-REG?
DEUTSCHE LUFTHANSA-REG (LHA.DE) has a profitability rating of 2 / 10.
How financially healthy is DEUTSCHE LUFTHANSA-REG?
The financial health rating of DEUTSCHE LUFTHANSA-REG (LHA.DE) is 3 / 10.
Can you provide the expected EPS growth for LHA stock?
The Earnings per Share (EPS) of DEUTSCHE LUFTHANSA-REG (LHA.DE) is expected to decline by -2.33% in the next year.