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DAL Delta Air Lines

industrial · 2026-10-28

N/A
fair · 65
Owner-earnings value$71.60
Price$81.45
Margin of safety -12.1%

Quality gate · 65/100

Returns on capital 21.8/30
Consistency 18.0/22
Margins / pricing power 6.3/16
Balance sheet 9.0/16
Cash conversion 5.6/10
Capital allocation 3.9/6
Median ROIC14.9%
Gross margin21.4%
Net debt / EBITDA2.1x
FCF conversion55%
Share count / yr+0.6%
Profitable years4/4

Moat & management

Owner-earnings inputs

Owner earnings (TTM)3.02B
Owner-earnings yield5.6%
Free-cash-flow yield5.6%
Growth used (normalized)7.8%
Market-implied growth (reverse DCF)11.1%
Terminal growth3.0%
Discount rate (hurdle)11.0%

Projected owner earnings

YrOwner earningsGrowthPV
13.26B 7.8%2.93B
23.49B 7.3%2.84B
33.73B 6.7%2.73B
43.96B 6.2%2.61B
54.19B 5.7%2.48B
64.40B 5.1%2.35B
74.60B 4.6%2.22B
84.79B 4.1%2.08B
94.96B 3.5%1.94B
105.11B 3.0%1.80B

⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Price pays for ~11%/yr owner-earnings growth over 10y (reverse DCF); model credits 8%.

History

DateQualityPriceValueMoSRating
2026-10-28 65 $81.45 $71.60 -12.1% N/A
2026-07-22 66 $84.63 $87.35 +3.2% N/A
2026-07-02 66 $93.06 $101.11 +8.6% N/A
2026-06-25 66 $90.65 $102.15 +12.7% N/A
2026-06-23 66 $86.72 $100.85 +16.3% N/A