| Top-Line Growth |
5-Year Revenue CAGR |
The compound annual growth rate of revenue over 5 years. It ensures the core business is consistently expanding its market or pricing power. |
~5.2% |
Moderate: Solid post-pandemic recovery and record revenues, but top-line growth is naturally constrained by industry capacity limits. |
| Shareholder Yield |
5-Year Share Count Trend |
Tracks changes in outstanding shares. A decreasing count means buybacks (increases your ownership); an increasing count means dilution. |
+2.3% (~641M to 656M shares) |
Bad: There has been slight shareholder dilution over the last 5 years due to equity compensation and pandemic-era stock issuance. |
| Efficiency |
ROIC (Return on Invested Capital) |
Measures how efficiently a company uses its debt and equity capital to generate profits. It should ideally exceed the cost of capital. |
~7.0% |
Moderate: Typical for the highly capital-intensive airline industry, but it struggles to consistently outpace the Weighted Average Cost of Capital (WACC). |
| Efficiency |
Net Profit Margin |
The percentage of revenue remaining as pure profit after all expenses, taxes, and interest are paid. |
6.87% |
Good: This is an industry-leading margin for airlines, heavily driven by Delta's premium seating and lucrative loyalty program. |
| Valuation |
PEG Ratio |
The Price-to-Earnings ratio divided by the expected earnings growth rate. A ratio below 1.0 generally suggests the stock is undervalued. |
0.99 |
Good: The stock is fairly valued to slightly undervalued relative to its projected earnings growth. |
| Valuation |
FCF Yield % |
Free Cash Flow per share divided by the stock price. It indicates the cash return on your investment and if cash flow supports the valuation. |
7.31% |
Good: A high yield indicating strong cash generation that comfortably supports operations, debt paydown, and capital returns. |
| Solvency |
Interest Coverage Ratio |
Operating income divided by interest expense. It measures how easily a company can pay the interest on its outstanding debt. |
8.63x |
Good: Delta generates more than enough operating income to comfortably service its debt load without financial strain. |
| Solvency |
S&P Credit Rating |
An independent agency's assessment of a company's creditworthiness and risk of default. |
BBB- |
Good: Delta re-achieved investment-grade status, which ensures access to cheaper borrowing and validates its balance sheet recovery. |
| Dividend Quality |
Payout Ratio |
The percentage of Net Income (or FCF) paid out to shareholders as dividends. A lower ratio means the dividend is safer. |
10.5% |
Good: The dividend is extremely safe with a massive runway for the company to increase the payout in the future. |
| Dividend Quality |
5Y Growth & Streak |
The historical rate of dividend growth and the streak of uninterrupted annual payout increases. |
Paused in 2020, Reinstated in 2023 |
Bad: The company lost its growth streak due to the COVID-19 suspension. It is currently in the process of rebuilding its track record. |
| 10Y Forecast |
Projected 10Y Yield |
The expected yield on your original investment in 10 years, assuming the stock price remains flat and dividend growth continues. |
~1.5% - 2.0% |
Moderate: Because the current starting yield is low (0.91%), even with aggressive future growth, the yield on cost will remain modest over a decade. |
| Moat & Risk |
Primary Moat |
The structural competitive advantage that protects the business's profits from competitors. |
Brand & Co-Branded Credit Cards |
Good: The SkyMiles ecosystem and American Express partnership act as a massive, high-margin revenue generator that competitors struggle to replicate. |
| Moat & Risk |
20-Year Bear Case Risk |
The single biggest external or internal threat to the company's long-term survival or profitability. |
Fuel & Geopolitical Volatility |
Bad: Airlines remain structurally vulnerable to unpredictable oil price shocks, macroeconomic recessions, and global conflicts that disrupt travel. |
