Delta Air Return On Equity vs. Price To Sales
| DAL Stock | USD 61.36 0.43 0.71% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.41503827 | Current Value 0.44 | Quarterly Volatility 2.44009897 |
For Delta Air profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Delta Air to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Delta Air Lines utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Delta Air's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Delta Air Lines over time as well as its relative position and ranking within its peers.
Delta |
Delta Air's Revenue Breakdown by Earning Segment
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Is Passenger Airlines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Delta Air. If investors know Delta will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Delta Air listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.145 | Dividend Share 0.5 | Earnings Share 7.21 | Revenue Per Share 94.267 | Quarterly Revenue Growth 0.012 |
The market value of Delta Air Lines is measured differently than its book value, which is the value of Delta that is recorded on the company's balance sheet. Investors also form their own opinion of Delta Air's value that differs from its market value or its book value, called intrinsic value, which is Delta Air's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Delta Air's market value can be influenced by many factors that don't directly affect Delta Air's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Delta Air's value and its price as these two are different measures arrived at by different means. Investors typically determine if Delta Air is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Delta Air's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Delta Air Lines Price To Sales vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Delta Air's current stock value. Our valuation model uses many indicators to compare Delta Air value to that of its competitors to determine the firm's financial worth. Delta Air Lines is one of the top stocks in return on equity category among its peers. It is rated # 2 in price to sales category among its peers fabricating about 1.60 of Price To Sales per Return On Equity. At this time, Delta Air's Return On Equity is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Delta Air by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Delta Price To Sales vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Delta Air |
| = | 0.41 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Delta Air |
| = | 0.65 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Delta Price To Sales Comparison
Delta Air is currently under evaluation in price to sales category among its peers.
Delta Air Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Delta Air, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Delta Air will eventually generate negative long term returns. The profitability progress is the general direction of Delta Air's change in net profit over the period of time. It can combine multiple indicators of Delta Air, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -5.8 B | -6.1 B | |
| Operating Income | 5.5 B | 5.8 B | |
| Income Before Tax | 5.6 B | 5.9 B | |
| Total Other Income Expense Net | 87 M | 91.3 M | |
| Net Income | 4.6 B | 4.8 B | |
| Income Tax Expense | 999 M | 1 B | |
| Net Income Applicable To Common Shares | 1.2 B | 1.4 B | |
| Net Income From Continuing Ops | 3.4 B | 3.6 B | |
| Non Operating Income Net Other | -646.2 M | -613.9 M | |
| Interest Income | 2.1 B | 1.2 B | |
| Net Interest Income | -865 M | -908.2 M | |
| Change To Netincome | 1.9 B | 1.9 B | |
| Net Income Per Share | 7.21 | 7.57 | |
| Income Quality | 1.40 | 1.83 | |
| Net Income Per E B T | 0.82 | 0.70 |
Delta Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Delta Air. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Delta Air position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Delta Air's important profitability drivers and their relationship over time.
Use Delta Air in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Delta Air position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Delta Air will appreciate offsetting losses from the drop in the long position's value.Delta Air Pair Trading
Delta Air Lines Pair Trading Analysis
The ability to find closely correlated positions to Delta Air could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Delta Air when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Delta Air - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Delta Air Lines to buy it.
The correlation of Delta Air is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Delta Air moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Delta Air Lines moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Delta Air can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Delta Air position
In addition to having Delta Air in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Investing Opportunities. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
To fully project Delta Air's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Delta Air Lines at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Delta Air's income statement, its balance sheet, and the statement of cash flows.