Industrials / Airlines

Delta Air Lines, Inc. (DAL)

$80.02
-1.78%
$54.2B
Market Cap
12.0
P/E Ratio
1.25
Beta
0.91%
Dividend Yield
Piotroski 6/9Altman Z 1.5 DistressBeneish M -2.71 CleanROIC−WACC -0.8%

Quantitative Summary

Deterministic

At 12.0x earnings — a 73% discount to the sector average of 44.7x — DAL is in the lower valuation range. Financial health is average: Piotroski 6/9, Altman Z 1.5. DCF fair value of $168 implies 151% upside from current prices based on model assumptions.

Generated deterministically from quant metrics and financial statements. Not a recommendation.

Algorithmic Teardown

AI-Generated

The fundamental economics of this Industrials sector participant present a divergence between accounting profitability and capital efficiency. While the DuPont decomposition reveals a robust 24.0% ROE driven primarily by high leverage (Equity Multiplier at 3.90x) rather than operational margin expansion or asset turnover, the negative -0.7% spread indicates that returns on invested capital currently fail to cover the cost of capital. This structural weakness is reinforced by an Altman Z-Score of 1.4, signaling elevated distress risk, even as a Piotroski F-Score of 6/9 and Beneish M-Score of -2.71 suggest reasonable financial health without significant earnings manipulation signals. The business model relies heavily on leverage to generate returns while posting modest revenue growth of just 2.8% year-over-year.

Valuation metrics display a stark disconnect between current market pricing and discounted cash flow models, suggesting the stock trades at a deep discount relative to its intrinsic value assumptions. Trading at an 8.7x P/E compared to a sector average of 32.1x implies significant downside risk or depressed growth expectations are already embedded in the price tag. However, the DCF model assigns a fair value that suggests substantial upside potential if long-term free cash flow can grow according to the modeled 3.4% annual rate over the next decade. This wide gap between current multiples and implied valuation indicates the market may be pricing in persistent operational headwinds or capital structure risks not fully reflected in the DCF inputs.

Risk-adjusted performance data offers a mixed picture regarding future alpha generation relative to style factors. The security exhibits a positive 2.00% annual Fama-French Alpha, indicating it has historically outperformed its risk-adjusted benchmark, supported by a distinct value tilt with an HML factor of 0.210. Conversely, the Profitability Factor (RMW) registers near neutrality at 0.006, aligning with the weak ROIC-WACC spread observed in fundamentals. This alpha generation occurs despite notable insider activity showing $77.85 million in net selling over the last ninety days, which may reflect management's view on valuation or capital allocation priorities amidst the company's high-leverage profile and distress risk indicators.

Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.

DCF Sandbox

Interactive
Market Price
$80.02
Fair Value
$170
Implied Upside
+112.8%
$170IMPLIED FAIR VALUEUNDERVALUEDOVERUNDER
Growth Rate (Y1–5)26%
-10%20%50%
Discount Rate (WACC)10.9%
5%12.5%20%

5-year two-stage DCF. Terminal growth 3%. Default sliders match the pre-computed base case. Drag to explore scenarios. Not investment advice.

Reverse DCFMarket-Implied
3.6%annual FCF growth priced in at $80.02

The growth rate the market implicitly expects over the next 10 years to justify today's price. Compare with historical growth of 3% YoY revenue.

Sensitivity Matrix

TG ↓ / WACC →8.9%10.9%12.9%
2%$204$152$118
3%$236$168$129
4%$280$190$141

Center = base case. Green = >10% upside, Red = >10% downside vs $80.02.

Pre-computed DCF: WACC=10.9%, terminal growth 3%. Fair value $168 (+151.1%). Not investment advice.

Valuation Context

12.0x
DAL P/E
44.7x
Sector Avg
7.3x
5Y Avg P/E
-73%
vs Sector

Currently trading 36% above its 5-year average P/E of 7.3x.

Price Chart with Moving Averages

Loading chart...
SMA 50 SMA 200

Technical Setup

AI Generated

The current technical landscape for Delta Air Lines, Inc. presents a complex interplay of price action and volume dynamics that often warrants close observation by institutional participants. With the stock trading at $70.24 within the Industrials sector, the proximity to key moving average levels could indicate periods where larger market players are recalibrating their exposure rather than executing decisive directional moves. If short-term averages begin to converge with longer-term trends while volume remains subdued, this frequently suggests a consolidation phase where institutions may be accumulating or distributing positions quietly without triggering significant price volatility. Conversely, any sudden divergence between rising prices and declining volume might signal weakening momentum among sophisticated traders who typically lead market direction. Such patterns often precede shifts in sentiment as larger entities adjust their hedges or rebalance portfolios based on macroeconomic factors specific to the airline industry. The absence of strong breakout volume above critical resistance zones implies that capital inflows are not yet aggressive enough to sustain a rapid ascent, potentially leaving room for profit-taking by those who entered earlier at lower valuations. Ultimately, the interplay between these technical metrics does not dictate immediate action but rather highlights areas where market structure is evolving. Institutional behavior in this context appears cautious, characterized by waiting for clearer confirmation before committing substantial resources to either side of the trade. This neutral positioning allows larger players to assess how broader economic indicators will impact airline profitability without prematurely altering their strategic stance based on short-term fluctuations alone.

RSI (14)
SMA 50
SMA 200

Quant Health Deep Dive

6/9
Piotroski F-Score
Average — mixed operational signals
1.5
Altman Z-Score
Distress Zone — below 1.8 threshold per academic model. Thresholds: >3 safe, 1.8–3 grey, <1.8 distress.
-2.71
Beneish M-Score
Below threshold — no statistical earnings quality concern per Beneish model. Threshold: <-2.22 = below threshold.

Profitability & Value Creation

24.2%
Gross Margin
7.9%
Net Margin
10.1%
ROIC
10.9%
WACC
ROIC − WACC Spread: -0.8%— Negative spread.
+2.8%
Revenue Growth (YoY)
+44.8%
Earnings Growth (YoY)
3.8B
Free Cash Flow
11%
FCF Payout Ratio

✅ Conservative payout — room for dividend increases.

DuPont Analysis — ROE Decomposition

Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.

7.9%
Net Profit Margin
NI ÷ Revenue
×
0.78x
Asset Turnover
Revenue ÷ Assets
×
3.90x
Equity Multiplier
Assets ÷ Equity
=
24.0%
Return on Equity
⚠️ High equity multiplier — ROE is being amplified by leverage, not operational excellence.

Balance Sheet Health

2.90x
Debt / Equity
0.40x
Current Ratio
10.1x
Interest Coverage
0.9x
Net Debt / EBITDA
7.28%
FCF Yield
9.3B
EBITDA

Insider Activity (Last 90 Days)

Net Insider Flow
-$78M
Net Selling
0
Buy Transactions
15
Sale Transactions
2026-02-26BASTIAN EDWARD HSold 4/8 qtrsSale$7M
2026-02-09HAUENSTEIN GLEN WSold 4/8 qtrsSale$31M
2026-02-09BELLEMARE ALAINSold 4/8 qtrsSale$3M
2026-02-09SEAR STEVEN MSold 4/8 qtrsSale$3M
2026-02-06HAUENSTEIN GLEN WSold 4/8 qtrsGrant$6M

Open-market buys vs sells by company insiders. Source: yfinance.

Earnings Surprise History

Q4
✓ Beat
Est: $2.04
Act: $2.10
+2.7%
Q3
✓ Beat
Est: $1.53
Act: $1.71
+11.9%
Q2
✓ Beat
Est: $1.55
Act: $1.55
+0.3%
Q1
✓ Beat
Est: $0.57
Act: $0.64
+11.3%

EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.

Dividend History

$0.1880
Latest Dividend
$0.68
2025 Total
+35.2%
YoY Growth
2 yrs
Consecutive Increases
Annual Dividends per Share
$0.12
2013
$0.30
2014
$0.45
2015
$0.68
2016
$1.02
2017
$1.31
2018
$1.51
2019
$0.40
2020
$0.20
2023
$0.50
2024
$0.68
2025
$0.38
2026
DateAmountChange
2026-05-14$0.18800.0%
2026-02-26$0.18800.0%
2025-10-16$0.18800.0%
2025-07-31$0.1880+25.3%
2025-05-13$0.15000.0%
2025-02-27$0.15000.0%
2024-10-10$0.15000.0%
2024-07-30$0.1500+50.0%
2024-05-13$0.10000.0%
2024-02-23$0.10000.0%
2023-10-11$0.10000.0%
2023-07-14$0.1000-75.2%

Dividend and split data from SEC filings and market data. Amounts are per share, not adjusted for splits. Source: yfinance.

Risk Profile

49.5%
Annual Volatility
1.10
Sharpe (1Y)
-26.6%
Max Drawdown (5Y)

Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.

Underwater (Drawdown from Peak)

How far below the all-time high the price has been over time. Deeper = more pain for holders.

Loading drawdown chart...

Rolling 60-Day Beta vs S&P 500 (VOO)

How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.

Loading beta chart...
Rolling Beta Market (β = 1.0)

Fama-French 5-Factor Exposure

Academic factor model decomposition — what's really driving this stock's returns.

1.92
Market β
Mkt-RF
+1.164
Size (SMB)
Small-cap tilt
+0.210
Value (HML)
Value tilt
+0.006
Profit (RMW)
Neutral
+0.407
Invest (CMA)
Conservative
Alpha (annual): +2.00%
R²: 62.6%of variance explained by 5 factors

Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.

Fundamentals

10.2
Forward P/E
0.21
PEG Ratio
2.65
Price/Book
11M
Avg Volume
$83.83
52W High
$45.28
52W Low
90%
52W Range Position

Passive Flow Attribution

ETF Draft Effect
$5.9B
Tracked Passive Exposure
8
ETFs Holding DAL
0.10%
Avg Weight in ETFs
$6.1T
Total ETF AUM

When investors buy or sell ETFs like XTN or XLI, the fund manager is mechanically forced to buy or sell DAL shares regardless of Delta Air Lines, Inc.'s individual fundamentals. We estimate $5.9B of passive capital is structurally linked to DAL through 8 tracked ETFs. This substantial passive exposure means that ETF inflows and outflows — not company fundamentals — can dominate daily volume on this stock.

Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.

ETF Contagion Visualizer

Simulate a price drop in Delta Air Lines, Inc. to visualize passive redemption contagion across ETFs and collateral stocks.

DAL Shock
-0%
Est. Passive Redemption
$0
Systemic Risk
STABLE
DALEpicenterVTIETFVOOETFIVVETFCATLow RiskGELow RiskCATLow RiskUNPLow RiskGEVLow Risk
DAL Price Drop (%)0

If Delta Air Lines, Inc. (DAL) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies CATERPILLAR INC (CAT) as the most exposed collateral stock, sharing 1 ETFs with DAL. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.

Contagion model based on shared ETF exposure and constituent weights across 29 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.

DAL Ownership Dynamics

Passive funds hold 1 in every 7 DAL shares, reducing daily market volatility.

Ticker
DAL
Total Shares
657M
ETF Lock-Up
14.0%
Display Mode
Total Float Impact
14.0%Locked Float

Delta Air Lines, Inc. (DAL) exerts measurable gravity on the passive index market, currently representing 2.9% of the XTN (XTN) and 0.9% of the State Street Industrial Select Sector SPDR ETF (XLI). Across 29 tracked ETFs, approximately 92M shares (14.0% of float) are held by passive funds and rarely trade on the open market. This level of passive ownership means index rebalances can create outsized volume events.

Float lock-up computed from 29 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).

DAL Institutional Volume Profile

252-day volume distribution by price level. The Point of Control (POC) marks the price where the most institutional volume transacted — an implicit support/resistance floor.

TICKER
DAL
PRICE
$80.02
FLOOR (POC)
$59.48
STRENGTH
High
$46$48$50$52$54$568%$5812%$59POC 13%$617%$63$657%$679%$6910%$719%$73$75$77$79$81$80.02$83
Focus Zone
Point of Control (POC) Support (below price) Resistance (above price) Current Price

The highest-volume price zone for Delta Air Lines, Inc. over the past year sits near $59.48 (13% of 252-day volume). The current price of $80.02 trades 34.5% above this institutional floor — a sign of upside momentum, though a pullback to the POC zone is a common reversion target. The highly concentrated volume profile (13% at POC) indicates strong consensus on fair value — institutional participants have repeatedly transacted near this price.

Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.

DAL Capital Efficiency

How efficiently does Delta Air Lines, Inc. convert operating profits into free cash? The FCF Conversion ratio measures the gap between accounting earnings and real cash generation.

Free Cash Flow
$3.8B
EBITDA
$9.3B
FCF Conversion
41%
Reinvestment Rate
59%
41% of EBITDA → Free Cash
0% (cash burn)25% (low)50% (efficient)100% (pure cash)
ROIC
10.1%
ROIC − WACC Spread
-0.8%

Delta Air Lines, Inc. converts 41% of its EBITDA into free cash flow, a healthy conversion rate indicating efficient capital management — the business generates substantial cash after reinvestment. The 59% reinvestment rate signals aggressive capacity expansion. However, the ROIC-WACC spread is negative (-0.8%), suggesting reinvested capital is destroying shareholder value.

Capital efficiency = Free Cash Flow ÷ EBITDA. Reinvestment = (EBITDA − FCF) ÷ EBITDA. Metrics from latest annual filings. Not investment advice.

Fails-to-Deliver (FTD) History

SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.

DateFailed SharesClose PriceNotional Value
2026-05-141,273$71.05$90,446.65
2026-05-137,041$70.71$497,869.11
2026-05-125,357$71.20$381,418.4
2026-05-118,570$73.33$628,438.1
2026-05-086,168$73.11$450,942.48
2026-05-076,154$73.34$451,334.36
2026-05-066,200$70.86$439,332
2026-05-054,469$68.50$306,126.5
2026-05-047,668$68.98$528,938.64
2026-04-281,509$68.20$102,913.8
2026-04-24159$68.37$10,870.83
2026-04-22101$70.22$7,092.22
2026-04-2141$71.21$2,919.61
2026-04-204,461$71.72$319,942.92
2026-04-16249$71.99$17,925.51
2026-04-151,126$71.70$80,734.2
2026-04-07171$66.78$11,419.38
2026-04-062,255$66.76$150,543.8
2026-03-3189,586$63.19$5.7M
2026-03-25154$66.65$10,264.1
2026-03-246,763$65.13$440,474.19
2026-03-201,068$65.01$69,430.68
2026-03-19384,062$63.81$24.5M
2026-03-181,145$64.83$74,230.35
2026-03-171,551$60.84$94,362.84
2026-03-161,047$58.78$61,542.66
2026-03-1149,430$59.27$2.9M
2026-03-0432,491$64.60$2.1M
2026-02-24458,890$66.88$30.7M
2026-02-091,200$75.35$90,420

Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.

Price Correlations

Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.

Peer252-Day (1Y)126-Day (6M)Direction
WTGXXNaNNaN
UAL0.9040.897High co-movement
AAL0.8470.822High co-movement
LUV0.6650.670Moderate
USB0.6500.652Moderate
ASB0.6470.629Moderate
CFG0.6430.625Moderate
ONB0.6410.595Moderate
CCL0.6400.640Moderate
MTB0.6320.601Moderate

Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.

Compare DAL to Peers

Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.

SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.