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Deutsche Lufthansa (DE:LHA)
XETRA:LHA

Deutsche Lufthansa (LHA) AI Stock Analysis

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Deutsche Lufthansa

(XETRA:LHA)

66Neutral
Deutsche Lufthansa is on a recovery path post-pandemic, with key strengths in revenue growth and improved financial stability. The low P/E ratio and high dividend yield suggest an undervalued stock with income potential. However, the technical indicators present a mixed view, and challenges in net profit margins and free cash flow necessitate cautious optimism. Overall, the stock is moderately attractive, with potential for improvement as financial strategies are refined.
Positive Factors
Cash Flow
Q3 FCF stands at +€128m, which was a beat compared to consensus expectations.
Earnings Growth
Guidance for FY25 points to significant EBIT growth, driven by cost savings, fleet renewal, and an enviable competitive position with its multi-brand strategy and leading market positions.
Financial Performance
Strong cost control led to an adjusted EBIT that was 4% higher than expected, driven by passenger airlines.
Negative Factors
Cost Pressures
Persistent cost inflation, prolonged airport capacity constraints, and volatility in crude oil/jet fuel prices could lead to earnings disappointment.
Macroeconomic Factors
Macroeconomic weakness and geopolitical tensions could curb discretionary spending on travel, with rising unemployment and higher cost of living in Europe leading to households cutting back on travel spending.
Operational Challenges
Lufthansa Airlines to continue experiencing operational challenges, unscheduled engine maintenance and delayed deliveries in FY25, underpinning a neutral stance on the group at this juncture.

Deutsche Lufthansa (LHA) vs. S&P 500 (SPY)

Deutsche Lufthansa Business Overview & Revenue Model

Company DescriptionDeutsche Lufthansa AG is an airlines and aviation services company. It is split into three segments: network airlines, which includes Lufthansa German Airlines, SWISS and Austrian Airlines; Eurowings, which includes Eurowings and Brussels Airlines for price-sensitive customers; and aviation services, which engages in commercial aircraft maintenance, catering, and air freight logistics. The network airlines segment brings in over half the company's revenue. Flights in Europe and North America bring in the majority of income, but the company reaches worldwide.
How the Company Makes MoneyLufthansa primarily generates revenue through its passenger airline segment, which includes ticket sales for domestic and international flights. The company also earns income from ancillary services such as checked baggage fees, seat selection charges, and onboard sales. In addition to passenger transport, Lufthansa's logistics segment contributes to its revenue through the Lufthansa Cargo division, which handles air freight and logistics services worldwide. Maintenance, Repair, and Overhaul (MRO) services, offered by Lufthansa Technik, provide additional income by servicing and maintaining aircraft for other airlines. The catering segment, operated through LSG Sky Chefs, generates revenue by supplying in-flight catering services to a variety of airlines. Strategic partnerships and code-sharing agreements with other airlines further enhance Lufthansa's revenue streams by expanding its network reach and optimizing flight operations.

Deutsche Lufthansa Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
24.86B37.58B35.44B32.77B16.81B13.59B
Gross Profit
2.41B4.83B5.24B4.62B-3.00M-2.98B
EBIT
-389.00M1.54B2.46B1.23B-2.32B-7.09B
EBITDA
2.00B4.66B5.33B3.85B31.00M-5.49B
Net Income Common Stockholders
-709.00M1.38B1.67B791.00M-2.19B-6.77B
Balance SheetCash, Cash Equivalents and Short-Term Investments
8.49B8.49B8.27B8.30B7.60B5.38B
Total Assets
47.05B47.05B45.32B43.34B42.54B39.48B
Total Debt
14.23B14.23B13.95B15.17B16.69B15.38B
Net Debt
12.44B12.44B12.36B13.38B14.45B13.66B
Total Liabilities
35.46B35.46B35.61B34.86B38.05B38.10B
Stockholders Equity
11.54B11.54B9.66B8.40B4.45B1.35B
Cash FlowFree Cash Flow
2.85B-6.00M659.00M2.66B-700.00M-3.58B
Operating Cash Flow
5.04B3.89B4.71B5.17B618.00M-2.33B
Investing Cash Flow
-4.34B-2.33B-2.94B-3.44B-3.02B-2.34B
Financing Cash Flow
-87.00M-1.45B-2.07B-2.27B2.87B5.08B

Deutsche Lufthansa Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price6.48
Price Trends
50DMA
6.82
Negative
100DMA
6.52
Negative
200DMA
6.30
Positive
Market Momentum
MACD
-0.17
Negative
RSI
50.12
Neutral
STOCH
90.66
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:LHA, the sentiment is Neutral. The current price of 6.48 is above the 20-day moving average (MA) of 6.31, below the 50-day MA of 6.82, and above the 200-day MA of 6.30, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 50.12 is Neutral, neither overbought nor oversold. The STOCH value of 90.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:LHA.

Deutsche Lufthansa Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
€3.43B6.3058.94%11.87%4.42%
DELHA
66
Neutral
€7.78B5.5113.08%4.66%6.04%-17.59%
63
Neutral
$4.28B11.335.43%214.88%4.12%-8.65%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:LHA
Deutsche Lufthansa
6.48
0.04
0.61%
EADSF
Airbus Group SE
158.12
-3.06
-1.90%
BAMXF
Bayerische Motoren Werke Aktiengesellschaft
86.92
-27.88
-24.29%
DE:TUI1
TUI AG
6.76
-0.06
-0.88%
GB:0FC9
MTU Aero Engines
289.08
66.09
29.64%
ADPPF
ADLER Group
0.35
0.15
75.00%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.