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Deutsche Lufthansa AG (DLAKY)
OTHER OTC:DLAKY
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Deutsche Lufthansa AG
(OTC:DLAKY)
74Outperform
Deutsche Lufthansa AG (DLAKY) vs. S&P 500 (SPY)
Market Cap
$8.39B
Dividend Yield3.12%
Average Volume (3M)4.23K
Price to Earnings (P/E)5.6
Beta (1Y)0.87
Revenue Growth6.05%
EPS Growth-18.08%
CountryUS
Employees66,111
SectorIndustrials
Sector Strength66
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)1.25
Shares Outstanding1,200,015,000
10 Day Avg. Volume12,690
30 Day Avg. Volume4,230
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.27
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Deutsche Lufthansa AG Business Overview & Revenue Model
Company DescriptionDeutsche Lufthansa AG, commonly referred to as Lufthansa, is a leading global airline company headquartered in Cologne, Germany. As one of the largest airlines in Europe, Lufthansa operates in several sectors including passenger airlines, logistics, maintenance, repair and overhaul (MRO), and catering. The company provides air travel services across numerous international destinations and is a key member of the Star Alliance network, offering a comprehensive range of services to meet the diverse needs of both individual and corporate travelers.
How the Company Makes MoneyLufthansa generates revenue through multiple channels, primarily from its passenger airline services, which account for the majority of its income. The company earns money by selling flight tickets to both individual travelers and corporate clients, leveraging its extensive route network and membership in the Star Alliance to provide competitive and comprehensive travel options. Additionally, Lufthansa's logistics division, Lufthansa Cargo, contributes to revenue by offering air freight and logistics services. The company's MRO segment provides maintenance, repair, and overhaul services to other airlines, creating another stream of income. Moreover, Lufthansa's catering arm, LSG Sky Chefs, supplies in-flight catering services to various airlines, further diversifying its revenue sources. Strategic partnerships and joint ventures with other airlines and service providers enhance its market reach and operational efficiency, contributing to its overall earnings.
Deutsche Lufthansa AG Financial Statement Overview
Summary
Deutsche Lufthansa AG has shown recovery in revenue and improved leverage management since the pandemic. However, challenges with profitability margins and cash flow generation persist, indicating areas for improvement.Income Statement
Deutsche Lufthansa AG has shown a strong recovery in revenue growth, especially post-pandemic, with a 5.9% increase from 2023 to 2024. The gross profit margin improved significantly from negative in 2020 to positive in 2024. However, the net profit margin decreased from 4.7% in 2023 to 3.7% in 2024, indicating some efficiency challenges. EBIT and EBITDA margins have also decreased slightly, suggesting room for improvement in operating efficiency.75
Positive
Balance Sheet
The debt-to-equity ratio remains high, though it has improved from 11.4 in 2020 to 1.23 in 2024, indicating better leverage management. The equity ratio has improved over recent years, reaching 24.5% in 2024, reflecting a more stable financial position. However, the high level of debt still poses potential risks. ROE increased to 11.9% in 2024, showing better returns for shareholders.70
Positive
Cash Flow
Free cash flow has been volatile, with significant negative values in 2020 and 2024. The operating cash flow to net income ratio is relatively strong at 2.82, but the free cash flow to net income ratio is negative, indicating challenges in generating free cash flow. The company needs to focus on improving its cash flow generation to support long-term growth.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 37.58B | 35.48B | 32.77B | 16.81B | 13.59B | Gross Profit |
| 4.83B | 7.43B | 4.62B | -3.00M | -2.98B | EBIT |
| 1.54B | 2.46B | 1.23B | -2.32B | -7.09B | EBITDA |
| 4.66B | 5.30B | 3.73B | 92.00M | -3.66B | Net Income Common Stockholders |
| 1.38B | 1.67B | 791.00M | -2.19B | -6.77B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 8.49B | 8.27B | 8.30B | 7.60B | 5.38B | Total Assets |
| 47.05B | 45.32B | 43.34B | 42.54B | 39.48B | Total Debt |
| 14.23B | 13.95B | 15.17B | 16.69B | 15.38B | Net Debt |
| 12.44B | 12.36B | 13.38B | 14.45B | 13.66B | Total Liabilities |
| 35.46B | 35.61B | 34.86B | 38.05B | 38.10B | Stockholders Equity |
| 11.54B | 9.66B | 8.40B | 4.45B | 1.35B |
| Cash Flow | Free Cash Flow | |||
| -6.00M | 895.00M | 2.66B | -700.00M | -3.58B | Operating Cash Flow |
| 3.89B | 4.95B | 5.17B | 618.00M | -2.33B | Investing Cash Flow |
| -2.33B | -2.98B | -3.44B | -3.02B | -2.34B | Financing Cash Flow |
| -1.45B | -2.07B | -2.27B | 2.87B | 5.08B |
Deutsche Lufthansa AG Technical Analysis
Positive
6.98
Price Trends
7.36
Negative
6.91
Positive
6.77
Positive
Market Momentum
-0.18
Negative
47.71
Neutral
95.70
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLAKY, the sentiment is Positive. The current price of 6.98 is below the 20-day moving average (MA) of 7.11, below the 50-day MA of 7.36, and above the 200-day MA of 6.77, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 47.71 is Neutral, neither overbought nor oversold. The STOCH value of 95.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DLAKY.
Deutsche Lufthansa AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $26.69B | 7.25 | 27.52% | 1.35% | 4.91% | -27.21% | |
74 Outperform | $8.39B | 5.59 | 13.31% | 3.12% | 6.05% | -18.08% | |
74 Outperform | $22.80B | 13.45 | 21.21% | 1.84% | 5.39% | -15.92% | |
74 Outperform | $21.53B | 6.97 | 33.57% | ― | 5.31% | 35.95% | |
65 Neutral | $14.20B | 32.80 | 4.50% | 2.91% | 5.34% | -6.20% | |
62 Neutral | $4.17B | 11.26 | 5.46% | 215.76% | 4.12% | -8.54% | |
56 Neutral | $6.22B | 8.54 | -21.27% | ― | 2.70% | 2.20% |
* Industrials Sector Average
Performance Comparison
DLAKY
Deutsche Lufthansa AG
7.07
0.10
1.43%
DAL
Delta Air Lines
39.47
-9.03
-18.62%
RYAAY
Ryanair Holdings
44.75
-10.45
-18.93%
LUV
Southwest Airlines
24.04
-5.00
-17.22%
UAL
United Airlines Holdings
65.30
11.36
21.06%
AAL
American Airlines
9.07
-5.46
-37.58%
Deutsche Lufthansa AG Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -9.70% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a strong performance in Q4 and notable achievements such as the ITA Airways acquisition and record revenues. However, these were offset by significant challenges with Lufthansa Airline's performance, high irregularity costs, and operational issues. While there are positive outcomes from other airlines in the group, the core brand's struggles and cost increases present a balanced outlook.Highlights
Strong Q4 Performance
Adjusted EBIT reached €468 million in Q4, improving previous year's results by €66 million.
ITA Airways Acquisition
Completed acquisition of a 41% stake in ITA Airways, marking the largest airline acquisition in Lufthansa's history.
Record Revenue Achievement
Revenues increased by 6% to €37.6 billion, marking a new record with over €10 billion in revenue in two consecutive quarters.
High Load Factors
Passenger Airlines expanded capacity by 9% with record load factors peaking above 90%.
SWISS and Other Airlines' Performance
SWISS achieved an adjusted EBIT of €800 million, with other airlines like Eurowings and Brussels Airlines also showing profitability.
Lufthansa Technik Success
Lufthansa Technik increased its EBIT to a new high of €635 million, with significant new customer contracts.
Lufthansa Cargo Performance
Cargo achieved adjusted earnings of €251 million, with €199 million generated in Q4 alone.
Lowlights
Core Brand Struggles
Lufthansa Airline's disappointing performance led to a €950 million decline in adjusted EBIT, highlighting the need for an economic turnaround.
High Irregularity Costs
Irregularity costs increased significantly to more than €840 million, a 70% rise, due to strikes and operational instability.
Operational Challenges
Operational instability due to older aircraft and capacity limitations at system partners led to increased irregularity costs and lower productivity.
Cost Increases
Operating costs increased by 9%, driven by higher cost inflation, MRO costs, and an 8% rise in staff costs.
Regional Disadvantages
Significant disadvantages in the Asian market due to inability to use Russian airspace, affecting long-range competitiveness.
Company Guidance
In the call, Lufthansa provided guidance that highlighted a challenging fiscal year 2024, with a decline in adjusted EBIT of €974 million in the first half, largely affected by strikes costing €450 million. However, the second half showed significant improvement, culminating in a strong Q4 with an adjusted EBIT of €468 million, up €66 million from the previous year. The company anticipates a double-digit growth in adjusted EBIT for 2025, despite headwinds such as inflation and operational costs. Lufthansa's focus on operational stability and strategic expansion, including a 41% acquisition of ITA Airways, is expected to support this growth. The Passenger Airlines segment expanded capacity by 9%, achieving record revenues of €37.6 billion, while Lufthansa Technik and Lufthansa Cargo also reported strong results, with EBITs of €635 million and €251 million, respectively. The company plans to leverage the continuing strong demand in the global aviation market to drive future performance improvements.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.