tiprankstipranks
Trending News
More News >
Deutsche Lufthansa (DE:LHA)
XETRA:LHA
Advertisement

Deutsche Lufthansa (LHA) AI Stock Analysis

Compare
369 Followers

Top Page

DE:LHA

Deutsche Lufthansa

(XETRA:LHA)

Rating:77Outperform
Price Target:
€8.50
▲(10.53%Upside)
Deutsche Lufthansa shows strong technical momentum and an attractive valuation, although financial performance is hampered by operational efficiency issues and high leverage. The lack of recent earnings call data limits visibility into management's forward guidance.
Positive Factors
Business Diversification
The Lufthansa group is highly diversified and more resilient than peers, with its passenger business complemented by a dominant maintenance, repair and overhaul (MRO) business and considerable freighter operations.
Earnings
FY fuel guidance is approximately €500m below consensus and mechanically drives around 27% full-year EBIT upgrades, more than offsetting the Q1 net profit miss.
Market Position
Enviable competitive position with its multi-brand strategy and leading market positions.
Negative Factors
Cost Pressures
Persistent cost inflation and prolonged airport capacity constraints could lead to earnings disappointment.
Macroeconomic Conditions
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. iShares MSCI Germany ETF (EWG)

Deutsche Lufthansa Business Overview & Revenue Model

Company DescriptionDeutsche Lufthansa AG operates as an aviation company in Germany and internationally. The company's Network Airlines segment offers passenger services. Its Eurowings segment provides passenger services through a route network of more than 100 destinations in over 50 countries. The company's Logistics Business segment offers transport services for various cargoes, including general cargo, dangerous goods, valuables, vulnerable, perishables, live animals, courier, emergency, airmail/e-commerce, and temperature sensitive goods services approximately 300 destinations in 100 countries. Its Maintenance, Repair and Overhaul Services (MRO) segment provides maintenance, repair, and overhaul services for civilian commercial aircraft serving original equipment manufacturers and aircraft leasing companies, operators of VIP jets, and airlines. The company's Catering Business segment engages in-flight services and convenience retail, as well as other areas, such as retail and food producers. As of December 31, 2021, it had a fleet of 713 aircraft. Deutsche Lufthansa AG was founded in 1926 and is headquartered in Cologne, Germany.
How the Company Makes MoneyLufthansa generates revenue primarily through its passenger airline operations, which account for the majority of its income. This includes ticket sales, ancillary services like baggage fees and onboard sales, and premium cabin offerings. The logistics division, primarily Lufthansa Cargo, contributes to its earnings by providing air freight services globally. The MRO segment offers aircraft maintenance, repair, and overhaul services to other airlines and generates additional revenue. Furthermore, Lufthansa's catering business, LSG Sky Chefs, supplies in-flight catering services to numerous airlines. Strategic partnerships and code-sharing agreements with other airlines also play a significant role in expanding its market reach and increasing passenger volumes. The company's membership in the Star Alliance enhances its network connectivity, providing access to a broader customer base and contributing to its overall revenue.

Deutsche Lufthansa Financial Statement Overview

Summary
Deutsche Lufthansa's financial performance shows a strong recovery in revenue and improving cash flow, but challenges remain in operational efficiency and high leverage.
Income Statement
75
Positive
The income statement reveals a strong recovery trajectory for Deutsche Lufthansa. The TTM (Trailing-Twelve-Months) gross profit margin stands at 14.34%, while the net profit margin is 3.21%. Revenue growth is notable, with a 7.74% increase from the previous year. However, EBIT and EBITDA margins have seen slight declines compared to the previous year at 3.53% and 10.88% respectively, indicating pressure on operational efficiency.
Balance Sheet
70
Positive
The balance sheet shows a relatively high debt-to-equity ratio of 1.34, indicating substantial leverage. However, the return on equity (ROE) is a solid 11.72%, reflecting effective use of shareholder funds. The equity ratio stands at 21.78%, suggesting a moderate level of financial stability with room for improvement in reducing leverage.
Cash Flow
60
Neutral
Cash flow analysis indicates positive trends with a 1853.33% increase in free cash flow from the previous year, reaching €512 million. The operating cash flow to net income ratio is 3.52, demonstrating strong cash conversion. However, the free cash flow to net income ratio is lower at 0.42, highlighting potential challenges in translating earnings to cash flow.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue37.58B35.44B32.77B16.81B13.59B
Gross Profit4.83B5.24B4.62B-3.00M-2.98B
EBITDA4.30B5.33B3.85B31.00M-5.49B
Net Income1.38B1.67B791.00M-2.19B-6.77B
Balance Sheet
Total Assets47.05B45.32B43.34B42.54B39.48B
Cash, Cash Equivalents and Short-Term Investments8.49B8.27B8.30B7.60B5.38B
Total Debt14.23B13.95B15.17B16.69B15.38B
Total Liabilities35.46B35.61B34.86B38.05B38.10B
Stockholders Equity11.54B9.66B8.40B4.45B1.35B
Cash Flow
Free Cash Flow-6.00M659.00M2.66B-700.00M-3.58B
Operating Cash Flow3.89B4.71B5.17B618.00M-2.33B
Investing Cash Flow-2.33B-2.94B-3.44B-3.02B-2.34B
Financing Cash Flow-1.45B-2.07B-2.27B2.87B5.08B

Deutsche Lufthansa Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.69
Price Trends
50DMA
7.12
Positive
100DMA
6.80
Positive
200DMA
6.43
Positive
Market Momentum
MACD
0.15
Negative
RSI
66.76
Neutral
STOCH
87.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:LHA, the sentiment is Positive. The current price of 7.69 is above the 20-day moving average (MA) of 7.39, above the 50-day MA of 7.12, and above the 200-day MA of 6.43, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 66.76 is Neutral, neither overbought nor oversold. The STOCH value of 87.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:LHA.

Deutsche Lufthansa Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
€9.23B7.4512.35%3.90%6.98%-12.63%
65
Neutral
$11.06B15.735.16%1.93%3.12%-25.59%
€6.04B14.459.15%
€1.91B55.235.42%0.39%
€4.01B17.8412.50%2.79%
€4.01B11.8612.50%4.27%
74
Outperform
€16.49B6.4914.10%5.15%-2.53%-4.91%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:LHA
Deutsche Lufthansa
7.69
2.05
36.38%
GB:0O1R
Fraport AG Frankfurt Airport Services Worldwide
65.40
18.52
39.51%
GB:0NBI
Hamburger Hafen und Logistik
19.05
2.24
13.33%
GB:0NW7
Sixt SE
96.72
36.21
59.84%
GB:0NW8
Sixt SE
64.19
16.72
35.22%
DE:8TRA
TRATON SE
32.98
5.57
20.32%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 05, 2025