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Deutsche Lufthansa AG (DLAKY)
OTHER OTC:DLAKY
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Deutsche Lufthansa AG
(OTC:DLAKY)
Rating:74Outperform
Price Target:
$8.00
▼(-5.10%Downside)
Deutsche Lufthansa AG (DLAKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.11B
Dividend Yield4.03%
Average Volume (3M)2.15K
Price to Earnings (P/E)7.4
Beta (1Y)0.85
Revenue Growth6.06%
EPS Growth-11.01%
CountryUS
Employees102,574
SectorIndustrials
Sector Strength86
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)-0.84
Shares Outstanding1,200,015,000
10 Day Avg. Volume4,314
30 Day Avg. Volume2,145
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)1.09
Price to Sales (P/S)0.00
P/FCF Ratio3.46
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 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 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 Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 17.08%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong operational performance and revenue growth with significant investments in staff and fleet renewal. However, notable challenges included cost pressures and uncertainties in third-quarter bookings.Q1-2025 Updates
Positive Updates
Record Sales and Revenue Growth
Lufthansa achieved record sales for the first time, exceeding EUR 8 billion with a 10% growth in the first quarter.
Operational Excellence and Staff Investment
Lufthansa Airlines achieved its highest operational performance levels in the last 10 years in regularity and punctuality. The company invested in recruiting, training, and qualifying additional operational staff.
Strong Demand and Capacity Increase
The airlines increased capacity by 5% compared to the same quarter last year, and passenger load factors improved. North Atlantic passenger numbers increased by over 7%.
Lufthansa Technik and Cargo Performance
Lufthansa Technik's revenue grew by 14% to EUR 2 billion, and Lufthansa Cargo achieved an adjusted EBIT of EUR 62 million, benefiting from high volume growth and increased yields.
Positive Cash Flow and Liquidity
Adjusted free cash flow amounted to EUR 835 million, significantly above last year's level, and total liquidity increased by approximately EUR 350 million.
Negative Updates
Impact of Cost Increases
The company's material costs, excluding fuel, rose by almost 16%, with fees and charges increasing by 14%. Personnel expenses grew by 5%, increasing financial pressure.
Third Quarter Booking Uncertainty
Early signs of booking softness were observed in the third quarter, particularly for U.S. destinations, mainly in the lower fare classes.
Adjusted EBIT Loss and Tax Impact
The adjusted EBIT was negative at EUR 722 million, and net income was below last year's level due to a temporary tax accounting effect.
Strikes and Inflation Effects
Strikes at German airports resulted in approximately EUR 30 million of extra costs, and general cost inflation amounted to about EUR 280 million of additional costs.
Company Guidance
In the first quarter of 2025, Lufthansa Group reported record sales exceeding EUR 8 billion, marking a 10% growth compared to the previous year. The company emphasized its focus on operational excellence, which has resulted in Lufthansa Airlines achieving the highest levels of regularity and punctuality in the last decade. Despite a challenging global political environment, the Group increased capacity by 5% and improved yields and load factors. Pre-booking levels for the second quarter are in line with or above previous year's figures, although some softness in lower fare class bookings to U.S. destinations is noted. The Group is prepared to adjust growth if necessary, having already reduced winter growth from 6% to 3%. The first quarter saw an adjusted EBIT improvement, with a reduction in irregularity events and financial impacts by 40%. Lufthansa Technik and Cargo contributed significantly to the group's revenue increase, with Lufthansa Cargo achieving an adjusted EBIT of EUR 62 million due to volume and yield improvements. The Group expects a positive trend through the first half of the year, with a focus on strategic initiatives to enhance resilience and operational performance.Deutsche Lufthansa AG Financial Statement Overview
Summary
Deutsche Lufthansa AG has shown strong revenue growth and improved leverage management, rebounding from pandemic impacts. However, challenges persist with profitability margins decreasing and volatile cash flow generation, indicating areas needing 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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.32B | 37.58B | 35.48B | 32.77B | 16.81B | 13.59B |
| Gross Profit | 4.89B | 4.83B | 7.43B | 4.62B | -3.00M | -2.98B |
| EBITDA | 4.24B | 4.66B | 5.30B | 3.73B | 92.00M | -3.66B |
| Net Income | 1.23B | 1.38B | 1.67B | 791.00M | -2.19B | -6.77B |
Balance Sheet | ||||||
| Total Assets | 48.14B | 47.05B | 45.32B | 43.34B | 42.54B | 39.48B |
| Cash, Cash Equivalents and Short-Term Investments | 8.84B | 8.49B | 8.27B | 8.30B | 7.60B | 5.38B |
| Total Debt | 0.00 | 14.23B | 13.95B | 15.17B | 16.69B | 15.38B |
| Total Liabilities | 37.60B | 35.46B | 35.61B | 34.86B | 38.05B | 38.10B |
| Stockholders Equity | 10.49B | 11.54B | 9.66B | 8.40B | 4.45B | 1.35B |
Cash Flow | ||||||
| Free Cash Flow | 499.00M | -6.00M | 895.00M | 2.66B | -700.00M | -3.58B |
| Operating Cash Flow | 4.33B | 3.89B | 4.95B | 5.17B | 618.00M | -2.33B |
| Investing Cash Flow | -2.81B | -2.33B | -2.98B | -3.44B | -3.02B | -2.34B |
| Financing Cash Flow | -1.15B | -1.45B | -2.07B | -2.27B | 2.87B | 5.08B |
Deutsche Lufthansa AG Technical Analysis
Positive
8.43
Price Trends
7.63
Positive
7.37
Positive
6.93
Positive
Market Momentum
0.17
Negative
61.43
Neutral
92.27
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 8.43 is above the 20-day moving average (MA) of 8.17, above the 50-day MA of 7.63, and above the 200-day MA of 6.93, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 61.43 is Neutral, neither overbought nor oversold. The STOCH value of 92.27 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $25.86B | 7.26 | 33.57% | ― | 5.31% | 35.95% | |
78 Outperform | $32.38B | 8.79 | 27.52% | 1.21% | 4.91% | -27.21% | |
74 Outperform | $10.11B | 7.35 | 12.68% | 4.03% | 6.06% | -11.01% | |
73 Outperform | $29.69B | 18.14 | 22.41% | 1.63% | 3.12% | -13.82% | |
68 Neutral | $18.33B | 38.19 | 5.63% | 2.24% | 3.26% | 27.77% | |
64 Neutral | $7.44B | 12.95 | -21.27% | ― | 1.92% | 36.07% | |
63 Neutral | kr63.91B | 12.59 | 1.54% | 10.66% | 0.04% | -3.90% |
* Industrials Sector Average
Performance Comparison
DLAKY
Deutsche Lufthansa AG
8.43
2.45
40.97%
DAL
Delta Air Lines
49.18
3.02
6.54%
RYAAY
Ryanair Holdings
57.67
13.18
29.62%
LUV
Southwest Airlines
32.44
4.79
17.32%
UAL
United Airlines Holdings
79.63
31.43
65.21%
AAL
American Airlines
11.22
0.17
1.54%
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.