Deutsche Lufthansa AG (DLAKY) AI Stock Analysis

• Market Cap: $11.93B
• Dividend Yield: 3.4%
• Average Volume (3M): 6.02K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.73
• Revenue Growth: 8.52%
• EPS Growth: 96.29%
• Country: US
• Employees: 102,574
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.94
• Shares Outstanding: 1,200,249,100
• 10 Day Avg. Volume: 13,537
• 30 Day Avg. Volume: 6,024
• PEG Ratio: -0.14
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.20
• P/FCF Ratio: -1.23K
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 3.31
• Enterprise Value/Ebitda: 3.13
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $11.00 ▲(15.79% Upside)

Deutsche Lufthansa AG's stock is rated positively due to strong technical indicators and attractive valuation metrics. Financial performance shows recovery but is tempered by profitability and cash flow challenges. The earnings call provided a balanced view with growth prospects and operational improvements, despite some cost pressures.

Positive Factors

Revenue Growth

Lufthansa's revenue growth and capacity expansion, especially in the North Atlantic, indicate strong market demand and strategic positioning, supporting long-term business sustainability.

Fleet Modernization

The fleet modernization with next-gen aircraft enhances operational efficiency and product offerings, positioning Lufthansa for sustained competitive advantage.

Operational Stability

Improved operational stability and customer satisfaction reflect effective management and service quality, crucial for long-term customer retention and brand strength.

Negative Factors

Profitability Margins

Decreasing net profit margins highlight efficiency challenges, which could impact long-term profitability if not addressed through cost management and operational improvements.

Cash Flow Generation

Negative free cash flow generation limits financial flexibility and growth investments, posing risks to long-term financial health and strategic initiatives.

External Cost Pressures

Increasing external costs, such as fees and ATC charges, could erode margins and profitability, necessitating strategic cost management to maintain competitive positioning.

Deutsche Lufthansa AG Business Overview & Revenue Model

Company Description

Deutsche Lufthansa AG (DLAKY) is a leading global aviation group based in Germany, primarily engaged in the operation of passenger and cargo airlines. The company operates through several segments including passenger airline services, logistics, maintenance, repair and overhaul (MRO), catering, and other services. Its core products include scheduled air transportation services for passengers and freight, as well as various ancillary services such as travel packages and loyalty programs.

How the Company Makes Money

Lufthansa generates revenue primarily through the sale of airline tickets, which constitutes the bulk of its earnings. The company has multiple revenue streams, including passenger services, cargo services, and ancillary services. Passenger services include ticket sales for both domestic and international flights, while cargo services encompass freight transport. Additionally, Lufthansa earns significant income from ancillary services such as baggage fees, onboard sales, and loyalty programs like Miles & More. The company also benefits from its partnerships and alliances, including the Star Alliance network, which enhances its market reach and customer base. Furthermore, Lufthansa engages in maintenance, repair, and overhaul services for third-party airlines, contributing to its revenue diversification. Factors such as fuel prices, economic conditions, and travel demand significantly influence the company's earnings.

Deutsche Lufthansa AG Financial Statement Overview

Summary

Deutsche Lufthansa AG has shown strong revenue growth and improved leverage post-pandemic. However, challenges remain with profitability margins and cash flow generation, 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.63B	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	5.17B	4.66B	5.33B	3.73B	96.00M	-5.65B
Net Income	1.77B	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	8.59B	8.49B	8.27B	8.30B	7.60B	5.38B
Total Debt	16.46B	14.23B	13.95B	15.17B	16.69B	15.38B
Total Liabilities	37.80B	35.46B	35.61B	34.86B	38.05B	38.10B
Stockholders Equity	10.29B	11.54B	9.66B	8.40B	4.45B	1.35B
Cash Flow
Free Cash Flow	120.00M	-6.00M	895.00M	2.66B	-700.00M	-3.58B
Operating Cash Flow	3.88B	3.89B	4.95B	5.17B	618.00M	-2.33B
Investing Cash Flow	-2.85B	-2.33B	-2.98B	-3.44B	-3.02B	-2.34B
Financing Cash Flow	-947.00M	-1.45B	-2.07B	-2.27B	2.87B	5.08B

Deutsche Lufthansa AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 9.5 is above the 20-day moving average (MA) of 9.39, above the 50-day MA of 8.89, and above the 200-day MA of 8.32, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 66.13 is Neutral, neither overbought nor oversold. The STOCH value of 50.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DLAKY.

Deutsche Lufthansa AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RYAAY	83 Outperform	$36.64B	13.74	28.67%	1.40%	14.75%	71.73%
DAL	80 Outperform	$45.58B	9.84	28.52%	0.97%	4.33%	-1.58%
DLAKY	76 Outperform	$11.93B	6.16	15.52%	3.40%	8.52%	96.29%
UAL	74 Outperform	$34.59B	10.70	25.59%	―	4.24%	20.29%
LUV	66 Neutral	$21.29B	62.74	4.22%	1.75%	0.65%	―
AAL	64 Neutral	$9.87B	17.99	―	―	1.27%	118.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Deutsche Lufthansa AG Corporate Events

Lufthansa Group Reports Strong Financial Growth in 2025

Deutsche Lufthansa AG is a leading global airline group, operating in the aviation sector, known for its extensive network of passenger and cargo services. In its latest earnings report for the first nine months of 2025, Lufthansa Group showed a positive trajectory in its financial performance. The company reported a 5% increase in total revenue, reaching €29,648 million, driven by strong growth in its logistics and MRO segments, despite a slight decline in passenger yields. Operating income rose by 5%, while adjusted EBIT saw a significant 26% increase to €1,480 million, reflecting improved operational efficiency and cost management. The group’s net profit also surged by 32% to €1,093 million, supported by a robust cash flow from operating activities, which increased by 19% to €3,939 million. The company continues to focus on strategic initiatives, including fleet modernization and operational improvements, aimed at enhancing profitability and shareholder value. Looking ahead, Lufthansa Group remains committed to its strategic goals, including maximizing synergies within the group and maintaining a strong balance sheet, as it navigates the evolving aviation landscape.

Lufthansa Earnings Call: Strong Gains Amid Challenges

The recent earnings call for Deutsche Lufthansa AG painted a picture of strong operational improvements and financial performance across several segments, including Lufthansa Cargo, Technik, and the integration of ITA Airways. Despite these achievements, the company faces significant challenges such as high location costs, delayed aircraft deliveries, and cost pressures. The overall sentiment suggests a positive outlook, tempered with caution due to these external pressures.

Lufthansa Group Reports Strong Financial Turnaround in 2025

Deutsche Lufthansa AG, a leading global airline group, operates in the aviation sector, offering passenger and cargo transportation services, and is known for its extensive network and commitment to sustainability. In its latest earnings report for the first half of 2025, Lufthansa Group reported a significant improvement in financial performance, with a 6% increase in total revenue to €18,449 million and a net profit of €127 million, reversing a loss from the previous year. Key highlights include a 37% rise in adjusted EBITDA to €1,344 million and a notable improvement in adjusted EBIT to €149 million, driven by increased passenger traffic and successful cost management despite geopolitical challenges and high operational costs. The group’s logistics and MRO segments also showed strong performance, contributing to the overall positive results. Looking ahead, Lufthansa Group remains optimistic, expecting a further increase in adjusted EBIT for the full year, supported by ongoing demand for air travel and strategic initiatives such as fleet expansion and integration of ITA Airways.