Delta Air Lines, Inc. (DAL) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Delta Air Lines, Inc.

Updated on October 10, 2026 · accounts published on October 9, 2026

Reading of October 9, 2026: A recovering airline with rising earnings, thin margins and a stretched balance sheet

Delta Air Lines trades at a P/E of 13.6×, 44 % above its ten-year median of 9.5× and higher than in 96 % of the last decade.

• Is Delta Air Lines expensive or cheap? Delta Air Lines trades at a P/E of 13.6×, 44 % above its ten-year median and 47 % below its sector median.
• How is the business doing? Operating margin was 7.4 % over the last 12 months, above its 4.3 % average for 2014-2025 but below 9.2 % in fiscal 2025.
• How strong is the balance sheet? Net debt was $26.93 per share in fiscal 2025, 33 % of the current price, and the Altman Z of 1.4 is in the danger zone.
• What to expect from the next earnings? Analysts cut the 2026 EPS consensus by 12 % in 25 days, to $5.58. Next results are due January 12, 2027.
• Does it turn margin into cash, and at what multiple of the cycle does it trade? Free cash flow was 77 % of net income in fiscal 2025, just short of the 85 % the sector treats as healthy.

Is Delta Air Lines expensive or cheap?

Delta Air Lines trades at a P/E of 13.6× over the last 12 months. Its ten-year median is 9.5×. In 96 % of the last decade its P/E was lower than today, which puts it near the top of a range that ran from 2.6× to 15.4×. Its sector has a median P/E of 25.9× across 404 companies, so next to its peers it looks inexpensive, and its free cash flow yield is 7.7 %. For a cyclical business, its own history is the stricter yardstick. The stock is up 39 % over 12 months and sits 12 % below its 52-week high of $93.66.

How is the business doing?

Revenue grew only 2.8 % over the last 12 months while EPS rose 43.7 %, so the gain came from profitability more than from volume. The operating margin of 7.4 % beats the 4.3 % average of fiscal 2014-2025. That period includes 2020, when ROIC fell to −16.9 %. Returns are still modest. ROIC of 8.4 % over the last 12 months sits 0.5 points below the sector median of 8.9 %, and ROIC topped 10 % in only 2 of the last 10 fiscal years. ROE is 15.4 %, and a Piotroski score of 7 of 9 points to improving fundamentals.

How strong is the balance sheet?

Net debt was 2.1× EBITDA in fiscal 2025, inside the sector's healthy limit of 3×, and debt to equity is 0.61 over the last 12 months. The warnings come from liquidity. A current ratio of 0.40 means short-term liabilities are 2.5 times short-term assets. The Altman Z of 1.4 sits below 1.81, the line that marks the danger zone. Shareholder returns are small. The dividend yields 0.9 % over the last 12 months and took only 9 % of fiscal 2025 earnings, so the payout puts little strain on cash, while capex ran at 7.1 % of revenue.

What to expect from the next earnings?

On October 9, 2026, Delta Air Lines reported EPS of $1.72, 2.8 % below the $1.77 expected. The miss stands out because the company has beaten EPS estimates in 7 of the last 8 quarters. Over the last 25 days, 12 analysts lowered the 2026 EPS consensus from $6.34 to $5.58, while the 2026 revenue consensus rose 0.5 %. That suggests more pressure on margins than on sales. For the quarter due on January 12, 2027, analysts expect EPS of $1.43. Sentiment is still positive: 36 of 45 analysts rate the stock a buy, 8 a hold and none a sell.

Does it turn margin into cash, and at what multiple of the cycle does it trade?

Transport and industrial profits swing with the cycle. That is why this sector looks at margin, cash conversion and the multiple against the company's own average, instead of judging a single good year. Delta Air Lines falls short on margin, with 9.2 % in fiscal 2025 against a healthy level of 12 %. Its ROIC of 8.4 % over the last 12 months compares with a 15 % threshold. Growth passes: revenue per share rose 29.5 % a year over fiscal 2020-2025, starting from a weak base. Both multiples sit above the expensive line. The P/E of 13.6× compares with a ten-year average of 9.2×, and EV/EBITDA of 10.3× with a six-year average of 8.4×.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.