Delta Air Lines, Inc. (DAL) Fundamental Checkup
Delta Air Lines, Inc. fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of August 28, 2026.
By TGMCharts Research · Data as of · Updated
An assessment of Delta Air Lines, Inc. reveals diverging trends between its long-term compounding rates and near-term profitability metrics. While the five-year revenue CAGR stands at 30.12% and free cash flow CAGR has reached 124.85%, the five-year EPS CAGR of 0.89% points to a slower bottom-line conversion rate, accompanied by a net margin of 5.79% and a return on invested capital of 7.63%.
This analysis weighs operating expansion, capital efficiency, and balance sheet constraints. With a current ratio of 0.42x and a debt-to-equity ratio of 0.92x, the capital structure represents a key risk factor that must be evaluated alongside the company's cash generation capabilities.
- Delta Air Lines, Inc. has market cap of $52.66B and closed at $80.07 on August 28, 2026.
- Five-year revenue CAGR is 30.12% and five-year EPS CAGR is 0.89%.
- Five-year free-cash-flow CAGR is 124.85%.
- Net margin is 5.79% and ROIC is 7.63%.
- Current ratio is 0.42x and debt-to-equity is 0.92x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
Evaluating the Alignment of Growth, Cash, and Capital Structure
Analyzing Delta Air Lines, Inc. requires assessing whether its long-term top-line expansion translates into sustainable per-share value and robust cash generation, or if balance sheet obligations limit its financial flexibility. At the market close of $80.07 on August 28, 2026, the equity market is pricing in a specific set of operational expectations. This research note bypasses short-term sentiment to evaluate the underlying financial statements.
A central tension in the financial profile is the relationship between the five-year revenue CAGR of 30.12% and the five-year EPS CAGR of 0.89%. While top-line expansion has been substantial, the bottom-line per-share compounding rate has been far more muted. Conversely, the five-year free cash flow CAGR of 124.85% suggests a highly volatile but ultimately productive cash-generation cycle that warrants closer inspection.
Current compounder snapshot · DAL
Live supporting context; not part of the article's frozen 2026-08-28 evidence snapshot.
- Score
- 11/100
- 10Y CAGR
- 4.5%
- Median YoY
- 6.5%
- YoY volatility
- σ 78.1pp· choppy
- Quarters ≥ 20%
- 8 of 40
- Negative quarters
- 9
- Valuation vs own 10Y history
- P/S 0.8x · 10Y median 0.8x · 52nd percentile · as of Aug 28, 2026
How this score is computed
- Quarters at or above 20%: 8 of 40 → 8 of 40 pts
- Steadiness (typical swing 78.1pp) → 0 of 25 pts
- Pace (median 6.5% YoY) → 0 of 20 pts
- Latest quarter (18.7% YoY) → 2.8 of 15 pts
- Score: 11 of 100
Annualized revenue (TTM) · by quarter, last 40
Quarterly YoY revenue growth vs the 20% line
P/S multiple vs its 10Y median
Operational Context Within the Industrial Sector
As an operator within the Industrials sector, the company faces capital-intensive requirements, cyclical demand patterns, and significant fixed-cost leverage. To understand the overall quality of the business, we must look at how capital is deployed and how efficiently revenue is converted into operating income. The comprehensive financial table below establishes the baseline metrics before we examine individual historical trends.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
DAL revenue
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered.
Five-year revenue CAGR: 30.12%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 30.12% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
The Gap Between Revenue Expansion and Per Share Profits
Comparing top-line performance to bottom-line results highlights a significant divergence in efficiency. Revenue growth has sustained a five-year CAGR of 30.12%, reflecting robust demand and expanded operating capacity. However, this has not translated directly into shareholder returns, as evidenced by the five-year EPS CAGR of only 0.89%. This gap suggests that rising operating costs, fuel price volatility, or capital costs have absorbed the bulk of the incremental revenue.
DAL EPS
EPS history shows how much of the business growth has reached shareholders.
Five-year EPS CAGR: 0.89%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 0.89% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
Evaluating Cash Flow Sustainability Against Reported Earnings
Free cash flow provides an essential reality check on reported accounting profits, particularly in capital-heavy industries. The five-year free cash flow CAGR of 124.85% represents a substantial expansion from historical lows, outpacing the growth rate of net income. This indicates that despite thin accounting margins, cash generation has been supported by favorable working capital dynamics and disciplined capital expenditure cycles, though the absolute level of cash flow remains highly sensitive to macroeconomic shifts.
DAL free cash flow
Free cash flow checks whether earnings are converting into owner cash.
Five-year free-cash-flow CAGR: 124.85%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of 124.85% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
Analyzing Operating Margins and Returns on Invested Capital
The durability of the company's financial model depends heavily on its profitability profile and capital efficiency. Currently, the net margin stands at 5.79%, illustrating the narrow profitability threshold common to major airline operators. Furthermore, the return on invested capital of 7.63% indicates that while the company is generating returns above its cost of debt, capital efficiency remains constrained by the immense asset base required to run the network.
DAL net margin
Net margin is the operating-quality check behind the growth record.
Net margin (TTM): 5.79%. The bars below are annual fiscal years.
Net margin of 5.79% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
DAL ROIC
ROIC tests whether the business earns enough on reinvested capital to deserve attention.
Latest ROIC: 7.63%.
ROIC of 7.63% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Liquidity Constraints and Capital Structure Risks
A company's growth runway is ultimately governed by its balance sheet health. With a current ratio of 0.42x, the short-term liquidity position is tight, requiring consistent operational cash inflows to meet near-term obligations. Additionally, the debt-to-equity ratio of 0.92x highlights a leveraged capital structure. This leverage amplifies interest expense burdens and reduces the buffer available to absorb potential demand downturns.
DAL debt-to-equity Chart
Debt-to-equity keeps the checkup honest about balance-sheet flexibility.
Latest debt-to-equity ratio: 0.92x.
Debt-to-equity of 0.92x and current ratio of 0.42x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
Implied Market Expectations and Valuation Multiples
The market currently prices the business at a trailing P/E ratio of 13.28x, which corresponds to an earnings yield of 7.53%. This valuation multiple suggests that investors are pricing in a moderate outlook, demanding a high earnings yield to compensate for the operational volatility and leverage inherent in the business model rather than assigning a premium multiple to the historical revenue growth.
DAL Price Chart
Latest close: $80.07 as of August 28, 2026.
The close at $80.07 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
Key Fundamental Strengths and Vulnerabilities
The core positive argument for the business rests on its ability to sustain a five-year revenue CAGR of 30.12% while generating a five-year free cash flow CAGR of 124.85%, demonstrating that the business can generate significant cash during periods of steady demand. Conversely, the primary risk is that a net margin of 5.79% leaves little room for error. Any contraction in demand or spike in operating expenses could quickly pressure the tight current ratio of 0.42x and complicate the management of the 0.92x debt load.
Bull and bear case
Fundamental support
- Five-year revenue CAGR of 30.12% and five-year EPS CAGR of 0.89% support the business case.
- Net margin of 5.79% and ROIC of 7.63% are the quality checks behind the thesis.
Fundamental pressure
- Free-cash-flow CAGR of 124.85% can weaken the read if it falls away from EPS growth.
- Debt-to-equity of 0.92x and current ratio of 0.42x are the balance-sheet checks that can change the view.
Monitoring Key Metrics for a Shift in the Thesis
A reassessment of this fundamental outlook would be triggered by a significant shift in the relationship between top-line expansion and capital efficiency. Key indicators to monitor on subsequent earnings releases include whether the return on invested capital can trend upward from 7.63%, and whether the debt-to-equity ratio of 0.92x begins to decline, indicating progress in deleveraging the balance sheet.
FAQ
What is the fundamental read on DAL?
Delta Air Lines, Inc. is judged through revenue growth of 30.12%, EPS growth of 0.89%, free-cash-flow growth of 124.85%, net margin of 5.79%, and ROIC of 7.63%.
Which DAL fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this DAL checkup refresh?
Its figures are as of August 28, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
- Revenue growth moving away from the current five-year CAGR of 30.12%.
- Free-cash-flow growth drifting away from five-year EPS CAGR of 0.89%.
- ROIC or balance-sheet flexibility weakening from ROIC of 7.63% and debt-to-equity of 0.92x.
The bottom line
This research note evaluates the financial performance of Delta Air Lines, Inc., examining the relationship between its long-term revenue expansion, trailing earnings, cash flow trends, and capital allocation efficiency.
Read next: DAL fundamentalsContinue with Delta Air Lines, Inc.'s full stock page.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-07-10 · period 2026-06-30 · SEC EDGAR source
- “Total revenue, adjusted (a non-GAAP financial measure, which excludes revenue related to refinery sales to third parties) increased in the June 2026 quarter by $2.2 billion, or 14%, compared to the June 2025 quarter.”
- “Total operating expense in the June 2026 quarter increased $3.3 billion, or 23%, compared to the June 2025 quarter, primarily due to higher aircraft fuel costs, expenses related to refinery sales to third parties, and salaries and related costs.”
- “Total operating expense, adjusted (a non-GAAP financial measure, which primarily excludes expenses related to refinery sales to third parties) in the June 2026 quarter increased $2.7 billion, or 20%, compared to the June 2025 quarter.”
- “Compared to the June 2025 quarter, our total revenue increased $3.1 billion.”
Source pages
Exhibit sources
Research trail
Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.