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Is this Large Market Cap Stock target price reasonable for Delta Air Lines, Inc. (NYSE:DAL)?

The company in question is, Delta Air Lines, Inc. (NYSE:DAL) currently with a stock price of 36.82 (-0.94% today). The market cap for Delta Air Lines, Inc. is 27909.56, and is in the sector Services, and Major Airlines industry. The target price for Delta Air Lines, Inc. is 52.46. Currently Delta Air Lines, Inc. is trading with a P/E of 5.99, and a forward P/E of 6.4. Average volume for Delta Air Lines, Inc. is 11295.39 and so far today it is 8007600.

Performance in the last year for Delta Air Lines, Inc. has been -17.71%. For EPS growth, Delta Air Lines, Inc. has seen a growth of 621.80%, and is looking to grow in the next year to -0.16%. More long term stats show that EPS growth has been 51.60% over the last five years and could be 11.79% for the next five years. Delta Air Lines, Inc. has seen sales growth quarter over quarter at -2.40%, with EPS growth quarter over quarter at 10.70%. The 20-day simple moving average is -1.33%, with the 200-day simple moving average coming to -15.28%.

Since the IPO date for Delta Air Lines, Inc. on the 5/3/2007, Delta Air Lines, Inc. has seen performance year to date to be -26.50%. With Delta Air Lines, Inc. trading at 36.82, the dividend yield is 2.20%, and the EPS is 6.15.

So could Delta Air Lines, Inc., be undervalued? Well as said before P/E is 5.99. The PEG is 0.51, P/S is 0.69 and the P/B is at 2.36. The P/cash is 9.46, with P/free cash flow at 6.99.

Delta Air Lines, Inc. ability to deal with debt shows that the current ratio is 0.5, and the quick ratio is 0.4. This is with long term debt/equity at 0.57, and total debt/equity at 0.66.

In terms of margins, Delta Air Lines, Inc. has a gross margin of 61.00%, an operating margin of 19.60% and a profit margin of 11.90%.Payout ratio for Delta Air Lines, Inc. is 8.70%. Return on assets come to 9.00% with return on investment coming to 27.00%.

Insider ownership for Delta Air Lines, Inc., is at 0.20% and institutional ownership comes to 86.40%. Outstanding shares are at 758. While shares float is 746.78. The float short is currently 2.68%, and short ratio is 1.77.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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