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Delta Airlines Stock Report - Stock Rover

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I recently signed up with a new stock analysis tool called Stock Rover and received permission to share some examples of the features.  Today I decided to show my real-time followers a sample of a detailed stock report from Stock Rover (stockrover.com) for Delta Airlines (DAL).

Stock Rover doesn’t do all the work for you (like Friedrich.com) but it provides all the raw data and traditional ratios that investors use to analyze potential companies to add to a portfolio.  The stock report feature is just the tip of the iceberg but can be purchased separately for $99 per year.  I plan to show other options to my real-time followers in the future, such as customized or pre-set screening capabilities , ten years of financial data and industry analysis.  Follow this link and click on PLANS for additional plan options (very reasonable in my humble opinion), ranging from $7.99 per month to $279.99 per year for Premium Plus (which includes the stock reports and all other features).

My primary stock selection tool remains Friedrich because I like the approach of using free cash flow as the focus of analysis.  But, for those who like to sift the data and make those decisions for themselves or who are looking for a lower cost alternative, Stock Rover may fit the bill.  For DAL Friedrich provides both a data file and a quantitative chart as follows:

Source: Friedrich Global Research

As you can see from all the red on the fight side of the table above, Friedrich does not like Delta.  I’ll go into more detail as to why in my next article on Seeking Alpha when I review the Airline Industry.

Source: Friedrich Global Research

Friedrich currently assigns a value of $0 to DAL because it is generating negative free cash flow.  Airlines are very capital-intensive requiring lots of capital investment each year to maintain, refurbish and update fleets.  When the economy falls into recession, travel is one of the first things that gets cut from budgets, both for individuals and businesses.  The current downturn is proving especially difficult for airlines due to the increasing spread of the SARS-Cov2 virus.

The following screen shots represent the most recent 8-page stock report for Delta Airlines.  The Source of all screen shots is stockrover.com.  Free Trials are available for those who may want to try it out.

Notice that on page 5 of the report that quarter-over-quarter sales growth dropped 88%.  That came from the Q2 earnings report so we can tell that this report has already been updated.  The number of travelers is increasing but remains well below previous levels and until DAL (and its peers) can reduce staffing and fixed costs to be more in line with current and expected condition it will remain tough sledding.  Even then, because of the extra precautions, cleaning, added filters, etc., pre-pandemic margins could prove difficult to achieve for several years.

Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

DISCLAIMER: This analysis is not advice to buy or sell this or any stock; it is just pointing out an objective observation of unique patterns that developed from our research. Factual material is obtained from sources believed to be reliable, but the poster is not responsible for any errors or omissions, or for the results of actions taken based on information contained herein. Nothing herein should be construed as an offer to buy or sell securities or to give individual investment advice.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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