Author Topic: DAL - Delta Airlines  (Read 924 times)

shalab

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DAL - Delta Airlines
« on: March 03, 2018, 07:22:33 PM »
DAL looks like a buy at these prices. Berkshire owns 53 million shares.

Morningstar says ...

"Delta remains one of the best-managed airlines, with the highest operating margins among U.S. network carriers, a clean balance sheet, and a commitment to returning 70% of its free cash flow to investors. Thanks to significant industry consolidation, Delta’s operating margins should remain positive across the full cycle; this signals a clear break with much of the industry’s history, which featured boom-bust cycles."

In addition, the shares outstanding have decreased from 850 million to 707 million in the past five years with six million bought back in the last three months alone.

The company also operates its own gas refinery which gives it some advantages.

Although 2017 was a down year compared to 2016, 2018 is looking up.  Tax cuts are also helping as more money will go to the bottom line.