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Reasons Why I Like Deutsche Lufthansa AG (FRA:LHA)

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Deutsche Lufthansa AG (DB:LHA), it is a company with a a great history of performance, trading at a discount. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Deutsche Lufthansa here.

Outstanding track record and good value

Over the past year, LHA has grown its earnings by 38.40%, with its most recent figure exceeding its annual average over the past five years. This illustrates a strong track record, leading to a satisfying return on equity of 27.99%. which paints a buoyant picture for the company. LHA’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of LHA’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the airlines industry, LHA is also trading below its peers, relative to earnings generated. This further reaffirms that LHA is potentially undervalued.

DB:LHA Income Statement Jun 14th 18
DB:LHA Income Statement Jun 14th 18

Next Steps:

For Deutsche Lufthansa, there are three relevant aspects you should look at:

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  1. Future Outlook: What are well-informed industry analysts predicting for LHA’s future growth? Take a look at our free research report of analyst consensus for LHA’s outlook.

  2. Financial Health: Is LHA’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of LHA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.