Deutsche Lufthansa AG (LHA.DE) stock analysis

In our weekly check, Deutsche Lufthansa AG is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 5, red flags: 6.

About Deutsche Lufthansa AG

Deutsche Lufthansa AG is an Industrials company (Airlines, Airports & Air Services) based in Germany, listed on XETRA as LHA.DE.

What our checks show for LHA.DE

Red flags

• Operating profit does not cover the interest bill (0.3x): interest is paid from cash or new debt.
• The net margin is only 1.6%: little room if costs rise.
• Free cash flow is negative (-3.4% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 77% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 0.5%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Net debt is 2.9x a year of EBITDA (debt/equity 1.22). That limits room in a downturn and raises refinancing risk.
• Earnings per share fell 4.8% a year over the last 3 years.
• Net profit fell 5.4% a year over the last 3 years.
• The price swings a lot: 39.2% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.

Strengths

• The net margin rose by 14.7 points over 5 years, to 1.6%.
• The gross margin is 11.8% and has risen by 18.3 points: pricing power is holding.
• Operating cash flow is 5.2x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 45.7% a year over the next years.
• Analysts expect the net margin to improve by 2.2 points from today's 1.6%.
• The price is 12.2 times earnings (P/E), reasonable for its growth.

Next earnings report: 2026-11-03

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Questions

What grade does Deutsche Lufthansa AG (LHA.DE) have?

In our weekly check, Deutsche Lufthansa AG is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 5, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of LHA.DE stock?

This week's biggest flags for Deutsche Lufthansa AG: Weak interest cover, Thin margins, Weak free cash flow. In total 11 of 25 checks show a warning or a red flag.

What does Deutsche Lufthansa AG do?

Deutsche Lufthansa AG is an Industrials company (Airlines, Airports & Air Services) based in Germany, listed on XETRA as LHA.DE.

When does Deutsche Lufthansa AG report earnings next?

The next earnings report is expected on 2026-11-03. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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