LATAM AIRLINES GROUP SA-ADR (LTM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LTM - US51817R1068 - ADR
47.16 USD
+1.49 (+3.26%)
47.16 USD
0 (0%)
Overall LTM gets a fundamental rating of 5 out of 10. We evaluated LTM against 22 industry peers in the Passenger Airlines industry. LTM scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, LTM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
LTM had positive earnings in the past year.
LTM had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: LTM reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: LTM reported negative operating cash flow in multiple years.
1.2 Ratios
LTM has a better Return On Assets (7.05%) than 90.91% of its industry peers.
With an excellent Return On Equity value of 127.90%, LTM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
LTM has a Return On Invested Capital of 15.79%. This is amongst the best in the industry. LTM outperforms 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 127.9% | ||
| ROIC | 15.79% |
ROA(3y)6.84%
ROA(5y)-8.7%
ROE(3y)1143.97%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 8.88%, LTM belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
In the last couple of years the Profit Margin of LTM has grown nicely.
LTM's Operating Margin of 14.24% is amongst the best of the industry. LTM outperforms 86.36% of its industry peers.
In the last couple of years the Operating Margin of LTM has grown nicely.
LTM has a Gross Margin of 27.19%. This is in the lower half of the industry: LTM underperforms 63.64% of its industry peers.
In the last couple of years the Gross Margin of LTM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.24% | ||
| PM (TTM) | 8.88% | ||
| GM | 27.19% |
OM growth 3YN/A
OM growth 5Y9.93%
PM growth 3YN/A
PM growth 5Y32.12%
GM growth 3YN/A
GM growth 5Y3.89%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LTM is still creating some value.
LTM has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for LTM has been increased compared to 5 years ago.
Compared to 1 year ago, LTM has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.51, we must say that LTM is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.51, LTM is doing good in the industry, outperforming 77.27% of the companies in the same industry.
The Debt to FCF ratio of LTM is 5.56, which is a neutral value as it means it would take LTM, 5.56 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LTM (5.56) is better than 81.82% of its industry peers.
A Debt/Equity ratio of 7.40 is on the high side and indicates that LTM has dependencies on debt financing.
LTM has a Debt to Equity ratio (7.40) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.4 | ||
| Debt/FCF | 5.56 | ||
| Altman-Z | 1.51 |
ROIC/WACC1.67
WACC9.44%
2.3 Liquidity
LTM has a Current Ratio of 0.60. This is a bad value and indicates that LTM is not financially healthy enough and could expect problems in meeting its short term obligations.
LTM has a Current ratio of 0.60. This is comparable to the rest of the industry: LTM outperforms 54.55% of its industry peers.
LTM has a Quick Ratio of 0.60. This is a bad value and indicates that LTM is not financially healthy enough and could expect problems in meeting its short term obligations.
LTM has a Quick ratio of 0.53. This is comparable to the rest of the industry: LTM outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
LTM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 257.14%, which is quite impressive.
The earnings per share for LTM have been decreasing by -50.65% on average. This is quite bad
The Revenue has been growing slightly by 5.51% in the past year.
Measured over the past years, LTM shows a small growth in Revenue. The Revenue has been growing by 4.97% on average per year.
EPS 1Y (TTM)257.14%
EPS 3YN/A
EPS 5Y-50.65%
EPS Q2Q%100%
Revenue 1Y (TTM)5.51%
Revenue growth 3Y37.99%
Revenue growth 5Y4.97%
Sales Q2Q%7.03%
3.2 Future
The Earnings Per Share is expected to decrease by -25.99% on average over the next years. This is quite bad
LTM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.02% yearly.
EPS Next Y-100%
EPS Next 2Y-41.42%
EPS Next 3Y-25.99%
EPS Next 5YN/A
Revenue Next Year7.96%
Revenue Next 2Y7.33%
Revenue Next 3Y7.02%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 47.64, which means the current valuation is very expensive for LTM.
LTM's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of LTM to the average of the S&P500 Index (25.98), we can say LTM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.64 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, LTM is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.53 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of LTM may justify a higher PE ratio.
A cheap valuation may be justified as LTM's earnings are expected to decrease with -25.99% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-41.42%
EPS Next 3Y-25.99%
5. Dividend
5.1 Amount
LTM has a Yearly Dividend Yield of 2.16%. Purely for dividend investing, there may be better candidates out there.
LTM's Dividend Yield is rather good when compared to the industry average which is at 3.09. LTM pays more dividend than 81.82% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, LTM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
The dividend of LTM decreases each year by -47.04%.
LTM has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-47.04%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
25.08% of the earnings are spent on dividend by LTM. This is a low number and sustainable payout ratio.
The Dividend Rate of LTM has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP25.08%
EPS Next 2Y-41.42%
EPS Next 3Y-25.99%
47.16
+1.49 (+3.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners94.81%
Inst Owner Change20.17%
Ins OwnersN/A
Ins Owner Change0%
Market Cap14.25B
Revenue(TTM)13.17B
Net Income(TTM)1.17B
Analysts80
Price Target45.36 (-3.82%)
Short Float %0.59%
Short Ratio0.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
Yearly Dividend0
Dividend Growth(5Y)-47.04%
DP25.08%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.63%
Min Revenue beat(2)-4.06%
Max Revenue beat(2)-3.2%
Revenue beat(4)0
Avg Revenue beat(4)-3.13%
Min Revenue beat(4)-4.36%
Max Revenue beat(4)-0.9%
Revenue beat(8)2
Avg Revenue beat(8)-1.64%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.08%
PT rev (3m)-1.82%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.64 | ||
| Fwd PE | N/A | ||
| P/S | 1.08 | ||
| P/FCF | 10.53 | ||
| P/OCF | 4.33 | ||
| P/B | 15.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.99
EY2.1%
EPS(NY)0
Fwd EYN/A
FCF(TTM)4.48
FCFY9.5%
OCF(TTM)10.89
OCFY23.1%
SpS43.59
BVpS3.03
TBVpS-0.63
PEG (NY)N/A
PEG (5Y)N/A
Graham Number8.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 127.9% | ||
| ROCE | 19.98% | ||
| ROIC | 15.79% | ||
| ROICexc | 20.43% | ||
| ROICexgc | 24.09% | ||
| OM | 14.24% | ||
| PM (TTM) | 8.88% | ||
| GM | 27.19% | ||
| FCFM | 10.27% |
ROA(3y)6.84%
ROA(5y)-8.7%
ROE(3y)1143.97%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y25.27%
ROICexc growth 3YN/A
ROICexc growth 5Y30.03%
OM growth 3YN/A
OM growth 5Y9.93%
PM growth 3YN/A
PM growth 5Y32.12%
GM growth 3YN/A
GM growth 5Y3.89%
F-Score6
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.4 | ||
| Debt/FCF | 5.56 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 14.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 115.68% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 1.51 |
F-Score6
WACC9.44%
ROIC/WACC1.67
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)9.12%
Cap/Sales(5y)10.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)257.14%
EPS 3YN/A
EPS 5Y-50.65%
EPS Q2Q%100%
EPS Next Y-100%
EPS Next 2Y-41.42%
EPS Next 3Y-25.99%
EPS Next 5YN/A
Revenue 1Y (TTM)5.51%
Revenue growth 3Y37.99%
Revenue growth 5Y4.97%
Sales Q2Q%7.03%
Revenue Next Year7.96%
Revenue Next 2Y7.33%
Revenue Next 3Y7.02%
Revenue Next 5YN/A
EBIT growth 1Y48.61%
EBIT growth 3YN/A
EBIT growth 5Y15.4%
EBIT Next Year126.45%
EBIT Next 3Y37.53%
EBIT Next 5YN/A
FCF growth 1Y3335.33%
FCF growth 3YN/A
FCF growth 5Y3.65%
OCF growth 1Y293.93%
OCF growth 3YN/A
OCF growth 5Y1.9%
LATAM AIRLINES GROUP SA-ADR / LTM FAQ
What is the fundamental rating for LTM stock?
ChartMill assigns a fundamental rating of 5 / 10 to LTM.
Can you provide the valuation status for LATAM AIRLINES GROUP SA-ADR?
ChartMill assigns a valuation rating of 2 / 10 to LATAM AIRLINES GROUP SA-ADR (LTM). This can be considered as Overvalued.
Can you provide the profitability details for LATAM AIRLINES GROUP SA-ADR?
LATAM AIRLINES GROUP SA-ADR (LTM) has a profitability rating of 7 / 10.
What are the PE and PB ratios of LATAM AIRLINES GROUP SA-ADR (LTM) stock?
The Price/Earnings (PE) ratio for LATAM AIRLINES GROUP SA-ADR (LTM) is 47.64 and the Price/Book (PB) ratio is 15.58.
What is the earnings growth outlook for LATAM AIRLINES GROUP SA-ADR?
The Earnings per Share (EPS) of LATAM AIRLINES GROUP SA-ADR (LTM) is expected to decline by -100% in the next year.