LATAM AIRLINES GROUP SA-ADR (LTM) Fundamental Analysis & Valuation

NYSE:LTM • US51817R1068

Current stock price

47.71 USD
-0.79 (-1.63%)
Last:

This LTM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. LTM Profitability Analysis

1.1 Basic Checks

  • LTM had positive earnings in the past year.
  • LTM had a positive operating cash flow in the past year.
  • LTM had positive earnings in 4 of the past 5 years.
  • Of the past 5 years LTM 4 years had a positive operating cash flow.
LTM Yearly Net Income VS EBIT VS OCF VS FCFLTM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B -4B

1.2 Ratios

  • LTM's Return On Assets of 8.28% is amongst the best of the industry. LTM outperforms 81.82% of its industry peers.
  • LTM has a Return On Equity of 108.50%. This is amongst the best in the industry. LTM outperforms 100.00% of its industry peers.
  • LTM has a better Return On Invested Capital (17.83%) than 81.82% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for LTM is significantly below the industry average of 28.18%.
  • The last Return On Invested Capital (17.83%) for LTM is above the 3 year average (13.63%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 8.28%
ROE 108.5%
ROIC 17.83%
ROA(3y)6.22%
ROA(5y)-1.24%
ROE(3y)124.26%
ROE(5y)N/A
ROIC(3y)13.63%
ROIC(5y)N/A
LTM Yearly ROA, ROE, ROICLTM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1K 2K 3K

1.3 Margins

  • LTM has a Profit Margin of 10.23%. This is amongst the best in the industry. LTM outperforms 81.82% of its industry peers.
  • In the last couple of years the Profit Margin of LTM has declined.
  • LTM has a Operating Margin of 16.37%. This is amongst the best in the industry. LTM outperforms 90.91% of its industry peers.
  • LTM has a Gross Margin of 29.16%. 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 RankSector Rank
OM 16.37%
PM (TTM) 10.23%
GM 29.16%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-10.56%
PM growth 5YN/A
GM growth 3Y29.44%
GM growth 5YN/A
LTM Yearly Profit, Operating, Gross MarginsLTM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -50 -100

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4

2. LTM Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LTM is creating value.
  • LTM has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, LTM has more shares outstanding
  • The debt/assets ratio for LTM has been reduced compared to a year ago.
LTM Yearly Shares OutstandingLTM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
LTM Yearly Total Debt VS Total AssetsLTM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • LTM has an Altman-Z score of 1.64. This is a bad value and indicates that LTM is not financially healthy and even has some risk of bankruptcy.
  • LTM has a better Altman-Z score (1.64) than 72.73% of its industry peers.
  • LTM has a debt to FCF ratio of 4.36. This is a neutral value as LTM would need 4.36 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 4.36, LTM belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
  • A Debt/Equity ratio of 5.46 is on the high side and indicates that LTM has dependencies on debt financing.
  • The Debt to Equity ratio of LTM (5.46) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 5.46
Debt/FCF 4.36
Altman-Z 1.64
ROIC/WACC1.81
WACC9.83%
LTM Yearly LT Debt VS Equity VS FCFLTM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B -5B

2.3 Liquidity

  • A Current Ratio of 0.60 indicates that LTM may have some problems paying its short term obligations.
  • LTM has a Current ratio (0.60) which is in line with 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's Quick ratio of 0.54 is in line compared to the rest of the industry. LTM outperforms 50.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.6
Quick Ratio 0.54
LTM Yearly Current Assets VS Current LiabilitesLTM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. LTM Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 68.00% over the past year.
  • LTM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -43.14% yearly.
  • Looking at the last year, LTM shows a quite strong growth in Revenue. The Revenue has grown by 11.16% in the last year.
  • The Revenue has been growing by 29.45% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)68%
EPS 3Y-43.14%
EPS 5YN/A
EPS Q2Q%60%
Revenue 1Y (TTM)11.16%
Revenue growth 3Y15.07%
Revenue growth 5Y29.45%
Sales Q2Q%14.12%

3.2 Future

  • Based on estimates for the next years, LTM will show a very negative growth in Earnings Per Share. The EPS will decrease by -25.99% on average per year.
  • LTM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.19% yearly.
EPS Next Y71.94%
EPS Next 2Y24.06%
EPS Next 3Y-25.99%
EPS Next 5YN/A
Revenue Next Year10.31%
Revenue Next 2Y8.64%
Revenue Next 3Y12.19%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
LTM Yearly Revenue VS EstimatesLTM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B 20B
LTM Yearly EPS VS EstimatesLTM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2024 2025 2026 2027 0 -200 -400 -600

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5

4. LTM Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 28.40, LTM can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of LTM is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Earnings ratio of 26.91, LTM is valued at the same level.
  • The Price/Forward Earnings ratio is 16.52, which indicates a correct valuation of LTM.
  • The rest of the industry has a similar Price/Forward Earnings ratio as LTM.
  • The average S&P500 Price/Forward Earnings ratio is at 21.99. LTM is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 28.4
Fwd PE 16.52
LTM Price Earnings VS Forward Price EarningsLTM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 90.91% of the companies in the same industry are more expensive than LTM, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 7.38
EV/EBITDA N/A
LTM Per share dataLTM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • LTM has a very decent profitability rating, which may justify a higher PE ratio.
  • LTM's earnings are expected to decrease with -25.99% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y24.06%
EPS Next 3Y-25.99%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. LTM Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.05%, LTM has a reasonable but not impressive dividend return.
  • The stock price of LTM dropped by -26.30% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • Compared to an average industry Dividend Yield of 0.89, LTM pays a better dividend. On top of this LTM pays more dividend than 86.36% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, LTM pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.05%

5.2 History

  • The dividend of LTM decreases each year by -30.35%.
  • LTM has been paying a dividend for over 5 years, so it has already some track record.
  • LTM has decreased its dividend recently.
Dividend Growth(5Y)-30.35%
Div Incr Years1
Div Non Decr Years1
LTM Yearly Dividends per shareLTM Yearly Dividends per shareYearly Dividends per share 2017 2019 2020 2022 2024 2025 2026 0.02 0.04 0.06 0.08

5.3 Sustainability

  • 41.45% of the earnings are spent on dividend by LTM. This is a bit on the high side, but may be sustainable.
  • LTM's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP41.45%
EPS Next 2Y24.06%
EPS Next 3Y-25.99%
LTM Yearly Income VS Free CF VS DividendLTM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -2B -4B
LTM Dividend Payout.LTM Dividend Payout, showing the Payout Ratio.LTM Dividend Payout.PayoutRetained Earnings

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LTM Fundamentals: All Metrics, Ratios and Statistics

LATAM AIRLINES GROUP SA-ADR

NYSE:LTM (4/29/2026, 1:49:27 PM)

47.71

-0.79 (-1.63%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Industry StrengthN/A
Industry GrowthN/A
Earnings (Last)02-02
Earnings (Next)05-05
Inst Owners82.35%
Inst Owner Change3.77%
Ins OwnersN/A
Ins Owner Change0%
Market Cap13.70B
Revenue(TTM)14.27B
Net Income(TTM)1.46B
Analysts78.46
Price Target70.54 (47.85%)
Short Float %1.15%
Short Ratio2.2
Dividend
Industry RankSector Rank
Dividend Yield 3.05%
Yearly Dividend0
Dividend Growth(5Y)-30.35%
DP41.45%
Div Incr Years1
Div Non Decr Years1
Ex-Date05-11
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)1
Avg Revenue beat(2)3.05%
Min Revenue beat(2)-0.11%
Max Revenue beat(2)6.2%
Revenue beat(4)1
Avg Revenue beat(4)-0.29%
Min Revenue beat(4)-4.06%
Max Revenue beat(4)6.2%
Revenue beat(8)2
Avg Revenue beat(8)-1.06%
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)21.96%
PT rev (3m)25.97%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)104.86%
Revenue NQ rev (1m)3.69%
Revenue NQ rev (3m)9.88%
Revenue NY rev (1m)0.72%
Revenue NY rev (3m)4.19%
Valuation
Industry RankSector Rank
PE 28.4
Fwd PE 16.52
P/S 0.96
P/FCF 7.38
P/OCF 3.67
P/B 10.18
P/tB 63.52
EV/EBITDA N/A
EPS(TTM)1.68
EY3.52%
EPS(NY)2.89
Fwd EY6.05%
FCF(TTM)6.47
FCFY13.56%
OCF(TTM)13.02
OCFY27.28%
SpS49.69
BVpS4.69
TBVpS0.75
PEG (NY)0.39
PEG (5Y)N/A
Graham Number13.3101 (-72.1%)
Profitability
Industry RankSector Rank
ROA 8.28%
ROE 108.5%
ROCE 22.57%
ROIC 17.83%
ROICexc 22.66%
ROICexgc 26.31%
OM 16.37%
PM (TTM) 10.23%
GM 29.16%
FCFM 13.02%
ROA(3y)6.22%
ROA(5y)-1.24%
ROE(3y)124.26%
ROE(5y)N/A
ROIC(3y)13.63%
ROIC(5y)N/A
ROICexc(3y)17.38%
ROICexc(5y)N/A
ROICexgc(3y)20.35%
ROICexgc(5y)N/A
ROCE(3y)17.26%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-10.56%
PM growth 5YN/A
GM growth 3Y29.44%
GM growth 5YN/A
F-Score7
Asset Turnover0.81
Health
Industry RankSector Rank
Debt/Equity 5.46
Debt/FCF 4.36
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 13.18%
Interest Coverage 250
Cash Conversion N/A
Profit Quality 127.18%
Current Ratio 0.6
Quick Ratio 0.54
Altman-Z 1.64
F-Score7
WACC9.83%
ROIC/WACC1.81
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)10.56%
Cap/Sales(5y)10.92%
Profit Quality(3y)180.12%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)68%
EPS 3Y-43.14%
EPS 5YN/A
EPS Q2Q%60%
EPS Next Y71.94%
EPS Next 2Y24.06%
EPS Next 3Y-25.99%
EPS Next 5YN/A
Revenue 1Y (TTM)11.16%
Revenue growth 3Y15.07%
Revenue growth 5Y29.45%
Sales Q2Q%14.12%
Revenue Next Year10.31%
Revenue Next 2Y8.64%
Revenue Next 3Y12.19%
Revenue Next 5YN/A
EBIT growth 1Y51.56%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year84.07%
EBIT Next 3Y33.28%
EBIT Next 5YN/A
FCF growth 1Y10.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20.31%
OCF growth 3Y237.98%
OCF growth 5YN/A

LATAM AIRLINES GROUP SA-ADR / LTM Fundamental Analysis FAQ

What is the fundamental rating for LTM stock?

ChartMill assigns a fundamental rating of 6 / 10 to LTM.


What is the valuation status of LATAM AIRLINES GROUP SA-ADR (LTM) stock?

ChartMill assigns a valuation rating of 5 / 10 to LATAM AIRLINES GROUP SA-ADR (LTM). This can be considered as Fairly Valued.


What is the profitability of LTM stock?

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 28.4 and the Price/Book (PB) ratio is 10.18.


How sustainable is the dividend of LATAM AIRLINES GROUP SA-ADR (LTM) stock?

The dividend rating of LATAM AIRLINES GROUP SA-ADR (LTM) is 5 / 10 and the dividend payout ratio is 41.45%.