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

NYSE:LTM • US51817R1068

Current stock price

54.96 USD
-0.7 (-1.26%)
At close:
54.96 USD
0 (0%)
After Hours:

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.
  • Of the past 5 years LTM 4 years were profitable.
  • 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

  • The Return On Assets of LTM (8.28%) is better than 81.82% of its industry peers.
  • LTM's Return On Equity of 108.50% is amongst the best of 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 28.11%.
  • 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 better Profit Margin (10.23%) than 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 worse Gross Margin (29.16%) than 63.64% of its industry peers.
  • LTM's Gross Margin has improved in the last couple of years.
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

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LTM is creating some value.
  • The number of shares outstanding for LTM has been reduced compared to 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.
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

  • Based on the Altman-Z score of 1.71, we must say that LTM is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.71, LTM is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
  • 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.
  • LTM's Debt to FCF ratio of 4.36 is amongst the best of the industry. LTM outperforms 86.36% of its industry peers.
  • LTM has a Debt/Equity ratio of 5.46. This is a high value indicating a heavy dependency on external financing.
  • LTM has a Debt to Equity ratio (5.46) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 5.46
Debt/FCF 4.36
Altman-Z 1.71
ROIC/WACC1.76
WACC10.11%
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.
  • The Current ratio of LTM (0.60) is comparable to the rest of the industry.
  • A Quick Ratio of 0.54 indicates that LTM may have some problems paying its short term obligations.
  • LTM has a Quick ratio of 0.54. This is comparable 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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6

3. LTM Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 68.00% over the past year.
  • Measured over the past years, LTM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -43.14% on average per year.
  • 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

  • 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 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

  • 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 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

  • Based on the Price/Earnings ratio of 32.71, the valuation of LTM can be described as expensive.
  • LTM's Price/Earnings ratio is in line with the industry average.
  • LTM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.95, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 19.03, the valuation of LTM can be described as rather expensive.
  • LTM's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of LTM to the average of the S&P500 Index (38.68), we can say LTM is valued rather cheaply.
Industry RankSector Rank
PE 32.71
Fwd PE 19.03
LTM Price Earnings VS Forward Price EarningsLTM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Price/Free Cash Flow ratio, LTM is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 8.5
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)0.45
PEG (5Y)N/A
EPS Next 2Y24.06%
EPS Next 3Y-25.99%

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5

5. LTM Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.74%, LTM has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.85, LTM pays a better dividend. On top of this LTM pays more dividend than 86.36% of the companies listed in the same industry.
  • LTM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 2.74%

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 (4/20/2026, 8:14:04 PM)

After market: 54.96 0 (0%)

54.96

-0.7 (-1.26%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)02-02
Earnings (Next)05-05
Inst Owners82.35%
Inst Owner Change0.09%
Ins OwnersN/A
Ins Owner Change0%
Market Cap15.78B
Revenue(TTM)14.27B
Net Income(TTM)1.46B
Analysts78.46
Price Target70.54 (28.35%)
Short Float %1.44%
Short Ratio2.19
Dividend
Industry RankSector Rank
Dividend Yield 2.74%
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 32.71
Fwd PE 19.03
P/S 1.11
P/FCF 8.5
P/OCF 4.22
P/B 11.73
P/tB 73.18
EV/EBITDA N/A
EPS(TTM)1.68
EY3.06%
EPS(NY)2.89
Fwd EY5.25%
FCF(TTM)6.47
FCFY11.77%
OCF(TTM)13.02
OCFY23.68%
SpS49.69
BVpS4.69
TBVpS0.75
PEG (NY)0.45
PEG (5Y)N/A
Graham Number13.3101 (-75.78%)
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 1.71
F-Score7
WACC10.11%
ROIC/WACC1.76
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 32.71 and the Price/Book (PB) ratio is 11.73.


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%.