LATAM AIRLINES GROUP SA-ADR (LTM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LTM - US51817R1068 - ADR
54.9 USD
+1.33 (+2.48%)
54.9 USD
0 (0%)
Taking everything into account, LTM scores 5 out of 10 in our fundamental rating. LTM was compared to 21 industry peers in the Passenger Airlines industry. LTM has only an average score on both its financial health and profitability. LTM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LTM had negative earnings in the past year.
In the past year LTM had a positive cash flow from operations.
In multiple years LTM reported negative net income over the last 5 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
With an excellent Return On Assets value of 7.05%, LTM belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
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.
The Return On Invested Capital of LTM (15.79%) is better than 95.24% 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
The Profit Margin of LTM (8.88%) is better than 85.71% of its industry peers.
In the last couple of years the Profit Margin of LTM has grown nicely.
Looking at the Operating Margin, with a value of 14.24%, LTM belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
LTM's Operating Margin has improved in the last couple of years.
LTM has a worse Gross Margin (27.19%) than 66.67% 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.
The debt/assets ratio for LTM has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.56, we must say that LTM is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of LTM (1.56) is better than 76.19% of its industry peers.
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 80.95% of its industry peers.
LTM has a Debt/Equity ratio of 7.40. This is a high value indicating a heavy dependency on external financing.
LTM has a Debt to Equity ratio (7.40) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.4 | ||
| Debt/FCF | 5.56 | ||
| Altman-Z | 1.56 |
ROIC/WACC1.6
WACC9.87%
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 (0.60) which is comparable to the rest of the industry.
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.
With a Quick ratio value of 0.53, LTM perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The earnings per share for LTM have decreased strongly by -100.00% in the last year.
Measured over the past years, LTM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -50.65% on average per year.
The Revenue has grown by 10.24% in the past year. This is quite good.
LTM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.97% yearly.
EPS 1Y (TTM)-100%
EPS 3YN/A
EPS 5Y-50.65%
EPS Q2Q%-100%
Revenue 1Y (TTM)10.24%
Revenue growth 3Y37.99%
Revenue growth 5Y4.97%
Sales Q2Q%17.06%
3.2 Future
The Earnings Per Share is expected to grow by 26.41% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.83% on average over the next years.
EPS Next Y35.34%
EPS Next 2Y16.34%
EPS Next 3Y26.41%
EPS Next 5YN/A
Revenue Next Year8.01%
Revenue Next 2Y7.24%
Revenue Next 3Y6.83%
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 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
A Price/Forward Earnings ratio of 38.95 indicates a quite expensive valuation of LTM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LTM is on the same level as its industry peers.
LTM is valuated expensively when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 38.95 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, LTM is valued cheaper than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.65 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of LTM may justify a higher PE ratio.
A more expensive valuation may be justified as LTM's earnings are expected to grow with 26.41% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.34%
EPS Next 3Y26.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.87%, LTM has a reasonable but not impressive dividend return.
LTM's Dividend Yield is rather good when compared to the industry average which is at 0.81. LTM pays more dividend than 85.71% of the companies in the same industry.
LTM's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
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
LTM pays out 25.08% of its income as dividend. This is a sustainable payout ratio.
DP25.08%
EPS Next 2Y16.34%
EPS Next 3Y26.41%
54.9
+1.33 (+2.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners85.5%
Inst Owner Change20.17%
Ins OwnersN/A
Ins Owner Change0%
Market Cap15.76B
Revenue(TTM)12.83B
Net Income(TTM)1.17B
Analysts80
Price Target52.63 (-4.13%)
Short Float %1.02%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
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)17.21%
PT rev (3m)5.88%
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%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 38.95 | ||
| P/S | 1.2 | ||
| P/FCF | 11.65 | ||
| P/OCF | 4.79 | ||
| P/B | 17.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0
EYN/A
EPS(NY)1.41
Fwd EY2.57%
FCF(TTM)4.71
FCFY8.59%
OCF(TTM)11.47
OCFY20.89%
SpS45.89
BVpS3.19
TBVpS-0.66
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
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 | 1.56 |
F-Score6
WACC9.87%
ROIC/WACC1.6
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)-100%
EPS 3YN/A
EPS 5Y-50.65%
EPS Q2Q%-100%
EPS Next Y35.34%
EPS Next 2Y16.34%
EPS Next 3Y26.41%
EPS Next 5YN/A
Revenue 1Y (TTM)10.24%
Revenue growth 3Y37.99%
Revenue growth 5Y4.97%
Sales Q2Q%17.06%
Revenue Next Year8.01%
Revenue Next 2Y7.24%
Revenue Next 3Y6.83%
Revenue Next 5YN/A
EBIT growth 1Y48.61%
EBIT growth 3YN/A
EBIT growth 5Y15.4%
EBIT Next Year133.54%
EBIT Next 3Y38.47%
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 4 / 10 to LATAM AIRLINES GROUP SA-ADR (LTM). This can be considered as Fairly Valued.
Can you provide the profitability details for LATAM AIRLINES GROUP SA-ADR?
LATAM AIRLINES GROUP SA-ADR (LTM) has a profitability rating of 6 / 10.
What is the expected EPS growth for LATAM AIRLINES GROUP SA-ADR (LTM) stock?
The Earnings per Share (EPS) of LATAM AIRLINES GROUP SA-ADR (LTM) is expected to grow by 35.34% in the next year.