LATAM AIRLINES GROUP SA-ADR (LTM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LTM - US51817R1068 - ADR
54 USD
-0.1 (-0.18%)
54 USD
0 (0%)
LTM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 22 industry peers in the Passenger Airlines industry. LTM has only an average score on both its financial health and profitability. LTM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LTM has reported negative net income.
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.
The Return On Equity of LTM (127.90%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.79%, LTM belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
| 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
LTM has a better Profit Margin (8.88%) than 86.36% of its industry peers.
LTM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.24%, 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 Operating Margin of LTM has grown nicely.
The Gross Margin of LTM (27.19%) is worse than 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
LTM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, LTM has about the same amount of shares outstanding.
Compared to 5 years ago, LTM has more shares outstanding
LTM has a better debt/assets ratio than last year.
2.2 Solvency
LTM has an Altman-Z score of 1.56. This is a bad value and indicates that LTM is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of LTM (1.56) is better than 77.27% 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 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.
Looking at the Debt to Equity ratio, with a value of 7.40, LTM is in line with its industry, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.4 | ||
| Debt/FCF | 5.56 | ||
| Altman-Z | 1.56 |
ROIC/WACC1.61
WACC9.78%
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.
The Current ratio of LTM (0.60) is comparable to the rest of the industry.
A Quick Ratio of 0.53 indicates that LTM may have some problems paying its short term obligations.
LTM has a Quick ratio (0.53) which is in line with its industry peers.
| 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.
LTM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -50.65% yearly.
LTM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.24%.
The Revenue has been growing slightly by 4.97% on average over the past years.
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
LTM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.95% yearly.
EPS Next Y35.34%
EPS Next 2Y16.34%
EPS Next 3Y26.41%
EPS Next 5YN/A
Revenue Next Year9.14%
Revenue Next 2Y8.25%
Revenue Next 3Y7.95%
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
The Price/Forward Earnings ratio is 38.31, which means the current valuation is very expensive for LTM.
The rest of the industry has a similar Price/Forward Earnings ratio as LTM.
When comparing the Price/Forward Earnings ratio of LTM to the average of the S&P500 Index (24.04), we can say LTM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 38.31 |
4.2 Price Multiples
LTM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LTM is cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.46 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
LTM's 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.
LTM's earnings are expected to grow with 26.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.34%
EPS Next 3Y26.41%
5. Dividend
5.1 Amount
LTM has a Yearly Dividend Yield of 4.56%, which is a nice return.
Compared to an average industry Dividend Yield of 0.88, LTM pays a better dividend. On top of this LTM pays more dividend than 95.45% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, LTM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
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.
DP25.08%
EPS Next 2Y16.34%
EPS Next 3Y26.41%
54
-0.1 (-0.18%)
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 Cap15.50B
Revenue(TTM)12.83B
Net Income(TTM)1.17B
Analysts80
Price Target56 (3.7%)
Short Float %1.02%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.56% |
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)23.45%
PT rev (3m)12.65%
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)1.09%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 38.31 | ||
| P/S | 1.18 | ||
| P/FCF | 11.46 | ||
| P/OCF | 4.71 | ||
| P/B | 16.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0
EYN/A
EPS(NY)1.41
Fwd EY2.61%
FCF(TTM)4.71
FCFY8.73%
OCF(TTM)11.47
OCFY21.24%
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
WACC9.78%
ROIC/WACC1.61
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 Year9.14%
Revenue Next 2Y8.25%
Revenue Next 3Y7.95%
Revenue Next 5YN/A
EBIT growth 1Y48.61%
EBIT growth 3YN/A
EBIT growth 5Y15.4%
EBIT Next Year138.92%
EBIT Next 3Y40.76%
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.