LATAM AIRLINES GROUP SA-ADR (LTM)
US51817R1068 - ADR
Taking everything into account, LTM scores 4 out of 10 in our fundamental rating. LTM was compared to 23 industry peers in the Passenger Airlines industry. There are concerns on the financial health of LTM while its profitability can be described as average. LTM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
LTM had positive 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.
In multiple years LTM reported negative operating cash flow during the last 5 years.
1.2 Ratios
LTM has a better Return On Assets (5.18%) than 86.96% of its industry peers.
LTM has a Return On Equity of 108.77%. This is amongst the best in the industry. LTM outperforms 100.00% of its industry peers.
LTM has a better Return On Invested Capital (12.03%) than 86.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.18% | ||
| ROE | 108.77% | ||
| ROIC | 12.03% |
ROA(3y)-6.95%
ROA(5y)-9.8%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 6.20%, LTM belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
LTM's Profit Margin has improved in the last couple of years.
LTM's Operating Margin of 10.81% is amongst the best of the industry. LTM outperforms 82.61% of its industry peers.
LTM's Operating Margin has been stable in the last couple of years.
LTM has a Gross Margin of 24.63%. This is in the lower half of the industry: LTM underperforms 69.57% of its industry peers.
In the last couple of years the Gross Margin of LTM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.81% | ||
| PM (TTM) | 6.2% | ||
| GM | 24.63% |
OM growth 3YN/A
OM growth 5Y-0.51%
PM growth 3YN/A
PM growth 5Y9.81%
GM growth 3YN/A
GM growth 5Y2.5%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LTM is creating some value.
LTM has about the same amout of shares outstanding than it did 1 year ago.
LTM has more shares outstanding than it did 5 years ago.
LTM has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.30, we must say that LTM is in the distress zone and has some risk of bankruptcy.
LTM has a Altman-Z score of 1.30. This is in the better half of the industry: LTM outperforms 65.22% of its industry peers.
The Debt to FCF ratio of LTM is 4.43, which is a neutral value as it means it would take LTM, 4.43 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LTM (4.43) is better than 91.30% of its industry peers.
A Debt/Equity ratio of 8.87 is on the high side and indicates that LTM has dependencies on debt financing.
With a Debt to Equity ratio value of 8.87, LTM is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.87 | ||
| Debt/FCF | 4.43 | ||
| Altman-Z | 1.3 |
ROIC/WACC1.46
WACC8.26%
2.3 Liquidity
A Current Ratio of 0.68 indicates that LTM may have some problems paying its short term obligations.
LTM's Current ratio of 0.68 is in line compared to the rest of the industry. LTM outperforms 56.52% of its industry peers.
LTM has a Quick Ratio of 0.68. 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 0.60, LTM perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The earnings per share for LTM have decreased strongly by -95.07% in the last year.
The earnings per share for LTM have been decreasing by -49.15% on average. This is quite bad
The Revenue has grown by 14.06% 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 3.30% yearly.
EPS 1Y (TTM)-95.07%
EPS 3YN/A
EPS 5Y-49.15%
EPS Q2Q%31.58%
Revenue 1Y (TTM)14.06%
Revenue growth 3Y43.69%
Revenue growth 5Y3.3%
Sales Q2Q%7.3%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
LTM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.49% yearly.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.66%
Revenue Next 2Y9.76%
Revenue Next 3Y8.49%
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.25, the valuation of LTM can be described as rather expensive.
Based on the Price/Earnings ratio, LTM is valued a bit cheaper than the industry average as 60.87% of the companies are valued more expensively.
LTM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.35.
A Price/Forward Earnings ratio of 9.29 indicates a reasonable valuation of LTM.
73.91% of the companies in the same industry are more expensive than LTM, based on the Price/Forward Earnings ratio.
LTM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.25 | ||
| Fwd PE | 9.29 |
4.2 Price Multiples
LTM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LTM is cheaper than 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.13 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of LTM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.96%, 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 2.94. LTM pays more dividend than 82.61% of the companies in the same industry.
LTM's Dividend Yield is comparable with the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
The dividend of LTM decreases each year by -72.55%.
LTM has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-72.55%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
LTM's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DPN/A
EPS Next 2YN/A
EPS Next 3YN/A
LATAM AIRLINES GROUP SA-ADR
NYSE:LTM (12/30/2024, 12:07:04 PM)
27.2
-0.27 (-0.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners108.2%
Inst Owner Change8628.28%
Ins OwnersN/A
Ins Owner Change0%
Market Cap8.22B
Analysts80
Price Target28.31 (4.08%)
Short Float %0%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Dividend Growth(5Y)-72.55%
DPN/A
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)-3.88%
Min Revenue beat(2)-4.36%
Max Revenue beat(2)-3.41%
Revenue beat(4)1
Avg Revenue beat(4)-2.44%
Min Revenue beat(4)-4.36%
Max Revenue beat(4)1.34%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)-1.42%
PT rev (3m)5.83%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)285614%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.25 | ||
| Fwd PE | 9.29 | ||
| P/S | 0.65 | ||
| P/FCF | 5.13 | ||
| P/OCF | 2.91 | ||
| P/B | 11.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)1.28
EY4.71%
EPS(NY)2.93
Fwd EY10.77%
FCF(TTM)5.31
FCFY19.5%
OCF(TTM)9.33
OCFY34.31%
SpS42.05
BVpS2.4
TBVpS-1.2
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.18% | ||
| ROE | 108.77% | ||
| ROCE | 15.23% | ||
| ROIC | 12.03% | ||
| ROICexc | 15.61% | ||
| ROICexgc | 18.51% | ||
| OM | 10.81% | ||
| PM (TTM) | 6.2% | ||
| GM | 24.63% | ||
| FCFM | 12.62% |
ROA(3y)-6.95%
ROA(5y)-9.8%
ROE(3y)N/A
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
ROICexcg growth 3YN/A
ROICexcg growth 5Y11.52%
ROICexc growth 3YN/A
ROICexc growth 5Y15.41%
OM growth 3YN/A
OM growth 5Y-0.51%
PM growth 3YN/A
PM growth 5Y9.81%
GM growth 3YN/A
GM growth 5Y2.5%
F-Score6
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.87 | ||
| Debt/FCF | 4.43 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 9.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 203.48% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 1.3 |
F-Score6
WACC8.26%
ROIC/WACC1.46
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)10.11%
Cap/Sales(5y)10.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-95.07%
EPS 3YN/A
EPS 5Y-49.15%
EPS Q2Q%31.58%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.06%
Revenue growth 3Y43.69%
Revenue growth 5Y3.3%
Sales Q2Q%7.3%
Revenue Next Year12.66%
Revenue Next 2Y9.76%
Revenue Next 3Y8.49%
Revenue Next 5YN/A
EBIT growth 1Y126.1%
EBIT growth 3YN/A
EBIT growth 5Y2.77%
EBIT Next Year167.44%
EBIT Next 3Y47.49%
EBIT Next 5YN/A
FCF growth 1Y1449.08%
FCF growth 3YN/A
FCF growth 5Y1.24%
OCF growth 1Y345.76%
OCF growth 3YN/A
OCF growth 5Y1.77%