LATAM AIRLINES GROUP SA-ADR (LTM) Stock Fundamental Analysis
NYSE:LTM - New York Stock Exchange, Inc. - US51817R1068 - ADR - Currency: USD
Overall LTM gets a fundamental rating of 5 out of 10. We evaluated LTM against 22 industry peers in the Passenger Airlines industry. While LTM has a great profitability rating, there are some minor concerns on its financial health. 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.
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.
In multiple years LTM reported negative operating cash flow during the last 5 years.
1.2 Ratios
LTM's Return On Assets of 6.77% is amongst the best of the industry. LTM outperforms 90.91% of its industry peers.
Looking at the Return On Equity, with a value of 113.04%, LTM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of LTM (14.87%) is better than 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.77% | ||
| ROE | 113.04% | ||
| ROIC | 14.87% |
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's Profit Margin of 8.32% is amongst the best of the industry. LTM outperforms 86.36% of its industry peers.
LTM's Profit Margin has improved in the last couple of years.
LTM has a better Operating Margin (13.20%) than 90.91% of its industry peers.
In the last couple of years the Operating Margin of LTM has grown nicely.
LTM has a worse Gross Margin (25.88%) than 63.64% of its industry peers.
LTM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.2% | ||
| PM (TTM) | 8.32% | ||
| GM | 25.88% |
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.
The number of shares outstanding for LTM remains at a similar level compared to 1 year ago.
LTM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, LTM has an improved debt to assets ratio.
2.2 Solvency
LTM has an Altman-Z score of 1.50. 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 (1.50) 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.
LTM has a Debt to FCF ratio of 4.36. This is amongst the best in the industry. LTM outperforms 90.91% of its industry peers.
LTM has a Debt/Equity ratio of 6.74. This is a high value indicating a heavy dependency on external financing.
LTM has a Debt to Equity ratio (6.74) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.74 | ||
| Debt/FCF | 4.36 | ||
| Altman-Z | 1.5 |
ROIC/WACC1.5
WACC9.89%
2.3 Liquidity
LTM has a Current Ratio of 0.62. 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 of 0.62. This is comparable to the rest of the industry: LTM outperforms 45.45% of its industry peers.
A Quick Ratio of 0.56 indicates that LTM may have some problems paying its short term obligations.
LTM has a Quick ratio (0.56) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 257.14% 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 -50.65% yearly.
LTM shows a small growth in Revenue. In the last year, the Revenue has grown by 6.41%.
LTM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.97% yearly.
EPS 1Y (TTM)257.14%
EPS 3YN/A
EPS 5Y-50.65%
EPS Q2Q%50%
Revenue 1Y (TTM)6.41%
Revenue growth 3Y37.99%
Revenue growth 5Y4.97%
Sales Q2Q%2.49%
3.2 Future
Based on estimates for the next years, LTM will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.59% on average per year.
The Revenue is expected to grow by 6.01% on average over the next years.
EPS Next Y235.32%
EPS Next 2Y14.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.96%
Revenue Next 2Y5.29%
Revenue Next 3Y6.01%
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 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
With a Price/Earnings ratio of 41.76, 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.
LTM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.45.
The Price/Forward Earnings ratio is 31.81, which means the current valuation is very expensive for LTM.
LTM's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.90. LTM is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.76 | ||
| Fwd PE | 31.81 |
4.2 Price Multiples
77.27% of the companies in the same industry are more expensive than LTM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.76 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
LTM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of LTM may justify a higher PE ratio.
LTM's earnings are expected to grow with 14.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y14.59%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LTM has a Yearly Dividend Yield of 2.45%.
Compared to an average industry Dividend Yield of 2.69, LTM pays a better dividend. On top of this LTM pays more dividend than 95.45% of the companies listed in the same industry.
LTM's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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
16.28% of the earnings are spent on dividend by LTM. This is a low number and sustainable payout ratio.
DP16.28%
EPS Next 2Y14.59%
EPS Next 3YN/A
NYSE:LTM (7/3/2025, 7:45:28 PM)
41.76
-0.04 (-0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners115.93%
Inst Owner Change-51.47%
Ins OwnersN/A
Ins Owner Change0%
Market Cap12.62B
Analysts80
Price Target38.76 (-7.18%)
Short Float %0.5%
Short Ratio1.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Yearly Dividend0
Dividend Growth(5Y)-47.04%
DP16.28%
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)-2.48%
Min Revenue beat(2)-4.06%
Max Revenue beat(2)-0.9%
Revenue beat(4)0
Avg Revenue beat(4)-3.18%
Min Revenue beat(4)-4.36%
Max Revenue beat(4)-0.9%
Revenue beat(8)2
Avg Revenue beat(8)-1.34%
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)17.64%
PT rev (3m)18.15%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-5.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.76 | ||
| Fwd PE | 31.81 | ||
| P/S | 0.98 | ||
| P/FCF | 7.76 | ||
| P/OCF | 3.79 | ||
| P/B | 13.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)1
EY2.39%
EPS(NY)1.31
Fwd EY3.14%
FCF(TTM)5.38
FCFY12.89%
OCF(TTM)11.01
OCFY26.36%
SpS42.73
BVpS3.14
TBVpS-0.37
PEG (NY)0.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.77% | ||
| ROE | 113.04% | ||
| ROCE | 18.82% | ||
| ROIC | 14.87% | ||
| ROICexc | 19.65% | ||
| ROICexgc | 23.25% | ||
| OM | 13.2% | ||
| PM (TTM) | 8.32% | ||
| GM | 25.88% | ||
| FCFM | 12.6% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.74 | ||
| Debt/FCF | 4.36 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 13.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 151.5% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.5 |
F-Score7
WACC9.89%
ROIC/WACC1.5
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)257.14%
EPS 3YN/A
EPS 5Y-50.65%
EPS Q2Q%50%
EPS Next Y235.32%
EPS Next 2Y14.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.41%
Revenue growth 3Y37.99%
Revenue growth 5Y4.97%
Sales Q2Q%2.49%
Revenue Next Year5.96%
Revenue Next 2Y5.29%
Revenue Next 3Y6.01%
Revenue Next 5YN/A
EBIT growth 1Y38.72%
EBIT growth 3YN/A
EBIT growth 5Y15.4%
EBIT Next Year110.29%
EBIT Next 3Y41.01%
EBIT Next 5YN/A
FCF growth 1Y638.57%
FCF growth 3YN/A
FCF growth 5Y3.65%
OCF growth 1Y513.04%
OCF growth 3YN/A
OCF growth 5Y1.9%