LATAM AIRLINES GROUP SA-ADR (LTM) Stock Fundamental Analysis
USA - NYSE:LTM - US51817R1068 - ADR
47.5354 USD
-0.83 (-1.73%)
Overall LTM gets a fundamental rating of 5 out of 10. We evaluated LTM against 21 industry peers in the Passenger Airlines industry. While LTM has a great profitability rating, there are some minor concerns on its financial health. LTM is quite expensive at the moment. It does show a decent growth rate.
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.
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
LTM has a Return On Assets of 7.05%. This is amongst the best in the industry. LTM outperforms 90.48% of its industry peers.
LTM's Return On Equity of 127.90% is amongst the best of the industry. LTM outperforms 100.00% of its industry peers.
The Return On Invested Capital of LTM (15.79%) is better than 90.48% 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
LTM has a Profit Margin of 8.88%. This is amongst the best in the industry. LTM outperforms 85.71% of its industry peers.
LTM's Profit Margin has improved in the last couple of years.
LTM's Operating Margin of 14.24% is amongst the best of the industry. LTM outperforms 85.71% of its industry peers.
In the last couple of years the Operating Margin of LTM has grown nicely.
With a Gross Margin value of 27.19%, LTM is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
LTM's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for LTM remains at a similar level compared to 1 year ago.
Compared to 5 years ago, LTM has more shares outstanding
The debt/assets ratio for LTM has been reduced compared to a year ago.
2.2 Solvency
LTM has an Altman-Z score of 1.53. 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 (1.53) than 76.19% of its industry peers.
LTM has a debt to FCF ratio of 5.56. This is a neutral value as LTM would need 5.56 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.56, LTM belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
A Debt/Equity ratio of 7.40 is on the high side and indicates that LTM has dependencies on debt financing.
LTM's Debt to Equity ratio of 7.40 is in line compared to the rest of the industry. LTM outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.4 | ||
| Debt/FCF | 5.56 | ||
| Altman-Z | 1.53 |
ROIC/WACC1.57
WACC10.08%
2.3 Liquidity
A Current Ratio of 0.60 indicates that LTM may have some problems paying its short term obligations.
LTM has a Current ratio (0.60) which is in line with its industry peers.
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.
LTM has a Quick ratio of 0.53. This is comparable to the rest of the industry: LTM outperforms 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
LTM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 257.14%, which is quite impressive.
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.
Looking at the last year, LTM shows a small growth in Revenue. The Revenue has grown by 5.51% in the last year.
The Revenue has been growing slightly by 4.97% on average over the past years.
EPS 1Y (TTM)257.14%
EPS 3YN/A
EPS 5Y-50.65%
EPS Q2Q%100%
Revenue 1Y (TTM)5.51%
Revenue growth 3Y37.99%
Revenue growth 5Y4.97%
Sales Q2Q%7.03%
3.2 Future
LTM is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -25.99% yearly.
LTM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.92% yearly.
EPS Next Y-100%
EPS Next 2Y-41.42%
EPS Next 3Y-25.99%
EPS Next 5YN/A
Revenue Next Year7.63%
Revenue Next 2Y7.05%
Revenue Next 3Y6.92%
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.
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
The Price/Earnings ratio is 48.02, which means the current valuation is very expensive for LTM.
Compared to the rest of the industry, the Price/Earnings ratio of LTM is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.20, LTM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.02 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LTM indicates a somewhat cheap valuation: LTM is cheaper than 76.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.61 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
LTM has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as LTM's earnings are expected to decrease with -25.99% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-41.42%
EPS Next 3Y-25.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.99%, 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 2.71. 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
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.
LTM's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP25.08%
EPS Next 2Y-41.42%
EPS Next 3Y-25.99%
NYSE:LTM (9/18/2025, 12:58:58 PM)
47.5354
-0.83 (-1.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners115.93%
Inst Owner Change-6.14%
Ins OwnersN/A
Ins Owner Change0%
Market Cap14.37B
Analysts80
Price Target49.71 (4.57%)
Short Float %0.51%
Short Ratio1.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
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)13.4%
PT rev (3m)28.75%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-100%
EPS NY rev (3m)-100%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)4.47%
Revenue NY rev (1m)1.49%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.02 | ||
| Fwd PE | N/A | ||
| P/S | 1.09 | ||
| P/FCF | 10.61 | ||
| P/OCF | 4.36 | ||
| P/B | 15.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.99
EY2.08%
EPS(NY)0
Fwd EYN/A
FCF(TTM)4.48
FCFY9.42%
OCF(TTM)10.89
OCFY22.92%
SpS43.59
BVpS3.03
TBVpS-0.63
PEG (NY)N/A
PEG (5Y)N/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
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-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 | 1.53 |
F-Score6
WACC10.08%
ROIC/WACC1.57
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%100%
EPS Next Y-100%
EPS Next 2Y-41.42%
EPS Next 3Y-25.99%
EPS Next 5YN/A
Revenue 1Y (TTM)5.51%
Revenue growth 3Y37.99%
Revenue growth 5Y4.97%
Sales Q2Q%7.03%
Revenue Next Year7.63%
Revenue Next 2Y7.05%
Revenue Next 3Y6.92%
Revenue Next 5YN/A
EBIT growth 1Y48.61%
EBIT growth 3YN/A
EBIT growth 5Y15.4%
EBIT Next Year110.29%
EBIT Next 3Y41.01%
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%