LATAM AIRLINES GROUP SA-ADR (LTM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LTM - US51817R1068 - ADR
56.88 USD
-0.71 (-1.23%)
56.88 USD
0 (0%)
Taking everything into account, LTM scores 5 out of 10 in our fundamental rating. LTM was compared to 22 industry peers in the Passenger Airlines industry. LTM has an average financial health and profitability rating. LTM has a decent growth rate and is not valued too expensively.
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.
In multiple years LTM reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.05%, LTM belongs to the top of the industry, outperforming 90.91% 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.
LTM's Return On Invested Capital of 15.79% is amongst the best of the industry. LTM outperforms 95.45% 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 better Profit Margin (8.88%) than 86.36% 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 86.36% of its industry peers.
LTM's Operating Margin has improved in the last couple of years.
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.
LTM has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, LTM has more shares outstanding
Compared to 1 year ago, LTM has an improved debt to assets ratio.
2.2 Solvency
LTM has an Altman-Z score of 1.59. This is a bad value and indicates that LTM is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.59, LTM is doing good in the industry, outperforming 77.27% of the companies in the same industry.
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.
LTM has a Debt to Equity ratio of 7.40. This is comparable to the rest of the industry: LTM outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.4 | ||
| Debt/FCF | 5.56 | ||
| Altman-Z | 1.59 |
ROIC/WACC1.57
WACC10.04%
2.3 Liquidity
A Current Ratio of 0.60 indicates that LTM may have some problems paying 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 comparable to the rest of the 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.
The earnings per share for LTM have been decreasing by -50.65% on average. This is quite bad
Looking at the last year, LTM shows a quite strong growth in Revenue. The Revenue has grown by 10.24% in the last year.
Measured over the past years, LTM shows a small growth in Revenue. The Revenue has been growing by 4.97% on average per year.
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
Based on estimates for the next years, LTM will show a very strong growth in Earnings Per Share. The EPS will grow by 26.41% on average per year.
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
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
Based on the Price/Forward Earnings ratio of 40.35, the valuation of LTM can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as LTM.
LTM is valuated expensively when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 40.35 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, LTM is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.07 | ||
| 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.
LTM has a very decent profitability rating, which 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 4.33%, which is a nice return.
LTM's Dividend Yield is rather good when compared to the industry average which is at 0.85. LTM pays more dividend than 95.45% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, LTM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
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%
56.88
-0.71 (-1.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners84.74%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner Change0%
Market Cap16.33B
Revenue(TTM)12.83B
Net Income(TTM)1.17B
Analysts80
Price Target56 (-1.55%)
Short Float %0.99%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
Yearly Dividend0
Dividend Growth(5Y)-47.04%
DP25.08%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)6.4%
PT rev (3m)23.55%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)1.04%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 40.35 | ||
| P/S | 1.24 | ||
| P/FCF | 12.07 | ||
| P/OCF | 4.96 | ||
| P/B | 17.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0
EYN/A
EPS(NY)1.41
Fwd EY2.48%
FCF(TTM)4.71
FCFY8.29%
OCF(TTM)11.47
OCFY20.16%
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 | 1.59 |
F-Score6
WACC10.04%
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)-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.
What is the valuation status of LATAM AIRLINES GROUP SA-ADR (LTM) stock?
ChartMill assigns a valuation rating of 3 / 10 to LATAM AIRLINES GROUP SA-ADR (LTM). This can be considered as Overvalued.
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 earnings growth outlook for LATAM AIRLINES GROUP SA-ADR?
The Earnings per Share (EPS) of LATAM AIRLINES GROUP SA-ADR (LTM) is expected to grow by 35.34% in the next year.