LATAM AIRLINES GROUP SA-ADR (LTM) Stock Fundamental Analysis
USA - NYSE:LTM - US51817R1068 - ADR
45.09 USD
+0.51 (+1.14%)
45.26 USD
+0.17 (+0.38%)
We assign a fundamental rating of 5 out of 10 to LTM. LTM was compared to 21 industry peers in the Passenger Airlines industry. LTM has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, LTM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year LTM was profitable.
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.
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.
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 has a better Return On Invested Capital (15.79%) 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
Looking at the Profit Margin, with a value of 8.88%, LTM belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of LTM has grown nicely.
The Operating Margin of LTM (14.24%) is better than 85.71% 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 66.67% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LTM is still 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
The debt/assets ratio for LTM has been reduced compared to a year ago.
2.2 Solvency
LTM has an Altman-Z score of 1.49. This is a bad value and indicates that LTM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.49, LTM is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
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.
LTM has a better Debt to FCF ratio (5.56) than 80.95% of its industry peers.
LTM has a Debt/Equity ratio of 7.40. This is a high value indicating a heavy dependency on external financing.
LTM has a Debt to Equity ratio (7.40) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.4 | ||
| Debt/FCF | 5.56 | ||
| Altman-Z | 1.49 |
ROIC/WACC1.62
WACC9.73%
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 of 0.60. This is comparable to the rest of the industry: LTM outperforms 52.38% of its industry peers.
A Quick Ratio of 0.53 indicates that LTM may have some problems paying its short term obligations.
LTM's Quick ratio of 0.53 is in line compared 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
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 5.51%.
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)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
The Earnings Per Share is expected to decrease by -25.99% on average over the next years. This is quite bad
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
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
A Price/Earnings ratio of 45.55 indicates a quite expensive valuation of LTM.
LTM's Price/Earnings ratio is in line with the industry average.
LTM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.55 | ||
| Fwd PE | N/A |
4.2 Price Multiples
76.19% 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 | 10.07 | ||
| 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 2.23%, LTM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.66, LTM pays a better dividend. On top of this LTM pays more dividend than 90.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, LTM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
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.
The Dividend Rate of LTM has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP25.08%
EPS Next 2Y-41.42%
EPS Next 3Y-25.99%
45.09
+0.51 (+1.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners94.81%
Inst Owner Change0.02%
Ins OwnersN/A
Ins Owner Change0%
Market Cap13.63B
Analysts80
Price Target45.33 (0.53%)
Short Float %0.48%
Short Ratio0.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
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)-8.82%
PT rev (3m)6.11%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)-100%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.55 | ||
| Fwd PE | N/A | ||
| P/S | 1.03 | ||
| P/FCF | 10.07 | ||
| P/OCF | 4.14 | ||
| P/B | 14.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.99
EY2.2%
EPS(NY)0
Fwd EYN/A
FCF(TTM)4.48
FCFY9.93%
OCF(TTM)10.89
OCFY24.16%
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 | 1.49 |
F-Score6
WACC9.73%
ROIC/WACC1.62
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 Year126.45%
EBIT Next 3Y37.53%
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%