LATAM AIRLINES GROUP SA-ADR (LTM) Stock Fundamental Analysis
USA - NYSE:LTM - US51817R1068 - ADR
44.02 USD
+0.4 (+0.92%)
44.02 USD
0 (0%)
Taking everything into account, LTM scores 5 out of 10 in our fundamental rating. 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
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 better Return On Assets (7.05%) than 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
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.
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.
LTM has a Gross Margin of 27.19%. This is in the lower half of the industry: LTM underperforms 66.67% 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.
The number of shares outstanding for LTM remains at a similar level compared to 1 year ago.
The number of shares outstanding for LTM has been increased compared to 5 years ago.
LTM has a better debt/assets ratio than last year.
2.2 Solvency
LTM has an Altman-Z score of 1.48. This is a bad value and indicates that LTM is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of LTM (1.48) is better 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.
With an excellent Debt to FCF ratio value of 5.56, LTM belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
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 of 7.40. This is comparable 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 | 1.48 |
ROIC/WACC1.65
WACC9.56%
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.
The Quick ratio of LTM (0.53) 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
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.
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%.
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 7.02% yearly.
EPS Next Y-100%
EPS Next 2Y-41.42%
EPS Next 3Y-25.99%
EPS Next 5YN/A
Revenue Next Year7.96%
Revenue Next 2Y7.33%
Revenue Next 3Y7.02%
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
Based on the Price/Earnings ratio of 44.46, the valuation of LTM can be described as expensive.
LTM's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of LTM to the average of the S&P500 Index (25.83), we can say LTM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.46 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, LTM is valued cheaper than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.83 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
LTM has a very decent profitability rating, which may justify a higher PE ratio.
LTM's earnings are expected to decrease with -25.99% in the coming years. This may justify a cheaper valuation.
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 2.29%, LTM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.02, LTM pays a better dividend. On top of this LTM pays more dividend than 85.71% of the companies listed in the same industry.
LTM's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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%
44.02
+0.4 (+0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners94.81%
Inst Owner Change-2.48%
Ins OwnersN/A
Ins Owner Change0%
Market Cap13.30B
Revenue(TTM)13.17B
Net Income(TTM)1.17B
Analysts80
Price Target45.35 (3.02%)
Short Float %0.67%
Short Ratio0.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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)0.05%
PT rev (3m)3.45%
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)0.3%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.46 | ||
| Fwd PE | N/A | ||
| P/S | 1.01 | ||
| P/FCF | 9.83 | ||
| P/OCF | 4.04 | ||
| P/B | 14.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.99
EY2.25%
EPS(NY)0
Fwd EYN/A
FCF(TTM)4.48
FCFY10.17%
OCF(TTM)10.89
OCFY24.75%
SpS43.59
BVpS3.03
TBVpS-0.63
PEG (NY)N/A
PEG (5Y)N/A
Graham Number8.21
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 | 1.48 |
F-Score6
WACC9.56%
ROIC/WACC1.65
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 Year7.96%
Revenue Next 2Y7.33%
Revenue Next 3Y7.02%
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%
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.
Can you provide the valuation status for LATAM AIRLINES GROUP SA-ADR?
ChartMill assigns a valuation rating of 2 / 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 7 / 10.
What are the PE and PB ratios of LATAM AIRLINES GROUP SA-ADR (LTM) stock?
The Price/Earnings (PE) ratio for LATAM AIRLINES GROUP SA-ADR (LTM) is 44.46 and the Price/Book (PB) ratio is 14.54.
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 decline by -100% in the next year.