LATAM AIRLINES GROUP SA-ADR (LTM) Fundamental Analysis & Valuation

NYSE:LTM • US51817R1068

Current stock price

48.25 USD
-0.33 (-0.68%)
Last:

This LTM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. LTM Profitability Analysis

1.1 Basic Checks

  • LTM had positive earnings in the past year.
  • LTM had a positive operating cash flow in the past year.
  • Of the past 5 years LTM 4 years were profitable.
  • LTM had a positive operating cash flow in 4 of the past 5 years.
LTM Yearly Net Income VS EBIT VS OCF VS FCFLTM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B -4B

1.2 Ratios

  • The Return On Assets of LTM (8.28%) is better than 90.91% of its industry peers.
  • The Return On Equity of LTM (108.50%) is better than 100.00% of its industry peers.
  • LTM has a Return On Invested Capital of 17.83%. This is amongst the best in the industry. LTM outperforms 90.91% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for LTM is significantly below the industry average of 20.69%.
  • The last Return On Invested Capital (17.83%) for LTM is above the 3 year average (13.63%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 8.28%
ROE 108.5%
ROIC 17.83%
ROA(3y)6.22%
ROA(5y)-1.24%
ROE(3y)124.26%
ROE(5y)N/A
ROIC(3y)13.63%
ROIC(5y)N/A
LTM Yearly ROA, ROE, ROICLTM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1K 2K 3K

1.3 Margins

  • LTM has a better Profit Margin (10.23%) than 86.36% of its industry peers.
  • In the last couple of years the Profit Margin of LTM has declined.
  • Looking at the Operating Margin, with a value of 16.37%, LTM belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
  • The Gross Margin of LTM (29.16%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of LTM has grown nicely.
Industry RankSector Rank
OM 16.37%
PM (TTM) 10.23%
GM 29.16%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-10.56%
PM growth 5YN/A
GM growth 3Y29.44%
GM growth 5YN/A
LTM Yearly Profit, Operating, Gross MarginsLTM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -50 -100

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4

2. LTM Health Analysis

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 less shares outstanding
  • The number of shares outstanding for LTM has been increased compared to 5 years ago.
  • The debt/assets ratio for LTM has been reduced compared to a year ago.
LTM Yearly Shares OutstandingLTM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
LTM Yearly Total Debt VS Total AssetsLTM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • LTM has an Altman-Z score of 1.65. This is a bad value and indicates that LTM is not financially healthy and even has some risk of bankruptcy.
  • LTM's Altman-Z score of 1.65 is fine compared to the rest of the industry. LTM outperforms 72.73% of its industry peers.
  • The Debt to FCF ratio of LTM is 4.36, which is a neutral value as it means it would take LTM, 4.36 years of fcf income to pay off 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.
  • A Debt/Equity ratio of 5.46 is on the high side and indicates that LTM has dependencies on debt financing.
  • LTM has a Debt to Equity ratio (5.46) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 5.46
Debt/FCF 4.36
Altman-Z 1.65
ROIC/WACC1.71
WACC10.41%
LTM Yearly LT Debt VS Equity VS FCFLTM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B -5B

2.3 Liquidity

  • A Current Ratio of 0.60 indicates that LTM may have some problems paying its short term obligations.
  • LTM's Current ratio of 0.60 is in line compared to the rest of the industry. LTM outperforms 54.55% of its industry peers.
  • A Quick Ratio of 0.54 indicates that LTM may have some problems paying its short term obligations.
  • The Quick ratio of LTM (0.54) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.6
Quick Ratio 0.54
LTM Yearly Current Assets VS Current LiabilitesLTM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

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6

3. LTM Growth Analysis

3.1 Past

  • LTM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 68.00%, which is quite impressive.
  • The earnings per share for LTM have been decreasing by -43.14% on average. This is quite bad
  • Looking at the last year, LTM shows a quite strong growth in Revenue. The Revenue has grown by 11.16% in the last year.
  • The Revenue has been growing by 29.45% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)68%
EPS 3Y-43.14%
EPS 5YN/A
EPS Q2Q%60%
Revenue 1Y (TTM)11.16%
Revenue growth 3Y15.07%
Revenue growth 5Y29.45%
Sales Q2Q%14.12%

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.
  • The Revenue is expected to grow by 9.95% on average over the next years. This is quite good.
EPS Next Y71.94%
EPS Next 2Y24.06%
EPS Next 3Y-25.99%
EPS Next 5YN/A
Revenue Next Year9.53%
Revenue Next 2Y8.14%
Revenue Next 3Y9.95%
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
LTM Yearly Revenue VS EstimatesLTM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B
LTM Yearly EPS VS EstimatesLTM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2024 2025 2026 2027 0 -200 -400 -600

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5

4. LTM Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 28.72 indicates a quite expensive valuation of LTM.
  • 63.64% of the companies in the same industry are more expensive than LTM, based on the Price/Earnings ratio.
  • LTM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.79.
  • The Price/Forward Earnings ratio is 16.71, which indicates a correct valuation of LTM.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of LTM is on the same level as its industry peers.
  • LTM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 28.72
Fwd PE 16.71
LTM Price Earnings VS Forward Price EarningsLTM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • LTM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LTM is cheaper than 95.45% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.46
EV/EBITDA N/A
LTM Per share dataLTM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • 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)0.4
PEG (5Y)N/A
EPS Next 2Y24.06%
EPS Next 3Y-25.99%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. LTM Dividend Analysis

5.1 Amount

  • LTM has a Yearly Dividend Yield of 4.96%, which is a nice return.
  • Compared to an average industry Dividend Yield of 0.97, LTM pays a better dividend. On top of this LTM pays more dividend than 95.45% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.91, LTM pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.96%

5.2 History

  • The dividend of LTM decreases each year by -30.35%.
  • LTM has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-30.35%
Div Incr Years0
Div Non Decr Years0
LTM Yearly Dividends per shareLTM Yearly Dividends per shareYearly Dividends per share 2017 2019 2020 2022 2024 2025 0.02 0.04 0.06 0.08

5.3 Sustainability

  • LTM pays out 41.45% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • The Dividend Rate of LTM has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP41.45%
EPS Next 2Y24.06%
EPS Next 3Y-25.99%
LTM Yearly Income VS Free CF VS DividendLTM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -2B -4B
LTM Dividend Payout.LTM Dividend Payout, showing the Payout Ratio.LTM Dividend Payout.PayoutRetained Earnings

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LTM Fundamentals: All Metrics, Ratios and Statistics

LATAM AIRLINES GROUP SA-ADR

NYSE:LTM (3/19/2026, 12:22:57 PM)

48.25

-0.33 (-0.68%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)02-02
Earnings (Next)04-27
Inst Owners80.84%
Inst Owner Change-58.29%
Ins OwnersN/A
Ins Owner Change0%
Market Cap13.85B
Revenue(TTM)14.27B
Net Income(TTM)1.46B
Analysts78.33
Price Target57.84 (19.88%)
Short Float %1.02%
Short Ratio1.61
Dividend
Industry RankSector Rank
Dividend Yield 4.96%
Yearly Dividend0
Dividend Growth(5Y)-30.35%
DP41.45%
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)1
Avg Revenue beat(2)3.05%
Min Revenue beat(2)-0.11%
Max Revenue beat(2)6.2%
Revenue beat(4)1
Avg Revenue beat(4)-0.29%
Min Revenue beat(4)-4.06%
Max Revenue beat(4)6.2%
Revenue beat(8)2
Avg Revenue beat(8)-1.06%
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)-17.17%
PT rev (3m)9.89%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)110.91%
EPS NY rev (3m)104.86%
Revenue NQ rev (1m)1.63%
Revenue NQ rev (3m)5.98%
Revenue NY rev (1m)3.45%
Revenue NY rev (3m)5.41%
Valuation
Industry RankSector Rank
PE 28.72
Fwd PE 16.71
P/S 0.97
P/FCF 7.46
P/OCF 3.71
P/B 10.3
P/tB 64.24
EV/EBITDA N/A
EPS(TTM)1.68
EY3.48%
EPS(NY)2.89
Fwd EY5.99%
FCF(TTM)6.47
FCFY13.4%
OCF(TTM)13.02
OCFY26.98%
SpS49.69
BVpS4.69
TBVpS0.75
PEG (NY)0.4
PEG (5Y)N/A
Graham Number13.31
Profitability
Industry RankSector Rank
ROA 8.28%
ROE 108.5%
ROCE 22.57%
ROIC 17.83%
ROICexc 22.66%
ROICexgc 26.31%
OM 16.37%
PM (TTM) 10.23%
GM 29.16%
FCFM 13.02%
ROA(3y)6.22%
ROA(5y)-1.24%
ROE(3y)124.26%
ROE(5y)N/A
ROIC(3y)13.63%
ROIC(5y)N/A
ROICexc(3y)17.38%
ROICexc(5y)N/A
ROICexgc(3y)20.35%
ROICexgc(5y)N/A
ROCE(3y)17.26%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-10.56%
PM growth 5YN/A
GM growth 3Y29.44%
GM growth 5YN/A
F-Score7
Asset Turnover0.81
Health
Industry RankSector Rank
Debt/Equity 5.46
Debt/FCF 4.36
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 13.18%
Interest Coverage 250
Cash Conversion N/A
Profit Quality 127.18%
Current Ratio 0.6
Quick Ratio 0.54
Altman-Z 1.65
F-Score7
WACC10.41%
ROIC/WACC1.71
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)10.56%
Cap/Sales(5y)10.92%
Profit Quality(3y)180.12%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)68%
EPS 3Y-43.14%
EPS 5YN/A
EPS Q2Q%60%
EPS Next Y71.94%
EPS Next 2Y24.06%
EPS Next 3Y-25.99%
EPS Next 5YN/A
Revenue 1Y (TTM)11.16%
Revenue growth 3Y15.07%
Revenue growth 5Y29.45%
Sales Q2Q%14.12%
Revenue Next Year9.53%
Revenue Next 2Y8.14%
Revenue Next 3Y9.95%
Revenue Next 5YN/A
EBIT growth 1Y51.56%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year84.19%
EBIT Next 3Y33.28%
EBIT Next 5YN/A
FCF growth 1Y10.1%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20.31%
OCF growth 3Y237.98%
OCF growth 5YN/A

LATAM AIRLINES GROUP SA-ADR / LTM Fundamental Analysis FAQ

What is the fundamental rating for LTM stock?

ChartMill assigns a fundamental rating of 6 / 10 to LTM.


What is the valuation status of LATAM AIRLINES GROUP SA-ADR (LTM) stock?

ChartMill assigns a valuation rating of 5 / 10 to LATAM AIRLINES GROUP SA-ADR (LTM). This can be considered as Fairly Valued.


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 is the valuation of LATAM AIRLINES GROUP SA-ADR based on its PE and PB ratios?

The Price/Earnings (PE) ratio for LATAM AIRLINES GROUP SA-ADR (LTM) is 28.72 and the Price/Book (PB) ratio is 10.3.


Can you provide the expected EPS growth for LTM stock?

The Earnings per Share (EPS) of LATAM AIRLINES GROUP SA-ADR (LTM) is expected to grow by 71.94% in the next year.