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

NYSE:LTM • US51817R1068

Current stock price

50.8 USD
+1.36 (+2.75%)
At close:
49.24 USD
-1.56 (-3.07%)
Pre-Market:

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

  • In the past year LTM was profitable.
  • In the past year LTM had a positive cash flow from operations.
  • 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

  • LTM's Return On Assets of 8.28% is amongst the best of the industry. LTM outperforms 86.36% of its industry peers.
  • LTM's Return On Equity of 108.50% is amongst the best of the industry. LTM outperforms 95.45% of its industry peers.
  • With an excellent Return On Invested Capital value of 17.83%, LTM belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital 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

  • With an excellent Profit Margin value of 10.23%, LTM belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
  • LTM's Profit Margin has declined in the last couple of years.
  • 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.
  • LTM has a Gross Margin (29.16%) which is in line with its industry peers.
  • LTM's Gross Margin has improved in the last couple of years.
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.
  • LTM has less 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.
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 1.67. 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 (1.67) than 72.73% of its industry peers.
  • LTM has a debt to FCF ratio of 4.36. This is a neutral value as LTM would need 4.36 years to pay back of all of its debts.
  • The Debt to FCF ratio of LTM (4.36) is better than 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.
  • The Debt to Equity ratio of LTM (5.46) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 5.46
Debt/FCF 4.36
Altman-Z 1.67
ROIC/WACC1.77
WACC10.06%
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 has a Current ratio of 0.60. This is comparable to the rest of the industry: LTM outperforms 50.00% of its industry peers.
  • A Quick Ratio of 0.54 indicates that LTM may have some problems paying its short term obligations.
  • LTM's Quick ratio of 0.54 is in line compared to the rest of the industry. LTM outperforms 50.00% of its industry peers.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. LTM Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 68.00% over the past year.
  • The earnings per share for LTM have been decreasing by -43.14% on average. This is quite bad
  • The Revenue has grown by 11.16% in the past year. This is quite good.
  • Measured over the past years, LTM shows a very strong growth in Revenue. The Revenue has been growing by 29.45% on average per year.
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

  • Based on estimates for the next years, LTM will show a very negative growth in Earnings Per Share. The EPS will decrease by -25.99% on average per year.
  • 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

  • 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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

  • The Price/Earnings ratio is 30.24, 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.
  • When comparing the Price/Earnings ratio of LTM to the average of the S&P500 Index (25.51), we can say LTM is valued inline with the index average.
  • With a Price/Forward Earnings ratio of 17.59, LTM is valued on the expensive side.
  • The rest of the industry has a similar Price/Forward Earnings ratio as LTM.
  • LTM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 30.24
Fwd PE 17.59
LTM Price Earnings VS Forward Price EarningsLTM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 95.45% of the companies in the same industry are more expensive than LTM, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 7.85
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)0.42
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 4.92%, which is a nice return.
  • LTM's Dividend Yield is rather good when compared to the industry average which is at 0.97. LTM pays more dividend than 95.45% of the companies in the same industry.
  • LTM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 4.92%

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

  • 41.45% of the earnings are spent on dividend by LTM. 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 (4/1/2026, 8:04:00 PM)

Premarket: 49.24 -1.56 (-3.07%)

50.8

+1.36 (+2.75%)

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 Cap14.59B
Revenue(TTM)14.27B
Net Income(TTM)1.46B
Analysts78.33
Price Target57.84 (13.86%)
Short Float %1.3%
Short Ratio2.03
Dividend
Industry RankSector Rank
Dividend Yield 4.92%
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)0%
PT rev (3m)3.29%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)113.43%
EPS NY rev (3m)104.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.45%
Valuation
Industry RankSector Rank
PE 30.24
Fwd PE 17.59
P/S 1.02
P/FCF 7.85
P/OCF 3.9
P/B 10.84
P/tB 67.64
EV/EBITDA N/A
EPS(TTM)1.68
EY3.31%
EPS(NY)2.89
Fwd EY5.68%
FCF(TTM)6.47
FCFY12.73%
OCF(TTM)13.02
OCFY25.62%
SpS49.69
BVpS4.69
TBVpS0.75
PEG (NY)0.42
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 1.67
F-Score7
WACC10.06%
ROIC/WACC1.77
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.


What is the profitability of LTM stock?

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 30.24 and the Price/Book (PB) ratio is 10.84.


How sustainable is the dividend of LATAM AIRLINES GROUP SA-ADR (LTM) stock?

The dividend rating of LATAM AIRLINES GROUP SA-ADR (LTM) is 5 / 10 and the dividend payout ratio is 41.45%.