LATAM AIRLINES GROUP SA-ADR (LTM) Stock Fundamental Analysis
USA - NYSE:LTM - US51817R1068 - ADR
48.39 USD
-0.35 (-0.72%)
48.39 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to LTM. LTM was compared to 21 industry peers in the Passenger Airlines industry. While LTM belongs to the best of the industry regarding profitability, 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.
The reported net income has been mixed in the past 5 years: LTM reported negative net income in multiple 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
With an excellent Return On Assets value of 7.05%, LTM belongs to the best of the industry, outperforming 90.48% 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.
With an excellent Return On Invested Capital value of 15.79%, LTM belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
| 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's Profit Margin of 8.88% is amongst the best of the industry. LTM outperforms 85.71% of its industry peers.
In the last couple of years the Profit Margin of LTM has grown nicely.
LTM has a Operating Margin of 14.24%. This is amongst the best in the industry. LTM outperforms 85.71% of its industry peers.
LTM's Operating Margin has improved in the last couple of years.
LTM has a worse Gross Margin (27.19%) 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.
The number of shares outstanding for LTM remains at a similar level compared to 1 year ago.
LTM has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, LTM has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.53, we must say that LTM is in the distress zone and has some risk of bankruptcy.
LTM has a better Altman-Z score (1.53) than 76.19% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 5.56, LTM belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
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 (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 | 1.53 |
ROIC/WACC1.54
WACC10.24%
2.3 Liquidity
LTM has a Current 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.
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.
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.
With a Quick ratio value of 0.53, LTM perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
| 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.
Measured over the past years, LTM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -50.65% on average per year.
Looking at the last year, LTM shows a small growth in Revenue. The Revenue has grown by 5.51% in the last year.
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
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.
Based on estimates for the next years, LTM will show a small growth in Revenue. The Revenue will grow by 6.92% on average per year.
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
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
LTM is valuated quite expensively with a Price/Earnings ratio of 48.88.
LTM's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of LTM to the average of the S&P500 Index (27.30), we can say LTM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.88 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, LTM is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.81 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The decent profitability rating of LTM 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
LTM has a Yearly Dividend Yield of 1.99%.
Compared to an average industry Dividend Yield of 2.71, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
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%
48.39
-0.35 (-0.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners115.93%
Inst Owner Change-6.14%
Ins OwnersN/A
Ins Owner Change0%
Market Cap14.62B
Analysts80
Price Target49.71 (2.73%)
Short Float %0.6%
Short Ratio1.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
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)13.4%
PT rev (3m)28.75%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-100%
EPS NY rev (3m)-100%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)4.47%
Revenue NY rev (1m)1.49%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.88 | ||
| Fwd PE | N/A | ||
| P/S | 1.11 | ||
| P/FCF | 10.81 | ||
| P/OCF | 4.44 | ||
| P/B | 15.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.99
EY2.05%
EPS(NY)0
Fwd EYN/A
FCF(TTM)4.48
FCFY9.25%
OCF(TTM)10.89
OCFY22.51%
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 | 1.53 |
F-Score6
WACC10.24%
ROIC/WACC1.54
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 Year110.29%
EBIT Next 3Y41.01%
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%