LATAM AIRLINES GROUP SA-ADR (LTM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LTM - US51817R1068 - ADR
51.15 USD
+0.32 (+0.63%)
51.15 USD
0 (0%)
LTM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 21 industry peers in the Passenger Airlines industry. LTM has an average financial health and profitability rating. LTM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LTM has reported negative net income.
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.
In multiple years LTM reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of LTM (7.05%) is better than 90.48% of its industry peers.
LTM has a Return On Equity of 127.90%. This is amongst the best in the industry. LTM outperforms 100.00% of its industry peers.
LTM has a Return On Invested Capital of 15.79%. This is amongst the best in the industry. LTM outperforms 95.24% 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
With an excellent Profit Margin value of 8.88%, LTM belongs to the best 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.
Looking at the Operating Margin, with a value of 14.24%, 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 Operating Margin of LTM has grown nicely.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LTM is creating some value.
LTM has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for LTM has been increased compared to 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.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.4 | ||
| Debt/FCF | 5.56 | ||
| Altman-Z | 1.53 |
ROIC/WACC1.6
WACC9.85%
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 comparable to the rest of the industry.
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 negative growth in Earnings Per Share. In the last year the EPS decreased by -100.00%.
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.
LTM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.24%.
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)-100%
EPS 3YN/A
EPS 5Y-50.65%
EPS Q2Q%-100%
Revenue 1Y (TTM)10.24%
Revenue growth 3Y37.99%
Revenue growth 5Y4.97%
Sales Q2Q%17.06%
3.2 Future
Based on estimates for the next years, LTM will show a very strong growth in Earnings Per Share. The EPS will grow by 26.41% on average per year.
Based on estimates for the next years, LTM will show a small growth in Revenue. The Revenue will grow by 6.83% on average per year.
EPS Next Y35.34%
EPS Next 2Y16.34%
EPS Next 3Y26.41%
EPS Next 5YN/A
Revenue Next Year8.01%
Revenue Next 2Y7.24%
Revenue Next 3Y6.83%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Forward Earnings ratio is 36.29, which means the current valuation is very expensive for LTM.
LTM's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of LTM to the average of the S&P500 Index (23.56), we can say LTM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 36.29 |
4.2 Price Multiples
LTM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LTM is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.85 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
LTM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of LTM may justify a higher PE ratio.
A more expensive valuation may be justified as LTM's earnings are expected to grow with 26.41% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.34%
EPS Next 3Y26.41%
5. Dividend
5.1 Amount
LTM has a Yearly Dividend Yield of 1.99%. Purely for dividend investing, there may be better candidates out there.
LTM's Dividend Yield is rather good when compared to the industry average which is at 2.93. LTM pays more dividend than 80.95% of the companies in the same industry.
LTM's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| 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
LTM pays out 25.08% of its income as dividend. This is a sustainable payout ratio.
DP25.08%
EPS Next 2Y16.34%
EPS Next 3Y26.41%
51.15
+0.32 (+0.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners85.5%
Inst Owner Change20.17%
Ins OwnersN/A
Ins Owner Change0%
Market Cap14.69B
Revenue(TTM)12.83B
Net Income(TTM)1.17B
Analysts80
Price Target52.63 (2.89%)
Short Float %0.73%
Short Ratio1.22
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)16.06%
PT rev (3m)13.92%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 36.29 | ||
| P/S | 1.11 | ||
| P/FCF | 10.85 | ||
| P/OCF | 4.46 | ||
| P/B | 16.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0
EYN/A
EPS(NY)1.41
Fwd EY2.76%
FCF(TTM)4.71
FCFY9.22%
OCF(TTM)11.47
OCFY22.42%
SpS45.89
BVpS3.19
TBVpS-0.66
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/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
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 | 1.53 |
F-Score6
WACC9.85%
ROIC/WACC1.6
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)-100%
EPS 3YN/A
EPS 5Y-50.65%
EPS Q2Q%-100%
EPS Next Y35.34%
EPS Next 2Y16.34%
EPS Next 3Y26.41%
EPS Next 5YN/A
Revenue 1Y (TTM)10.24%
Revenue growth 3Y37.99%
Revenue growth 5Y4.97%
Sales Q2Q%17.06%
Revenue Next Year8.01%
Revenue Next 2Y7.24%
Revenue Next 3Y6.83%
Revenue Next 5YN/A
EBIT growth 1Y48.61%
EBIT growth 3YN/A
EBIT growth 5Y15.4%
EBIT Next Year133.54%
EBIT Next 3Y38.47%
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 4 / 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 6 / 10.
What is the expected EPS growth for LATAM AIRLINES GROUP SA-ADR (LTM) stock?
The Earnings per Share (EPS) of LATAM AIRLINES GROUP SA-ADR (LTM) is expected to grow by 35.34% in the next year.