LATAM AIRLINES GROUP SA-ADR (LTM) Stock Fundamental Analysis
NYSE:LTM - New York Stock Exchange, Inc. - US51817R1068 - ADR - Currency: USD
Taking everything into account, LTM scores 5 out of 10 in our fundamental rating. LTM was compared to 23 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. LTM has a correct valuation and a medium growth rate.
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.
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
LTM has a Return On Assets of 6.77%. This is amongst the best in the industry. LTM outperforms 91.30% of its industry peers.
Looking at the Return On Equity, with a value of 113.04%, LTM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
LTM's Return On Invested Capital of 14.87% is amongst the best of the industry. LTM outperforms 86.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.77% | ||
| ROE | 113.04% | ||
| ROIC | 14.87% |
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 8.32% is amongst the best of the industry. LTM outperforms 86.96% of its industry peers.
In the last couple of years the Profit Margin of LTM has grown nicely.
Looking at the Operating Margin, with a value of 13.20%, LTM belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
LTM's Operating Margin has improved in the last couple of years.
LTM has a Gross Margin of 25.88%. This is in the lower half of the industry: LTM underperforms 65.22% of its industry peers.
In the last couple of years the Gross Margin of LTM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.2% | ||
| PM (TTM) | 8.32% | ||
| GM | 25.88% |
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.
Compared to 5 years ago, LTM has more shares outstanding
Compared to 1 year ago, LTM has an improved debt to assets ratio.
2.2 Solvency
LTM has an Altman-Z score of 1.45. 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 1.45 is fine compared to the rest of the industry. LTM outperforms 73.91% 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.
With an excellent Debt to FCF ratio value of 4.36, LTM belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
A Debt/Equity ratio of 6.74 is on the high side and indicates that LTM has dependencies on debt financing.
LTM has a Debt to Equity ratio (6.74) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.74 | ||
| Debt/FCF | 4.36 | ||
| Altman-Z | 1.45 |
ROIC/WACC1.55
WACC9.57%
2.3 Liquidity
LTM has a Current Ratio of 0.62. 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 (0.62) which is in line with its industry peers.
A Quick Ratio of 0.56 indicates that LTM may have some problems paying its short term obligations.
LTM has a Quick ratio (0.56) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.56 |
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.
The Revenue has been growing slightly by 6.41% in the past year.
LTM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.97% yearly.
EPS 1Y (TTM)257.14%
EPS 3YN/A
EPS 5Y-50.65%
EPS Q2Q%50%
Revenue 1Y (TTM)6.41%
Revenue growth 3Y37.99%
Revenue growth 5Y4.97%
Sales Q2Q%2.49%
3.2 Future
Based on estimates for the next years, LTM will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.59% on average per year.
The Revenue is expected to grow by 6.01% on average over the next years.
EPS Next Y235.32%
EPS Next 2Y14.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.96%
Revenue Next 2Y5.29%
Revenue Next 3Y6.01%
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
Based on the Price/Earnings ratio of 38.05, the valuation of LTM can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as LTM.
Compared to an average S&P500 Price/Earnings ratio of 26.31, LTM is valued a bit more expensive.
LTM is valuated quite expensively with a Price/Forward Earnings ratio of 28.98.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LTM is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.13. LTM is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.05 | ||
| Fwd PE | 28.98 |
4.2 Price Multiples
LTM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LTM is cheaper than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.07 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
LTM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 14.59% in the coming years.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y14.59%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LTM has a Yearly Dividend Yield of 2.58%.
LTM's Dividend Yield is rather good when compared to the industry average which is at 2.75. LTM pays more dividend than 95.65% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, LTM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
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
16.28% of the earnings are spent on dividend by LTM. This is a low number and sustainable payout ratio.
DP16.28%
EPS Next 2Y14.59%
EPS Next 3YN/A
38.05
-1.41 (-3.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners115.93%
Inst Owner Change-51.47%
Ins OwnersN/A
Ins Owner Change0%
Market Cap11.50B
Analysts80
Price Target38.61 (1.47%)
Short Float %0.41%
Short Ratio2.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
Yearly Dividend0
Dividend Growth(5Y)-47.04%
DP16.28%
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)-2.48%
Min Revenue beat(2)-4.06%
Max Revenue beat(2)-0.9%
Revenue beat(4)0
Avg Revenue beat(4)-3.18%
Min Revenue beat(4)-4.36%
Max Revenue beat(4)-0.9%
Revenue beat(8)2
Avg Revenue beat(8)-1.34%
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)20.34%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-5.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.05 | ||
| Fwd PE | 28.98 | ||
| P/S | 0.89 | ||
| P/FCF | 7.07 | ||
| P/OCF | 3.46 | ||
| P/B | 12.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)1
EY2.63%
EPS(NY)1.31
Fwd EY3.45%
FCF(TTM)5.38
FCFY14.15%
OCF(TTM)11.01
OCFY28.93%
SpS42.73
BVpS3.14
TBVpS-0.37
PEG (NY)0.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.77% | ||
| ROE | 113.04% | ||
| ROCE | 18.82% | ||
| ROIC | 14.87% | ||
| ROICexc | 19.65% | ||
| ROICexgc | 23.25% | ||
| OM | 13.2% | ||
| PM (TTM) | 8.32% | ||
| GM | 25.88% | ||
| FCFM | 12.6% |
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-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.74 | ||
| Debt/FCF | 4.36 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 13.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 151.5% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.45 |
F-Score7
WACC9.57%
ROIC/WACC1.55
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%50%
EPS Next Y235.32%
EPS Next 2Y14.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.41%
Revenue growth 3Y37.99%
Revenue growth 5Y4.97%
Sales Q2Q%2.49%
Revenue Next Year5.96%
Revenue Next 2Y5.29%
Revenue Next 3Y6.01%
Revenue Next 5YN/A
EBIT growth 1Y38.72%
EBIT growth 3YN/A
EBIT growth 5Y15.4%
EBIT Next Year110.29%
EBIT Next 3Y41.01%
EBIT Next 5YN/A
FCF growth 1Y638.57%
FCF growth 3YN/A
FCF growth 5Y3.65%
OCF growth 1Y513.04%
OCF growth 3YN/A
OCF growth 5Y1.9%