LATAM AIRLINES GROUP SA-ADR (LTM) Stock Fundamental Analysis
USA - NYSE:LTM - US51817R1068 - ADR
42.22 USD
-0.88 (-2.04%)
Overall LTM gets a fundamental rating of 5 out of 10. We evaluated LTM against 21 industry peers in the Passenger Airlines industry. LTM has an excellent profitability rating, but there are some minor concerns on its financial health. LTM is quite expensive at the moment. It does show a decent growth rate.
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.
In multiple years LTM reported negative net income over the last 5 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.
The Return On Equity of LTM (127.90%) is better than 100.00% of its industry peers.
LTM's Return On Invested Capital of 15.79% is amongst the best of the industry. LTM outperforms 90.48% 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
LTM has a better Profit Margin (8.88%) than 85.71% of its industry peers.
LTM's Profit Margin has improved in the last couple of years.
LTM has a better Operating Margin (14.24%) than 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.
In the last couple of years the Gross Margin of LTM has grown nicely.
| 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.
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.
LTM has a better debt/assets ratio than last year.
2.2 Solvency
LTM has an Altman-Z score of 1.47. This is a bad value and indicates that LTM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.47, LTM is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
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.
LTM has a better Debt to FCF ratio (5.56) than 85.71% 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's Debt to Equity ratio of 7.40 is in line compared to the rest of the industry. LTM outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.4 | ||
| Debt/FCF | 5.56 | ||
| Altman-Z | 1.47 |
ROIC/WACC1.63
WACC9.69%
2.3 Liquidity
A Current Ratio of 0.60 indicates that LTM may have some problems paying its short term obligations.
With a Current ratio value of 0.60, LTM perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
A Quick Ratio of 0.53 indicates that LTM may have some problems paying 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
The Earnings Per Share has grown by an impressive 257.14% over the past year.
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 5.51% in the past 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
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.
LTM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.92% yearly.
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
Based on the Price/Earnings ratio of 42.65, the valuation of LTM can be described as expensive.
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 (27.86), we can say LTM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.65 | ||
| 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 | 9.43 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
LTM has a very decent profitability rating, which 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
With a Yearly Dividend Yield of 2.26%, LTM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.74, LTM pays a better dividend. On top of this LTM pays more dividend than 90.48% of the companies listed in the same industry.
LTM's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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.
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%
NYSE:LTM (10/6/2025, 10:57:56 AM)
42.22
-0.88 (-2.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners94.81%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner Change0%
Market Cap12.76B
Analysts80
Price Target45.33 (7.37%)
Short Float %0.48%
Short Ratio0.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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)-1.9%
PT rev (3m)16.93%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)-100%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.65 | ||
| Fwd PE | N/A | ||
| P/S | 0.97 | ||
| P/FCF | 9.43 | ||
| P/OCF | 3.88 | ||
| P/B | 13.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.99
EY2.34%
EPS(NY)0
Fwd EYN/A
FCF(TTM)4.48
FCFY10.61%
OCF(TTM)10.89
OCFY25.8%
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 | 1.47 |
F-Score6
WACC9.69%
ROIC/WACC1.63
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 Year126.45%
EBIT Next 3Y37.53%
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%