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 22 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
LTM had positive earnings in the past year.
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
LTM has a Return On Assets of 6.77%. This is amongst the best in the industry. LTM outperforms 90.91% of its industry peers.
With an excellent Return On Equity value of 113.04%, LTM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
LTM has a Return On Invested Capital of 14.87%. This is amongst the best in the industry. LTM outperforms 90.91% 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 has a Profit Margin of 8.32%. This is amongst the best in the industry. LTM outperforms 86.36% 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 90.91% of the companies in the same industry.
LTM's Operating Margin has improved in the last couple of years.
LTM's Gross Margin of 25.88% is on the low side compared to the rest of the industry. LTM is outperformed by 63.64% 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.
Compared to 1 year ago, LTM has about the same amount of shares outstanding.
LTM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for LTM has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.51, we must say that LTM is in the distress zone and has some risk of bankruptcy.
LTM has a better Altman-Z score (1.51) 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.
With an excellent Debt to FCF ratio value of 4.36, LTM belongs to the best of the industry, outperforming 90.91% 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 of 6.74. This is comparable to the rest of the industry: LTM outperforms 40.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.74 | ||
| Debt/FCF | 4.36 | ||
| Altman-Z | 1.51 |
ROIC/WACC1.47
WACC10.11%
2.3 Liquidity
A Current Ratio of 0.62 indicates that LTM may have some problems paying its short term obligations.
LTM's Current ratio of 0.62 is in line compared to the rest of the industry. LTM outperforms 45.45% of its industry peers.
LTM has a Quick 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 Quick ratio (0.56) which is in line with its industry peers.
| 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.
Looking at the last year, LTM shows a small growth in Revenue. The Revenue has grown by 6.41% in the last year.
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)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
LTM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.59% yearly.
LTM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.01% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 41.26.
LTM's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.50. LTM is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 31.42, LTM can be considered very expensive at the moment.
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 (36.44), we can say LTM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.26 | ||
| Fwd PE | 31.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LTM indicates a somewhat cheap valuation: LTM is cheaper than 77.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.66 | ||
| 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.
LTM has a very decent profitability rating, which may justify a higher PE ratio.
LTM's earnings are expected to grow with 14.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y14.59%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LTM has a Yearly Dividend Yield of 2.29%.
LTM's Dividend Yield is rather good when compared to the industry average which is at 2.73. LTM pays more dividend than 90.91% of the companies in the same industry.
LTM's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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
41.26
-1.33 (-3.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners115.93%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner Change0%
Market Cap12.47B
Analysts80
Price Target42.72 (3.54%)
Short Float %0.42%
Short Ratio1.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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)0.4%
PT rev (3m)21.47%
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)-4.53%
Revenue NQ rev (3m)-4.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.26 | ||
| Fwd PE | 31.42 | ||
| P/S | 0.97 | ||
| P/FCF | 7.66 | ||
| P/OCF | 3.75 | ||
| P/B | 13.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)1
EY2.42%
EPS(NY)1.31
Fwd EY3.18%
FCF(TTM)5.38
FCFY13.05%
OCF(TTM)11.01
OCFY26.68%
SpS42.73
BVpS3.14
TBVpS-0.37
PEG (NY)0.18
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 | 1.51 |
F-Score7
WACC10.11%
ROIC/WACC1.47
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%