LATAM AIRLINES GROUP SA-ADR (LTM) Stock Fundamental Analysis
NYSE:LTM - New York Stock Exchange, Inc. - US51817R1068 - ADR - Currency: USD
LTM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 23 industry peers in the Passenger Airlines industry. LTM scores excellent on profitability, but there are concerns on its financial health. LTM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LTM was profitable.
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.
In multiple years LTM reported negative operating cash flow during the last 5 years.
1.2 Ratios
LTM has a better Return On Assets (6.77%) than 91.30% of its industry peers.
LTM's Return On Equity of 113.04% is amongst the best of the industry. LTM outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.87%, LTM belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
| 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 86.96% of its industry peers.
In the last couple of years the Profit Margin of LTM has grown nicely.
LTM has a Operating Margin of 13.20%. This is amongst the best in the industry. LTM outperforms 86.96% of its industry peers.
In the last couple of years the Operating Margin of LTM has grown nicely.
LTM's Gross Margin of 25.88% is on the low side compared to the rest of the industry. LTM is outperformed by 65.22% of its industry peers.
LTM's Gross Margin has improved in the last couple of years.
| 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.
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
LTM has an Altman-Z score of 1.44. This is a bad value and indicates that LTM is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of LTM (1.44) is better than 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.
The Debt to FCF ratio of LTM (4.36) is better than 95.65% of its industry peers.
A Debt/Equity ratio of 6.74 is on the high side and indicates that LTM has dependencies on debt financing.
LTM has a worse Debt to Equity ratio (6.74) than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.74 | ||
| Debt/FCF | 4.36 | ||
| Altman-Z | 1.44 |
ROIC/WACC1.6
WACC9.28%
2.3 Liquidity
A Current Ratio of 0.62 indicates that LTM may have some problems paying its short term obligations.
LTM has a Current ratio of 0.62. This is comparable to the rest of the industry: LTM outperforms 47.83% of 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 63.64%, which is quite impressive.
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 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)63.64%
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.
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
LTM is valuated quite expensively with a Price/Earnings ratio of 37.77.
Compared to the rest of the industry, the Price/Earnings ratio of LTM is on the same level as its industry peers.
LTM is valuated rather expensively when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 28.77, which means the current valuation is very expensive for LTM.
LTM's Price/Forward Earnings ratio is in line with the industry average.
LTM's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.77 | ||
| Fwd PE | 28.77 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, LTM is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.02 | ||
| 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.
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 2.71%.
LTM's Dividend Yield is rather good when compared to the industry average which is at 2.83. LTM pays more dividend than 95.65% of the companies in the same industry.
LTM's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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
37.77
+0.89 (+2.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners114.52%
Inst Owner Change-51.47%
Ins OwnersN/A
Ins Owner Change0%
Market Cap11.41B
Analysts80
Price Target32.95 (-12.76%)
Short Float %0.33%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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)-3.07%
Min Revenue beat(2)-5.25%
Max Revenue beat(2)-0.9%
Revenue beat(4)0
Avg Revenue beat(4)-3.48%
Min Revenue beat(4)-5.25%
Max Revenue beat(4)-0.9%
Revenue beat(8)2
Avg Revenue beat(8)-1.49%
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)3.26%
PT rev (3m)15.43%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.21%
Revenue NY rev (1m)-0.72%
Revenue NY rev (3m)-1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.77 | ||
| Fwd PE | 28.77 | ||
| P/S | 0.88 | ||
| P/FCF | 7.02 | ||
| P/OCF | 3.43 | ||
| P/B | 12.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)1
EY2.65%
EPS(NY)1.31
Fwd EY3.48%
FCF(TTM)5.38
FCFY14.25%
OCF(TTM)11.01
OCFY29.14%
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 | 1.44 |
F-Score7
WACC9.28%
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)63.64%
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 Year112.11%
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%