LATAM AIRLINES GROUP SA-ADR (LTM) Stock Fundamental Analysis
NYSE:LTM - New York Stock Exchange, Inc. - US51817R1068 - ADR - Currency: USD
Overall LTM gets a fundamental rating of 5 out of 10. We evaluated LTM against 22 industry peers in the Passenger Airlines industry. LTM scores excellent on profitability, but 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.
LTM had a positive operating cash flow in the past year.
In multiple years LTM reported negative net income over the last 5 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.
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 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
With an excellent Profit Margin value of 8.32%, LTM belongs to the best of the industry, outperforming 86.36% 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 13.20%, LTM belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
In the last couple of years the Operating Margin of LTM has grown nicely.
LTM has a Gross Margin of 25.88%. This is in the lower half of the industry: LTM underperforms 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.
The number of shares outstanding for LTM remains at a similar level compared to 1 year ago.
Compared to 5 years ago, LTM has more shares outstanding
The debt/assets ratio for LTM has been reduced compared to a year ago.
2.2 Solvency
LTM has an Altman-Z score of 1.52. 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 (1.52) is better than 72.73% 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.
LTM has a Debt to FCF ratio of 4.36. This is amongst the best in the industry. LTM outperforms 86.36% 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's Debt to Equity ratio of 6.74 is in line compared 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 | 1.52 |
ROIC/WACC1.53
WACC9.7%
2.3 Liquidity
A Current Ratio of 0.62 indicates that LTM may have some problems paying its short term obligations.
The Current ratio of LTM (0.62) is comparable to the rest of the industry.
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.
The earnings per share for LTM have been decreasing by -50.65% on average. This is quite bad
The Revenue has grown by 10.24% in the past year. This is quite good.
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%N/A
Revenue 1Y (TTM)10.24%
Revenue growth 3Y37.99%
Revenue growth 5Y4.97%
Sales Q2Q%7.03%
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 5.63% on average over the next years.
EPS Next Y235.32%
EPS Next 2Y14.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.05%
Revenue Next 2Y5.41%
Revenue Next 3Y5.63%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 43.67, the valuation of LTM can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as LTM.
The average S&P500 Price/Earnings ratio is at 26.48. LTM is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 33.26, the valuation of LTM can be described as expensive.
LTM's Price/Forward Earnings ratio is in line with the industry average.
LTM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 34.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.67 | ||
| Fwd PE | 33.26 |
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 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.11 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The 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.
LTM's earnings are expected to grow with 14.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y14.59%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LTM has a Yearly Dividend Yield of 2.26%.
LTM's Dividend Yield is rather good when compared to the industry average which is at 2.79. LTM pays more dividend than 86.36% 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 | 2.26% |
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
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
43.67
+0.33 (+0.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners115.93%
Inst Owner Change2.03%
Ins OwnersN/A
Ins Owner Change0%
Market Cap13.20B
Analysts80
Price Target43.84 (0.39%)
Short Float %0.33%
Short Ratio1.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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)13.09%
PT rev (3m)33.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)-5.21%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.67 | ||
| Fwd PE | 33.26 | ||
| P/S | 1.02 | ||
| P/FCF | 8.11 | ||
| P/OCF | 3.97 | ||
| P/B | 13.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)1
EY2.29%
EPS(NY)1.31
Fwd EY3.01%
FCF(TTM)5.38
FCFY12.33%
OCF(TTM)11.01
OCFY25.21%
SpS42.73
BVpS3.14
TBVpS-0.37
PEG (NY)0.19
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 | 1.52 |
F-Score7
WACC9.7%
ROIC/WACC1.53
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%N/A
EPS Next Y235.32%
EPS Next 2Y14.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.24%
Revenue growth 3Y37.99%
Revenue growth 5Y4.97%
Sales Q2Q%7.03%
Revenue Next Year6.05%
Revenue Next 2Y5.41%
Revenue Next 3Y5.63%
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%