LATAM Airlines Group S.A.
LATAM Airlines Group S.A. Fundamental Analysis
LATAM Airlines Group S.A. (LTMAY) shows weak financial fundamentals with a PE ratio of 51.94, profit margin of 5.00%, and ROE of 2.36%. The company generates $0.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze LTMAY's fundamental strength across five key dimensions:
Efficiency Score
WeakLTMAY struggles to generate sufficient returns from assets.
Valuation Score
ModerateLTMAY shows balanced valuation metrics.
Growth Score
ModerateLTMAY shows steady but slowing expansion.
Financial Health Score
WeakLTMAY carries high financial risk with limited liquidity.
Profitability Score
ModerateLTMAY maintains healthy but balanced margins.
Key Financial Metrics
Is LTMAY Expensive or Cheap?
P/E Ratio
LTMAY trades at 51.94 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LTMAY's PEG of 0.52 indicates potential undervaluation.
Price to Book
The market values LATAM Airlines Group S.A. at 67.12 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -2.19 times EBITDA. This is generally considered low.
How Well Does LTMAY Make Money?
Net Profit Margin
For every $100 in sales, LATAM Airlines Group S.A. keeps $5.00 as profit after all expenses.
Operating Margin
Core operations generate 10.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.36 in profit for every $100 of shareholder equity.
ROA
LATAM Airlines Group S.A. generates $3.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
LATAM Airlines Group S.A. produces operating cash flow of $883.95K, showing steady but balanced cash generation.
Free Cash Flow
LATAM Airlines Group S.A. produces free cash flow of $452.03K, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
LTMAY converts 59.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
51.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.52
vs 25 benchmark
P/B Ratio
Price to book value ratio
67.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.001
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
15.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
2.36
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How LTMAY Stacks Against Its Sector Peers
| Metric | LTMAY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 51.94 | 26.71 | Worse (Expensive) |
| ROE | 236.26% | 1311.00% | Weak |
| Net Margin | 5.00% | -29317.00% (disorted) | Weak |
| Debt/Equity | 15.41 | 0.75 | Weak (High Leverage) |
| Current Ratio | 0.73 | 10.53 | Weak Liquidity |
| ROA | 3.97% | -1537638.00% (disorted) | Weak |
LTMAY outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews LATAM Airlines Group S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure