SNSE:LTM

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LATAM Airlines Group

Executive Summary

LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Peru, Argentina, the United States, Europe, Colombia, Brazil, Ecuador, Chile, the Asia Pacific, and rest of Latin America. More Details


Snowflake Analysis

Slightly overvalued with limited growth.


Similar Companies

Share Price & News

How has LATAM Airlines Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LTM is more volatile than 90% of CL stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: LTM's weekly volatility has decreased from 18% to 6% over the past year, but is still higher than 75% of CL stocks.


Market Performance


7 Day Return

-5.5%

LTM

0.6%

CL Airlines

0.6%

CL Market


1 Year Return

-82.7%

LTM

-35.1%

CL Airlines

-9.8%

CL Market

Return vs Industry: LTM underperformed the CL Airlines industry which returned -33.7% over the past year.

Return vs Market: LTM underperformed the CL Market which returned -9.1% over the past year.


Shareholder returns

LTMIndustryMarket
7 Day-5.5%0.6%0.6%
30 Day-4.7%-1.4%8.8%
90 Day-1.0%21.4%17.5%
1 Year-82.7%-82.7%-25.2%-35.1%-5.6%-9.8%
3 Year-87.9%-88.1%-32.2%-43.8%-19.1%-27.4%
5 Year-64.6%-65.2%-10.1%-29.1%27.2%-1.9%

Long-Term Price Volatility Vs. Market

How volatile is LATAM Airlines Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is LATAM Airlines Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LTM (CLP1214.5) is trading below our estimate of fair value (CLP7770.15)

Significantly Below Fair Value: LTM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LTM is unprofitable, so we can't compare its PE Ratio to the XX Airlines industry average.

PE vs Market: LTM is unprofitable, so we can't compare its PE Ratio to the CL market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LTM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LTM has negative assets, so we can't compare its PB Ratio to the XX Airlines industry average.


Next Steps

Future Growth

How is LATAM Airlines Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

83.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LTM is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: LTM is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: LTM is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: LTM's revenue (21.3% per year) is forecast to grow faster than the CL market (7.2% per year).

High Growth Revenue: LTM's revenue (21.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LTM is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has LATAM Airlines Group performed over the past 5 years?

-65.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LTM is currently unprofitable.

Growing Profit Margin: LTM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LTM is unprofitable, and losses have increased over the past 5 years at a rate of 65.2% per year.

Accelerating Growth: Unable to compare LTM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LTM is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (-26.2%).


Return on Equity

High ROE: LTM's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is LATAM Airlines Group's financial position?


Financial Position Analysis

Short Term Liabilities: LTM has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: LTM has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: LTM has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: LTM's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if LTM has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if LTM has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is LATAM Airlines Group current dividend yield, its reliability and sustainability?

5.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LTM's dividend (5.69%) is higher than the bottom 25% of dividend payers in the CL market (2.13%).

High Dividend: LTM's dividend (5.69%) is low compared to the top 25% of dividend payers in the CL market (5.76%).


Stability and Growth of Payments

Stable Dividend: LTM's dividend payments have been volatile in the past 10 years.

Growing Dividend: LTM's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: LTM is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Roberto Alvo Milosawlewitsch (51 yo)

0.83

Tenure

Mr. Roberto Alvo Milosawlewitsch has been Chief Executive Officer of LATAM Airlines Group S.A. since March 31, 2020. He served as Chief Commercial Officer of LATAM Airlines Group S.A until March 31, 2020. ...


Leadership Team

NamePositionTenureCompensationOwnership
Roberto Alvo Milosawlewitsch
Chief Executive Officer0.83yrno datano data
Ramiro Diego Alfonsín Balza
Chief Financial Officer4.5yrsno datano data
Hernán Pasman
VP of Operations5.25yrsno datano data
Andrés Del Valle Eitel
Senior Vice President of Corporate Finance & Investor Relationsno datano datano data
Juan Carlos Menció
Vice President of Legal Affairs & Compliance6.33yrsno datano data
Emilio del Real Sota
Vice President of Human Resources15.42yrsno datano data
Jerome Paul Jacques Cadier
Chief Executive Officer of LATAM Airlines Brazilno datano datano data

5.3yrs

Average Tenure

53yo

Average Age

Experienced Management: LTM's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Enrique Ostalé Cambiaso
Director0.75yrno datano data
Enrique Cueto Plaza
Director28yrsno datano data
Ignacio Cueto Plaza
Chairman3.67yrsUS$59.13kno data
Henri Philippe Reichstul
Director6.75yrsUS$29.05kno data
Alexander Wilcox
Director0.25yrno datano data
Eduardo Novoa Castellón
Independent Director3.75yrsUS$73.07kno data
Nicolás Eblén Hirmas
Independent Director3.75yrsUS$16.55kno data
Sonia J.S. Villalobos
Director2.42yrsUS$36.22kno data
Patrick Horn García
Independent Director1.75yrsUS$50.46kno data

3.7yrs

Average Tenure

60yo

Average Age

Experienced Board: LTM's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

LATAM Airlines Group S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LATAM Airlines Group S.A.
  • Ticker: LTM
  • Exchange: SNSE
  • Founded: 1929
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: CL$741.030b
  • Shares outstanding: 606.41m
  • Website: https://www.latamairlinesgroup.net

Number of Employees


Location

  • LATAM Airlines Group S.A.
  • Presidente Riesco 5711
  • 20th Floor
  • Santiago de Chile
  • Region Metropolitana (Santiago)
  • Chile

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LTMSNSE (Santiago Stock Exchange)YesCommon StockCLCLPJan 1995
LTMA.QOTCPK (Pink Sheets LLC)SPONS ADR EACH REPR 1 ORDUSUSDNov 1997
LFLDB (Deutsche Boerse AG)SPONS ADR EACH REPR 1 ORDDEEURNov 1997

Biography

LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Peru, Argentina, the United States, Europe, Colombia, Brazil, Ecuador, Chile, the Asia...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/15 22:02
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.