LATAM Airlines Group
Market Cap
CL$741.0b
Last Updated
2021/01/15 22:02 UTC
Data Sources
Company Financials +
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
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
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
| LTM | Industry | Market | |
|---|---|---|---|
| 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 0.83yr | no data | no data | |
| Chief Financial Officer | 4.5yrs | no data | no data | |
| VP of Operations | 5.25yrs | no data | no data | |
| Senior Vice President of Corporate Finance & Investor Relations | no data | no data | no data | |
| Vice President of Legal Affairs & Compliance | 6.33yrs | no data | no data | |
| Vice President of Human Resources | 15.42yrs | no data | no data | |
| Chief Executive Officer of LATAM Airlines Brazil | no data | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Director | 0.75yr | no data | no data | |
| Director | 28yrs | no data | no data | |
| Chairman | 3.67yrs | US$59.13k | no data | |
| Director | 6.75yrs | US$29.05k | no data | |
| Director | 0.25yr | no data | no data | |
| Independent Director | 3.75yrs | US$73.07k | no data | |
| Independent Director | 3.75yrs | US$16.55k | no data | |
| Director | 2.42yrs | US$36.22k | no data | |
| Independent Director | 1.75yrs | US$50.46k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LTM | SNSE (Santiago Stock Exchange) | Yes | Common Stock | CL | CLP | Jan 1995 |
| LTMA.Q | OTCPK (Pink Sheets LLC) | SPONS ADR EACH REPR 1 ORD | US | USD | Nov 1997 | |
| LFL | DB (Deutsche Boerse AG) | SPONS ADR EACH REPR 1 ORD | DE | EUR | Nov 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/15 22:02 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.