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.
+ 1 more risk
Good value with questionable track record.
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's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: LTM underperformed the US Airlines industry which returned -55.1% over the past year.
Return vs Market: LTM underperformed the US Market which returned 3.7% over the past year.
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
Is LATAM Airlines Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LTM ($2.58) is trading below our estimate of fair value ($13.94)
Significantly Below Fair Value: LTM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LTM is poor value based on its PE Ratio (8.3x) compared to the Airlines industry average (6.8x).
PE vs Market: LTM is good value based on its PE Ratio (8.3x) compared to the US market (15x).
Price to Earnings Growth Ratio
PEG Ratio: LTM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: LTM is good value based on its PB Ratio (0.5x) compared to the US Airlines industry average (0.7x).
How is LATAM Airlines Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LTM's earnings are forecast to decline over the next 3 years (-11.1% per year).
Earnings vs Market: LTM's earnings are forecast to decline over the next 3 years (-11.1% per year).
High Growth Earnings: LTM's earnings are forecast to decline over the next 3 years.
Revenue vs Market: LTM's revenue is expected to decline over the next 3 years (-1.4% per year).
High Growth Revenue: LTM's revenue is forecast to decline over the next 3 years (-1.4% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LTM is forecast to be unprofitable in 3 years.
How has LATAM Airlines Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LTM has high quality earnings.
Growing Profit Margin: LTM's current net profit margins (1.9%) are lower than last year (3.1%).
Past Earnings Growth Analysis
Earnings Trend: LTM has become profitable over the past 5 years, growing earnings by 65.7% per year.
Accelerating Growth: LTM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LTM had negative earnings growth (-38.5%) over the past year, making it difficult to compare to the Airlines industry average (-14.4%).
Return on Equity
High ROE: LTM's Return on Equity (6.3%) is considered low.
How is LATAM Airlines Group's financial position?
Financial Position Analysis
Short Term Liabilities: LTM's short term assets ($4.0B) do not cover its short term liabilities ($7.0B).
Long Term Liabilities: LTM's short term assets ($4.0B) do not cover its long term liabilities ($11.0B).
Debt to Equity History and Analysis
Debt Level: LTM's debt to equity ratio (174.6%) is considered high.
Reducing Debt: LTM's debt to equity ratio has increased from 158.1% to 174.6% over the past 5 years.
Debt Coverage: LTM's debt is well covered by operating cash flow (51.7%).
Interest Coverage: LTM's interest payments on its debt are not well covered by EBIT (1.4x coverage).
What is LATAM Airlines Group's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LTM's dividend (3.6%) is higher than the bottom 25% of dividend payers in the US market (1.75%).
High Dividend: LTM's dividend (3.6%) is low compared to the top 25% of dividend payers in the US market (4.73%).
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: With its reasonably low payout ratio (30%), LTM's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LTM is not forecast to pay a dividend in 3 years.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Roberto Alvo Milosawlewitsch (50yo)
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. ...
|Chief Executive Officer||0.17yr||no data||no data|
|Chief Financial Officer||3.83yrs||no data||no data|
|VP of Operations||4.58yrs||no data||no data|
|Senior Vice President of Corporate Finance & Investor Relations||no data||no data||no data|
|Vice President of Legal Affairs & Compliance||5.67yrs||no data||no data|
|Vice President of Human Resources||14.75yrs||no data||no data|
|Chief Executive Officer of LATAM Airlines Brazil||no data||no data||no data|
Experienced Management: LTM's management team is considered experienced (4.6 years average tenure).
|Director||0.083yr||no data||no data|
|Director||27.33yrs||no data||no data|
|Independent Director||3.08yrs||US$73.07k||no data|
|Independent Director||3.08yrs||US$73.07k||no data|
|Independent Director||1.08yrs||US$50.46k||no data|
Experienced Board: LTM's board of directors are considered experienced (3.1 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
LATAM Airlines Group S.A.'s company bio, employee growth, exchange listings and data sources
- Name: LATAM Airlines Group S.A.
- Ticker: LTM
- Exchange: NYSE
- Founded: 1929
- Industry: Airlines
- Sector: Transportation
- Market Cap: CL$1.276t
- Listing Market Cap: CL$1.585b
- Shares outstanding: 606.41m
- Website: https://www.latamairlinesgroup.net
Number of Employees
- LATAM Airlines Group S.A.
- Presidente Riesco 5711
- 20th Floor
- Santiago de Chile
- Region Metropolitana (Santiago)
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|LTM||SNSE (Santiago Stock Exchange)||Yes||Common Stock||CL||CLP||Jan 1995|
|LTM||NYSE (New York Stock Exchange)||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|
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. The company provides passenger transport services to approximately 145 destinations in 26 countries, as well as cargo services to approximately 151 destinations in 29 countries; and operates loyalty programs. As of December 31, 2019, it operated a fleet of 331 aircraft, which include 320 passenger aircraft and 11 cargo aircraft; and subleased 11 aircraft comprising 10 passenger aircraft and 1 cargo aircraft to third parties. The company was formerly known as LAN Airlines S.A. and changed its name to LATAM Airlines Group S.A. in June 2012. LATAM Airlines Group S.A. was founded in 1929 and is headquartered in Santiago, Chile.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/05/25 02:15|
|End of Day Share Price||2020/05/22 00:00|
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.