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LATAM Airlines Group

NYSE:LTM
Snowflake Description

Reasonable growth potential and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LTM
NYSE
CLP3,548B
Market Cap
  1. Home
  2. US
  3. Transportation
Company description

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 last earnings update was 9 days ago. More info.


Add to Portfolio Compare Print
  • LATAM Airlines Group has significant price volatility in the past 3 months.
LTM Share Price and Events
7 Day Returns
-0.4%
NYSE:LTM
-1.4%
US Airlines
-1.4%
US Market
1 Year Returns
-35.3%
NYSE:LTM
-1.4%
US Airlines
1.6%
US Market
LTM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
LATAM Airlines Group (LTM) -0.4% -14.8% -30.4% -35.3% 36.5% -42%
US Airlines -1.4% -4.2% -2.6% -1.4% 26.9% 49.2%
US Market -1.4% -3.9% 0.1% 1.6% 33.2% 38.2%
1 Year Return vs Industry and Market
  • LTM underperformed the Airlines industry which returned -1.4% over the past year.
  • LTM underperformed the Market in United States of America which returned 1.6% over the past year.
Price Volatility
LTM
Industry
5yr Volatility vs Market

LTM Value

 Is LATAM Airlines Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of LATAM Airlines Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for LATAM Airlines Group.

NYSE:LTM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:LTM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Airlines Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.875 (1 + (1- 26%) (206.94%))
1.814
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.81
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.814 * 5.96%)
13.54%

Discounted Cash Flow Calculation for NYSE:LTM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for LATAM Airlines Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:LTM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 13.54%)
2019 652.00 Analyst x1 574.25
2020 1,237.50 Analyst x2 959.96
2021 1,230.82 Est @ -0.54% 840.92
2022 1,236.25 Est @ 0.44% 743.91
2023 1,250.19 Est @ 1.13% 662.59
2024 1,270.30 Est @ 1.61% 592.96
2025 1,295.01 Est @ 1.94% 532.41
2026 1,323.25 Est @ 2.18% 479.14
2027 1,354.28 Est @ 2.35% 431.90
2028 1,387.61 Est @ 2.46% 389.76
Present value of next 10 years cash flows $6,207.78
NYSE:LTM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,387.61 × (1 + 2.73%) ÷ (13.54% – 2.73%)
$13,187.32
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $13,187.32 ÷ (1 + 13.54%)10
$3,704.12
NYSE:LTM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $6,207.78 + $3,704.12
$9,911.90
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $9,911.90 / 606.41
$11424.31
NYSE:LTM Discount to Share Price
Calculation Result
Exchange Rate USD/CLP
(Reporting currency to currency of SNSE:LTM)
694.68
Value per Share
(CLP)
= Value per Share in USD x Exchange Rate (USD/CLP)
= $16.35 x 694.68
CLP11354.74
Non-primary Listing Adjustment Factor 1 share in NYSE:LTM represents 0.00143x of SNSE:LTM
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.00143x
Value per Share
(Listing Adjusted, USD)
= Value per Share (CLP) x Listing Adjustment Factor
= CLP 11,354.74 x 0.00143
$16.25
Value per share (USD) From above. $16.25
Current discount Discount to share price of $8.37
= -1 x ($8.37 - $16.25) / $16.25
48.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price LATAM Airlines Group is available for.
Intrinsic value
48%
Share price is $8.37 vs Future cash flow value of $16.25
Current Discount Checks
For LATAM Airlines Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • LATAM Airlines Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • LATAM Airlines Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for LATAM Airlines Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are LATAM Airlines Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:LTM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.05
SNSE:LTM Share Price ** SNSE (2019-05-24) in CLP CLP5850.1
SNSE:LTM Share Price converted to USD reporting currency Exchange rate (CLP/ USD) 0.001 $8.42
United States of America Airlines Industry PE Ratio Median Figure of 12 Publicly-Listed Airlines Companies 10.98x
United States of America Market PE Ratio Median Figure of 3,086 Publicly-Listed Companies 17.45x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of LATAM Airlines Group.

NYSE:LTM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SNSE:LTM Share Price ÷ EPS (both in USD)

= 8.42 ÷ 0.05

171.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LATAM Airlines Group is overvalued based on earnings compared to the US Airlines industry average.
  • LATAM Airlines Group is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does LATAM Airlines Group's expected growth come at a high price?
Raw Data
NYSE:LTM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 171.99x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
58.5%per year
United States of America Airlines Industry PEG Ratio Median Figure of 11 Publicly-Listed Airlines Companies 1.22x
United States of America Market PEG Ratio Median Figure of 2,121 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

NYSE:LTM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 171.99x ÷ 58.5%

2.94x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LATAM Airlines Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on LATAM Airlines Group's assets?
Raw Data
NYSE:LTM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $5.39
SNSE:LTM Share Price * SNSE (2019-05-24) in CLP CLP5850.1
SNSE:LTM Share Price converted to USD reporting currency Exchange rate (CLP/ USD) 0.001 $8.42
United States of America Airlines Industry PB Ratio Median Figure of 12 Publicly-Listed Airlines Companies 1.82x
United States of America Market PB Ratio Median Figure of 5,208 Publicly-Listed Companies 1.8x
NYSE:LTM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SNSE:LTM Share Price ÷ Book Value per Share (both in USD)

= 8.42 ÷ 5.39

1.56x

* Primary Listing of LATAM Airlines Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LATAM Airlines Group is good value based on assets compared to the US Airlines industry average.
X
Value checks
We assess LATAM Airlines Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Airlines industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Airlines industry average (and greater than 0)? (1 check)
  5. LATAM Airlines Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LTM Future Performance

 How is LATAM Airlines Group expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
58.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is LATAM Airlines Group expected to grow at an attractive rate?
  • LATAM Airlines Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • LATAM Airlines Group's earnings growth is expected to exceed the United States of America market average.
  • LATAM Airlines Group's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:LTM Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:LTM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 58.5%
NYSE:LTM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 7.4%
United States of America Airlines Industry Earnings Growth Rate Market Cap Weighted Average 9.7%
United States of America Airlines Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:LTM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:LTM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 12,077 1,518 547 7
2020-12-31 11,484 1,681 416 13
2019-12-31 10,520 1,508 209 8
NYSE:LTM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 9,713 1,280 30
2018-12-31 9,895 1,517 182
2018-09-30 9,868 1,584 99
2018-06-30 9,979 1,796 206
2018-03-31 9,868 1,963 182
2017-12-31 9,614 1,667 155
2017-09-30 9,424 1,319 142
2017-06-30 9,292 1,031 -13
2017-03-31 9,114 1,074 33
2016-12-31 8,988 981 69
2016-09-30 8,878 1,130 -1
2016-06-30 8,936 1,326 -119

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • LATAM Airlines Group's earnings are expected to grow significantly at over 20% yearly.
  • LATAM Airlines Group's revenue is expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:LTM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from LATAM Airlines Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:LTM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.42 0.42 0.42 1.00
2020-12-31 0.32 0.32 0.32 1.00
2019-12-31 0.18 0.18 0.18 1.00
NYSE:LTM Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.05
2018-12-31 0.30
2018-09-30 0.16
2018-06-30 0.34
2018-03-31 0.30
2017-12-31 0.26
2017-09-30 0.24
2017-06-30 -0.02
2017-03-31 0.06
2016-12-31 0.13
2016-09-30 0.00
2016-06-30 -0.22

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • LATAM Airlines Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess LATAM Airlines Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
LATAM Airlines Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LTM Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare LATAM Airlines Group's growth in the last year to its industry (Airlines).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • LATAM Airlines Group has delivered over 20% year on year earnings growth in the past 5 years.
  • LATAM Airlines Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • LATAM Airlines Group's 1-year earnings growth is negative, it can't be compared to the US Airlines industry average.
Earnings and Revenue History
LATAM Airlines Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from LATAM Airlines Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:LTM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 9,713.10 29.69 1,273.47
2018-12-31 9,895.46 181.94 1,340.47
2018-09-30 9,867.74 98.72 1,425.27
2018-06-30 9,979.27 206.40 1,592.94
2018-03-31 9,867.84 181.92 1,632.43
2017-12-31 9,613.91 155.30 1,638.53
2017-09-30 9,423.77 142.49 1,705.90
2017-06-30 9,292.09 -13.39 1,689.34
2017-03-31 9,113.99 32.57 1,641.22
2016-12-31 8,988.34 69.22 1,620.38
2016-09-30 8,878.01 -1.38 1,524.74
2016-06-30 8,935.57 -119.47 1,489.96
2016-03-31 9,280.45 -77.12 1,548.22
2015-12-31 9,740.05 -219.27 1,661.31
2015-09-30 10,412.63 -104.74 1,671.04
2015-06-30 11,036.74 -99.22 1,755.83
2015-03-31 11,696.09 -108.40 1,902.05
2014-12-31 12,093.50 -259.99 1,937.73
2014-09-30 12,425.93 -254.19 2,090.35
2014-06-30 12,648.32 -94.27 2,189.47
2014-03-31 12,684.02 -365.19 2,181.46
2013-12-31 12,924.54 -281.11 2,162.01
2013-09-30 13,005.11 -301.15 2,166.74
2013-06-30 12,994.39 -431.95 2,182.81
2013-03-31 11,536.03 -52.40 1,935.89
2012-12-31 9,710.37 -19.08 1,692.27
2012-09-30 7,815.64 159.58 1,363.08
2012-06-30 6,011.83 332.81 992.04

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • LATAM Airlines Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • LATAM Airlines Group used its assets less efficiently than the US Airlines industry average last year based on Return on Assets.
  • LATAM Airlines Group's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess LATAM Airlines Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Airlines industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
LATAM Airlines Group has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LTM Health

 How is LATAM Airlines Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up LATAM Airlines Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • LATAM Airlines Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • LATAM Airlines Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of LATAM Airlines Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from LATAM Airlines Group Company Filings, last reported 1 month ago.

NYSE:LTM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 3,362.27 10,567.66 1,560.85
2018-12-31 3,746.78 7,271.70 1,424.92
2018-09-30 3,584.29 7,605.96 1,226.00
2018-06-30 3,655.60 7,509.87 1,210.46
2018-03-31 4,316.78 7,650.07 1,477.54
2017-12-31 4,267.24 7,908.65 1,618.77
2017-09-30 4,377.04 8,183.67 1,498.79
2017-06-30 4,074.57 8,706.62 1,705.79
2017-03-31 4,331.17 8,448.42 1,414.39
2016-12-31 4,185.30 8,633.77 1,492.25
2016-09-30 3,541.08 9,100.51 1,359.04
2016-06-30 3,539.21 8,966.91 1,234.15
2016-03-31 3,276.73 9,282.30 1,340.25
2015-12-31 2,937.55 9,099.52 1,361.12
2015-09-30 2,952.66 8,883.72 1,542.28
2015-06-30 3,859.91 8,767.23 1,609.71
2015-03-31 3,809.76 8,790.15 1,364.50
2014-12-31 4,503.70 8,856.47 1,533.77
2014-09-30 4,862.50 8,549.33 1,233.01
2014-06-30 5,646.75 8,717.18 1,695.99
2014-03-31 5,562.71 8,823.20 1,897.07
2013-12-31 5,326.46 9,915.91 2,561.58
2013-09-30 4,766.00 10,286.10 1,762.45
2013-06-30 4,721.85 9,973.14 1,242.02
2013-03-31 5,352.18 9,840.23 782.72
2012-12-31 5,220.69 9,800.56 1,120.34
2012-09-30 5,154.90 9,315.00 1,013.62
2012-06-30 5,262.53 8,653.43 1,183.04
  • LATAM Airlines Group's level of debt (314.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (158.6% vs 314.3% today).
  • Debt is not well covered by operating cash flow (12.1%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess LATAM Airlines Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. LATAM Airlines Group has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LTM Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.07%
Current annual income from LATAM Airlines Group dividends. Estimated to be 0.44% next year.
If you bought $2,000 of LATAM Airlines Group shares you are expected to receive $21 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • LATAM Airlines Group's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • LATAM Airlines Group's dividend is below the markets top 25% of dividend payers in United States of America (3.75%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:LTM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
United States of America Airlines Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 2.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2007 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:LTM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.05 1.00
2020-12-31 0.03 1.00
2019-12-31 0.03 1.00
NYSE:LTM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-12 0.090 0.881
2018-03-15 0.077 0.696
2018-03-14 0.077 0.482
2017-05-15 0.034 0.259
2017-03-30 0.034 0.264
2017-03-16 0.034 0.275
2017-03-15 0.034 0.303
2016-08-12 0.034 0.383
2015-03-17 0.000 0.000
2014-11-14 0.000 0.000
2014-11-13 0.000 0.000
2014-08-14 0.000 0.000
2014-08-12 0.000 0.000
2014-05-15 0.000 0.000
2014-05-13 0.000 0.000
2014-04-30 0.000 0.000
2014-03-18 0.000 0.000
2014-03-17 0.000 0.000
2013-04-30 0.007 0.044
2013-03-19 0.007 0.032
2012-05-10 0.471 1.931
2012-05-08 0.471 1.721
2012-04-18 0.471 1.673
2012-04-02 0.471 1.639
2012-03-08 0.471 1.647
2012-02-01 0.471 1.759
2011-12-21 0.500 2.065
2011-11-11 0.619 2.649
2011-08-31 0.334 1.382
2011-04-26 0.621 2.249
2011-03-01 0.619 2.366
2010-12-27 0.621 2.147
2010-06-29 0.341 1.252
2010-02-18 0.341 1.871
2010-01-26 0.341 2.049
2010-01-04 0.413 2.445
2009-06-25 0.596 4.452

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of LATAM Airlines Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.5x coverage).
Future Payout to shareholders
  • No need to calculate the sustainability of LATAM Airlines Group's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess LATAM Airlines Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can LATAM Airlines Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. LATAM Airlines Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LTM Management

 What is the CEO of LATAM Airlines Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Enrique Cueto Plaza
AGE 59
TENURE AS CEO 6.9 years
CEO Bio

Mr. Enrique Cueto Plaza has been the Chief Executive Officer of LATAM Airlines Group S.A. since June 2012 and has been in this position since the combination between LAN and TAM in June 2012. Mr. Cueto Plaza serves as the Chief Executive Officer of Holdco II S.A. From 1983 to 1993, Mr. Cueto Plaza served as the Chief Executive Officer of Fast Air from 1983 to 1993. From 1993 to 1994, Mr Cueto was a member of the board of LAN Airlines. Thereafter, Mr. Cueto held the position of CEO of LAN until June 2012. He has in-depth knowledge of passenger and cargo Airline management, both in commercial and operational aspects that he gained during his eighteen years in the airline industry. He serves as a Director of Virtualia S.A., and First Financial S.A. From 1993 to 1994, he served as Director of Multiplus SA. Mr. Cueto Plaza served as a Director of LATAM Airlines Group S.A. from 1993 to 1994. Mr. Cueto is member of the oneworld® Alliance Governing Board, the IATA (International Air Transport Association) Board of Governors. He is also member of the Board of the Endeavor foundation, an organization dedicated to the promotion of entrepreneurship in Chile, and Executive Member of the Latin American and Caribbean Air Transport Association (ALTA). Mr. Cueto Plaza is also a member of the Cueto Group (a group of major shareholders of LanChile).

CEO Compensation
  • Insufficient data for Enrique to compare compensation growth.
  • Insufficient data for Enrique to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the LATAM Airlines Group management team in years:

3.6
Average Tenure
51
Average Age
  • The tenure for the LATAM Airlines Group management team is about average.
Management Team

Enrique Cueto Plaza

TITLE
Chief Executive Officer
AGE
59
TENURE
6.9 yrs

Ramiro Alfonsín Balza

TITLE
CFO & Senior VP of Financial Fleet
TENURE
2.8 yrs

Hernán Pasman

TITLE
COO & Senior VP of Operations
TENURE
3.6 yrs

Andrés Del Eitel

TITLE
Senior Vice President of Corporate Finance & Investor Relations
AGE
59

Juan Menció

TITLE
Senior Vice President of Legal Affairs & Compliance
TENURE
4.7 yrs

Emilio del Real Sota

TITLE
Senior Vice-President of Human Resources
AGE
53
TENURE
13.8 yrs

Roberto Alvo Milosawlewitsch

TITLE
Senior Vice President of Commercial
AGE
49
TENURE
2 yrs

Cláudia Ramirez

TITLE
Senior Vice President of Customers
AGE
43
TENURE
2 yrs

Jerome Paul Cadier

TITLE
Chief Executive Officer of LATAM Airlines Brazil
AGE
48
Board of Directors Tenure

Average tenure and age of the LATAM Airlines Group board of directors in years:

2.1
Average Tenure
57
Average Age
  • The average tenure for the LATAM Airlines Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ignacio Plaza

TITLE
Chairman
COMPENSATION
$49K
AGE
54
TENURE
2 yrs

Carlos Heller Solari

TITLE
Vice Chairman
COMPENSATION
$15K
AGE
56
TENURE
2 yrs

Patrick García

TITLE
Independent Director
TENURE
0.1 yrs

Juan Cueto Plaza

TITLE
Director
COMPENSATION
$36K
AGE
58
TENURE
2.1 yrs

Henri Reichstul

TITLE
Director
COMPENSATION
$26K
AGE
69
TENURE
5.1 yrs

Giles Agutter

TITLE
Director
COMPENSATION
$16K
TENURE
2.3 yrs

Eduardo Castellón

TITLE
Independent Director
COMPENSATION
$57K
TENURE
2.1 yrs

Nicolás Hirmas

TITLE
Independent Director
COMPENSATION
$55K
TENURE
2.1 yrs

Sonia Villalobos

TITLE
Director
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess LATAM Airlines Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. LATAM Airlines Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LTM News

Simply Wall St News

LTM Company Info

Description

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 operates in two segments, Air Transportation; and Multiplus Coalition and Loyalty Program. It provides passenger transport services to approximately 140 destinations in 25 countries with a fleet of 322 aircrafts, well as operates loyalty programs. 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 based in Santiago, Chile.

Details
Name: LATAM Airlines Group S.A.
LTM
Exchange: NYSE
Founded: 1929
CLP5,106,733,525
606,407,693
Website: http://www.latamairlinesgroup.net
Address: LATAM Airlines Group S.A.
Presidente Riesco 5711,
20th Floor,
Santiago,
Region Metropolitana (Santiago), Chile
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SNSE LTM Common Stock Santiago Stock Exchange CL CLP 20. Jan 1995
NYSE LTM SPONS ADR EACH REPR 1 ORD New York Stock Exchange US USD 07. Nov 1997
DB LFL SPONS ADR EACH REPR 1 ORD Deutsche Boerse AG DE EUR 07. Nov 1997
Number of employees
Current staff
Staff numbers
40,746
LATAM Airlines Group employees.
Industry
Airlines
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/26 23:39
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/24
Last earnings filing: 2019/05/17
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.