A Business at a Glance
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LATAM AIRLINES GROUP S.A.
LTM
$14.4B
Mkt Cap
$50.15
+0.62%
LATAM AIRLINES GROUP S.A. (LTM) has a current P/E ratio of 9.8, compared to its historical median P/E of 9.2. The stock is currently considered Fair based on its historical valuation range.
LATAM AIRLINES GROUP S.A. (LTM) has a 5-year average return on invested capital (ROIC) of 47.1%. This indicates strong capital allocation and a potential competitive advantage.
LATAM AIRLINES GROUP S.A. (LTM) has a market capitalization of $14.4B. It is classified as a large-cap stock.
Yes, LATAM AIRLINES GROUP S.A. (LTM) pays a dividend with a trailing twelve-month yield of 4.20%.
Based on historical P/E analysis, LATAM AIRLINES GROUP S.A. (LTM) appears fair. The current P/E of 9.8 is 7% above its historical median of 9.2. The estimated fair value CAGR (P/E method) is 17.6%.
LATAM AIRLINES GROUP S.A. (LTM) operates in the Air Transportation, Scheduled industry, within the Industrials sector.
LATAM AIRLINES GROUP S.A. (LTM) reported annual revenue of $14.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
ITEM 4 INFORMATION ON THE COMPANY A.History and Development of the Company LATAM Airlines Group is a Chilean-based airline and holding company that changed its name from LAN Airlines S.A. after its merger with TAM of Brazil in 2012. TAM continues to exist as a subsidiary of LATAM. LATAM Airlines Group and its affiliates are primarily involved in the transportation of passengers and cargo and operate as one unified business enterprise. During 2016, we began the transition of unifying LAN and TAM into a single brand: LATAM. LATAM’s airline holdings include LATAM and its affiliates in Chile, Peru, Argentina, Colombia and Ecuador, and LATAM Cargo and its affiliate LANCO (in Colombia), as well as TAM and its affiliates LATAM Airlines Brazil, LATAM Airlines Paraguay, ABSA and Multiplus S.A. (“Multiplus”).
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 14.3B | 14.3B | 12.8B | 11.6B | 9.4B | 4.9B |
| Net Income | 1.5B | 1.5B | 977M | 582M | 1.3B | -4.7B |
| EPS | $5.10 | $5.10 | $3.40 | $2.03 | $4.66 | - |
| Free Cash Flow | 2.0B | 2.0B | 1.8B | 1.5B | 97M | -174M |
| ROIC | 12.0% | 157.9% | 213.0% | 239.8% | 9.2% | -25.8% |
| Gross Margin | 29.2% | 29.2% | 25.5% | 24.3% | 13.4% | -1.6% |
| Debt/Equity | 0.00 | 12.19 | 20.44 | 32.47 | 20.48 | -1.05 |
| Dividends/Share | $2.11 | - | - | - | $0.00 | - |
| Operating Income | 2.3B | 2.3B | 1.5B | 1.1B | 1.2B | -3.4B |
| Operating Margin | 16.4% | 16.4% | 12.0% | 9.3% | 12.9% | -70.1% |
| ROE | 109.4% | 142.9% | 170.0% | 248.0% | 4352.5% | 65.8% |
| Shares Outstanding | 287M | 287M | 287M | 287M | 287M | - |
| Metric | 2015 | 2016 | TTM | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | ||||||||||||
| Revenue | 9.7B | 9.0B | 9.6B | 9.9B | 10.1B | 3.9B | 4.9B | 9.4B | 11.6B | 12.8B | 14.3B | 14.3B |
| Gross Margin | 21.6% | 22.5% | 24.3% | 21.4% | 21.0% | -15.0% | -1.6% | 13.4% | 24.3% | 25.5% | 29.2% | 29.2% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| EBIT | 449M | 493M | 862M | 940M | 753M | -4.5B | -3.4B | 1.2B | 1.1B | 1.5B | 2.3B | 2.3B |
| Op. Margin | 4.6% | 5.5% | 9.0% | 9.5% | 7.5% | -115.5% | -70.1% | 12.9% | 9.3% | 12.0% | 16.4% | 16.4% |
| Net Income | -179M | 111M | 154M | 342M | 196M | -4.6B | -4.7B | 1.3B | 582M | 977M | 1.5B | 1.5B |
| Net Margin | -1.8% | 1.2% | 1.6% | 3.5% | 1.9% | -116.1% | -95.3% | 14.3% | 5.0% | 7.6% | 10.3% | 10.3% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | ||||||||||||
| ROIC | 33.9% | 4.2% | 8.0% | 34.9% | 26.1% | -149.5% | -25.8% | 9.2% | N/M | N/M | 157.9% | 12.0% |
| ROE | N/A | 2.6% | 3.9% | N/A | N/A | 186.5% | 65.8% | 4352.5% | 248.0% | 170.0% | 142.9% | 109.4% |
| ROA | -13.5% | 0.6% | 0.7% | 12.7% | 7.0% | -29.1% | -35.0% | 10.1% | 4.2% | 6.5% | 8.9% | 8.3% |
| Cash Flow | ||||||||||||
| Op. Cash Flow | 1.7B | 981M | 2.2B | 2.1B | 2.8B | -495M | -174M | 97M | 2.3B | 3.1B | 3.7B | 3.7B |
| Free Cash Flow | 1.7B | 981M | 2.2B | 2.1B | 2.8B | -495M | -174M | 97M | 1.5B | 1.8B | 2.0B | 2.0B |
| Owner Earnings | 738M | 21M | 810M | 701M | 1.4B | -1.9B | -1.3B | -1.1B | 1.1B | 1.7B | 2.0B | 2.0B |
| CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 796M | 1.3B | 1.8B | 1.8B |
| Maint. CapEx | 934M | 960M | 1.4B | 1.4B | 1.5B | 1.4B | 1.2B | 1.2B | 1.2B | 1.4B | 1.7B | 1.7B |
| Growth CapEx | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0 | 0 | 40M | 40M |
| D&A | 934M | 960M | 1.4B | 1.4B | 1.5B | 1.4B | 1.2B | 1.2B | 1.2B | 1.4B | 1.7B | 1.7B |
| CapEx/OCF | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 42.7% | 47.5% | 47.5% |
| Capital Allocation | ||||||||||||
| Dividends Paid | 0 | 21M | 47M | 55M | 57M | 0 | 0 | 0 | 175M | 175M | 605M | 605M |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 2.4% | 5.4% | 4.2% |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | ||||||||||||
| Net Debt | N/A | 7.7B | 6.7B | 6.2B | 6.1B | 6.0B | 6.4B | -588M | N/A | N/A | N/A | -2.2B |
| Cash & Equiv. | 753M | 949M | 1.1B | 1.1B | 1.1B | 1.7B | 1.0B | 1.2B | 1.7B | 2.0B | 2.2B | 2.2B |
| Long-Term Debt | N/A | 6.8B | 6.6B | 5.9B | 5.8B | 5.5B | 3.6B | N/A | N/A | N/A | N/A | N/A |
| Debt/Equity | N/A | 2.06 | 1.99 | N/A | N/A | -3.17 | -1.05 | 20.48 | 32.47 | 20.44 | 12.19 | 0.00 |
| Interest Coverage | 1.1 | 1.2 | 1.5 | 1.7 | 1.3 | -7.7 | -4.3 | 1.3 | 1.5 | 1.7 | 3.2 | 3.2 |
| Equity | N/A | 4.2B | 4.0B | N/A | N/A | -2.4B | -7.1B | 31M | 438M | 711M | 1.3B | 1.3B |
| Total Assets | 1.3B | 19.2B | 21.7B | 2.7B | 2.9B | 15.7B | 13.3B | 13.2B | 14.7B | 15.3B | 17.6B | 17.6B |
| Total Liabilities | N/A | 6.8B | 17.7B | N/A | N/A | 18.1B | 20.4B | 13.2B | 14.2B | 14.5B | 16.3B | 16.3B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | N/A | 366M | -41M | 466M | 352M | -4.2B | -8.8B | -7.5B | 464M | 1.1B | 2.2B | 2.2B |
| Working Capital | N/A | -2.6B | -2.5B | -2.7B | -2.9B | -4.3B | -9.7B | -1.6B | -1.5B | -2.4B | -2.9B | -2.9B |
| Current Assets | N/A | 3.6B | 3.8B | 3.3B | 4.0B | 3.1B | 2.6B | 3.5B | 4.2B | 3.9B | 4.4B | 4.4B |
| Current Liabilities | N/A | 6.2B | 6.2B | 5.9B | 7.0B | 7.5B | 12.3B | 5.1B | 5.7B | 6.3B | 7.3B | 7.3B |
| Per Share Data | ||||||||||||
| EPS | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 4.66 | 2.03 | 3.40 | 5.10 | 5.10 |
| Owner EPS | N/A | N/A | N/A | N/A | N/A | N/A | N/A | -3.77 | 3.69 | 5.78 | 6.97 | 6.97 |
| Book Value | N/A | 4.79 | 4.61 | N/A | N/A | -4.02 | -11.64 | 0.11 | N/A | N/A | N/A | 4.66 |
| Cash Flow/Share | 3.76 | 1.12 | 2.54 | 3.10 | 4.54 | -0.81 | -0.29 | 0.34 | N/A | N/A | N/A | 11.14 |
| Dividends/Share | N/A | 0.02 | 0.05 | 0.08 | 0.09 | N/A | N/A | 0.00 | N/A | N/A | N/A | 2.11 |
| Shares Out. | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 286.8M | 287.2M | 287.1M | 287.1M | 287.1M |
| Valuation | ||||||||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 7.8 | 10.6 | 9.8 |
| P/FCF | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 4.3 | 7.9 | 7.3 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 5.2 |
| Price/Book | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 10.8 |
| Price/Sales | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.6 | 0.8 | 1.0 |
| FCF Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 23.4% | 12.7% | 13.6% |
| Market Cap | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 7.6B | 15.5B | 14.4B |
| Avg. Price | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 25.38 | 38.97 | 50.15 |
| Year-End Price | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 26.52 | 54.00 | 50.15 |
LATAM AIRLINES GROUP S.A. passes 5 of 9 quality checks, suggesting mixed fundamentals.
LATAM AIRLINES GROUP S.A. trades at 9.8x trailing earnings, compared to its 15-year median P/E of 9.2x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 7.3x vs a median of 6.1x. The company's 5-year average ROIC is 47.1% with a gross margin of 18.1%. Total shareholder yield (dividends) is 4.2%. At current prices, the estimated annualized return to fair value is +4.4%.
LATAM AIRLINES GROUP S.A. (LTM) has a net profit margin of 10.3%. This is a healthy margin.
LATAM AIRLINES GROUP S.A. (LTM) generated $2.0 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
LATAM AIRLINES GROUP S.A. (LTM) has a debt-to-equity ratio of 12.19. This indicates higher leverage, which may increase financial risk.
LATAM AIRLINES GROUP S.A. (LTM) reported earnings per share (EPS) of $5.10 in its most recent fiscal year.
LATAM AIRLINES GROUP S.A. (LTM) has a return on equity (ROE) of 142.9%. This indicates the company generates strong returns for shareholders.
LATAM AIRLINES GROUP S.A. (LTM) has a 5-year average gross margin of 18.1%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 11 years of financial data for LATAM AIRLINES GROUP S.A. (LTM), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.