(LILA) Liberty Latin America - Overview
Sector: Communication Services | Industry: Telecom Services | Exchange: NASDAQ (USA) | Market Cap: 1.599m USD | Total Return: 57.5% in 12m
Avg Turnover: 2.53M
Qual. Beats: 0
Rev. Trend: -86.7%
Qual. Beats: 0
Warnings
High Debt/EBITDA (8.2) with thin interest coverage (0.2)
Interest Coverage Ratio 0.2 is critical
Altman Z'' -1.37 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
Liberty Latin America Ltd. (LILA) is an integrated telecommunications provider serving residential and business customers across approximately 30 markets in the Caribbean and Latin America. The company operates a multi-segment business model through brands such as Liberty, Flow, and BTC, offering a suite of services including broadband internet, mobile, video, and fixed-line telephony. Its infrastructure includes an extensive subsea and terrestrial fiber optic network that provides critical international connectivity and data center solutions for enterprise and government clients.
The company operates in the Integrated Telecommunication Services sector, where business models often rely on high capital expenditure for infrastructure maintenance and the generation of recurring subscription revenue. In many Caribbean and Latin American markets, telecommunications providers function as essential utility-like entities, benefiting from high barriers to entry due to the complexity of laying subsea cable networks. You can evaluate the company’s valuation and historical performance trends on ValueRay.
Founded in 2017 and headquartered in Bermuda, Liberty Latin America has expanded its regional footprint through a series of acquisitions and strategic integrations. Its B2B division, Liberty Networks, focuses on managed IT solutions and wholesale connectivity, leveraging the firm’s proprietary fiber assets to serve international carriers and large-scale enterprises throughout the region.
- Network integration and synergy realization from regional acquisitions drive operating margins
- Subsea fiber optic capacity demand fuels wholesale and enterprise revenue growth
- Foreign exchange volatility in Latin American markets impacts consolidated dollar earnings
- Elevated leverage levels and interest rate sensitivity influence equity valuation metrics
- Mobile and fixed-line service convergence increases customer retention and average revenue
| Net Income: -497.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA 0.12 > 1.0 |
| NWC/Revenue: 4.85% < 20% (prev 3.30%; Δ 1.55% < -1%) |
| CFO/TA 0.07 > 3% & CFO 838.8m > Net Income -497.5m |
| Net Debt (8.30b) to EBITDA (1.01b): 8.22 < 3 |
| Current Ratio: 1.11 > 1.5 & < 3 |
| Outstanding Shares: last quarter (199.9m) vs 12m ago 1.22% < -2% |
| Gross Margin: 65.11% > 18% (prev 0.70%; Δ 6.44k% > 0.5%) |
| Asset Turnover: 35.87% > 50% (prev 35.25%; Δ 0.62% > 0%) |
| Interest Coverage Ratio: 0.17 > 6 (EBITDA TTM 1.01b / Interest Expense TTM 662.3m) |
| A: 0.02 (Total Current Assets 2.18b - Total Current Liabilities 1.96b) / Total Assets 12.2b |
| B: -0.35 (Retained Earnings -4.26b / Total Assets 12.2b) |
| C: 0.01 (EBIT TTM 115.5m / Avg Total Assets 12.4b) |
| D: -0.39 (Book Value of Equity -4.35b / Total Liabilities 11.1b) |
| Altman-Z'' = -1.37 = CCC |
| DSRI: 1.03 (Receivables 936.1m/906.7m, Revenue 4.44b/4.44b) |
| GMI: 1.07 (GM 65.11% / 69.60%) |
| AQI: 0.98 (AQ_t 0.51 / AQ_t-1 0.52) |
| SGI: 1.00 (Revenue 4.44b / 4.44b) |
| TATA: -0.11 (NI -497.5m - CFO 838.8m) / TA 12.2b) |
| Beneish M = -3.06 (Cap -4..+1) = AA |
As of May 25, 2026, the stock is trading at USD 7.94 with a total of 550,383 shares traded.
Over the past week, the price has changed by +10.58%,
over one month by -5.25%,
over three months by -1.85% and
over the past year by +57.54%.
Liberty Latin America has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy LILA.
- StrongBuy: 2
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 11.9 | 49.9% |
P/E Forward = 15.873
P/S = 0.36
P/B = 2.9525
P/EG = 3.61
Revenue TTM = 4.44b USD
EBIT TTM = 115.5m USD
EBITDA TTM = 1.01b USD
Long Term Debt = 7.88b USD (from longTermDebt, last quarter)
Short Term Debt = 580.6m USD (from shortTermDebt, last quarter)
Debt = 8.98b USD (from shortLongTermDebtTotal, last quarter) + Leases 97.2m
Net Debt = 8.30b USD (calculated: Debt 8.98b - CCE 681.4m)
Enterprise Value = 9.90b USD (1.60b + Debt 8.98b - CCE 681.4m)
Interest Coverage Ratio = 0.17 (Ebit TTM 115.5m / Interest Expense TTM 662.3m)
EV/FCF = 30.32x (Enterprise Value 9.90b / FCF TTM 326.3m)
FCF Yield = 3.30% (FCF TTM 326.3m / Enterprise Value 9.90b)
FCF Margin = 7.35% (FCF TTM 326.3m / Revenue TTM 4.44b)
Net Margin = -11.20% (Net Income TTM -497.5m / Revenue TTM 4.44b)
Gross Margin = 65.11% ((Revenue TTM 4.44b - Cost of Revenue TTM 1.55b) / Revenue TTM)
Gross Margin QoQ = 58.20% (prev 66.64%)
Tobins Q-Ratio = 0.81 (Enterprise Value 9.90b / Total Assets 12.2b)
Interest Expense / Debt = 7.38% (Interest Expense 662.3m / Debt 8.98b)
Taxrate = 21.0% (US default 21%)
NOPAT = 91.2m (EBIT 115.5m * (1 - 21.00%))
Current Ratio = 1.11 (Total Current Assets 2.18b / Total Current Liabilities 1.96b)
Debt / Equity = 16.61 (Debt 8.98b / totalStockholderEquity, last quarter 540.6m)
Debt / EBITDA = 8.22 (Net Debt 8.30b / EBITDA 1.01b)
Debt / FCF = 25.42 (Net Debt 8.30b / FCF TTM 326.3m)
Total Stockholder Equity = 583.4m (last 4 quarters mean from totalStockholderEquity)
RoA = -4.02% (Net Income -497.5m / Total Assets 12.2b)
RoE = -10.26% (Net Income TTM -497.5m / Total Stockholder Equity 4.85b)
RoCE = 0.91% (EBIT 115.5m / Capital Employed (Equity 4.85b + L.T.Debt 7.88b))
RoIC = 0.87% (NOPAT 91.2m / Invested Capital 10.5b)
WACC = 6.12% (E(1.60b)/V(10.6b) * Re(7.73%) + D(8.98b)/V(10.6b) * Rd(7.38%) * (1-Tc(0.21)))
Discount Rate = 7.73% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 6.98 | Cagr: -2.15%
[DCF] Terminal Value 75.58% ; FCFF base≈325.0m ; Y1≈329.2m ; Y5≈354.8m
[DCF] Fair Price = N/A (negative equity: EV 5.51b - Net Debt 8.30b = -2.79b; debt exceeds intrinsic value)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.05 | # QB: 0
Revenue Correlation: -86.75 | Revenue CAGR: -1.12% | SUE: -0.21 | # QB: 0
EPS current Year (2026-12-31): EPS=0.41 | Chg30d=-6.82% | Revisions=-20% | GrowthEPS=+1138.7% | GrowthRev=+0.5%
EPS next Year (2027-12-31): EPS=0.72 | Chg30d=-16.28% | Revisions=-20% | GrowthEPS=+75.6% | GrowthRev=+2.8%