(LTM) LATAM Airlines S.A. - Overview
Sector: Industrials | Industry: Airlines | Exchange: NYSE (USA) | Market Cap: 14.712m USD | Total Return: 43.8% in 12m
Avg Turnover: 43.4M
Qual. Beats: 0
Rev. Trend: 98.0%
Qual. Beats: 0
Warnings
Altman Z'' 0.72 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
LATAM Airlines Group S.A. is a Santiago-based carrier providing passenger and cargo air transportation across Latin America, North America, Europe, and Oceania. Formed through the 2012 merger of LAN and TAM, the company operates a fleet of 371 aircraft serving 160 destinations globally.
The airline industry in Latin America is characterized by high geographical barriers and a growing middle class, which supports long-term demand for regional connectivity. LATAM utilizes a hub-and-spoke business model, leveraging major transit points in Santiago, São Paulo, and Lima to maximize load factors and cargo efficiency across its international network.
Investors can evaluate the company’s valuation and growth metrics further on ValueRay. LATAM continues to focus on fleet modernization and cross-border partnerships to maintain its position as the largest airline group in the region.
- Brazilian domestic market share expansion drives regional revenue growth
- Volatile jet fuel prices and currency fluctuations impact operating margins
- Delta Air Lines joint venture enhances North American international connectivity
- Post-bankruptcy debt restructuring improves balance sheet and free cash flow
- Recovery in belly cargo demand stabilizes diversified freight revenue streams
| Net Income: 1.68b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA -0.71 > 1.0 |
| NWC/Revenue: -16.45% < 20% (prev -19.74%; Δ 3.29% < -1%) |
| CFO/TA 0.19 > 3% & CFO 3.57b > Net Income 1.68b |
| Net Debt (10.5b) to EBITDA (3.54b): 2.96 < 3 |
| Current Ratio: 0.67 > 1.5 & < 3 |
| Outstanding Shares: last quarter (287.1m) vs 12m ago -5.00% < -2% |
| Gross Margin: 29.76% > 18% (prev 0.25%; Δ 2.95k% > 0.5%) |
| Asset Turnover: 86.84% > 50% (prev 81.73%; Δ 5.10% > 0%) |
| Interest Coverage Ratio: 4.13 > 6 (EBITDA TTM 3.54b / Interest Expense TTM 629.8m) |
| A: -0.13 (Total Current Assets 5.05b - Total Current Liabilities 7.52b) / Total Assets 18.7b |
| B: 0.14 (Retained Earnings 2.57b / Total Assets 18.7b) |
| C: 0.15 (EBIT TTM 2.60b / Avg Total Assets 17.3b) |
| D: 0.12 (Book Value of Equity 1.93b / Total Liabilities 16.8b) |
| Altman-Z'' = 0.72 = B |
| DSRI: 1.02 (Receivables 1.73b/1.47b, Revenue 15.0b/13.0b) |
| GMI: 0.86 (GM 29.76% / 25.45%) |
| AQI: 0.94 (AQ_t 0.07 / AQ_t-1 0.08) |
| SGI: 1.16 (Revenue 15.0b / 13.0b) |
| TATA: -0.10 (NI 1.68b - CFO 3.57b) / TA 18.7b) |
| Beneish M = -3.17 (Cap -4..+1) = AA |
As of May 29, 2026, the stock is trading at USD 53.13 with a total of 1,250,213 shares traded.
Over the past week, the price has changed by +5.48%,
over one month by +9.83%,
over three months by -5.15% and
over the past year by +43.81%.
LATAM Airlines S.A. has received a consensus analysts rating of 4.17. Therefore, it is recommended to buy LTM.
- StrongBuy: 2
- Buy: 3
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 70.3 | 32.3% |
P/E Trailing = 8.6946
P/E Forward = 10.1729
P/S = 0.9943
P/B = 7.5604
P/EG = 2.575
Revenue TTM = 15.0b USD
EBIT TTM = 2.60b USD
EBITDA TTM = 3.54b USD
Long Term Debt = 3.51b USD (from longTermDebt, last quarter)
Short Term Debt = 856.1m USD (from shortTermDebt, last quarter)
Debt = 13.1b USD (from shortLongTermDebtTotal, last quarter) + Leases 4.69b
Net Debt = 10.5b USD (calculated: Debt 13.1b - CCE 2.59b)
Enterprise Value = 25.2b USD (14.7b + Debt 13.1b - CCE 2.59b)
Interest Coverage Ratio = 4.13 (Ebit TTM 2.60b / Interest Expense TTM 629.8m)
EV/FCF = 13.80x (Enterprise Value 25.2b / FCF TTM 1.83b)
FCF Yield = 7.25% (FCF TTM 1.83b / Enterprise Value 25.2b)
FCF Margin = 12.17% (FCF TTM 1.83b / Revenue TTM 15.0b)
Net Margin = 11.20% (Net Income TTM 1.68b / Revenue TTM 15.0b)
Gross Margin = 29.76% ((Revenue TTM 15.0b - Cost of Revenue TTM 10.5b) / Revenue TTM)
Gross Margin QoQ = 31.30% (prev 29.87%)
Tobins Q-Ratio = 1.35 (Enterprise Value 25.2b / Total Assets 18.7b)
Interest Expense / Debt = 4.81% (Interest Expense 629.8m / Debt 13.1b)
Taxrate = 8.38% (52.8m / 630.5m)
NOPAT = 2.39b (EBIT 2.60b * (1 - 8.38%))
Current Ratio = 0.67 (Total Current Assets 5.05b / Total Current Liabilities 7.52b)
Debt / Equity = 6.77 (Debt 13.1b / totalStockholderEquity, last quarter 1.93b)
Debt / EBITDA = 2.96 (Net Debt 10.5b / EBITDA 3.54b)
Debt / FCF = 5.75 (Net Debt 10.5b / FCF TTM 1.83b)
Total Stockholder Equity = 1.32b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.73% (Net Income 1.68b / Total Assets 18.7b)
RoE = 127.0% (Net Income TTM 1.68b / Total Stockholder Equity 1.32b)
RoCE = 53.83% (EBIT 2.60b / Capital Employed (Equity 1.32b + L.T.Debt 3.51b))
RoIC = 20.06% (NOPAT 2.39b / Invested Capital 11.9b)
WACC = 6.43% (E(14.7b)/V(27.8b) * Re(8.22%) + D(13.1b)/V(27.8b) * Rd(4.81%) * (1-Tc(0.08)))
Discount Rate = 8.22% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -42.84 | Cagr: -2.25%
[DCF] Terminal Value 76.66% ; FCFF base≈1.76b ; Y1≈1.91b ; Y5≈2.38b
[DCF] Fair Price = 90.05 (EV 36.4b - Net Debt 10.5b = Equity 25.9b / Shares 287.1m; r=8.35% [WACC [floored]]; 5y FCF grow 9.97% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.01 | # QB: 0
Revenue Correlation: 98.00 | Revenue CAGR: 11.32% | SUE: 0.72 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.79 | Chg30d=N/A | Revisions=-20% | Analysts=2
EPS next Quarter (2026-09-30): EPS=1.38 | Chg30d=+0.62% | Revisions=N/A | Analysts=1
EPS current Year (2026-12-31): EPS=5.09 | Chg30d=+1.14% | Revisions=-33% | GrowthEPS=-7.4% | GrowthRev=+19.1%
EPS next Year (2027-12-31): EPS=6.76 | Chg30d=-1.11% | Revisions=+0% | GrowthEPS=+32.8% | GrowthRev=+3.5%
[Analyst] Revisions Ratio: -33%