LTM Stock Analysis: LATAM Airlines S.A. | NYSE
Airlines | NYSE, USA | Market Cap: 14.795m USD | 12M Return: 3.7% | US51817R2058 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 41.8M
EPS Trend: -86.8%
Qual. Beats: 0
Rev. Trend: 97.5%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 2 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
LATAM Airlines Group S.A. (NYSE: LTM) is a Chile-based airline holding company that provides passenger and cargo air transportation across Latin America, the United States, the Caribbean, Europe, and Oceania. As of December 31, 2024, the company served 160 destinations in 27 countries and operated a fleet of 371 aircraft. Headquartered in Santiago, LATAM was founded in 1929, originally as LAN Airlines S.A., and adopted its current name in June 2012 following the merger of Chiles LAN and Brazils TAM. The group is listed on the NYSE and is classified as a Large Cap Industrials stock within the Passenger Airlines sub-industry.
Sector & Business Model: Commercial airlines are capital-intensive businesses with high fixed costs (aircraft, maintenance, labor) and significant exposure to volatile fuel prices and foreign-exchange swings, given that revenues are largely collected in local currencies while a meaningful share of debt and lease obligations are dollar-denominated. Cargo operations, like those run by LATAM Cargo, provide a secondary revenue stream that can partially offset passenger cyclicality, as freight demand tends to follow global trade patterns rather than discretionary travel.
- Passenger revenue growth driven by South American travel demand recovery
- Cargo segment provides revenue stability amid passenger volatility
- Brazilian real and Argentine peso depreciation pressures translated earnings
- Jet fuel cost fluctuations squeeze airline operating margins
- Fleet renewal with fuel-efficient aircraft lowers unit costs
| Net Income: 1.56b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA 2.37 > 1.0 |
| NWC/Revenue: -16.28% < 20% (prev -22.67%; Δ 6.39% < -1%) |
| CFO/TA 0.18 > 3% & CFO 3.50b > Net Income 1.56b |
| Net Debt (11.4b) to EBITDA (3.35b): 3.41 < 3 |
| Current Ratio: 0.67 > 1.5 & < 3 |
| Outstanding Shares: last quarter (287.1m) vs 12m ago -3.99% < -2% |
| Gross Margin: 26.98% > 18% (prev 27.00%; Δ -0.02% > 0.5%) |
| Asset Turnover: 87.64% > 50% (prev 79.50%; Δ 8.14% > 0%) |
| Interest Coverage Ratio: 3.84 > 6 (EBIT TTM 2.41b / Interest Expense TTM 628.0m) |
| A: -0.13 (Total Current Assets 5.35b - Total Current Liabilities 7.94b) / Total Assets 19.6b |
| B: 0.14 (Retained Earnings 2.66b / Total Assets 19.6b) |
| C: 0.13 (EBIT TTM 2.41b / Avg Total Assets 18.1b) |
| D: 0.11 (Book Value of Equity 2.00b / Total Liabilities 17.7b) |
| Altman-Z'' = 0.59 = B |
| DSRI: 1.04 (Receivables 1.89b/1.51b, Revenue 15.9b/13.2b) |
| GMI: 1.00 (GM 27.00% / 26.98%) |
| AQI: 0.87 (AQ_t 0.07 / AQ_t-1 0.08) |
| SGI: 1.20 (Revenue 15.9b / 13.2b) |
| TATA: -0.10 (NI 1.56b - CFO 3.50b) / TA 19.6b) |
| Beneish M = -2.93 (Cap -4..+1) = A |
As of September 03, 2026, the stock is trading at USD 51.23 with a total of 763,223 shares traded. Over the past week, the price has changed by -2.42%, over one month by -6.02%, over three months by +0.43% and over the past year by +3.68%.
Current recommended Stop Loss: 48.90 (which is 4.5% or 1.4 ATR below the current price).
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 | 73.2 | 42.8% |
P/E Trailing = 10.1156
P/E Forward = 10.1729
P/S = 0.9918
P/B = 7.8475
P/EG = 2.575
Revenue TTM = 15.9b USD
EBIT TTM = 2.41b USD
EBITDA TTM = 3.35b USD
Long Term Debt = 3.59b USD (from longTermDebt, last quarter)
Short Term Debt = 989.2m USD (from shortTermDebt, last quarter)
Debt = 14.1b USD (from shortLongTermDebtTotal, last quarter) + Leases 5.11b
Net Debt = 11.4b USD (calculated: Debt 14.1b - CCE 2.70b)
Enterprise Value = 26.2b USD (14.8b + Debt 14.1b - CCE 2.70b)
Interest Coverage Ratio = 3.84 (Ebit TTM 2.41b / Interest Expense TTM 628.0m)
EV/FCF = 13.62x (Enterprise Value 26.2b / FCF TTM 1.93b)
FCF Yield = 7.34% (FCF TTM 1.93b / Enterprise Value 26.2b)
FCF Margin = 12.12% (FCF TTM 1.93b / Revenue TTM 15.9b)
Net Margin = 9.85% (Net Income TTM 1.56b / Revenue TTM 15.9b)
Gross Margin = 26.98% ((Revenue TTM 15.9b - Cost of Revenue TTM 11.6b) / Revenue TTM)
Gross Margin QoQ = 16.27% (prev 31.30%)
Tobins Q-Ratio = 1.33 (Enterprise Value 26.2b / Total Assets 19.6b)
Interest Expense / Debt = 4.44% (Interest Expense 628.0m / Debt 14.1b)
Taxrate = 7.80% (132.0m / 1.69b)
NOPAT = 2.22b (EBIT 2.41b * (1 - 7.80%))
Current Ratio = 0.67 (Total Current Assets 5.35b / Total Current Liabilities 7.94b)
Debt / Equity = 7.06 (Debt 14.1b / totalStockholderEquity, last quarter 2.00b)
Debt / EBITDA = 3.41 (Net Debt 11.4b / EBITDA 3.35b)
Debt / FCF = 5.94 (Net Debt 11.4b / FCF TTM 1.93b)
Total Stockholder Equity = 1.60b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.63% (Net Income 1.56b / Total Assets 19.6b)
RoE = 98.01% (Net Income TTM 1.56b / Total Stockholder Equity 1.60b)
RoCE = 46.47% (EBIT 2.41b / Capital Employed (Equity 1.60b + L.T.Debt 3.59b))
RoIC = 18.67% (NOPAT 2.22b / Invested Capital 11.9b)
WACC = 6.58% (E(14.8b)/V(28.9b) * Re(8.95%) + D(14.1b)/V(28.9b) * Rd(4.44%) * (1-Tc(0.08)))
Discount Rate = 8.95% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -75.99 | Cagr: -2.25%
[DCF] Terminal Value 77.97% ; FCFF base≈1.65b ; Y1≈1.89b ; Y5≈2.78b
[DCF] Fair Price = 105.9 (EV 41.8b - Net Debt 11.4b = Equity 30.4b / Shares 287.1m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -86.76 | EPS CAGR: -91.82% | SUE: 0.00 | # QB: 0
Revenue Correlation: 97.55 | Revenue CAGR: 11.66% | SUE: 0.35 | # QB: 0
EPS current Quarter (2026-09-30): EPS=1.26 | Chg30d=-13.00% | Revisions=+0% | Analysts=1
EPS current Year (2026-12-31): EPS=4.57 | Chg30d=-7.22% | Revisions=+25% | GrowthEPS=-16.9% | GrowthRev=+20.9%
EPS next Year (2027-12-31): EPS=6.32 | Chg30d=-8.09% | Revisions=-25% | GrowthEPS=+38.4% | GrowthRev=+3.6%
[Analyst] Revisions Ratio: +0% (up=1, down=1)