Latam Airlines Group Stock Buy Hold or Sell Recommendation
| LTM Stock | USD 27.73 0.21 0.75% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding LATAM Airlines Group is 'Cautious Hold'. The recommendation algorithm takes into account all of LATAM Airlines' available fundamental, technical, and predictive indicators you will find on this site.
Check out LATAM Airlines Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as LATAM and provide practical buy, sell, or hold advice based on investors' constraints. LATAM Airlines Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate.
LATAM |
Execute LATAM Airlines Buy or Sell Advice
The LATAM recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on LATAM Airlines Group. Macroaxis does not own or have any residual interests in LATAM Airlines Group or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute LATAM Airlines' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Cautious Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
LATAM Airlines Trading Alerts and Improvement Suggestions
| LATAM Airlines Group has 7.04 B in debt with debt to equity (D/E) ratio of 3.31, meaning that the company heavily relies on borrowing funds for operations. LATAM Airlines Group has a current ratio of 0.57, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for LATAM to invest in growth at high rates of return. | |
| Latest headline from gurufocus.com: LATAM Airlines Group SA Shares Down 5.3 percent on Nov 22 |
LATAM Airlines Returns Distribution Density
The distribution of LATAM Airlines' historical returns is an attempt to chart the uncertainty of LATAM Airlines' future price movements. The chart of the probability distribution of LATAM Airlines daily returns describes the distribution of returns around its average expected value. We use LATAM Airlines Group price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of LATAM Airlines returns is essential to provide solid investment advice for LATAM Airlines.
| Mean Return | 0.11 | Value At Risk | -2.35 | Potential Upside | 2.84 | Standard Deviation | 1.48 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of LATAM Airlines historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
LATAM Airlines Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to LATAM Airlines or Passenger Airlines sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that LATAM Airlines' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a LATAM stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.06 | |
β | Beta against Dow Jones | 0.30 | |
σ | Overall volatility | 1.48 | |
Ir | Information ratio | -0.02 |
LATAM Airlines Volatility Alert
LATAM Airlines Group has relatively low volatility with skewness of 0.13 and kurtosis of -0.27. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure LATAM Airlines' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact LATAM Airlines' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.LATAM Airlines Fundamentals Vs Peers
Comparing LATAM Airlines' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze LATAM Airlines' direct or indirect competition across all of the common fundamentals between LATAM Airlines and the related equities. This way, we can detect undervalued stocks with similar characteristics as LATAM Airlines or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of LATAM Airlines' fundamental indicators could also be used in its relative valuation, which is a method of valuing LATAM Airlines by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare LATAM Airlines to competition |
| Fundamentals | LATAM Airlines | Peer Average |
| Price To Earning | 10.10 X | 28.72 X |
| Revenue | 11.64 B | 9.43 B |
| EBITDA | 2.5 B | 3.9 B |
| Net Income | 581.83 M | 570.98 M |
| Cash And Equivalents | 1.49 B | 2.7 B |
| Cash Per Share | 2.45 X | 5.01 X |
| Total Debt | 7.04 B | 5.32 B |
| Debt To Equity | 3.31 % | 48.70 % |
| Current Ratio | 0.58 X | 2.16 X |
| Book Value Per Share | 6.65 X | 1.93 K |
| Cash Flow From Operations | 1.77 B | 971.22 M |
| Earnings Per Share | 0.31 X | 3.12 X |
| Price To Earnings To Growth | (0.19) X | 4.89 X |
| Number Of Employees | 38.06 K | 18.84 K |
| Beta | 1.97 | -0.15 |
| Market Capitalization | 1.83 B | 19.03 B |
| Total Asset | 14.67 B | 29.47 B |
| Retained Earnings | 464.41 M | 9.33 B |
| Working Capital | (1.48 B) | 1.48 B |
| Current Asset | 108.74 M | 9.34 B |
| Current Liabilities | 200.55 M | 7.9 B |
| Net Asset | 14.67 B | |
| Last Dividend Paid | 0.094 |
Note: Disposition of 106000 shares by Akradi Bahram of LATAM Airlines at 11.0726 subject to Rule 16b-3 [view details]
LATAM Airlines Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as LATAM . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About LATAM Airlines Buy or Sell Advice
When is the right time to buy or sell LATAM Airlines Group? Buying financial instruments such as LATAM Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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In addition to having LATAM Airlines in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out LATAM Airlines Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Is Passenger Airlines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LATAM Airlines. If investors know LATAM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LATAM Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of LATAM Airlines Group is measured differently than its book value, which is the value of LATAM that is recorded on the company's balance sheet. Investors also form their own opinion of LATAM Airlines' value that differs from its market value or its book value, called intrinsic value, which is LATAM Airlines' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LATAM Airlines' market value can be influenced by many factors that don't directly affect LATAM Airlines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between LATAM Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if LATAM Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LATAM Airlines' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.