Is LATAM Airlines Stock a Good Investment?
LATAM Airlines Investment Advice | LTM |
- Examine LATAM Airlines' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research LATAM Airlines' leadership team and their track record. Good management can help LATAM Airlines navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Passenger Airlines space and any emerging trends that could impact LATAM Airlines' business and its evolving consumer preferences.
- Compare LATAM Airlines' performance and market position to its competitors. Analyze how LATAM Airlines is positioned in terms of product offerings, innovation, and market share.
- Check if LATAM Airlines pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about LATAM Airlines' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in LATAM Airlines Group stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if LATAM Airlines Group is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine LATAM Airlines Stock
Researching LATAM Airlines' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 43.0% of the company shares are owned by institutional investors. The company last dividend was issued on the 9th of May 2024. LATAM Airlines Group had 1:2000 split on the 24th of July 2024.
To determine if LATAM Airlines is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding LATAM Airlines' research are outlined below:
| LATAM Airlines Group has 7.15 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. | |
| LATAM Airlines Group has a strong financial position based on the latest SEC filings | |
| Latest headline from businesswire.com: Disposition of 3283 shares by Kozikowski Tamara A of LATAM Airlines subject to Rule 16b-3 |
Earnings surprises can significantly impact LATAM Airlines' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises LATAM Airlines' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-09-30 | 2024-09-30 | 0.7685 | 1.1201 | 0.3516 | 45 | ||
2025-02-20 | 2024-12-31 | 0.863 | 1.2571 | 0.3941 | 45 |
LATAM Airlines Analyst Ratings
LATAM Airlines' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about LATAM Airlines stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of LATAM Airlines' financials, market performance, and future outlook by experienced professionals. LATAM Airlines' historical ratings below, therefore, can serve as a valuable tool for investors.LATAM Airlines' market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 9.86 B.Market Cap |
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LATAM Airlines' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.07 | 0.07 | |
| Return On Capital Employed | 0.17 | 0.18 | |
| Return On Assets | 0.06 | 0.07 | |
| Return On Equity | 1.35 | 1.15 |
Determining LATAM Airlines' profitability involves analyzing its financial statements and using various financial metrics to determine if LATAM Airlines is a good buy. For example, gross profit margin measures LATAM Airlines' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of LATAM Airlines' profitability and make more informed investment decisions.
LATAM Airlines' Earnings Breakdown by Geography
Evaluate LATAM Airlines' management efficiency
LATAM Airlines Group has Return on Asset of 0.0644 % which means that on every $100 spent on assets, it made $0.0644 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 1.7005 %, implying that it generated $1.7005 on every 100 dollars invested. LATAM Airlines' management efficiency ratios could be used to measure how well LATAM Airlines manages its routine affairs as well as how well it operates its assets and liabilities. At this time, LATAM Airlines' Return On Tangible Assets are very stable compared to the past year. As of the 25th of March 2025, Return On Capital Employed is likely to grow to 0.18, while Return On Equity is likely to drop 1.15. At this time, LATAM Airlines' Return On Assets are very stable compared to the past year. As of the 25th of March 2025, Asset Turnover is likely to grow to 0.89, while Other Current Assets are likely to drop about 355 M.| Last Reported | Projected for Next Year | ||
| Enterprise Value Over EBITDA | 5.77 | 5.48 | |
| Price Book Value Ratio | 11.50 | 12.07 | |
| Enterprise Value Multiple | 5.77 | 5.48 | |
| Price Fair Value | 11.50 | 12.07 | |
| Enterprise Value | 13.5 B | 6.8 B |
Understanding the operational decisions made by LATAM Airlines management offers insights into its financial robustness. This evaluation is crucial for assessing the stock's investment potential.
Beta 1.796 |
Basic technical analysis of LATAM Stock
As of the 25th of March, LATAM Airlines secures the mean deviation of 1.06, and Downside Deviation of 1.45. In respect to fundamental indicators, the technical analysis model lets you check practical technical drivers of LATAM Airlines Group, as well as the relationship between them. Please verify LATAM Airlines Group information ratio, potential upside, as well as the relationship between the Potential Upside and kurtosis to decide if LATAM Airlines Group is priced more or less accurately, providing market reflects its recent price of 32.18 per share. Given that LATAM Airlines Group has jensen alpha of 0.1693, we recommend you to check LATAM Airlines's last-minute market performance to make sure the company can sustain itself at some point in the future.LATAM Airlines' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific LATAM Airlines insiders, such as employees or executives, is commonly permitted as long as it does not rely on LATAM Airlines' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases LATAM Airlines insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Understand LATAM Airlines' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing LATAM Airlines' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1113 | |||
| Market Risk Adjusted Performance | 0.8464 | |||
| Mean Deviation | 1.06 | |||
| Semi Deviation | 1.26 | |||
| Downside Deviation | 1.45 | |||
| Coefficient Of Variation | 839.52 | |||
| Standard Deviation | 1.45 | |||
| Variance | 2.09 | |||
| Information Ratio | 0.1374 | |||
| Jensen Alpha | 0.1693 | |||
| Total Risk Alpha | 0.2206 | |||
| Sortino Ratio | 0.1367 | |||
| Treynor Ratio | 0.8364 | |||
| Maximum Drawdown | 8.36 | |||
| Value At Risk | (2.41) | |||
| Potential Upside | 2.35 | |||
| Downside Variance | 2.11 | |||
| Semi Variance | 1.59 | |||
| Expected Short fall | (1.08) | |||
| Skewness | 0.2526 | |||
| Kurtosis | 1.69 |
| Risk Adjusted Performance | 0.1113 | |||
| Market Risk Adjusted Performance | 0.8464 | |||
| Mean Deviation | 1.06 | |||
| Semi Deviation | 1.26 | |||
| Downside Deviation | 1.45 | |||
| Coefficient Of Variation | 839.52 | |||
| Standard Deviation | 1.45 | |||
| Variance | 2.09 | |||
| Information Ratio | 0.1374 | |||
| Jensen Alpha | 0.1693 | |||
| Total Risk Alpha | 0.2206 | |||
| Sortino Ratio | 0.1367 | |||
| Treynor Ratio | 0.8364 | |||
| Maximum Drawdown | 8.36 | |||
| Value At Risk | (2.41) | |||
| Potential Upside | 2.35 | |||
| Downside Variance | 2.11 | |||
| Semi Variance | 1.59 | |||
| Expected Short fall | (1.08) | |||
| Skewness | 0.2526 | |||
| Kurtosis | 1.69 |
Consider LATAM Airlines' intraday indicators
LATAM Airlines intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of LATAM Airlines stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
LATAM Airlines time-series forecasting models is one of many LATAM Airlines' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary LATAM Airlines' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
LATAM Stock media impact
Far too much social signal, news, headlines, and media speculation about LATAM Airlines that are available to investors today. That information is available publicly through LATAM media outlets and privately through word of mouth or via LATAM internal channels. However, regardless of the origin, that massive amount of LATAM data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of LATAM Airlines news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of LATAM Airlines relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to LATAM Airlines' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive LATAM Airlines alpha.
LATAM Airlines Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards LATAM Airlines can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
LATAM Airlines Corporate Management
| Andres Bianchi | Chief Officer | Profile | |
| Paulo Miranda | Chief Officer | Profile | |
| Emilio Sota | Chief Officer | Profile | |
| Ramiro Balza | Chief Officer | Profile | |
| Andrs Eitel | Senior Finance | Profile | |
| Juliana Rio | Chief Officer | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in 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. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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.
Quarterly Earnings Growth 1.102 | Earnings Share 2.99 | Revenue Per Share | Quarterly Revenue Growth 0.039 | Return On Assets |
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.
In summary, please note that there is a difference between LATAM Airlines' value and its price, as these two are different measures arrived at by various 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.