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LATAM Airlines (LTM) Stock Analysis

This is a peer-relative look at LATAM Airlines (LTM): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Transportation peers, so every number reads in context rather than in isolation.

Company Profile

LATAM Airlines (LTM) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile fields for LATAM Airlines (LTM)
Profile ItemLTM
NameLATAM Airlines Group S.A. ADR
Country/RegionChile
GICS SectorIndustrials
GICS Industry GroupTransportation
GICS IndustryPassenger Airlines
GICS Sub-IndustryPassenger Airlines
Market Capitalization13.60 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJuly 25, 2024
Security TypeADR

Price Performance

Cumulative Growth

LTM
GSPC
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LATAM Airlines (LTM) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for LATAM Airlines (LTM) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for LATAM Airlines (LTM) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

LATAM Airlines (LTM) metric values compared with Transportation industry-group medians
MetricCurrent stock: LTMIndustry group median
Total Return (1Y)12.94%22.71%
Total Return (3Y, Annualized)--14.66%
Total Return (5Y, Annualized)--3.98%

Risk Profile

Drawdown History

LTM
GSPC
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LATAM Airlines (LTM) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for LATAM Airlines (LTM) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

LATAM Airlines (LTM) metric values compared with Transportation industry-group medians
MetricCurrent stock: LTMIndustry group median
Volatility (1Y, Annualized)45.42%40.42%
Beta (5Y)0.641.15
Max Drawdown (5Y)-37.94%-52.44%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. LTM is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

LATAM Airlines (LTM) metric values compared with Transportation industry-group medians
MetricCurrent stock: LTMIndustry group median
Sharpe Ratio (1Y)0.190.46
Sortino Ratio (1Y)0.300.70

Profitability

ROE (TTM)

LATAM Airlines (LTM) posts ROE of 98.02%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.

LTM

Transportation industry group

98.02%

Group distribution
LTM
98.02%
Max
45.08%
Q3
22.02%
Median
13.94%
Q1
2.89%
Min
-10.45%
Largest peers
LTM
98.02%
UNP
38.75%
UPS
28.65%
CSX
26.39%
CNI
22.45%
UBER
12.33%
CP
8.27%
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Where LATAM Airlines (LTM) stands on ROE within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

LATAM Airlines (LTM) keeps 9.82% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

LTM

Transportation industry group

9.82%

Group distribution
Max
50.36%
Q3
21.18%
LTM
9.82%
Median
5.58%
Q1
1.55%
Min
-11.37%
Largest peers
UNP
28.90%
CNI
26.42%
CP
24.14%
CSX
23.97%
LTM
9.82%
UBER
6.13%
UPS
4.84%
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Where LATAM Airlines (LTM) stands on net margin within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

LATAM Airlines (LTM) turns 13.14% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

LTM

Transportation industry group

13.14%

Group distribution
Max
59.18%
Q3
29.30%
LTM
13.14%
Median
11.50%
Q1
4.62%
Min
-8.91%
Largest peers
CNI
41.52%
UNP
41.34%
CSX
39.26%
CP
38.56%
LTM
13.14%
UBER
9.80%
UPS
9.28%
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Where LATAM Airlines (LTM) stands on operating margin within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

LATAM Airlines (LTM) metric values compared with Transportation industry-group medians
MetricCurrent stock: LTMIndustry group median
ROE (TTM)98.02%13.94%
ROA (TTM)7.59%4.95%
Net Margin (TTM)9.82%5.58%
Operating Margin (TTM)13.14%11.50%
Gross Margin (TTM)24.99%27.25%

Growth

Revenue Growth

LATAM Airlines (LTM) grew revenue 11.16%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.

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LATAM Airlines (LTM): Revenue Growth across different time periods, set against Transportation industry-group medians.

EPS Growth

LATAM Airlines (LTM) grew earnings per share 53.28%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.

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LATAM Airlines (LTM): EPS Growth across different time periods, set against Transportation industry-group medians.

Growth Metrics

LATAM Airlines (LTM) metric values compared with Transportation industry-group medians
MetricCurrent stock: LTMIndustry group median
Revenue Growth (YoY)11.16%2.80%
Revenue Growth (3Y CAGR)15.07%1.66%
EPS Growth (YoY)53.28%-10.61%
EPS Growth (3Y CAGR)-2.05%-7.47%

Financial Strength

Current Ratio (MRQ)

LATAM Airlines (LTM) has current ratio of 0.68, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

LTM

Transportation industry group

0.68

Group distribution
Max
2.58
Q3
1.62
Median
1.16
Q1
0.78
LTM
0.68
Min
0.22
Largest peers
UPS
1.24
UBER
1.23
UNP
1.16
CSX
0.84
CNI
0.82
LTM
0.68
CP
0.52
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Where LATAM Airlines (LTM) stands on current ratio within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

LATAM Airlines (LTM) has debt-to-equity ratio of 4.18, above the industry benchmark range. Debt sits unusually high against shareholders’ equity, leaving the balance sheet more exposed to rate, refinancing, or earnings shocks.

LTM

Transportation industry group

4.18

Group distribution
LTM
4.18
Max
2.75
Q3
1.37
Median
0.78
Q1
0.35
Min
0.00
Largest peers
LTM
4.18
UPS
2.03
UNP
1.41
CSX
1.35
CNI
1.09
UBER
0.61
CP
0.55
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Where LATAM Airlines (LTM) stands on debt-to-equity ratio within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

LATAM Airlines (LTM) metric values compared with Transportation industry-group medians
MetricCurrent stock: LTMIndustry group median
Current Ratio (MRQ)0.681.16
Debt / Equity (MRQ)4.180.78
Net Debt / EBITDA1.752.00

Dividends

Dividend Yield (TTM)

LATAM Airlines (LTM) has dividend yield of 0.00%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

LTM

Transportation industry group

0.00%

Group distribution
Max
4.68%
Q3
1.99%
Median
0.74%
LTM
0.00%
Q1
0.00%
Min
0.00%
Largest peers
UPS
5.91%
CNI
2.87%
UNP
1.87%
CSX
1.08%
CP
1.06%
LTM
0.00%
UBER
0.00%
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Where LATAM Airlines (LTM) stands on dividend yield within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

LATAM Airlines (LTM) has payout ratio of 27.08%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

LTM

Transportation industry group

27.08%

Group distribution
Max
100.89%
Q3
41.68%
LTM
27.08%
Median
20.43%
Q1
0.00%
Min
0.00%
Largest peers
UPS
126.40%
CNI
45.63%
UNP
43.37%
CSX
28.65%
LTM
27.08%
CP
22.91%
UBER
0.00%
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Where LATAM Airlines (LTM) stands on payout ratio within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

LATAM Airlines (LTM) metric values compared with Transportation industry-group medians
MetricCurrent stock: LTMIndustry group median
Dividend Yield (TTM)0.00%0.74%
Dividend Payout Ratio (TTM)27.08%20.43%

Valuation

P/E Ratio (TTM)

LATAM Airlines (LTM) trades at P/E ratio of 8.44, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.

LTM

Transportation industry group

8.44

Group distribution
Max
46.76
Q3
30.87
Median
20.58
Q1
10.44
LTM
8.44
Min
0.00
Largest peers
UBER
40.35
CP
29.54
CSX
25.58
UNP
22.63
CNI
21.61
UPS
20.87
LTM
8.44
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Where LATAM Airlines (LTM) stands on P/E ratio within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

LATAM Airlines (LTM) trades at 0.82 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

LTM

Transportation industry group

0.82

Group distribution
Max
4.35
Q3
2.07
Median
0.93
LTM
0.82
Q1
0.53
Min
0.04
Largest peers
UNP
6.54
CSX
6.09
CP
5.01
CNI
4.05
UBER
2.48
UPS
1.01
LTM
0.82
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Where LATAM Airlines (LTM) stands on P/S ratio within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

LATAM Airlines (LTM) trades at 5.96 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

LTM

Transportation industry group

5.96

Group distribution
Max
6.29
LTM
5.96
Q3
3.39
Median
1.90
Q1
1.03
Min
-2.07
Largest peers
UNP
7.83
CSX
6.29
UPS
6.15
LTM
5.96
UBER
5.06
CNI
4.77
CP
2.46
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Where LATAM Airlines (LTM) stands on P/B ratio within its Transportation peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

LATAM Airlines (LTM) metric values compared with Transportation industry-group medians
MetricCurrent stock: LTMIndustry group median
P/E Ratio (TTM)8.4420.58
P/S Ratio (TTM)0.820.93
P/B Ratio (MRQ)5.961.90
Free Cash Flow Yield (TTM)11.80%3.36%