LATAM Airlines Buy Hold or Sell Recommendation

LTM -- USA Stock  

Quarterly Earning Report: November 20, 2019  

Considering 30-days investment horizon, and your above average risk tolerance our recommendation regarding LATAM Airlines Group S A is 'Buy'. Macroaxis provides LATAM Airlines buy hold or sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding LTM positions. The advice algorithm takes into account all of LATAM Airlines Group available fundamental, technical, and predictive indicators you will find on this site. The advice is provided from LTM buy-and-hold prospective. Please see also LATAM Airlines Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for muliple equity instruments please use Instant Ratings tool.

Time Horizon

Risk Tolerance

Execute Advice
Sell LATAM AirlinesBuy LATAM Airlines


Hype Condition

Current Valuation

Odds of Distress

Economic Sensitivity

Analyst Consensus

Piotroski F Score

Financial Leverage

For the selected time horizon LATAM Airlines Group S A has a risk adjusted performance of 0.0736, jensen alpha of 0.3546, total risk alpha of 0.4312, sortino ratio of 0.1098 and treynor ratio of 0.1813
Our buy, hold, or sell recommendation tool can be used to cross verify current analyst consensus on LATAM Airlines Group S A and to analyze the company potential to grow next year. To make sure LATAM Airlines Group is not overpriced, please verify all LATAM Airlines Group S A fundamentals including its Gross Profit, Short Ratio, Current Liabilities, as well as the relationship between Total Debt and Market Capitalization . Given that LATAM Airlines Group has Price to Earning of 30.73 , we recommend you check LATAM Airlines market performance and probability of bankruptcy to make sure the company can sustain itself next year given your last-minute risk tolerance and investing horizon.

LATAM Airlines Trading Alerts and Improvement Suggestions

LATAM Airlines Group has very high historical volatility over the last 30 days
LATAM Airlines Group has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial commitments
The company has 10.65 B in debt with debt to equity (D/E) ratio of 349.2 . This implies that the company may be unable to create cash to meet all of its financial commitments. LATAM Airlines Group has Current Ratio of 0.52 suggesting that it has not enough short term capital to pay financial commitments when the payables are due.
LIFE TIME FITNESS has about 1.4 B in cash with (127.03 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.31.
Latest headline from This Is Opportunity To Buy Pinterest , LATAM Airlines Group SA - US Post News

LATAM Airlines current analysts recommendations

Target Median Price11.05
Target Mean Price12.11
Recommendation Mean2.70
Target High Price16.00
Number Of Analyst Opinions16
Target Low Price9.20

LATAM Airlines Returns Distribution Density

Mean Return0.32Value At Risk5.53
Potential Upside5.26Standard Deviation4.79
 Return Density 

LATAM Airlines Greeks

Alpha over DOW
Beta against DOW=1.73
Overall volatility
Information ratio =0.07

LATAM Airlines Volatility Alert

LATAM Airlines Group S A shows above average downside volatility of 3.07 for selected time horizon. We advise investors to further inspect LATAM Airlines Group S A to make sure all market timing and asset allocation strategies are consistent with estimation about LATAM Airlines future alpha.
 Better Than Average     
 Worse Than Average Compare LATAM Airlines to competition

LATAM Airlines Fundamental Vs Peers

FundamentalsLATAM AirlinesPeer Average
Return On Equity0.13 (0.31) 
Return On Asset0.0249 (0.14) 
Profit Margin0.031418 (1.27) 
Operating Margin5.46 (5.51) 
Current Valuation14.68 B16.62 B
Shares Outstanding606.41 M571.82 M
Shares Owned by Insiders0.05 10.09 
Shares Owned by Institutions5.21 39.21 
Number of Shares Shorted4.59 M4.71 M
Price to Earning30.73 28.72 
Price to Book1.77 9.51 
Price to Sales0.58 11.42 
Revenue9.75 B9.43 B
Gross Profit1.93 B27.38 B
EBITDA1.32 B3.9 B
Net Income174.62 M570.98 M
Cash and Equivalents1.4 B2.7 B
Cash per Share2.31 5.01 
Total Debt10.65 B5.32 B
Debt to Equity349.20 48.70 
Current Ratio0.53 2.16 
Book Value Per Share3.41 1.93 K
Cash Flow from Operations(127.03 M)971.22 M
Short Ratio11.74 4.00 
Earnings Per Share0.29 3.12 
Price to Earnings To Growth0.53 4.89 
Number of Employees41.02 K18.84 K
Market Capitalization5.61 B19.03 B
Total Asset2.68 B29.47 B
Retained Earnings405.78 M9.33 B
Working Capital(91.82 M)1.48 B
Current Asset108.74 M9.34 B