LATAM Airlines (Chile) Buy Hold or Sell Recommendation

LTM Stock  CLP 12.51  0.19  1.54%   
Assuming the 90 days trading horizon and your typical level of risk aversion, our recommendation regarding LATAM Airlines Group 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' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting LATAM Airlines' buy or sell advice are summarized below:
Real Value
14.39
Hype Value
12.32
Market Value
12.51
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell LATAM Airlines Group given historical horizon and risk tolerance towards LATAM Airlines. When Macroaxis issues a 'buy' or 'sell' recommendation for LATAM Airlines Group, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
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.
In addition, we conduct extensive research on individual companies such as LATAM and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards LATAM Airlines Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors.

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

Execute Advice
Sell LATAM AirlinesBuy LATAM Airlines
Buy

Market Performance

OKDetails

Volatility

Not too volatileDetails

Hype Condition

StaleDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Slowly supersedes the marketDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon LATAM Airlines Group has a Risk Adjusted Performance of 0.0715, Jensen Alpha of 0.1837, Total Risk Alpha of 0.0093, Sortino Ratio of 0.0653 and Treynor Ratio of 0.9197
Our investment recommendation tool can cross-verify current analyst consensus on LATAM Airlines Group 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 fundamentals, including its ebitda, earnings per share, current liabilities, as well as the relationship between the total debt and market capitalization .

LATAM Airlines Trading Alerts and Improvement Suggestions

The company has accumulated 2.58 B in total debt. LATAM Airlines Group has a current ratio of 0.25, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist LATAM Airlines until it has trouble settling it off, either with new capital or with free cash flow. So, LATAM Airlines' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like LATAM Airlines Group sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for LATAM to invest in growth at high rates of return. When we think about LATAM Airlines' use of debt, we should always consider it together with cash and equity.
The entity reported the revenue of 4.88 B. Net Loss for the year was (4.65 B) with loss before overhead, payroll, taxes, and interest of (79.47 M).
LATAM Airlines Group has accumulated about 1.54 B in cash with (184.1 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.53.
Roughly 30.0% of the company outstanding shares are owned by corporate insiders

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
0.21
Value At Risk
-3.29
Potential Upside
3.14
Standard Deviation
1.97
   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 Industrials 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 NYSE Composite
0.18
β
Beta against NYSE Composite0.21
σ
Overall volatility
1.97
Ir
Information ratio 0.07

LATAM Airlines Volatility Alert

LATAM Airlines Group currently demonstrates below-average downside deviation. It has Information Ratio of 0.07 and Jensen Alpha of 0.18. 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
FundamentalsLATAM AirlinesPeer Average
Return On Equity-13.27-0.31
Return On Asset-0.0096-0.14
Profit Margin(0.46) %(1.27) %
Operating Margin(0.03) %(5.51) %
Current Valuation9.25 T16.62 B
Shares Outstanding10.87 B571.82 M
Shares Owned By Insiders30.03 %10.09 %
Shares Owned By Institutions49.06 %39.21 %
Price To Book12.82 X9.51 X
Price To Sales7.42 X11.42 X
Revenue4.88 B9.43 B
Gross Profit(79.47 M)27.38 B
EBITDA(3.34 B)3.9 B
Net Income(4.65 B)570.98 M
Cash And Equivalents1.54 B2.7 B
Cash Per Share2.53 X5.01 X
Total Debt2.58 B5.32 B
Current Ratio0.26 X2.16 X
Book Value Per Share(13.61) X1.93 K
Cash Flow From Operations(184.1 M)971.22 M
Earnings Per Share724.55 X3.12 X
Target Price81.58
Number Of Employees31.35 K18.84 K
Beta1.87-0.15
Market Capitalization63.05 B19.03 B
Total Asset13.31 B29.47 B
Working Capital(1.89 B)1.48 B
Current Asset2.89 B9.34 B
Current Liabilities4.78 B7.9 B
Z Score14.48.72
Annual Yield0.0001 %
Net Asset13.31 B

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.

Use Investing Ideas to Build Portfolios

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?

Run Personal Services Thematic Idea Now

Personal Services
Personal Services Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Personal Services theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Personal Services Theme or any other thematic opportunities.
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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When running LATAM Airlines' price analysis, check to measure LATAM Airlines' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy LATAM Airlines is operating at the current time. Most of LATAM Airlines' value examination focuses on studying past and present price action to predict the probability of LATAM Airlines' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move LATAM Airlines' price. Additionally, you may evaluate how the addition of LATAM Airlines to your portfolios can decrease your overall portfolio volatility.
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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.