LATAM Airlines Group S.A. trades as part of the industrials sector and airlines industry. The company CEO is Enrique Cueto Cueto Plaza. LATAM Airlines Group SA is engaged in passenger and cargo transportation. It functions under two brands, which are LAN and TAM.

Previous Intraday Performance:

The LTM shares had a previous change of -0.53% which opened at 11.41 and closed at 11.33. It moved to an intraday high of 11.42 and a low of 11.27.

SeekingAlpha:  LATAM Airlines updates January traffic

Historical Performance:

Over the last five trading days, LTM shares returned -5.11% and in the past 30 trading days it returned -1.99%. Over three months, it changed 11.74%. In one year it has changed -26.92% and within that year its 52-week high was 16.59 and its 52-week low was 8.42. LTM stock is 34.64% above its 52 Week Low.

Our calculations result in a 200 day moving average of 10.53 and a 50 day moving average of 11.37. Right now, LTM stock is trading 7.63% above its 200 day moving average.

SeekingAlpha:  LATAM Airlines updates January traffic


The company has a market cap of $6.9b with 606.4m shares outstanding and a float of 606.4m shares. Trading volume was 187,618 shares and has experienced an average volume of 310,227 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is bad, highly speculative and an investor may want to avoid this stock.


The last annual reported EPS for LATAM Airlines Group S.A. was 0.26 which ended on 31st of December 2017, which according to the previous close, that is a PE of 43.58. Based on 4 analyst estimates, the consensus EPS for the next quarter is 0.23. The trailing twelve month EPS is 0.16, which comes to a trailing twelve month PE of 70.81.

Below was the last reported quarterly earnings per share:
09-30-2018:  0.09
06-30-2018:  -0.19
03-31-2018:  0.15
12-31-2017:  0.11

The dividend per share is currently 0.08, which is a dividend yield of 0.67%. Also, the payout ratio is 47.10%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 26.78, which means it might be undervalued and has a margin of safety of 57.69%

The next earnings report will be: 03-19-2019

The long-term trend of the EPS is an important number as it indicates the present value of LATAM Airlines Group S.A.; it is usually expressed as a percentage and is then referred to as the EPS growth rate, which at this time is hard to estimate, but revenue growth has been -5.50% over the last twelve months.

Indicators Also to Watch:

Based on the latest filings, there is 3.60% of institutional ownership. Short-interest was 4,814,503, which was 0.79% of shares outstanding. The short-interest ratio or days-to-cover ratio was 12.35. This stock has some short interest, but it might be normal and no need to worry if long the position.

I calculated the beta to be 1.39

SeekingAlpha:  Koss reports Q1 results

Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 2.58%, return on assets is 0.55%, profit margin is 0.71%, price-to-sales is 0.95 and price-to-book is 2.06.

Company Score Card:

Results are out of six:
 3  : Growth Expectations Result
 1  : Financial Safety Result
 2  : Past Performance Result
 2  : Valuation Result
 0  : Dividend Safety Result
 2  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).


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