About LATAM AIRLINES GROUP S.A.
LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Peru, Argentina, the United States, Europe, Colombia, Brazil, Ecuador, Chile, the Asia Pacific, and rest of Latin America. The company provides passenger transport services to approximately 111 destinations in 16 countries, as well as cargo services to approximately 117 destinations in 20 countries; and operates loyalty programs. As of December 31, 2020, it operated a fleet of 297 aircraft, which include 286 passenger aircraft and 11 cargo aircraft; and subleased 3 aircraft comprising 2 passenger aircraft and 1 cargo aircraft to third parties. The company was formerly known as LAN Airlines S.A. and changed its name to LATAM Airlines Group S.A.
in June 2012. LATAM Airlines Group S.A. was founded in 1929 and is headquartered in Santiago, Chile. On May 26, 2020, LATAM Airlines Group S.A., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.
LTM operates in the Transportation, Communications, Electric, Gas, And Sanitary Services | Transportation | approximately 29,100 employees | led by CEO Roberto A. Milosawlewitsch.
$8.3 billion 8.5x P/E 11.5x P/B 3.7x EV/EBITDA 1.7% ROE 10.2% rev. growth
LATAM AIRLINES GROUP S.A. earns a Buy rating from our quantitative model with a composite score of 74/100, ranking #16 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is value at 92/100, which places LTM in the top 8 percent of all stocks on this measure. momentum at 87/100 provides secondary support. No single factor falls below the average threshold, which is a constructive sign.
Within the Transportation, Communications, Electric, Gas, And Sanitary Services sector, LTM ranks 4th out of 50 peers, placing it in the 92nd percentile. At $8.3 billion, the company is a mid-cap name with room to grow.
Quality Analysis
LATAM AIRLINES GROUP S.A.'s quality score of 72/100 reflects solid profitability that ranks above the majority of stocks. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 1.7% trails the sector median of 12.0%. Gross margins of 25.5% suggest a commodity-like business with thin pricing power. Operating margins of 12.0% sit below the 15.0% sector average.
Net margins of 7.6% show the company is profitable, though not with exceptional efficiency.
Valuation Assessment
A value score of 92/100 puts LTM in the top 8 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 8.5x, an EV/EBITDA of 3.7x, a price-to-book of 11.5x, a price-to-sales of 0.7x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
LATAM AIRLINES GROUP S.A.'s momentum score of 87/100 places it among the strongest trending stocks in the market. The stock has been outperforming roughly 87 percent of all other companies over the relevant measurement window. The academic literature, starting with Jegadeesh and Titman's seminal 1993 research, demonstrates that stocks with this kind of relative strength tend to continue outperforming for three to twelve months.
Revenue growth of 10.2% provides a moderate fundamental underpinning. A beta of 1.00 means LATAM AIRLINES GROUP S.A. moves roughly in line with the broader market.
Our entry timing model currently signals Favorable, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support LATAM AIRLINES GROUP S.A.'s rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
LATAM AIRLINES GROUP S.A. earns a Buy rating with a composite score of 74/100 and 4 out of 5 stars, ranking #16 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position LTM above the majority of the market.
Explore the full LTM analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
