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Liberty Latin America Ltd. (LILA) is a leading telecommunications company operating across Chile, Puerto Rico, the Caribbean, and Central America.
Investment Thesis
LILA is a high-growth 'infrastructure' play on the emerging markets of Latin America. In many of the countries where LILA operates, high-speed fiber and 4G/5G penetration is still in the early stages. LILA is the primary consolidator in these markets, building a unified network that provides essential data and mobile services to millions. Following a period of heavy CapEx and integration of acquisitions, the company is now entering a high-margin harvest phase. With a focus on generating free cash flow and a committed share buyback program, LILA offers leveraged exposure to the digital boom in Latin America at a value price.
Key Growth Drivers
Data Consumption Super-Cycle
Explosive growth in mobile data and home broadband demand in emerging Latin American markets provides a long-term structural tailwind for LILA's network.
Operational Synergy Harvest
Management is successfully integrating recent major acquisitions (like Claro Panama and VTR), which is driving significant margin expansion through cost rationalization.
Shareholder-First Capital Allocation
The company is utilizing its surging free cash flow to aggressively retire shares at distressed multiples, rapidly accreting value to long-term holders.
Valuation & Financial Modeling
LILA trades at a deep discount to its U.S. and European telecom peers. We believe the market is over-weighting the geopolitical risks of Latin America and under-valuing the irreplaceable nature of LILA's fiber and mobile infrastructure. The re-rating potential is significant.
Risk Factors & Bear Case
Geopolitical instability and currency devaluation in countries like Chile and Panama are persistent risks. Additionally, the telecommunications sector is highly competitive and requires constant CapEx to maintain network leadership.
Conclusion
Liberty Latin America is a premier emerging market infrastructure play. It offers high-growth data exposure with the backing of a sophisticated, value-oriented management team. Rated 'Buy'.
Upcoming Catalysts
No upcoming catalysts identified.
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Relative to Communication Services Sector Median (N=134)
Metric
LILA
Benchmark
P/E Ratio
26.1x
0%
EV/EBITDA
22.9x
+360%
Price / Book
1.6x
Implied Value Audit
FAIR VALUE
Implied Fair Value (vs Sector)
-12.9%
$7.08Spot: $8.13
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Communication Services sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 45.2GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
-89.8%
Sector: 1.0%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Liberty Latin America Ltd. (LILA) receives a "Hold" rating with a composite score of 44.4/100, ranked #617 out of 4446 stocks. Key factor scores: Quality 45/100, Value 37/100, Momentum 52/100. This is quantitative analysis only — not investment advice.
Liberty Latin America Ltd. (LILA) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Liberty Latin America Ltd. Do?
Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean and Networks, C&W Panama, Liberty Puerto Rico, VTR, and Costa Rica segments. It offers communications and entertainment services, including video, broadband internet, fixed-line telephony, and mobile services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services in approximately 20 countries in Latin America, the Caribbean, Chile, and Costa Rica under the brands of C&W, VTR, Liberty Puerto Rico, Cabletica, BTC, UTS, Flow, and Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda. Liberty Latin America Ltd. (LILA) is classified as a small-cap stock in the Communication Services sector, specifically within the Communication industry. The company is led by CEO Balan Nair and employs approximately 11,000 people. With a market capitalization of $1.7B, LILA is one of the notable companies in the Communication Services sector.
Liberty Latin America Ltd. (LILA) Stock Rating — Hold (April 2026)
As of April 2026, Liberty Latin America Ltd. receives a Hold rating with a composite score of 44.4/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.LILA ranks #617 out of 4,446 stocks in our coverage universe. Within the Communication Services sector, Liberty Latin America Ltd. ranks #14 of 134 stocks, placing it in the top quartile of its Communication Services peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
LILA Stock Price and 52-Week Range
Liberty Latin America Ltd. (LILA) currently trades at $8.13. The stock lost $0.20 (2.4%) in the most recent trading session. The 52-week high for LILA is $9.04, which means the stock is currently trading -10.1% from its annual peak. The 52-week low is $4.25, putting the stock 91.1% above its annual trough. Recent trading volume was 166K shares, suggesting relatively thin trading activity.
Is LILA Overvalued or Undervalued? — Valuation Analysis
Liberty Latin America Ltd. (LILA) carries a value factor score of 37/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The trailing price-to-earnings ratio is 26.08x, compared to the Communication Services sector average of 26.08x — a premium of 0%. The price-to-book ratio stands at 1.55x, versus the sector average of 1.87x. The price-to-sales ratio is 0.38x, compared to 0.55x for the average Communication Services stock. On an enterprise value basis, LILA trades at 22.92x EV/EBITDA, versus 4.98x for the sector.
At current multiples, Liberty Latin America Ltd. trades at a premium to most Communication Services peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.
Liberty Latin America Ltd. Profitability — ROE, Margins, and Quality Score
Liberty Latin America Ltd. (LILA) earns a quality factor score of 45/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is -89.8%, compared to the Communication Services sector average of 1.0%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -7.8% versus the sector average of -0.0%.
On a margin basis, Liberty Latin America Ltd. reports gross margins of 78.4%, compared to 56.4% for the sector. The operating margin is -9.2% (sector: 0.4%). Net profit margin stands at -22.0%, versus -0.9% for the average Communication Services stock. Revenue growth is running at -0.5% on a trailing basis, compared to 3.0% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
LILA Debt, Balance Sheet, and Financial Health
Liberty Latin America Ltd. has a debt-to-equity ratio of 778.0%, compared to the Communication Services sector average of 82.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.14x, suggesting adequate working capital coverage. Total debt on the balance sheet is $8.27B. Cash and equivalents stand at $597M.
LILA has a beta of 0.70, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Liberty Latin America Ltd. is 64/100, reflecting average volatility within the normal range for its sector.
Liberty Latin America Ltd. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Liberty Latin America Ltd. reported revenue of $4.37B and earnings per share (EPS) of $-3.06. Net income for the quarter was $-955M. Gross margin was 78.4%. Operating income came in at $-397M.
In FY 2025, Liberty Latin America Ltd. reported revenue of $4.44B and earnings per share (EPS) of $-3.06. Net income for the quarter was $-554M. Gross margin was 78.0%. Revenue grew -0.1% year-over-year compared to FY 2024. Operating income came in at $108M.
In Q3 2025, Liberty Latin America Ltd. reported revenue of $1.11B and earnings per share (EPS) of $0.02. Net income for the quarter was $16M. Gross margin was 77.7%. Revenue grew 2.1% year-over-year compared to Q3 2024. Operating income came in at $188M.
In Q2 2025, Liberty Latin America Ltd. reported revenue of $1.09B and earnings per share (EPS) of $-2.12. Net income for the quarter was $-415M. Gross margin was 78.6%. Revenue grew -2.8% year-over-year compared to Q2 2024. Operating income came in at $-333M.
Over the past 8 quarters, Liberty Latin America Ltd. has demonstrated a growth trajectory, with revenue expanding from $1.12B to $4.37B. Investors analyzing LILA stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
LILA Dividend Yield and Income Analysis
Liberty Latin America Ltd. (LILA) does not currently pay a dividend. This is common among smaller companies in the Communication industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Communication Services dividend stocks may want to explore other Communication Services stocks or use the stock screener to filter by dividend yield.
LILA Momentum and Technical Analysis Profile
Liberty Latin America Ltd. (LILA) has a momentum factor score of 52/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 25/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
LILA vs Competitors — Communication Services Sector Ranking and Peer Comparison
Comparing LILA against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full LILA vs S&P 500 (SPY) comparison to assess how Liberty Latin America Ltd. stacks up against the broader market across all factor dimensions.
LILA Next Earnings Date
No upcoming earnings date has been announced for Liberty Latin America Ltd. (LILA) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy LILA? — Investment Thesis Summary
Liberty Latin America Ltd. presents a balanced picture with arguments on both sides. The value score of 37/100 indicates premium valuation. Low volatility (stability score 64/100) reduces downside risk.
In summary, Liberty Latin America Ltd. (LILA) earns a Hold rating with a composite score of 44.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on LILA stock.
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Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-0.5%
Sector: 3.0%
-117% VS SCTR
Gross Margin
Core pricing power
78.4%
Sector: 56.4%
+39% VS SCTR
Operating Margin
Operating efficiency
-9.2%
Sector: 0.4%
-2266% VS SCTR
Net Margin
Bottom-line conversion
-22.0%
Sector: -0.9%
+2454% VS SCTR
Return on Equity
Equity capital efficiency
-89.8%
Sector: 1.0%
-9358% VS SCTR
Return on Assets
Asset base utilization
-7.8%
Sector: -0.0%
+19425% VS SCTR
Debt/Equity
Financial leverage load
778.0%
Sector: 82.0%
-849% VS SCTR
Dividend Yield
Direct cash return
0.0%
Sector: 0.0%
-NaN% VS SCTR
-17%
Price / Sales
0.4x
-31%
Liberty Latin America Ltd. exhibits a 78% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
-7.8%
Sector: -0.0%
Gross Margin
Pricing power and cost efficiency
78.4%
Sector: 56.4%
Operating Margin
Core business profitability
-9.2%
Sector: 0.4%
Net Margin
Bottom-line profitability
-22.0%
Sector: -0.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.