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Upturn AI SWOT - About
LATAM Airlines Group S.A. (LTM)
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Upturn Advisory Summary
04/01/2025: LTM (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Outstanding Performance
These Stocks/ETFs, based on Upturn Advisory, have historically outperformed the market, making them a top-tier choice for investors.
Analysis of Past Performance
Type Stock | Historic Profit 4.88% | Avg. Invested days 58 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  5.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 9.86B USD | Price to earnings Ratio 10.92 | 1Y Target Price 38.5 |
Price to earnings Ratio 10.92 | 1Y Target Price 38.5 | ||
Volume (30-day avg) 443745 | Beta 1.8 | 52 Weeks Range 21.83 - 33.50 | Updated Date 03/22/2025 |
52 Weeks Range 21.83 - 33.50 | Updated Date 03/22/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 2.99 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 7.61% | Operating Margin (TTM) 13.88% |
Management Effectiveness
Return on Assets (TTM) 6.44% | Return on Equity (TTM) 170.05% |
Valuation
Trailing PE 10.92 | Forward PE 10.17 | Enterprise Value 14992062586 | Price to Sales(TTM) 0.77 |
Enterprise Value 14992062586 | Price to Sales(TTM) 0.77 | ||
Enterprise Value to Revenue 1.15 | Enterprise Value to EBITDA 8.32 | Shares Outstanding 302219008 | Shares Floating 227782414169 |
Shares Outstanding 302219008 | Shares Floating 227782414169 | ||
Percent Insiders - | Percent Institutions 43.05 |
Analyst Ratings
Rating 4.17 | Target Price - | Buy 3 | Strong Buy 2 |
Buy 3 | Strong Buy 2 | ||
Hold 1 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
LATAM Airlines Group S.A.
Company Overview
History and Background
LATAM Airlines Group S.A. was formed in 2012 through the merger of LAN Airlines (Chile) and TAM Airlines (Brazil). LAN was founded in 1929, while TAM was established in 1976. The merger aimed to create the largest airline group in Latin America.
Core Business Areas
- Passenger Airlines: This segment involves the transportation of passengers on domestic and international routes. It is the largest source of revenue for LATAM.
- Cargo: LATAM Cargo provides air cargo transportation services, carrying goods across Latin America and to other parts of the world.
- Ancillary Services: Includes services such as baggage fees, seat upgrades, and in-flight purchases, contributing to overall revenue.
Leadership and Structure
Roberto Alvo is the current CEO. The organizational structure comprises various departments including operations, finance, marketing, and human resources, overseen by a board of directors.
Top Products and Market Share
Key Offerings
- Passenger Transportation (Domestic & International): This is LATAM's core offering, transporting millions of passengers annually across South America, North America, Europe, and Oceania. Market share varies by region but is significant within South America. Competitors include Avianca, Copa Airlines, and Azul.
- Cargo Transportation: LATAM Cargo transports a variety of goods including perishables, pharmaceuticals, and general cargo. They hold a prominent position in Latin American air cargo. Competitors include Cargolux, Atlas Air, and other major cargo carriers.
Market Dynamics
Industry Overview
The airline industry is characterized by high competition, fluctuating fuel prices, and sensitivity to economic conditions. Demand is influenced by tourism, business travel, and cargo shipments. The industry is recovering from the COVID-19 pandemic impacts.
Positioning
LATAM Airlines Group S.A. is one of the largest airline groups in Latin America. It boasts a vast network and brand recognition, providing a competitive advantage within the region.
Total Addressable Market (TAM)
The Latin American airline market is estimated to be in the tens of billions of dollars annually. LATAM holds a significant portion of this TAM, particularly in the passenger and cargo sectors. Growth is expected with increasing regional connectivity and tourism.
Upturn SWOT Analysis
Strengths
- Extensive network within Latin America
- Strong brand recognition
- Modern aircraft fleet
- Large customer base
Weaknesses
- High debt levels (post-bankruptcy restructuring)
- Exposure to volatile currency fluctuations
- Labor union challenges
- High operating costs
Opportunities
- Increasing tourism in Latin America
- Expansion into new routes and markets
- Growing demand for air cargo
- Strategic partnerships with other airlines
Threats
- Economic instability in Latin America
- Rising fuel prices
- Intense competition from low-cost carriers
- Geopolitical risks
Competitors and Market Share
Key Competitors
- UAL
- ALK
- DAL
- SAVE
Competitive Landscape
LATAM's advantages include its strong brand in South America and extensive regional network. Its disadvantages include higher operating costs compared to some low-cost competitors and exposure to regional economic volatility.
Major Acquisitions
Aires (Colombia)
- Year: 2010
- Acquisition Price (USD millions): 12.3
- Strategic Rationale: Aires provided LAN with increased domestic Colombian routes and market share. Provided market penetration into Colombia.
Growth Trajectory and Initiatives
Historical Growth: Historically, LATAM experienced growth through expansion and acquisitions. However, the COVID-19 pandemic and subsequent bankruptcy significantly impacted its growth trajectory. The company is now focused on restructuring and recovery.
Future Projections: Future growth is projected based on successful execution of the restructuring plan and improved economic conditions in Latin America. Analyst estimates vary, reflecting the uncertainty surrounding the airline industry.
Recent Initiatives: Recent initiatives include fleet modernization, network optimization, and digitalization of services. Post-bankruptcy, the focus is on deleveraging and improving operational efficiency.
Summary
LATAM Airlines Group S.A. is a significant player in the Latin American airline market, boasting a strong brand and extensive network. The company is currently undergoing a restructuring process post-bankruptcy, which presents both opportunities and challenges. Its ability to reduce debt, improve operational efficiency, and capitalize on growing demand will be crucial for its future success. They should be wary of economic instability and competition from low cost carriers.
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Sources and Disclaimers
Data Sources:
- Company filings
- Industry reports
- Market analysis reports
Disclaimers:
The information provided is for informational purposes only and does not constitute financial advice. Market conditions are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About LATAM Airlines Group S.A.
Exchange NYSE | Headquaters - | ||
IPO Launch date 1997-11-07 | CEO & Acting CFO Mr. Roberto Alvo Milosawlewitsch | ||
Sector Industrials | Industry Airlines | Full time employees 38664 | |
Full time employees 38664 | |||
LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Chile, Argentina, Peru, Colombia, Ecuador, Brazil, the United States, other Latin American countries, the Caribbean, Europe, and Oceania. As of December 31, 2024, the company provides passenger transport services to 151 destinations in 27 countries; and operated 347 fleet of aircraft. 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.
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