LATAM Airlines Group S.A. (LTM.SN) stock analysis

In our weekly check, LATAM Airlines Group S.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 7, red flags: 2.

About LATAM Airlines Group S.A.

LATAM Airlines Group S.A. is an Industrials company (Airlines, Airports & Air Services) based in Chile, listed on SGO as LTM.SN.

What our checks show for LTM.SN

Red flags

• Net debt is 1.7x a year of EBITDA (debt/equity 4.51). That limits room in a downturn and raises refinancing risk.
• The stock has fallen as much as 100% from a peak. Would you have held through that?

Warning signs

• Operating profit covers interest only 3.8 times: a weak year could make the payments hard.
• Analysts expect earnings per share to shrink about 1.1% a year.
• Analysts expect the net margin to shrink by 2.1 points from today's 9.9%.
• Earnings per share fell 42.1% a year over the last 3 years.
• The net margin is only 9.9%: little room if costs rise.
• The price swings a lot: 36.1% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.

Strengths

• The net margin rose by 105 points over 5 years, to 9.9%.
• The gross margin is 27% and has risen by 29.7 points: pricing power is holding.
• Operating cash flow is 2.27x net profit: the profit arrives as real cash.
• Revenue grew 19.3% a year over the last 3 years.
• Free cash flow is 12.3% of revenue: cash for dividends, buybacks or growth.
• The dividend takes 29% of profit: there is a cushion.

Next earnings report: 2026-11-03

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Questions

What grade does LATAM Airlines Group S.A. (LTM.SN) have?

In our weekly check, LATAM Airlines Group S.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 7, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of LTM.SN stock?

This week's biggest flags for LATAM Airlines Group S.A.: High debt, Deep past fall, Weak interest cover. In total 9 of 25 checks show a warning or a red flag.

What does LATAM Airlines Group S.A. do?

LATAM Airlines Group S.A. is an Industrials company (Airlines, Airports & Air Services) based in Chile, listed on SGO as LTM.SN.

When does LATAM Airlines Group S.A. report earnings next?

The next earnings report is expected on 2026-11-03. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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