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Is this Large Market Cap Stock target price reasonable for LATAM Airlines Group S.A. (NYSE:LFL)?

The company in question is, LATAM Airlines Group S.A. (NYSE:LFL) currently with a stock price of 8.89 (1.83% today). The market cap for LATAM Airlines Group S.A. is 4777.4, and is in the sector Services, and Regional Airlines industry. The target price for LATAM Airlines Group S.A. is 8.95. Currently LATAM Airlines Group S.A. is trading with a P/E of *TBA, and a forward P/E of 22.85. Average volume for LATAM Airlines Group S.A. is 586.3 and so far today it is 385360.

Performance in the last year for LATAM Airlines Group S.A. has been 51.30%. For EPS growth, LATAM Airlines Group S.A. has seen a growth of 15.70%, and is looking to grow in the next year to 148.05%. More long term stats show that EPS growth has been -18.40% over the last five years and could be *TBA for the next five years. LATAM Airlines Group S.A. has seen sales growth quarter over quarter at -14.90%, with EPS growth quarter over quarter at -85.20%. The 20-day simple moving average is 6.80%, with the 200-day simple moving average coming to 27.96%.

Since the IPO date for LATAM Airlines Group S.A. on the 11/07/1997, LATAM Airlines Group S.A. has seen performance year to date to be 61.97%. With LATAM Airlines Group S.A. trading at 8.89, the dividend yield is *TBA, and the EPS is -0.22.

So could LATAM Airlines Group S.A., be undervalued? Well as said before P/E is *TBA. The PEG is *TBA, P/S is 0.53 and the P/B is at 1.38. The P/cash is 3.79, with P/free cash flow at *TBA.

LATAM Airlines Group S.A. ability to deal with debt shows that the current ratio is 0.5, and the quick ratio is 0.4. This is with long term debt/equity at 2.06, and total debt/equity at 2.59.

In terms of margins, LATAM Airlines Group S.A. has a gross margin of 21.60%, an operating margin of 4.70% and a profit margin of -1.30%.Payout ratio for LATAM Airlines Group S.A. is *TBA. Return on assets come to -0.60% with return on investment coming to 5.30%.

Insider ownership for LATAM Airlines Group S.A., is at 94.30% and institutional ownership comes to 4.30%. Outstanding shares are at 547.24. While shares float is 270.87. The float short is currently 2.00%, and short ratio is 9.25.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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