LATAM Airlines Group (XSGO:LTM) Risk Assessment

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What is LATAM Airlines Group Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of LATAM Airlines Group is: High Risk: High uncertainty with risk-return tradeoff.

Competitive Comparison of LATAM Airlines Group's Risk Assessment

For the Airlines subindustry, LATAM Airlines Group's Risk Assessment, along with its competitors' market caps and Risk Assessment data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

LATAM Airlines Group's Risk Assessment Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, LATAM Airlines Group's Risk Assessment distribution charts can be found below:

* The bar in red indicates where LATAM Airlines Group's Risk Assessment falls into.

LATAM Airlines Group (XSGO:LTM) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

LATAM Airlines Group Risk Assessment Related Terms

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LATAM Airlines Group (XSGO:LTM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » LATAM Airlines Group SA (XSGO:LTM) » Definitions » Risk Assessment

Comparable Companies

Traded in Other Exchanges

LTMAY:USA LFL:Germany

Address

Avenida Presidente Riesco No. 5711, 20th Floor, Las Condes, Santiago, CHL

Website

https://www.latamairlinesgroup.net

LATAM Airlines Group SA operates as a passenger airline group. Geographically, the company operates in Brazil, Chile, Colombia, Ecuador, and Peru, along with international operations within Latin America and to Europe, the US, and the Caribbean. The firm generates its revenue from transporting passengers and cargo.

LATAM Airlines Group (XSGO:LTM) Headlines

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