Liberty Latin America Ltd. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ooma, Inc.

IDT Corp.

ATN International, Inc.

Frontier Communications Parent, Inc.

Liberty Latin America Ltd.

Cogent Communications Holdings, Inc.

Consolidated Communications Holdings, Inc.

WideOpenWest, Inc.

Lumen Technologies, Inc. (Louisiana)

Altice USA, Inc.

Shenandoah Telecommunications Co. (Virginia)

Why is Liberty Latin America Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.52%

Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.72 times

The company has declared Negative results for the last 6 consecutive quarters

NET PROFIT(9M) At USD -682.36 MM has Grown at -497.93%
OPERATING CASH FLOW(Y) Lowest at USD 726.36 MM
PRE-TAX PROFIT(Q) At USD -54 MM has Fallen at -42.29%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 17.92%, its profits have fallen by -632.7%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Liberty Latin America Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Liberty Latin America Ltd.

26.62%

-0.02

43.42%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.45%

EBIT Growth (5y)

61.51%

EBIT to Interest (avg)

0.97

Debt to EBITDA (avg)

3.72

Net Debt to Equity (avg)

4.51

Sales to Capital Employed (avg)

0.58

Tax Ratio

0.01%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

79.60%

ROCE (avg)

8.52%

ROE (avg)

4.48%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.01

EV to EBIT

9.92

EV to EBITDA

3.72

EV to Capital Employed

1.00

EV to Sales

1.27

PEG Ratio

Dividend Yield

ROCE (Latest)

10.11%

ROE (Latest)

-14.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.06% (YoY

OPERATING PROFIT(Q)

Highest at USD 401.3 MM

OPERATING PROFIT MARGIN(Q)

Highest at 36.93 %

NET PROFIT(Q)

Highest at USD 93.5 MM

-17What is not working for the Company

NET PROFIT(9M)

At USD -682.36 MM has Grown at -497.93%

OPERATING CASH FLOW(Y)

Lowest at USD 726.36 MM

PRE-TAX PROFIT(Q)

At USD -54 MM has Fallen at -42.29%

ROCE(HY)

Lowest at -103.84%

DEBT-EQUITY RATIO (HY)

Highest at 1,343.11 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.75 times

CASH AND EQV(HY)

Lowest at USD 1,089.9 MM

Here's what is working for Liberty Latin America Ltd.

Net Profit

At USD 93.5 MM has Grown at 152.47%

over average net sales of the previous four periods of USD -178.19 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Profit

Highest at USD 401.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 36.93 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at USD 93.5 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Raw Material Cost

Fallen by -3.06% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Liberty Latin America Ltd.

Pre-Tax Profit

At USD -54 MM has Fallen at -42.29%

over average net sales of the previous four periods of USD -37.95 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Operating Cash Flow

Lowest at USD 726.36 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Highest at 1,343.11 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 4.75 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Cash and Eqv

Lowest at USD 1,089.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents