Latecoere (LAT) AI Stock Analysis

• Market Cap: €168.82M
• Dividend Yield: N/A
• Average Volume (3M): 1.86M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: 8.61%
• EPS Growth: -216.67%
• Country: FR
• Employees: 5,497
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): >-0.01
• Shares Outstanding: 12,693,056,000
• 10 Day Avg. Volume: 2,521,622
• 30 Day Avg. Volume: 1,855,153
• PEG Ratio: <0.01
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 0.18
• P/FCF Ratio: -3.29
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): €635.99M

• Rating: 49 Neutral
• Price Target: €0.00 ▼(-100.00% Downside)

Latecoere's stock score is primarily impacted by its financial performance challenges, including high leverage and negative cash flow. While technical indicators show bullish momentum, the overbought RSI suggests caution. The negative P/E ratio further highlights profitability issues, contributing to a lower overall score.

Positive Factors

Revenue Growth

The revenue growth indicates a positive trend in sales, suggesting an expanding market presence and potential for future revenue streams.

Business Model

Long-term contracts provide a stable income stream, reducing revenue volatility and enhancing financial predictability.

Market Position

Strategic partnerships strengthen market position and competitive advantage, potentially leading to increased market share.

Negative Factors

High Leverage

High leverage can pose financial risks, limiting flexibility and increasing vulnerability to economic downturns.

Profitability Challenges

Ongoing profitability issues highlight operational inefficiencies, impacting long-term financial health and shareholder value.

Cash Flow Issues

Negative cash flow from operations suggests difficulty in sustaining operations without external financing, affecting long-term viability.

Latecoere Business Overview & Revenue Model

Company Description

Latecoere (LAT) is a French aerospace company that specializes in the design and manufacturing of aerostructures and interconnection systems for both commercial and military aircraft. Operating primarily in the aerospace sector, the company provides a wide range of products including fuselage sections, doors, and cockpit structures, as well as electrical and data interconnection systems. Latecoere serves major aerospace OEMs (Original Equipment Manufacturers) and operates through a network of facilities located in Europe, North America, and Asia.

How the Company Makes Money

Latecoere generates revenue through the sale of its aerostructures and interconnection systems. The company's revenue model is primarily based on long-term contracts with major aircraft manufacturers, which provide a stable income stream through the supply of components for new aircraft programs as well as aftermarket services. Key revenue streams include the manufacturing of fuselage components and doors for commercial jets, as well as specialized interconnection systems for both commercial and military applications. Additionally, Latecoere benefits from partnerships with leading aerospace companies, which enhance its market position and contribute to its financial performance. The company also engages in research and development to innovate its product offerings, which can lead to new revenue opportunities.

Latecoere Financial Statement Overview

Summary

Latecoere shows revenue growth but struggles with profitability and cash flow. High leverage and low equity ratio indicate financial instability, necessitating improvements in operational efficiency and cash generation.

Income Statement

Latecoere's revenue grew by 13.42% from 2023 to 2024, indicating a positive trend in sales. However, the company has been struggling with profitability, posting a negative net income margin of -8.77% in 2024. The gross profit margin is relatively healthy at 42.75%, but the negative EBIT margin of -5.81% suggests operational inefficiencies.

Balance Sheet

The debt-to-equity ratio of 3.66 in 2024 indicates high leverage, which could pose financial risks. The equity ratio of 10.24% is low, suggesting that the company is heavily reliant on debt. Return on equity is negative due to net losses, reflecting poor shareholder returns.

Cash Flow

Operating cash flow is negative, indicating challenges in generating cash from core operations. The free cash flow to net income ratio cannot be calculated due to negative figures, highlighting cash flow issues. The company needs to improve its cash generation to sustain operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	726.61M	705.83M	622.34M	468.28M	332.12M	413.23M
Gross Profit	164.49M	301.73M	-58.96M	162.81M	117.57M	-60.92M
EBITDA	47.28M	24.49M	124.44M	-39.20M	-50.85M	-145.46M
Net Income	-19.41M	-61.91M	6.16M	-127.09M	-110.97M	-189.57M
Balance Sheet
Total Assets	661.17M	693.62M	714.42M	742.49M	752.24M	489.96M
Cash, Cash Equivalents and Short-Term Investments	40.82M	59.79M	85.42M	73.97M	277.66M	77.61M
Total Debt	224.42M	260.19M	216.10M	394.09M	342.81M	225.25M
Total Liabilities	556.13M	622.59M	549.09M	721.06M	601.26M	453.77M
Stockholders Equity	105.04M	71.04M	165.34M	21.43M	150.99M	37.66M
Cash Flow
Free Cash Flow	15.22M	-38.41M	-123.47M	-107.80M	-61.48M	-29.02M
Operating Cash Flow	31.09M	-16.35M	-89.14M	-64.01M	-45.44M	-16.33M
Investing Cash Flow	-11.32M	-18.09M	-21.48M	-127.39M	-49.57M	-12.55M
Financing Cash Flow	-4.11M	8.71M	121.73M	-12.52M	276.02M	69.81M

Latecoere Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIR	76 Outperform	$162.14B	31.93	22.66%	1.48%	7.05%	54.98%
FII	73 Outperform	€2.11B	33.66	6.49%	0.78%	9.17%	12.78%
ALSOG	70 Outperform	€78.36M	15.53	―	3.90%	2.53%	76.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FGA	61 Neutral	€526.71M	137.14	5.48%	―	8.85%	―
EXA	55 Neutral	€1.28B	943.28	1.12%	―	29.80%	―
LAT	49 Neutral	€168.82M	―	-17.24%	―	8.61%	-216.67%