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Liberty Global LiLAC (LILA)
NASDAQ:LILA
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Liberty Global LiLAC
(NASDAQ:LILA)
50Neutral
Liberty Global LiLAC (LILA) vs. S&P 500 (SPY)
Market Cap
$1.32B
Dividend YieldN/A
Average Volume (3M)423.74K
Price to Earnings (P/E)―
Beta (1Y)0.68
Revenue Growth-1.31%
EPS Growth-1163.93%
CountryUS
Employees10,000
SectorCommunication Services
Sector Strength79
IndustryTelecommunications
Share Statistics
EPS (TTM)-3.34
Shares Outstanding38,000,000
10 Day Avg. Volume320,920
30 Day Avg. Volume423,744
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.30
Price to Cash Flow (P/CF)0.80
P/FCF Ratio1.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.25Price Target Upside7.73% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering2
Liberty Global LiLAC Business Overview & Revenue Model
Company DescriptionLiberty Latin America Ltd. is a holding company, which engages in the provision of fixed, mobile and subsea telecommunications services. It operates through the following segments: Cable and Wireless Communications Limited (C&W), VTR/Cabletica, and Liberty Puerto Rico, and Corporate and Other. The C&W segment offers cloud based integrated communication services, connectivity, and wholesale solutions to carriers and businesses via sub-sea and terrestrial fiber optic cable networks. The VTR/Cabletica segment includes mobile telephony and data services and relies on the radio access network of a third-party wireless network provider to carry its mobile communications traffic. The Liberty Puerto Rico segment provides lifeline programs and fixed-line video services. The company was founded on July 11, 2017 and is headquartered in Denver, CO.
How the Company Makes MoneyLiberty Global LiLAC generates revenue through multiple streams within the telecommunications and media sectors. The primary revenue sources include subscription fees for cable television, broadband internet, and mobile services. The company also earns from fixed-line telephony services. A significant portion of its revenue is derived from customer subscriptions, which provide a steady and recurring income. Additionally, Liberty Global LiLAC benefits from strategic partnerships and alliances with content providers and technology companies, enhancing its service offerings and expanding its market reach. Advertising and pay-per-view services also contribute to its earnings, although to a lesser extent compared to subscription services.
Liberty Global LiLAC Financial Statement Overview
Summary
Liberty Global LiLAC faces challenges with profitability and leverage, highlighted by a negative net income and high debt-to-equity ratio. Despite strong cash flow generation, revenue contraction and declining equity levels are concerning. Improvement in profitability and debt management is crucial.Income Statement
Liberty Global LiLAC has experienced a decline in total revenue from the previous year and negative net income, which has impacted the overall profitability. The gross profit margin is relatively strong, suggesting effective management of direct costs. However, negative EBIT and net income margins highlight ongoing profitability challenges, with particular concern over the significant net loss in the latest year.45
Neutral
Balance Sheet
The company has a high debt-to-equity ratio, indicating significant leverage which could pose risks if not managed properly. While the equity ratio is quite low, suggesting limited equity financing, the company's assets are still substantial. A decreasing stockholders' equity further impacts financial stability and limits flexibility.50
Neutral
Cash Flow
The cash flow statement reveals a strong ability to generate operating cash flow, which is a positive sign of operational health. However, the free cash flow growth has been inconsistent, and the negative net income limits the effectiveness of cash flow to net income ratios. Despite this, the company's ability to maintain positive free cash flow is a strength.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.46B | 4.51B | 4.82B | 4.80B | 3.76B | Gross Profit |
| 2.96B | 3.00B | 3.60B | 3.61B | 2.92B | EBIT |
| -48.30M | 517.70M | 663.80M | 681.70M | 472.70M | EBITDA |
| 964.60M | 1.55B | 1.34B | 1.18B | 620.40M | Net Income Common Stockholders |
| -657.00M | -73.60M | -201.90M | -490.10M | -808.90M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 10.40M | 988.60M | 781.00M | 956.70M | 894.20M | Total Assets |
| 12.80B | 13.59B | 13.58B | 15.39B | 15.23B | Total Debt |
| 8.17B | 8.26B | 7.96B | 7.65B | 8.36B | Net Debt |
| 8.16B | 7.28B | 7.18B | 6.69B | 7.46B | Total Liabilities |
| 11.17B | 11.28B | 11.01B | 12.47B | 11.79B | Stockholders Equity |
| 1.12B | 1.76B | 1.92B | 2.24B | 2.71B |
| Cash Flow | Free Cash Flow | |||
| 756.30M | 312.00M | 208.70M | 279.90M | 74.30M | Operating Cash Flow |
| 756.30M | 897.00M | 868.80M | 1.02B | 640.10M | Investing Cash Flow |
| -688.50M | -615.80M | -1.12B | -1.27B | -2.45B | Financing Cash Flow |
| -386.40M | -62.40M | -29.20M | 426.60M | 271.10M |
Liberty Global LiLAC Technical Analysis
Negative
6.73
Price Trends
6.75
Negative
7.05
Negative
8.28
Negative
Market Momentum
-0.01
Positive
48.44
Neutral
61.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LILA, the sentiment is Negative. The current price of 6.73 is below the 20-day moving average (MA) of 6.77, below the 50-day MA of 6.75, and below the 200-day MA of 8.28, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 48.44 is Neutral, neither overbought nor oversold. The STOCH value of 61.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LILA.
Liberty Global LiLAC Risk Analysis
Liberty Global LiLAC disclosed 49 risk factors in its most recent earnings report. Liberty Global LiLAC reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Liberty Global LiLAC Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $138.95B | 8.87 | 19.24% | 3.37% | 1.78% | 11.62% | |
76 Outperform | $193.95B | 18.11 | 10.54% | 4.11% | -0.08% | -24.48% | |
74 Outperform | $57.64B | 10.34 | 38.11% | ― | 0.88% | 16.44% | |
59 Neutral | $29.05B | 0.82 | -18.77% | 4.01% | 2.13% | -47.15% | |
58 Neutral | $4.15B | ― | -20.95% | ― | 3.53% | 3.23% | |
52 Neutral | $1.24B | ― | 21.93% | ― | -3.06% | -290.86% | |
50 Neutral | $1.32B | ― | -45.55% | ― | -1.31% | -1163.93% |
* Communication Services Sector Average
Performance Comparison
LILA
Liberty Global LiLAC
6.73
-0.43
-6.01%
T
AT&T
27.02
10.84
67.00%
CHTR
Charter Communications
363.81
73.21
25.19%
CMCSA
Comcast
36.75
-4.57
-11.06%
LBTYA
Liberty Global A
11.67
3.05
35.38%
ATUS
Altice Usa
2.68
0.17
6.77%
Liberty Global LiLAC Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -6.66% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlights strong subscriber growth and financial performance in several regions, alongside strategic network investments and refinancing efforts. However, significant challenges remain, particularly in Puerto Rico, where revenue declines and operational issues persist. Despite these setbacks, the company exhibits potential for recovery and growth in 2025.Highlights
Subscriber Growth in Fixed and Mobile
Liberty Latin America added nearly 100,000 subscribers in 2024, with robust broadband and postpaid performance resulting in over 260,000 adds, excluding Puerto Rico, marking a 9% increase.
Strong Financial Performance in Certain Segments
Adjusted OIBDA of $1.6 billion was driven by strong year-over-year rebased growth in C&W Caribbean, Costa Rica, and double-digit growth in C&W Panama.
Network Investments and Readiness
Approximately 400,000 homes were passed or upgraded to fiber-to-the-home, with 97% of the fixed footprint now gigabit-ready.
Refinancing and Capital Structure Improvements
Successfully refinanced $3.3 billion of C&W debt, with over 75% siloed debt maturing in 2032 and beyond, improving financial stability.
Costa Rica Mobile and Broadband Expansion
Added 114,000 postpaid subscribers in Costa Rica, a 31% year-over-year increase, and expanded fiber-to-the-home network to 45%.
Lowlights
Puerto Rico Performance Decline
Liberty Puerto Rico experienced a 13% rebased revenue decline year-over-year, primarily due to subscriber reduction and migration challenges.
Impact of Hurricane Beryl
Hurricane Beryl in Jamaica negatively impacted broadband adds, resulting in 16,000 broadband losses in Q3 and a further 11,000 in Q4.
Bad Debt and Billing Issues in Puerto Rico
Puerto Rico saw a $10 million increase in bad debt in Q4 due to receivables from migrated customers and billing corrections post-migration.
Wholesale Revenue Challenges
Liberty Networks faced a rebased revenue decline of 2%, with wholesale figures challenged by non-cash IRU declines.
Company Guidance
During the call, Liberty Latin America provided detailed guidance and performance metrics for the fiscal year 2024. The company reported adding nearly 100,000 subscribers across its fixed and mobile bases, with significant growth in broadband and postpaid services, particularly excluding Puerto Rico. This growth represented a 9% increase, highlighting potential for volume growth in the region. Liberty Latin America achieved an adjusted OIBDA of $1.6 billion, driven by strong year-over-year rebased growth in C&W Caribbean and Costa Rica, along with double-digit rebased growth in C&W Panama. The company invested in its network infrastructure, passing or upgrading approximately 400,000 homes to fiber-to-the-home, achieving a 97% gigabit-ready fixed footprint. Additionally, Liberty Latin America refinanced $3.3 billion of C&W debt, extending the maturity of over 75% of its siloed debt to 2032 and beyond, in alignment with its long-term capital structure strategy. The company's CapEx was aligned with the annual target, and they plan to reduce capital intensity to 14% over the next few years. Despite challenges in Puerto Rico, the company expects to achieve adjusted OIBDA and free cash flow growth in 2025, maintaining its long-term financial targets.Liberty Global LiLAC Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Liberty Global LiLAC Strengthens Growth with Debt Refinancing
Positive
Feb 19, 2025
In 2024, Liberty Latin America Ltd. reported substantial network investments leading to growth in broadband and mobile subscribers, particularly in the Caribbean, Panama, and Costa Rica. Despite challenges in Puerto Rico due to platform migrations, the company expanded its gigabit-ready network to 97% of its footprint and successfully refinanced $3.3 billion of debt, strengthening its capital structure and positioning for future growth. The company also achieved double-digit growth in certain regions, although it faced hurdles in Puerto Rico and adjusted its expectations for future performance.
Financial Disclosures
Liberty Global LiLAC to Announce 2024 Financial Results
Neutral
Feb 12, 2025
Liberty Latin America announced it will release its full-year 2024 financial results on February 19, 2025, with an investor call scheduled for the following day. This event will provide management the opportunity to discuss the company’s results and business outlook, potentially impacting investor perceptions and market positioning.
Private Placements and FinancingBusiness Operations and Strategy
Liberty Global LiLAC Refinances Debt with $1.5 Billion Loan
Positive
Feb 4, 2025
In January 2025, Liberty Latin America’s Cable & Wireless priced a new $1.5 billion term loan due in 2032, which will refinance a loan maturing in 2028. This move is part of a strategic effort to extend the majority of C&W’s debt maturities beyond 2031, enhancing its financial stability and market positioning.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.