Liberty Global LiLAC (LILA) AI Stock Analysis

• Market Cap: $1.60B
• Dividend Yield: N/A
• Average Volume (3M): 476.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: -2.15%
• EPS Growth: -1269.05%
• Country: US
• Employees: 10,000
• Sector: Communication Services
• Sector Strength: 91
• Industry: Telecommunications Services
• EPS (TTM): 0.01
• Shares Outstanding: 39,000,000
• 10 Day Avg. Volume: 606,432
• 30 Day Avg. Volume: 476,262
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 6.20
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 4.22
• Enterprise Value/Ebitda: 31.17
• 1Y Price Target: $8.67
• Price Target Upside: 11.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: $8.00 ▲(2.96% Upside)

Liberty Global LiLAC's overall stock score is primarily impacted by its financial challenges, including declining revenues and high leverage. Despite strong technical indicators suggesting bullish momentum, the negative valuation metrics and mixed earnings call results weigh down the score. The company's strategic initiatives and subscriber growth provide some optimism for future performance.

Positive Factors

Company Restructuring

The analyst retains a BUY rating on Liberty Latin America with high confidence that the stock will significantly outperform after the separation of the operationally challenged and highly leveraged Liberty Puerto Rico business.

Financial Performance

Management expects stronger free cash flow in the second half of the year, particularly in the fourth quarter, supported by ongoing cost programs and strategic initiatives.

Growth Potential

Liberty Networks, including its new subsea network buildout, is a unique and essential infrastructure asset in the Caribbean region, contributing to significant organic growth potential.

Negative Factors

Earnings Challenges

There was a 1% consolidated Adj. OIBDA miss, indicating challenges in meeting earnings expectations.

Financial Impairments

Puerto Rico faced a USD494m impairment related to spectrum license intangibles, impacting its financial performance.

Guidance Withdrawal

Challenges in the Puerto Rico unit drove management to withdraw guidance earlier this year.

Liberty Global LiLAC Business Overview & Revenue Model

Company Description

Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean and Networks, C&W Panama, Liberty Puerto Rico, VTR, and Costa Rica segments. It offers communications and entertainment services, including video, broadband internet, fixed-line telephony, and mobile services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services in approximately 20 countries in Latin America, the Caribbean, Chile, and Costa Rica under the brands of C&W, VTR, Liberty Puerto Rico, Cabletica, BTC, UTS, Flow, and Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.

How the Company Makes Money

Liberty Global LiLAC generates revenue through several key streams, including subscription fees from its broadband, video, and voice services. The company earns significant income from its cable and telecommunications services, which attract customers through bundled offerings that combine multiple services at competitive prices. Additionally, LiLAC benefits from advertising revenues generated through its video platforms and partnerships with content providers, allowing for advertising placements. The company may also realize revenue through strategic partnerships and joint ventures that expand its service offerings and market reach. Overall, its diversified service portfolio, coupled with a strong customer base, plays a crucial role in driving its earnings.

Liberty Global LiLAC Financial Statement Overview

Summary

Liberty Global LiLAC faces financial headwinds with declining revenues, profitability challenges, and high leverage. Despite some strength in cash flow generation, the company must address profitability issues and debt levels to improve financial health and sustainability.

Income Statement

Liberty Global LiLAC shows a challenging financial trajectory in the income statement. The TTM (Trailing-Twelve-Months) data reveals a gross profit margin of approximately 52.8%, which is decent. However, the net profit margin is negative due to consecutive net losses, indicating profitability issues. Revenue growth is currently negative year-over-year, reflecting a decline from previous periods. EBIT and EBITDA margins have also declined, impacting overall profitability.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of approximately 8.09, indicating significant leverage and potential risk in financial stability. The equity ratio is around 8.1%, suggesting limited equity relative to total assets. Additionally, the return on equity is negative due to net losses, highlighting concerns in generating shareholder value.

Cash Flow

Cash flow analysis shows some strengths with a positive operating cash flow to net income ratio, suggesting effective cash generation despite losses. However, free cash flow growth is volatile, and the free cash flow to net income ratio is positive but fluctuates, indicating challenges in maintaining consistent cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.41B	4.46B	4.51B	4.82B	4.80B	3.76B
Gross Profit	2.35B	2.96B	3.00B	3.60B	3.61B	2.92B
EBITDA	317.80M	964.60M	1.55B	1.34B	1.18B	620.40M
Net Income	-1.17B	-657.00M	-73.60M	-201.90M	-490.10M	-808.90M
Balance Sheet
Total Assets	11.95B	12.80B	13.59B	13.58B	15.39B	15.23B
Cash, Cash Equivalents and Short-Term Investments	514.40M	654.30M	988.60M	781.00M	956.70M	894.20M
Total Debt	8.69B	8.66B	8.26B	7.96B	7.65B	8.36B
Total Liabilities	10.83B	11.17B	11.28B	11.01B	12.47B	11.79B
Stockholders Equity	608.40M	1.12B	1.76B	1.92B	2.24B	2.71B
Cash Flow
Free Cash Flow	451.70M	215.90M	312.00M	208.70M	279.90M	74.30M
Operating Cash Flow	741.90M	756.30M	897.00M	868.80M	1.02B	640.10M
Investing Cash Flow	-653.00M	-688.50M	-615.80M	-1.12B	-1.27B	-2.45B
Financing Cash Flow	-105.90M	-386.40M	-62.40M	-29.20M	426.60M	271.10M

Liberty Global LiLAC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LILA, the sentiment is Positive. The current price of 7.77 is above the 20-day moving average (MA) of 7.26, above the 50-day MA of 6.49, and above the 200-day MA of 6.43, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 68.49 is Neutral, neither overbought nor oversold. The STOCH value of 59.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LILA.

Liberty Global LiLAC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDT	79 Outperform	$1.58B	16.49	38.36%	0.35%	1.91%	169.96%
LILA	58 Neutral	$1.60B	―	-103.84%	―	-2.15%	-1269.05%
LILAK	58 Neutral	$1.60B	―	-103.84%	―	-2.15%	-1269.05%
Sector *	56 Neutral	HK$68.17B	0.44	-4.83%	4.98%	-0.83%	-12.65%
TV	50 Neutral	$1.16B	―	-7.09%	3.72%	-23.01%	13.13%
CABO	48 Neutral	$885.78M	59.21	-30.85%	7.37%	-5.43%	-363.95%
ATUS	41 Neutral	$1.09B	―	21.93%	―	-3.82%	-363.28%

Liberty Global LiLAC Corporate Events

Liberty Global LiLAC Approves Executive Retention Bonuses

On August 8, 2025, Liberty Latin America Ltd.’s compensation committee approved cash retention bonuses for key officers involved in strategic initiatives announced on August 7, 2025. The bonuses, awarded to executives Christopher Noyes and John Winter, are 2.5 times their annual salaries and will vest over three years, with conditions on employment continuity.

Liberty Global LiLAC Reports Q2 2025 Financial Results

On August 7, 2025, Liberty Latin America announced its financial results for Q2 and H1 2025, highlighting continued growth in broadband and postpaid mobile subscribers, with over 100,000 net additions in H1. Despite an operating loss of $205 million, the company achieved an 8% year-over-year increase in Adjusted OIBDA, driven by cost efficiencies and growth in key markets. Liberty Latin America plans to separate Liberty Puerto Rico to unlock shareholder value, while its remaining operations are expected to benefit from strong infrastructure investments and generate substantial cash flow.

Liberty Global LiLAC to Release Q2 2025 Results

On July 30, 2025, Liberty Latin America announced it will release its second quarter 2025 results on August 7, 2025, followed by an investor call on the same day. This announcement is significant as it provides stakeholders an opportunity to gain insights into the company’s performance and future outlook, potentially impacting its market positioning and investor relations.

Liberty Global LiLAC Holds Annual Shareholders Meeting

On May 27, 2025, Liberty Latin America Ltd. conducted its Annual General Meeting of Shareholders, during which shareholders voted on four proposals. Notably, Miranda Curtis, Brendan Paddick, and Daniel E. Sanchez were re-elected as Class II members of the board of directors, and KPMG LLP was appointed as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

Liberty Global LiLAC Q1 2025 Financial Report Released

On May 23, 2025, Liberty Global LiLAC released its financial report for the quarter ending March 31, 2025, highlighting the company’s ongoing financial performance. This report, accessible on the Liberty Latin America website, provides stakeholders with insights into the company’s operational status and market position.