Liberty LiLAC Group (LILAK) AI Stock Analysis

• Market Cap: $1.57B
• Dividend Yield: N/A
• Average Volume (3M): 964.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -0.83%
• EPS Growth: -25.72%
• Country: US
• Employees: 10,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.02
• Shares Outstanding: 158,700,000
• 10 Day Avg. Volume: 695,198
• 30 Day Avg. Volume: 964,523
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 5.80
• Enterprise Value/Market Cap: 6.31
• Enterprise Value/Revenue: 2.24
• Enterprise Value/Gross Profit: 3.09
• Enterprise Value/Ebitda: 11.21
• 1Y Price Target: $8.60
• Price Target Upside: 3.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $8.00 ▼(-3.26% Downside)

Liberty LiLAC Group's overall stock score reflects a balance of positive cash flow generation and strong revenue growth against significant profitability challenges and high leverage. The earnings call provided some optimism with operational improvements, but valuation concerns and external challenges like Hurricane Melissa impact the score.

Positive Factors

Subscriber Growth

Strong subscriber growth indicates increasing demand for services, enhancing revenue potential and market position in the long term.

Revenue and OIBDA Growth

Revenue and OIBDA growth demonstrate effective business operations and cost management, improving financial health and sustainability.

5G Launch in Barbados

Launching 5G services enhances competitive advantage and positions the company to capitalize on future technological advancements.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.

Declining Revenue

Declining revenue in key markets can weaken financial performance and market position, challenging long-term growth prospects.

Regulatory Setback in Costa Rica

Regulatory setbacks can hinder strategic expansion plans, affecting growth potential and competitive positioning in the region.

Liberty LiLAC Group 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 LiLAC Group generates revenue through several key streams, primarily from subscription fees for its cable television and broadband internet services. The company also earns income from mobile communications services, including voice and data plans. Additional revenue is derived from advertising and content distribution agreements, as LILAK partners with various content providers and advertisers to enhance its service offerings. Strategic partnerships with local and international media companies further bolster its revenue, enabling access to premium content and expanding its customer base. The company benefits from economies of scale, allowing it to optimize operational costs and improve profitability as it grows its subscriber base in its target markets.

Liberty LiLAC Group Financial Statement Overview

Summary

Liberty LiLAC Group faces significant financial challenges, including declining revenues, high leverage, and persistent losses. Despite some positive cash flow generation, the overall financial health is concerning, with high debt levels and negative profitability metrics posing substantial risks.

Income Statement

Liberty LiLAC Group's income statement reveals significant challenges. The company has experienced declining revenue with a negative growth rate of -70.5% in the TTM period. Gross profit margins have decreased from 75.2% in 2020 to 53.2% in the TTM period, indicating reduced efficiency in managing production costs. The net profit margin is deeply negative at -26.6%, reflecting substantial losses. EBIT and EBITDA margins have also deteriorated, highlighting operational inefficiencies.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 14.28 in the TTM period, indicating significant leverage and potential financial risk. Stockholders' equity has decreased over time, and the return on equity is negative, suggesting that the company is not generating sufficient returns on its equity base. The equity ratio has also declined, reflecting a reduced proportion of equity financing.

Cash Flow

Cash flow analysis shows some positive aspects, with a free cash flow growth rate of 38.4% in the TTM period. However, the operating cash flow to net income ratio is low at 0.39, indicating that cash generation from operations is not sufficient to cover net losses. The free cash flow to net income ratio is 0.61, suggesting some ability to generate cash despite negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.43B	4.46B	4.51B	4.81B	4.81B	3.76B
Gross Profit	3.22B	2.96B	3.00B	3.08B	3.08B	2.50B
EBITDA	885.90M	964.60M	1.55B	1.34B	1.17B	620.40M
Net Income	-734.40M	-657.00M	-73.60M	-170.70M	-440.60M	-682.20M
Balance Sheet
Total Assets	12.05B	12.80B	13.59B	13.58B	15.37B	15.08B
Cash, Cash Equivalents and Short-Term Investments	596.70M	654.30M	988.60M	781.00M	956.70M	894.20M
Total Debt	8.80B	8.17B	8.26B	7.96B	7.65B	8.42B
Total Liabilities	10.89B	11.17B	11.28B	11.02B	12.47B	11.74B
Stockholders Equity	628.90M	1.12B	1.76B	1.92B	2.22B	2.61B
Cash Flow
Free Cash Flow	312.95M	215.90M	312.00M	208.70M	279.90M	74.30M
Operating Cash Flow	726.33M	756.30M	897.00M	868.80M	1.02B	640.10M
Investing Cash Flow	-607.15M	-688.50M	-615.80M	-1.12B	-1.27B	-2.45B
Financing Cash Flow	-61.85M	-386.40M	-62.40M	-29.20M	426.60M	271.10M

Liberty LiLAC Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.27
• 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 LILAK, the sentiment is Positive. The current price of 8.27 is above the 20-day moving average (MA) of 8.16, above the 50-day MA of 8.15, and above the 200-day MA of 6.82, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 52.72 is Neutral, neither overbought nor oversold. The STOCH value of 32.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LILAK.

Liberty LiLAC Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TV	61 Neutral	$1.39B	―	-9.77%	3.20%	-18.28%	-42.53%
TEO	61 Neutral	$5.90B	―	-2.95%	1.55%	15.38%	-292.52%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
LILA	52 Neutral	$1.63B	―	-79.15%	―	-0.83%	-25.72%
LILAK	50 Neutral	$1.57B	-1.32	-79.15%	―	-0.83%	-25.72%
WOW	50 Neutral	$443.95M	―	-42.79%	―	-8.70%	16.20%
ATUS	40 Underperform	$831.22M	―	―	―	-4.19%	-982.67%

Liberty LiLAC Group Corporate Events

Liberty Latin America’s Q3 2025 Financial Performance

Liberty Latin America is a communications company operating across Latin America and the Caribbean, providing digital video, broadband internet, telephony, and mobile services. In its Q3 2025 earnings report, Liberty Latin America highlighted a return to positive operating income and a 7% year-over-year growth in rebased Adjusted OIBDA, driven by strong mobile postpaid additions and strategic cost reduction initiatives. The company reported a 2% increase in revenue for the quarter, with notable growth in segments like Liberty Caribbean and C&W Panama. Despite challenges from Hurricane Melissa impacting operations in Jamaica, Liberty Latin America is focused on infrastructure recovery and anticipates continued financial strength in the fourth quarter. Looking forward, the company remains committed to leveraging its strategic initiatives to drive growth and unlock value for shareholders.