Liberty LiLAC Group (LILAK) AI Stock Analysis

• Market Cap: $1.74B
• Dividend Yield: N/A
• Average Volume (3M): 964.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: -2.15%
• EPS Growth: -1269.05%
• Country: US
• Employees: 10,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -2.12
• Shares Outstanding: 158,700,000
• 10 Day Avg. Volume: 695,198
• 30 Day Avg. Volume: 964,523
• 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: 5.70
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 4.23
• Enterprise Value/Ebitda: 31.24
• 1Y Price Target: $8.60
• Price Target Upside: 2.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 54 Neutral
• Price Target: $8.50 ▲(1.80% Upside)

Liberty LiLAC Group's overall stock score is driven by significant financial challenges, including high leverage and negative profitability. While technical indicators show positive momentum, the valuation remains unattractive due to a negative P/E ratio. The earnings call provided some optimism with strategic initiatives and subscriber growth, but ongoing challenges in key markets temper the outlook.

Positive Factors

Subscriber Growth

Strong subscriber growth in key markets like Costa Rica, Panama, and Jamaica indicates successful market penetration and potential for sustained revenue growth.

Strategic Initiatives

The separation of Liberty Puerto Rico aims to unlock shareholder value by establishing a sustainable capital structure, potentially enhancing long-term financial stability.

B2B Contract Win

Winning significant B2B contracts like the one in Panama strengthens market position and supports long-term revenue streams through government partnerships.

Negative Factors

High Leverage

High leverage poses financial risks, potentially constraining the company's ability to invest in growth opportunities and manage economic downturns effectively.

Revenue Decline

Revenue decline in key regions like Puerto Rico reflects challenges in maintaining market share and could impact overall financial performance if not addressed.

Negative Profitability

Persistent negative profitability undermines financial health, limiting the company's ability to reinvest in business operations and improve competitive positioning.

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 multiple streams, primarily by offering subscription-based services for mobile, broadband, and cable television. The company charges customers monthly fees for its telecommunications services, which include voice, data, and video content. Additionally, LILAK benefits from advertising revenues through its cable television and digital platforms. The company also explores partnerships with content providers to offer exclusive programming, which can enhance customer retention and attract new subscribers. Furthermore, LILAK may engage in promotional campaigns and bundled service offerings that incentivize customers to choose multiple services, thereby increasing average revenue per user (ARPU).

Liberty LiLAC Group Financial Statement Overview

Summary

Liberty LiLAC Group faces significant financial challenges characterized by declining revenue and profitability, along with high leverage and low equity ratios. Despite the positive growth in free cash flow, the company must address its net losses and improve margins to enhance financial health and shareholder value.

Income Statement

Liberty LiLAC Group's income statement reveals a challenging situation with declining revenue and profitability. The TTM gross profit margin is approximately 52.8%, indicating a decrease from the previous periods, and the net profit margin is negative due to substantial losses. Revenue growth has been negative, with the latest TTM showing a decline of around 1.1% compared to the previous annual period. The EBIT margin stands at a low 0.11%, and although the EBITDA margin is healthier at 18.6%, the negative net income significantly impacts overall profitability.

Balance Sheet

The balance sheet highlights high leverage, with a debt-to-equity ratio of 8.09 in the TTM period. The company's equity ratio is 8.1%, indicating a low proportion of equity to total assets, which raises concerns about financial stability. The return on equity is negative due to consecutive net losses, reflecting challenges in generating returns for shareholders.

Cash Flow

Cash flow analysis shows mixed signals. The TTM free cash flow has grown by around 51.2% compared to the previous year, which is a positive indicator. However, the operating cash flow to net income ratio is not calculable due to negative net income, although operating cash flow remains positive, indicating some operational efficiency. The free cash flow to net income ratio is also not calculable, but the positive free cash flow suggests some financial flexibility.

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 LiLAC Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 8.35 is above the 20-day moving average (MA) of 8.25, above the 50-day MA of 8.16, and above the 200-day MA of 6.70, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 53.27 is Neutral, neither overbought nor oversold. The STOCH value of 83.82 is Negative, 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
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TEO	―	$3.70B	-331.00	-0.27%	1.87%	3.89%	-107.44%
LILAK	―	$1.74B	-1.41	-103.84%	―	-2.15%	-1269.05%
LILA	―	$1.74B	-1.39	-103.84%	―	-2.15%	-1269.05%
TV	―	$1.15B	―	-7.09%	3.60%	-23.01%	13.13%
WOW	―	$440.55M	―	-30.99%	―	-8.67%	63.35%
ATUS	―	$1.02B	―	―	―	-3.82%	-363.28%

Liberty LiLAC Group Corporate Events

Liberty Latin America Reports Growth Amid Operating Loss

Liberty Latin America is a communications company operating in over 20 countries across Latin America and the Caribbean, providing digital video, broadband internet, telephony, and mobile services. In its latest earnings report, Liberty Latin America announced a continued expansion in broadband and postpaid mobile subscribers, despite an operating loss of $205 million for the first half of 2025. The company reported an Adjusted OIBDA of $822 million, marking an 8% year-over-year rebased growth, supported by cost efficiencies across its operations. Key highlights include a 21% year-over-year rebased Adjusted OIBDA growth in Liberty Puerto Rico and a strategic intention to separate Liberty Puerto Rico to unlock shareholder value. Liberty Latin America’s management remains optimistic about its growth potential, focusing on infrastructure investments and strategic initiatives to drive future performance and shareholder returns.