Education
About Us
Working with TipRanks
Follow Us
Liberty LiLAC Group (LILAK)
NASDAQ:LILAK
Top Page
Liberty LiLAC Group
(NASDAQ:LILAK)
Select Model
Select Model
Rating:50Neutral
Price Target:
$8.00
▲(10.34% Upside)
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 (LILAK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.46B
Dividend YieldN/A
Average Volume (3M)964.52K
Price to Earnings (P/E)―
Beta (1Y)0.82
Revenue Growth-0.83%
EPS Growth-25.72%
CountryUS
Employees10,000
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.02
Shares Outstanding158,900,000
10 Day Avg. Volume695,198
30 Day Avg. Volume964,523
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.12
Price to Sales (P/S)0.28
P/FCF Ratio5.80
Enterprise Value/Market Cap6.82
Enterprise Value/Revenue2.24
Enterprise Value/Gross Profit3.09
Enterprise Value/Ebitda11.21
Forecast
1Y Price Target
$8.85Price Target Upside22.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Liberty LiLAC Group Business Overview & Revenue Model
Company DescriptionLiberty 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 MoneyLiberty 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 Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments such as strong subscriber growth, successful cost initiatives, and revenue expansion in several segments, alongside challenges from Hurricane Melissa, revenue declines in Puerto Rico, cash flow issues, and regulatory setbacks in Costa Rica.Q3-2025 Updates
Positive Updates
Strong Postpaid Subscriber Growth
Liberty Latin America added over 100,000 postpaid net adds across the group, marking the strongest quarter of postpaid additions in 3 years.
Revenue and OIBDA Growth
The company reported $1.1 billion in revenue and adjusted OIBDA of $433 million, reflecting a rebased year-over-year growth of 7%.
Successful Cost Initiatives
There was a 22% expansion in adjusted OIBDA less P&E additions year-over-year, leading to a margin of 26%, due to effective cost management.
B2B Revenue Expansion
B2B revenue in the Cable & Wireless Panama segment expanded 33% sequentially and 14% year-over-year.
Launch of 5G in Barbados
The company successfully launched 5G in Barbados, the second market in their Liberty Caribbean segment to offer this service.
Liberty Networks Revenue Growth
Liberty Networks achieved a revenue growth of 6% year-over-year, driven by strong performance in wholesale and enterprise segments.
Parametric Insurance Payout
The company expects to receive $81 million from their parametric insurance program to cover damages from Hurricane Melissa.
Negative Updates
Impact of Hurricane Melissa
Significant damage in Jamaica due to Hurricane Melissa, impacting RGUs, revenue, and adjusted OIBDA in Q4.
Decline in Puerto Rico Revenue
Liberty Puerto Rico experienced a 5% year-over-year rebased decline in revenue, primarily due to subscriber losses from mobile network migration.
Cash Flow Challenges
The company's cash flow performance was challenged by collections, particularly from government customers, affecting free cash flow.
Regulatory Setback in Costa Rica
The Costa Rican regulator prohibited Liberty's proposed transaction with Millicom, a surprising outcome for the company.
Company Guidance
During Liberty Latin America's Third Quarter 2025 Investor Call, the company provided detailed guidance and key metrics that underscore its performance and future outlook. In Q3 2025, Liberty Latin America reported $1.1 billion in revenue, marking a return to year-over-year growth driven by improved trends in the B2B sector and innovative customer value propositions. The company achieved a robust performance with adjusted OIBDA at $433 million, reflecting a 7% rebased year-over-year growth, and an impressive 22% expansion in adjusted OIBDA less P&E additions, leading to a 26% margin. The company also highlighted the addition of over 100,000 postpaid net adds, notably driven by Costa Rica, and emphasized its focus on lowering capital intensity. The impact of Hurricane Melissa was addressed, with the company highlighting their parametric insurance program, expected to result in an $81 million payout. Liberty Latin America is committed to leveraging its strong operational foundations to deliver organic growth and cash flow generation, which they believe is critical for share price appreciation.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
Negative
7.25
Price Trends
8.20
Negative
8.16
Negative
7.04
Positive
Market Momentum
-0.29
Positive
25.63
Positive
4.86
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LILAK, the sentiment is Negative. The current price of 7.25 is below the 20-day moving average (MA) of 8.04, below the 50-day MA of 8.20, and above the 200-day MA of 7.04, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 25.63 is Positive, neither overbought nor oversold. The STOCH value of 4.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LILAK.
Liberty LiLAC Group Risk Analysis
Liberty LiLAC Group disclosed 49 risk factors in its most recent earnings report. Liberty LiLAC Group 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 LiLAC Group Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $5.24B | -34.05 | -2.95% | 0.40% | 15.38% | -292.52% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $1.43B | ― | -9.77% | 3.03% | -18.28% | -42.53% | |
53 Neutral | $1.46B | -1.94 | -79.15% | ― | -0.83% | -25.72% | |
50 Neutral | $1.46B | -1.96 | -79.15% | ― | -0.83% | -25.72% |
* Communication Services Sector Average
LILAK
Liberty LiLAC Group
7.25
0.58
8.70%
TV
Grupo Televisa, S.A.B.
3.00
1.10
57.89%
TEO
Telecom Argentina
11.65
-2.02
-14.78%
LILA
Liberty Global LiLAC
7.17
0.46
6.86%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.