📊 LILAB Key Takeaways
Is Liberty Latin America Ltd. (LILAB) a Good Investment?
Liberty Latin America exhibits severe financial distress with unsustainable leverage (14.89x debt/equity) and critically insufficient interest coverage (0.3x), unable to service $8.3B debt from operating income. The company generates positive free cash flow of $305.9M but reports a net loss of $611.2M, reflecting a capital structure broken by interest burden. Operating margins of 2.4% with declining revenue (-0.1% YoY) in a structurally declining cable/pay TV industry create an untenable long-term situation requiring debt restructuring.
Revenue is flat and profitability remains weak, with thin operating margins and a sizable net loss. While operating cash flow is solid and free cash flow is positive, extremely high leverage and very low interest coverage strain financial flexibility. Without clear margin expansion or meaningful deleveraging, fundamentals skew unfavorable.
Liberty Latin America Ltd. Key Strengths (LILAB)
- Positive operating cash flow of $805.9M and free cash flow of $305.9M provide near-term flexibility for debt service
- Cash reserves of $783.9M create a liquidity cushion against immediate solvency risk
- Current ratio of 1.14x maintains minimal operational liquidity to meet short-term obligations
- Positive free cash flow ($305.9M; 6.9% margin)
- Adequate liquidity buffer (cash $783.9M; current ratio 1.14x)
- Capex discipline (~11% of revenue) supporting cash generation
LILAB Stock Risks: Liberty Latin America Ltd. Investment Risks
- Interest coverage of 0.3x is critically unsustainable - operating income covers only 30% of interest expense, necessitating debt restructuring or bankruptcy
- Extreme leverage at 14.89x debt/equity with $8.3B debt against $555.6M equity represents structural insolvency requiring major deleveraging
- Negative net margin of -13.8% and declining revenue in secular cable decline limits ability to generate sustainable profitability and reduce leverage
- Very high leverage (Debt/Equity 14.9x; LT debt $8.27B)
- Weak interest coverage (0.3x) indicating servicing pressure
- Persistent losses (net margin -13.8%, ROE -110%, ROA -5.0%)
Key Metrics to Watch
- Interest coverage ratio trajectory and debt refinancing ability
- Free cash flow to total debt ratio as measure of deleveraging progress
- Operating margin sustainability amid revenue contraction
- Interest coverage
- FCF margin
Liberty Latin America Ltd. (LILAB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Liberty Latin America Ltd. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LILAB Profit Margin, ROE & Profitability Analysis
LILAB vs Telecom Sector: How Liberty Latin America Ltd. Compares
How Liberty Latin America Ltd. compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Liberty Latin America Ltd. Stock Overvalued? LILAB Valuation Analysis 2026
Based on fundamental analysis, Liberty Latin America Ltd. shows some fundamental concerns relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Liberty Latin America Ltd. Balance Sheet: LILAB Debt, Cash & Liquidity
LILAB Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Liberty Latin America Ltd.'s revenue has remained relatively flat over the 5-year period, with a 6% decline. The most recent EPS of $-0.35 indicates the company is currently unprofitable.
LILAB Revenue Growth, EPS Growth & YoY Performance
LILAB Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.1B | -$22.7M | $-0.11 |
| Q3 2025 | $1.1B | $3.3M | $0.02 |
| Q2 2025 | $1.1B | -$42.7M | $-0.22 |
| Q1 2025 | $1.1B | -$500.0K | $0.00 |
| Q3 2024 | $1.1B | $29.2M | $0.14 |
| Q2 2024 | $1.1B | -$30.5M | $-0.14 |
| Q1 2024 | $1.1B | -$500.0K | $0.00 |
| Q3 2023 | $1.1B | $29.2M | $0.14 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Liberty Latin America Ltd. Dividends, Buybacks & Capital Allocation
LILAB SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Liberty Latin America Ltd. (CIK: 0001712184)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LILAB
What is the AI rating for LILAB?
Liberty Latin America Ltd. (LILAB) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LILAB's key strengths?
Claude: Positive operating cash flow of $805.9M and free cash flow of $305.9M provide near-term flexibility for debt service. Cash reserves of $783.9M create a liquidity cushion against immediate solvency risk. ChatGPT: Positive free cash flow ($305.9M; 6.9% margin). Adequate liquidity buffer (cash $783.9M; current ratio 1.14x).
What are the risks of investing in LILAB?
Claude: Interest coverage of 0.3x is critically unsustainable - operating income covers only 30% of interest expense, necessitating debt restructuring or bankruptcy. Extreme leverage at 14.89x debt/equity with $8.3B debt against $555.6M equity represents structural insolvency requiring major deleveraging. ChatGPT: Very high leverage (Debt/Equity 14.9x; LT debt $8.27B). Weak interest coverage (0.3x) indicating servicing pressure.
What is LILAB's revenue and growth?
Liberty Latin America Ltd. reported revenue of $4.4B.
Does LILAB pay dividends?
Liberty Latin America Ltd. does not currently pay dividends.
Where can I find LILAB SEC filings?
Official SEC filings for Liberty Latin America Ltd. (CIK: 0001712184) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LILAB's EPS?
Liberty Latin America Ltd. has a diluted EPS of $-3.06.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is LILAB's fundamental grade?
Based on our AI fundamental analysis in May 2026, Liberty Latin America Ltd. has a C grade with 81% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is LILAB stock overvalued or undervalued?
Valuation metrics for LILAB: ROE of -110.0% (sector avg: 15%), net margin of -13.8% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.
What is LILAB's AI grade for 2026?
Our dual AI analysis gives Liberty Latin America Ltd. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LILAB's free cash flow?
Liberty Latin America Ltd.'s operating cash flow is $805.9M, with capital expenditures of $500.0M. FCF margin is 6.9%.
How does LILAB compare to other Telecom stocks?
Vs Telecom sector averages: Net margin -13.8% (avg: 14%), ROE -110.0% (avg: 15%), current ratio 1.14 (avg: 1).
Is Liberty Latin America Ltd. carrying too much debt?
LILAB has a debt-to-equity ratio of 14.89x, which is above the Telecom sector average of 1.2x. However, the current ratio of 1.14 suggests adequate short-term liquidity.