Latecoere (LAT) AI Stock Analysis

• Market Cap: €126.93M
• Dividend Yield: N/A
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 4.66
• Revenue Growth: 13.42%
• EPS Growth: 82.35%
• Country: FR
• Employees: 5,497
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): >-0.01
• Shares Outstanding: 12,693,056,000
• 10 Day Avg. Volume: 2,799,561
• 30 Day Avg. Volume: 1,677,135
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: €0.00 ▼(-100.00% Downside)

The overall stock score of 43 reflects significant financial challenges, including high leverage and negative cash flow, compounded by bearish technical indicators. The poor valuation further impacts the score, with no earnings call or corporate events to offset these concerns.

Latecoere Business Overview & Revenue Model

Company Description

Latécoère S.A. designs, develops, manufactures, and supports aerostructures and interconnection systems in Europe, the United States, Africa, Asia, and internationally. The company manufactures aircraft structural elements, such as aircraft doors; and fuselage components, such as aircraft sections, tail cones, nose cone fairings, etc. It also offers electrical harnesses and wiring interconnection systems, avionics racks, airborne video equipment and systems, and test benches for the aeronautics, defense, and space sectors, as well as cameras, screens, data transmission solutions. The company was founded in 1917 and is headquartered in Toulouse, France. Latécoère S.A. is a subsidiary of SCP SKN HOLDING I SAS.

How the Company Makes Money

Latecoere generates revenue through its two main segments: Aerostructures and Interconnection Systems. The Aerostructures segment earns revenue by supplying critical components such as fuselage sections and wings to major aircraft manufacturers like Airbus and Boeing. This segment benefits from long-term contracts and partnerships that ensure a steady stream of income aligned with the production rates of these aircraft manufacturers. The Interconnection Systems segment derives revenue from the production of electrical wiring and interconnection systems, which are essential for both commercial and military aircraft. Latecoere also engages in MRO services, providing maintenance and support that further contribute to its earnings. Key partnerships with leading aerospace companies and participation in high-demand aircraft programs are significant factors that bolster Latecoere's financial performance.

Latecoere Financial Statement Overview

Summary

Latecoere is experiencing revenue growth but faces significant profitability and cash flow challenges. High leverage and low equity ratio raise concerns about financial stability. Operational inefficiencies need addressing to improve financial health.

Income Statement

Latecoere's revenue grew by 13.42% from 2023 to 2024, indicating a positive trend in sales. However, the company has been struggling with profitability, posting a negative net income margin of -8.77% in 2024. The gross profit margin is relatively healthy at 42.75%, but the negative EBIT margin of -5.81% suggests operational inefficiencies.

Balance Sheet

The debt-to-equity ratio of 3.66 in 2024 indicates high leverage, which could pose financial risks. The equity ratio of 10.24% is low, suggesting that the company is heavily reliant on debt. Return on equity is negative due to net losses, reflecting poor shareholder returns.

Cash Flow

Operating cash flow is negative, indicating challenges in generating cash from core operations. The free cash flow to net income ratio cannot be calculated due to negative figures, highlighting cash flow issues. The company needs to improve its cash generation to sustain operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	705.83M	622.34M	468.28M	332.12M	413.23M
Gross Profit	301.73M	223.28M	162.81M	-62.75M	-60.92M
EBITDA	24.49M	124.44M	-39.20M	-50.85M	-145.46M
Net Income	-61.91M	6.16M	-127.09M	-110.97M	-189.57M
Balance Sheet
Total Assets	693.62M	714.42M	742.49M	752.24M	489.96M
Cash, Cash Equivalents and Short-Term Investments	59.79M	85.42M	73.97M	277.66M	77.61M
Total Debt	260.19M	216.10M	371.01M	342.81M	225.25M
Total Liabilities	622.59M	549.09M	721.06M	601.26M	453.77M
Stockholders Equity	71.04M	165.34M	21.43M	150.99M	36.19M
Cash Flow
Free Cash Flow	-38.41M	-123.47M	-107.80M	-61.48M	-29.02M
Operating Cash Flow	-16.35M	-89.14M	―	-45.44M	-16.33M
Investing Cash Flow	-18.09M	-21.48M	-127.39M	-49.57M	-12.55M
Financing Cash Flow	8.71M	121.73M	-12.52M	294.66M	73.57M

Latecoere Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIR	76 Outperform	153.44B	30.70	21.39%	1.56%	5.12%	59.43%
FII	72 Outperform	2.17B	33.40	0.00%	0.82%	9.17%	12.78%
ALSOG	70 Outperform	79.28M	15.05	9.03%	3.71%	2.54%	76.12%
EXA	66 Neutral	1.66B	1,187.42	-3.04%	―	29.80%	0.00%
FGA	48 Neutral	489.29M	128.57	0.00%	―	8.85%	0.00%
LAT	43 Neutral	€126.93M	15.00	-51.82%	―	13.42%	82.35%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%