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Liberty LiLAC Group (LILAK)
NASDAQ:LILAK
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Liberty LiLAC Group
(NASDAQ:LILAK)
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Rating:58Neutral
Price Target:
$8.50
▲(3.16% Upside)
Liberty LiLAC Group's overall stock score reflects significant financial challenges, with high debt and negative profitability metrics being major concerns. Positive technical indicators and strategic initiatives provide some optimism, but valuation remains unattractive due to ongoing losses. The earnings call adds a slightly positive sentiment with growth in specific regions, but overall risks remain high.
Positive Factors
Subscriber Growth
The addition of 70,000 subscribers indicates strong demand for LILAK's services, which can lead to increased revenue and market share over time.
OIBDA Growth
The growth in OIBDA suggests improved operational efficiency and profitability, which strengthens the company's financial health and sustainability.
Strategic Initiatives
The strategic separation of Liberty Puerto Rico aims to optimize capital structure and enhance shareholder value, indicating proactive management efforts.
Negative Factors
High Debt Levels
High leverage poses financial risk, potentially limiting the company's ability to invest in growth opportunities and impacting long-term stability.
Revenue Decline
Declining revenue in key markets like Puerto Rico can hinder overall growth and profitability, challenging the company's competitive position.
Profit Margin Deterioration
Deteriorating profit margins indicate reduced efficiency and cost management, which can negatively impact long-term profitability and competitiveness.
Liberty LiLAC Group (LILAK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.64B
Dividend YieldN/A
Average Volume (3M)1.30M
Price to Earnings (P/E)―
Beta (1Y)0.76
Revenue Growth-2.15%
EPS Growth-1269.05%
CountryUS
Employees10,000
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-2.12
Shares Outstanding158,700,000
10 Day Avg. Volume1,225,882
30 Day Avg. Volume1,303,325
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap6.04
Enterprise Value/Revenue2.25
Enterprise Value/Gross Profit4.23
Enterprise Value/Ebitda31.24
Forecast
1Y Price Target
$8.58Price Target Upside4.13% Upside
Rating ConsensusHold
Number of Analyst Covering4
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 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 Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The call highlights strong subscriber growth and strategic initiatives like the separation of Liberty Puerto Rico, which are positive for future prospects. However, challenges such as revenue declines in Puerto Rico, B2B revenue challenges, and working capital issues indicate areas needing improvement.Q2-2025 Updates
Positive Updates
Separation of Liberty Puerto Rico
Liberty Latin America plans to proceed with the separation of Liberty Puerto Rico from LLA, aiming to unlock value for shareholders by positioning Liberty Puerto Rico with a strong and sustainable capital structure post-separation.
Subscriber Growth
The company added 70,000 high-speed broadband and postpaid mobile subscribers in the first half of 2025, with significant contributions from Costa Rica, Panama, and Jamaica.
Revenue and Adjusted OIBDA Growth
Reported $2.2 billion of revenue in the first half of 2025, with residential revenue up 2% in Liberty Caribbean and Costa Rica and 8% in C&W Panama. Adjusted OIBDA was $822 million, with a rebased year-over-year growth rate of 8%.
Margin Expansion
Achieved a 23% expansion in adjusted OIBDA less P&E additions year-over-year, leading to a margin of 25% of revenue in the first half, and 29% excluding Puerto Rico.
B2B Contract Win in Panama
Awarded a contract to provide high-speed Internet to all public schools in Panama, marking a significant step in advancing digital inclusion.
Negative Updates
Revenue Decline in Puerto Rico
Liberty Puerto Rico reported a 5% year-over-year rebased revenue decline, with challenges in both residential fixed and mobile segments.
B2B Revenue Challenges
Experienced a year-over-year B2B revenue decline, particularly in Panama, due to lower project revenue and phasing issues.
Impairment Charge in Puerto Rico
An impairment charge related to spectrum acquired from AT&T, following a third-party assessment and valuation adjustments.
Working Capital Challenges
Reported a negative $41 million in adjusted FCF before partner distributions in Q2, due to working capital swings and timing of key collections from government customers.
Company Guidance
During Liberty Latin America's second quarter 2025 investor call, the company provided guidance on its financial and strategic outlook. In the first half of 2025, Liberty Latin America reported $2.2 billion in revenue and an adjusted OIBDA of $822 million, reflecting an 8% year-over-year growth. The company highlighted the addition of 70,000 subscribers across its high-speed broadband and postpaid mobile base, excluding Puerto Rico, with substantial growth in Costa Rica, Panama, and Jamaica. Residential revenue increased by 2% in Liberty Caribbean and Costa Rica, and by 8% in C&W Panama on a rebased basis year-over-year. The company is proceeding with the separation of Liberty Puerto Rico to unlock shareholder value and is engaging in a targeted liability management exercise to ensure a sustainable capital structure for Liberty Puerto Rico post-separation. The adjusted OIBDA less P&E additions expanded by 23% year-over-year, achieving a margin of 25% of revenue for the group and 29% excluding Puerto Rico. These efforts are expected to drive strong cash conversion in the second half of the year.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.45
Neutral
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.30
Negative
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.55
Neutral
| 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
Positive
8.24
Price Trends
7.69
Positive
6.63
Positive
6.50
Positive
Market Momentum
0.15
Negative
57.85
Neutral
74.86
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 8.24 is above the 20-day moving average (MA) of 8.06, above the 50-day MA of 7.69, and above the 200-day MA of 6.50, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 57.85 is Neutral, neither overbought nor oversold. The STOCH value of 74.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | 3.69B | 3.81 | 37.76% | ― | 8.66% | ― | |
58 Neutral | $1.64B | ― | -103.84% | ― | -2.15% | -1269.05% | |
58 Neutral | 1.64B | -1.37 | -192.88% | ― | -2.15% | -1269.05% | |
53 Neutral | 926.59M | -1.83 | -32.82% | 7.30% | -5.43% | -363.95% | |
50 Neutral | 1.28B | -2.91 | -8.05% | 3.34% | -23.01% | 13.13% | |
46 Neutral | 1.19B | -4.14 | 21.93% | ― | -3.82% | -363.28% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
Performance Comparison
LILAK
Liberty LiLAC Group
8.24
-1.37
-14.26%
TV
Grupo Televisa, S.A.B.
2.72
0.40
17.24%
TEO
Telecom Argentina
7.44
-0.21
-2.75%
LILA
Liberty Global LiLAC
8.10
-1.62
-16.67%
WOW
Wideopenwest
5.16
-0.10
-1.90%
ATUS
Altice Usa
2.40
-0.07
-2.83%
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.