Liberty Latin America Ltd (LILA) AI Stock Analysis
LILA AI stock analysis summary
AI ResearchLiberty Latin America Ltd (LILA) provides fixed, mobile, and subsea telecommunications services across Latin America and the Caribbean. The company generated $4.46B in trailing twelve-month revenue with an operating margin of 17.5%, but posted a net margin of -2.2%. It carries substantial leverage, with total debt reaching $8.54B compared to $714.1M in cash.
- Market cap
- $1.58B
- Revenue (TTM)
- $4.46B
- P/E
- — fwd 15.9x
- 1Y return
- 50.4% S&P 500 16.8%
- Avg. target
- $11.07 37.3% vs last close
Bull case
- Free cash flow generation remained positive at $305.9M in FY2025, supported by $805.9M in operating cash flow.
- EV to EBITDA of 5.8x trades at a notable discount to the peer median of 10.0x for US-listed Communication Services companies.
- Consensus EPS is expected to turn positive at $0.14 for FY2026 and reach $0.65 for the next fiscal year.
Bear case
- The balance sheet carries $8.54B in total debt against $714.1M in cash, resulting in a high debt-to-equity ratio of 16.18.
- The company has sustained consecutive annual net losses, including -$657.0M in FY2024 and -$611.2M in FY2025.
- The company beat analyst EPS estimates in only 1 of the last 4 quarters, while quarterly earnings fell 15.5% year-over-year in the latest quarter.
What Liberty Latin America does
Liberty Latin America Ltd., headquartered in Hamilton, Bermuda, delivers fixed, mobile, and subsea telecommunications services across Latin America and the Caribbean. The company operates through business segments including C&W Caribbean and Networks, C&W Panama, Liberty Puerto Rico, VTR, and Costa Rica. It offers video, broadband internet, fixed-line telephony, and mobile products to residential and business customers. For enterprise and government clients, it provides IT solutions, enterprise connectivity, data center services, and hosting. The company operates a sub-sea and terrestrial fiber optic cable network connecting approximately 40 markets, using commercial brands such as C&W, VTR, Liberty Puerto Rico, Cabletica, BTC, UTS, Flow, and Móvil.
Growth and profitability
Revenue shifted from $4.81B in FY2021 to $4.44B in FY2025, representing a 5-year revenue CAGR of 3.4%. Gross margin widened from 63.9% in FY2021 to 67.5% in FY2025, while operating margin recovered to 16.2% in FY2025 after dipping to -1.1% in FY2024. The company remained unprofitable over this period, reporting net income of -$440.6M in FY2021, -$657.0M in FY2024, and -$611.2M in FY2025. In the trailing twelve months ended June 30, 2026, revenue stood at $4.46B with an operating margin of 17.5% and EPS of -$0.49. For the quarter ended June 30, 2026, quarterly revenue grew 1.5% year-over-year, while quarterly earnings fell 15.5%.
Balance sheet and cash flow
As of June 30, 2026, Liberty Latin America held $714.1M in cash and short-term investments alongside $8.54B in total debt, leading to net debt of $7.83B. Shareholders' equity was $528.1M against total assets of $12.23B, reflecting a debt-to-equity ratio of 16.18 and a current ratio of 1.19. In FY2025, operating cash flow stood at $805.9M and capital expenditures were $500.0M, generating $305.9M in free cash flow. Over the past 5 years, the company's share count decreased 27.0%.
Valuation and performance
At a share price of $8.06, Liberty Latin America trades at an enterprise value of $9.48B and a market capitalization of $1.58B. Its forward P/E is 15.9x, compared to the median of 14.1x for its US-listed Communication Services peers. The stock trades at an EV to EBITDA multiple of 5.8x and a price-to-sales ratio of 0.4x, both lower than peer group medians of 10.0x and 0.8x, respectively. Over the trailing 1-year period, LILA gained 50.4%, beating the S&P 500 (SPY) gain of 16.8%, but its 5-year return of -7.0% lagged the S&P 500 return of 83.0%.
What analysts expect
Consensus ratings include 2 Strong Buy ratings and 1 Strong Sell rating. The mean price target is $11.07, representing a 37.3% premium over the last close of $8.06. For the current fiscal year ending December 31, 2026, consensus expectations project revenue of $4.48B and EPS of $0.14, representing 323.0% EPS growth. For the next fiscal year, one analyst projects revenue of $4.62B and EPS of $0.65. Over the last 4 quarters, the company beat EPS estimates 1 time. The next earnings date is November 4, 2026.
Key risks and what to watch
- Net debt of $7.83B creates substantial financial overhead relative to the company's $1.58B market capitalization.
- Annual revenue has remained sluggish, moving from $4.81B in FY2021 to $4.44B in FY2025.
- Operating margins have shown volatility over recent years, dropping to -1.1% in FY2024 before rebounding to 16.2% in FY2025.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this LILA AI stock analysis
This page is an AI-written research summary of Liberty Latin America Ltd (LILA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: LILA income statement, LILA balance sheet, LILA key metrics, LILA analyst forecast, LILA chart. See the LILA stock overview for the latest quote and news.
LILA AI stock analysis FAQ
Does Liberty Latin America pay a dividend?
No, Liberty Latin America does not pay a dividend based on current company data.
What is Liberty Latin America's debt level?
As of June 30, 2026, Liberty Latin America had $8.54B in total debt and $714.1M in cash, which leaves the company with net debt of $7.83B.
When is Liberty Latin America reporting earnings next?
Liberty Latin America is scheduled to report earnings on November 4, 2026.
What are analysts' price targets for LILA?
Analysts have established a mean price target of $11.07, which is 37.3% above its last closing price of $8.06.