Liberty Latin America Ltd (LILAK) AI Stock Analysis
LILAK AI stock analysis summary
AI ResearchLiberty Latin America Ltd (LILAK) provides fixed, mobile, and subsea telecommunications services across Latin America and the Caribbean. While the company generated $4.44B in revenue and $305.9M in free cash flow in FY2025, it posted a net income of -$611.2M alongside total debt of $8.54B as of June 30, 2026. The stock gained 47.6% over the past year, outperforming the S&P 500 return of 16.8%.
- Market cap
- $1.57B
- Revenue (TTM)
- $4.46B
- P/E
- — fwd 16.0x
- 1Y return
- 47.6% S&P 500 16.8%
- Avg. target
- $7.20 -10.3% vs last close
Bull case
- Free cash flow remained positive at $305.9M in FY2025 alongside $805.9M in operating cash flow.
- The stock trades at an EV-to-EBITDA multiple of 5.8x, lower than the median of 10.0x for its peer group.
- Liberty Latin America reduced its share count by 27.0% over the trailing 5-year period.
Bear case
- The company carries total debt of $8.54B against shareholders' equity of $528.1M, resulting in a high debt-to-equity ratio of 16.18.
- Annual net income has stayed consistently negative over five years, including a loss of -$611.2M in FY2025.
- The analyst mean price target of $7.20 sits 10.3% below the closing price of $8.03.
What Liberty Latin America does
Established in 2017 and headquartered in Hamilton, Bermuda, Liberty Latin America Ltd delivers telecommunications services encompassing fixed, mobile, and subsea offerings across Latin America and the Caribbean. Operating through segments including C&W Caribbean and Networks, C&W Panama, Liberty Puerto Rico, VTR, and Costa Rica, the company serves residential and enterprise customers. Its portfolio covers broadband internet, video services, fixed-line telephony, mobile connectivity, data center solutions, and managed IT services. It also operates a terrestrial and sub-sea fiber optic network across approximately 40 markets under brands like C&W, VTR, Liberty Puerto Rico, Cabletica, BTC, UTS, Flow, and Móvil.
Growth and profitability
Liberty Latin America's annual revenue contracted from $4.81B in FY2021 to $4.44B in FY2025, achieving a 5-year revenue CAGR of 3.4% from FY2020. Gross margin expanded from 63.9% in FY2021 to 67.5% in FY2025, while operating margin reached 16.2% in FY2025 after recording -1.1% in FY2024. However, the company remained unprofitable, recording net income of -$440.6M in FY2021, -$170.7M in FY2022, -$73.6M in FY2023, -$657.0M in FY2024, and -$611.2M in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue grew 1.5% year-over-year, but quarterly earnings declined 15.5%.
Balance sheet and cash flow
As of June 30, 2026, Liberty Latin America held $714.1M in cash and short-term investments against $8.54B in total debt, resulting in net debt of $7.83B and a debt-to-equity ratio of 16.18. Shareholders' equity stood at $528.1M with total assets of $12.23B and a current ratio of 1.19. In FY2025, operating cash flow reached $805.9M and capital expenditures were $500.0M, generating free cash flow of $305.9M. The company reduced its share count by 27.0% over five years.
Valuation and performance
Liberty Latin America trades at an enterprise value of $9.48B and a market cap of $1.57B. Its forward P/E of 16.0x compares to 14.1x for the median of its US-listed Communication Services peers. The stock's price-to-sales ratio is 0.4x and its EV-to-EBITDA is 5.8x, both below the peer median values of 0.8x and 10.0x, respectively. Over the past year, the stock returned 47.6%, outpacing the S&P 500 return of 16.8%. However, its 5-year return of -7.5% trailed the S&P 500 gain of 83.0%.
What analysts expect
Analyst coverage consists of 2 Hold ratings, with 0 Strong Buy, Buy, Sell, or Strong Sell ratings. The mean price target is $7.20, representing a 10.3% decrease from the last close of $8.03. For the fiscal year ending December 31, 2026, the consensus EPS estimate is $0.01 on revenue of $4.48B. For the next fiscal year, projected EPS is $0.66 on revenue of $4.62B. Liberty Latin America beat EPS estimates in 1 of the last 4 quarters and is scheduled to report earnings on November 4, 2026.
Key risks and what to watch
- High financial leverage poses a challenge, with net debt standing at $7.83B as of June 30, 2026.
- Earnings volatility continues, reflected by quarterly earnings declining 15.5% year-over-year in the quarter ended June 30, 2026.
- Top-line growth has remained sluggish, with revenue contracting from $4.81B in FY2021 to $4.44B 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 LILAK AI stock analysis
This page is an AI-written research summary of Liberty Latin America Ltd (LILAK). 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: LILAK income statement, LILAK balance sheet, LILAK key metrics, LILAK analyst forecast, LILAK chart. See the LILAK stock overview for the latest quote and news.
LILAK AI stock analysis FAQ
Does Liberty Latin America pay a dividend?
No, Liberty Latin America does not pay a dividend.
What is Liberty Latin America's debt profile?
As of June 30, 2026, the company had $8.54B in total debt and $714.1M in cash and short-term investments, resulting in net debt of $7.83B. Its debt-to-equity ratio was 16.18.
What are analysts forecasting for LILAK?
Analysts maintain 2 Hold ratings with a mean price target of $7.20. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $0.01 and revenue of $4.48B.
How has LILAK stock performed against the S&P 500?
Over the past year, LILAK gained 47.6%, outperforming the S&P 500 return of 16.8%. Over a 5-year period, LILAK returned -7.5%, lagging the S&P 500 return of 83.0%.