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Stocks
Liberty Latin America Ltd.
LILA

LILA Liberty Latin America Ltd.

Liberty Latin America Ltd. · NASDAQ
Market Closed
8.81
▲ ⁦+1.26%⁩ (+0.11)
Market Cap$2.6B
Beta0.73
52w Low52w High
4.788.90
Last Week
⁦+2.92%⁩
Last Month
⁦+1.26%⁩
Last 3 Months
⁦+10.13%⁩
Last Year
⁦+22.02%⁩
EL7 Factor Analysis
How we score this
Overall35
Weak — below market medianSuper StockF 6/8Insider cluster buyBetter than 35% of Market stocks, per EL7's model
FactorScoreDistributionValueAvgRank
▸
Valuation
81
—17.8xTop tier
▸
Growth
55
1.1%▼7.1%Around median
▸
Quality
54
5.5%▲4.5%Around median
▸
Safety
29
5.3x▼2.6xBottom tier
▸
Capital Return
92
—2.12%Top tier
▸
Momentum
79
17.7%▲2.9%Top tier
▸
Sentiment
78
2▼3Top tier
Fair Value
Low confidenceCurrent price$8.81
Analyst target · 3 analysts
$7.00
⁦-21%⁩
See it clearly overvalued
Range ⁦$7.00–$7.00⁩
vs
DCF (estimate)
$-6.67
⁦-176%⁩
Sees it clearly overvalued
⁦7.9⁩% discount · ⁦0⁩% growth
Bottom lineThe two methods broadly agree — estimate range ⁦$-6.67–$7.00⁩.

Estimates — analyst targets and a simplified DCF, not investment advice.

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Analyst Consensus

This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.

Price Target· 3 analysts setting price target
$7.00
⁦-20.5%⁩
Current Price $8.81·Median $7.00
Low
$7.00
High
$7.00
Street summary

Liberty Latin America (LILA) Price Target Analysis

Bearish tilt

Analyst data indicates a cautious outlook for LILA stock, with the price target remaining stable at $7 over the past 30 days, which is approximately 17% lower than the current trading price of $8.42. There is a complete consensus among the three analysts (zero dispersion) on this target, reflecting an agreement that the stock is currently overvalued, especially after Morgan Stanley downgraded the rating to "Underweight" on August 20, 2026.

As of 2026-08-24
Revisions momentum · 30d
⁦0.0%⁩
Average rating
★ 3.33
Hold
Analyst coverage
3
Buy conviction
67%
High
Rating activity · 30d
0↑ · 1↓
Target dispersion
0%
Analyst ratings over time3 analysts rating
2
1
Strong BuyBuyHoldSellStrong Sell
Rating trend — last 12 months3.67 → 3.33
Recent analyst moves
  • ⬇ Downgrade2026-08-20
    Morgan Stanley
    Underweight
  • = Reiterate2026-02-18
    Benchmark
    Buy
  • = Reiterate2025-11-10
    Benchmark
    Buy
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Key Financials

Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.

StockSector medianSector averagetypical sector range
MetricValuePosition within sectorVerdict
  • P/E (TTM)
    —
    —
  • Forward P/E
    71.36x
    3.09x24.70x
    Very expensive
  • EV / EBITDA
    6.67x
    2.57x20.60x
    Very cheap
  • FCF Yield
    22.0%
    -33.4%21.9%
    Exceptional
  • Revenue Growth YoY
    1.1%
    -16.2%48.2%
    Below average
  • EPS Growth YoY
    91.9%
    -464.8%138.2%
    Strong
  • Gross Margin
    65.0%
    11.3%77.5%
    Strong
  • ROIC
    5.5%
    -33.6%17.7%
    Strong
  • Net Debt / EBITDA
    5.32x
    0.60x5.67x
    Near median
  • Dividend Yield
    —
    —
  • Payout Ratio
    —
    —
  • Altman Z-Score
    —
    —
Financial Analysis
|

Stock Analysis

AI-generated
Based on 2026-08-06 data

Company Overview

Liberty Latin America Ltd. provides fixed and mobile telecommunications, broadband, video, enterprise solutions, and wholesale connectivity across markets in the Caribbean and Latin America. It generates revenue from consumer subscriptions, particularly postpaid mobile and fixed internet, as well as enterprise services and leased subsea network capacity; its operating units include Liberty Caribbean, Cable & Wireless Panama, Liberty Networks, Liberty Costa Rica, and Liberty Puerto Rico. Its growth strategy relies on converging fixed and mobile services, converting customers from prepaid to postpaid, selectively raising prices, and expanding subsea cable capacity.

In Q2 fiscal 2026, revenue reached $1.1 billion, up 1% on a reported basis and flat on a rebased basis, while adjusted OIBDA reached $436 million and grew 3% on a rebased basis. The consolidated adjusted OIBDA margin reached 40%, up approximately 130 basis points year over year, while the financial statements showed gross profit of $860.6 million and a net loss of $24.0 million, or a loss of $0.13 per share. On a trailing-twelve-month basis for fiscal 2026, the company recorded revenue of $4.5 billion, gross profit of $2.9 billion, and a net loss of $98.2 million.

A clear divergence in the segment mix emerged during Q2 fiscal 2026: Liberty Networks generated revenue of $130 million and rebased revenue growth of 10%, while Liberty Caribbean, Panama, Costa Rica, and Puerto Rico recorded revenue of $362 million, $177 million, $169 million, and $288 million, respectively. Liberty Networks was the fastest-growing segment, while Liberty Puerto Rico's rebased revenue declined 5%, and Liberty Caribbean was affected by Hurricane Melissa by approximately $6 million in each of revenue and adjusted OIBDA on a net basis.

What's Driving the Stock

  • The company added 45 thousand net postpaid mobile and broadband subscribers during Q2 fiscal 2026, with positive contributions from all segments; additions included 11 thousand postpaid subscribers at Liberty Caribbean and 10 thousand residential broadband subscribers in Panama.
Earnings callEDGAR filings30-day newsInsider activity

Automated analysis for informational purposes only — not investment advice.

  • Liberty Networks delivered rebased growth of 10% in revenue and 9% in adjusted OIBDA during Q2 fiscal 2026, driven by 14% wholesale revenue growth following completion of the second phase of the El Salvador Subsea project and continued sales of leased capacity. The company is also working with CANTV to launch the 378-kilometer Phoenix cable with 14-terabyte capacity via the Americas-II route.
  • The company launched 5G in Jamaica during June 2026, covering approximately 70% of the population, and expanded its Unbeatable Network offering, which combines fixed internet backup through the mobile network, WiFi 6, and satellite connectivity through a Starlink DTC partnership. In Puerto Rico, network improvements and the unsubsidized Liberty siempre offering supported positive postpaid subscriber additions for the third consecutive quarter.
  • Management estimates the net present value of the AI-powered information technology services agreement with Amdocs at more than $250 million, with the transition beginning and the first cost savings emerging in Q4 fiscal 2026. The agreement targets reductions in operating and capital expenditures and improvements in adjusted OIBDA margins and adjusted OIBDA margins after property and equipment additions over the coming years.
  • Adjusted free cash flow before distributions improved to $83 million in Q2 fiscal 2026 and to $19 million in the first half of fiscal 2026, representing year-over-year increases of $124 million and $164 million, respectively. Through the elapsed portion of Q3 fiscal 2026, the company repurchased more than $60 million of shares, with approximately $140 million remaining under the authorization.
  • The company raised prices for postpaid mobile and fixed services in Panama during July 2026, and management said the initial response showed fewer customer service calls and lower churn compared with previous increases. It also raised the price of the television portfolio in Puerto Rico by $2 per month after gross additions grew by approximately 50% and net video additions were positive for two consecutive quarters.
  • Buying & Selling Case

    ▲ Buying Case4 pts

    • +Adjusted OIBDA growth of 3% and the expansion of its consolidated margin by approximately 130 basis points to 40% in Q2 fiscal 2026 support the thesis that cost-reduction programs have begun to offset stagnant revenue, while the Amdocs agreement adds estimated savings with a net present value exceeding $250 million.
    • +Liberty Networks gives the company a growth engine distinct from its consumer business; its rebased revenue rose 10% and wholesale revenue increased 14% in Q2 fiscal 2026, supported by demand for subsea capacity from regional and international telecommunications companies and hyperscale computing providers.
    • +Improved subscriber acquisition provides a stronger operating base, as the company added 45 thousand postpaid and broadband subscribers during Q2 fiscal 2026, alongside the expansion of 5G in Jamaica, Starlink partnerships, and fixed-mobile convergence offerings.
    • +Adjusted free cash flow before distributions turned positive at $83 million in Q2 fiscal 2026, representing a year-over-year improvement of $124 million, accompanied by share repurchases exceeding $60 million through the elapsed portion of Q3 fiscal 2026.

    ▼ Selling Case6 pts

    • −High debt represents the most significant financial risk, with total debt of $8.5 billion versus $700 million in cash and consolidated net leverage reaching 4.6 times in Q2 fiscal 2026; the distributed preferred stock, with a nominal value of approximately $500 million, also carried annual distributions of 9%.
    • −Liberty Puerto Rico continues to weigh on results and liquidity; its rebased revenue declined 5% to $288 million in Q2 fiscal 2026, and it recorded negative adjusted free cash flow of $48 million in the quarter and negative $91 million in the first half, despite 7% growth in adjusted OIBDA.
    • −The operating improvement has not yet translated into clear consolidated revenue growth, as Q2 fiscal 2026 revenue of $1.1 billion was flat on a rebased basis, while Panama recorded a 5% decline in adjusted OIBDA and Costa Rica's rebased revenue remained flat.
    • −Management indicated that free cash flow in the second half of fiscal 2026 could be less robust than in the second half of fiscal 2025 because of the comparison with $81 million of weather derivative proceeds in Q4 fiscal 2025, along with the expected repayment of some vendor financing and higher property and equipment additions in the second half.
    • −Hurricane exposure remains an operating risk in the Caribbean; Hurricane Melissa reduced Liberty Caribbean's Q2 fiscal 2026 results by approximately $6 million on a net basis in each of revenue and adjusted OIBDA, and the fixed-services network in Jamaica had not returned to full capacity at the time of the August 6, 2026 call. The company has parametric insurance coverage for the season referenced in the call, but this does not eliminate network and customer disruption or the need for rebuilding.
    • −Some markets face competition and pricing pressure, as fixed-services revenue per user in Costa Rica remained under pressure and management described postpaid mobile competition as higher during previous quarters, while Liberty Puerto Rico competes with T-Mobile and another local competitor that management described as strong competitors. Starlink also presents a potential risk of substituting terrestrial infrastructure, although management views its partnership with Starlink as complementary to its services rather than a broad substitute in its markets.

    Valuation

    The average analyst target is $7, with both the highest and lowest targets matching at $7 and a consensus rating of “Buy,” but the lack of variation among the targets indicates a narrow estimate base and does not provide a broad range for measuring differences of opinion. The target is below the 52-week range high of $8.9 and above its low of $4.5788, and no usable P/E ratio is available because of the $98.2 million net loss over the trailing twelve months of fiscal 2026; therefore, the valuation depends more heavily on improving cash flow and margins versus the risks posed by $8.5 billion of debt and Puerto Rico.

    BuyAnalyst target: $7(-20.5%)

    Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.

    FAQ

    What were LILA's most notable Q2 fiscal 2026 results?

    Liberty Latin America's revenue reached approximately $1.1 billion in Q2 fiscal 2026, up 1% on a reported basis and flat on a rebased basis. The company recorded adjusted OIBDA of $436 million, with rebased growth of 3%, while its consolidated margin reached 40% and increased by approximately 130 basis points. The financial statements showed gross profit of $860.6 million and a net loss of $24.0 million, equivalent to a loss of $0.13 per share.

    Why is Liberty Networks an important driver for LILA stock?

    Liberty Networks recorded revenue of $130 million and adjusted OIBDA of $67 million in Q2 fiscal 2026, representing rebased growth of 10% and 9%, respectively. Wholesale revenue increased 14%, supported by the second phase of the El Salvador Subsea project and sales of leased capacity, while enterprise revenue grew 3% due to strength in information technology services. The company is adding the 378-kilometer Phoenix route with 14-terabyte capacity via Americas-II, while management noted sustained demand for subsea capacity from telecommunications companies and hyperscale computing providers.

    What is the impact of the Amdocs agreement on Liberty Latin America's results?

    Management estimates the net present value of the Amdocs information technology services agreement at more than $250 million. The agreement aims to modernize legacy systems using AI tools specialized in the telecommunications sector, while reducing operating and capital expenditures and mitigating legacy-system risks. According to the August 6, 2026 call, the transition begins in Q4 fiscal 2026, and management expects initial savings to emerge during the same quarter.

    How significant are the debt and Puerto Rico risks for LILA?

    The group's total debt reached $8.5 billion, with $700 million in cash, while consolidated net leverage reached 4.6 times in Q2 fiscal 2026. Liberty Puerto Rico recorded revenue of $288 million, down 5% on a rebased basis, and negative adjusted free cash flow of $48 million in the quarter and negative $91 million in the first half. In contrast, the unit's adjusted OIBDA grew 7% to $93 million, and its margin expanded from 29% to 32%. The unit also secured a $140 million revolving credit facility and a $200 million secured loan, of which $150 million was drawn.

    How is the company trying to increase subscribers and revenue in its markets?

    Liberty Latin America added approximately 45 thousand postpaid mobile and broadband subscribers during Q2 fiscal 2026, with positive contributions from all segments. It launched 5G in Jamaica during June 2026 with coverage of approximately 70% of the population and uses Unbeatable Network, WiFi 6, mobile network backup, and a Starlink DTC partnership to improve reliability. In Panama, the company added 10 thousand residential broadband subscribers and raised prices for postpaid mobile and fixed services in July 2026, while Puerto Rico delivered positive postpaid mobile additions for the third consecutive quarter.

    What do insider activity and share repurchases indicate for LILA?

    The provided data indicate net insider purchases of $36.5 million over three months, with 24 purchases and one sale through the latest transaction dated August 14, 2026. The company also repurchased more than $60 million of common shares through the elapsed portion of Q3 fiscal 2026, with approximately $140 million remaining under the authorization. These actions support management's view that the stock trades at a discount to fair value, but they do not eliminate the $98.2 million net loss over the trailing twelve months of fiscal 2026 or net leverage of 4.6 times.