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AZUL SA-ADR (AZUL) Stock Fundamental Analysis

NYSE:AZUL - New York Stock Exchange, Inc. - US05501U1060 - ADR

2.19  -0.14 (-6.01%)

After market: 2.1989 +0.01 (+0.41%)

Fundamental Rating

3

Overall AZUL gets a fundamental rating of 3 out of 10. We evaluated AZUL against 23 industry peers in the Passenger Airlines industry. Both the profitability and financial health of AZUL have multiple concerns. AZUL is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

AZUL had negative earnings in the past year.
In the past year AZUL had a positive cash flow from operations.
AZUL had negative earnings in each of the past 5 years.
Of the past 5 years AZUL 4 years had a positive operating cash flow.
AZUL Yearly Net Income VS EBIT VS OCF VS FCFAZUL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -5B -10B

1.2 Ratios

With a Return On Assets value of -25.94%, AZUL is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 26.99%, AZUL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Industry RankSector Rank
ROA -25.94%
ROE N/A
ROIC 26.99%
ROA(3y)-12.73%
ROA(5y)-23.86%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
AZUL Yearly ROA, ROE, ROICAZUL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 -100 200

1.3 Margins

The Operating Margin of AZUL (8.84%) is better than 69.57% of its industry peers.
AZUL's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 59.07%, AZUL is doing good in the industry, outperforming 60.87% of the companies in the same industry.
AZUL's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 8.84%
PM (TTM) N/A
GM 59.07%
OM growth 3YN/A
OM growth 5Y-10.44%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.18%
GM growth 5Y0.2%
AZUL Yearly Profit, Operating, Gross MarginsAZUL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100 -150

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2

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AZUL is creating value.
AZUL has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for AZUL has been increased compared to 5 years ago.
Compared to 1 year ago, AZUL has a worse debt to assets ratio.
AZUL Yearly Shares OutstandingAZUL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
AZUL Yearly Total Debt VS Total AssetsAZUL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B 25B

2.2 Solvency

AZUL has an Altman-Z score of -1.33. This is a bad value and indicates that AZUL is not financially healthy and even has some risk of bankruptcy.
AZUL's Altman-Z score of -1.33 is on the low side compared to the rest of the industry. AZUL is outperformed by 73.91% of its industry peers.
AZUL has a debt to FCF ratio of 14.28. This is a negative value and a sign of low solvency as AZUL would need 14.28 years to pay back of all of its debts.
The Debt to FCF ratio of AZUL (14.28) is better than 69.57% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 14.28
Altman-Z -1.33
ROIC/WACC4.1
WACC6.58%
AZUL Yearly LT Debt VS Equity VS FCFAZUL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10B -10B 20B -20B

2.3 Liquidity

AZUL has a Current Ratio of 0.27. This is a bad value and indicates that AZUL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of AZUL (0.27) is worse than 91.30% of its industry peers.
AZUL has a Quick Ratio of 0.27. This is a bad value and indicates that AZUL is not financially healthy enough and could expect problems in meeting its short term obligations.
AZUL has a worse Quick ratio (0.22) than 91.30% of its industry peers.
Industry RankSector Rank
Current Ratio 0.27
Quick Ratio 0.22
AZUL Yearly Current Assets VS Current LiabilitesAZUL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

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4

3. Growth

3.1 Past

AZUL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.06%, which is quite impressive.
The Revenue has been growing slightly by 4.16% in the past year.
Measured over the past years, AZUL shows a quite strong growth in Revenue. The Revenue has been growing by 15.42% on average per year.
EPS 1Y (TTM)21.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%50.94%
Revenue 1Y (TTM)4.16%
Revenue growth 3Y47.82%
Revenue growth 5Y15.42%
Sales Q2Q%-8.09%

3.2 Future

Based on estimates for the next years, AZUL will show a very strong growth in Earnings Per Share. The EPS will grow by 26.49% on average per year.
Based on estimates for the next years, AZUL will show a small growth in Revenue. The Revenue will grow by 1.99% on average per year.
EPS Next Y26.62%
EPS Next 2Y40.65%
EPS Next 3Y26.49%
EPS Next 5YN/A
Revenue Next Year-12.45%
Revenue Next 2Y0.09%
Revenue Next 3Y1.99%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
AZUL Yearly Revenue VS EstimatesAZUL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5B 10B 15B
AZUL Yearly EPS VS EstimatesAZUL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 -2 -4 -6 -8

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for AZUL. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for AZUL. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
AZUL Price Earnings VS Forward Price EarningsAZUL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20

4.2 Price Multiples

65.22% of the companies in the same industry are more expensive than AZUL, based on the Enterprise Value to EBITDA ratio.
100.00% of the companies in the same industry are more expensive than AZUL, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 0.7
EV/EBITDA 7.77
AZUL Per share dataAZUL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20

4.3 Compensation for Growth

AZUL's earnings are expected to grow with 26.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y40.65%
EPS Next 3Y26.49%

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0

5. Dividend

5.1 Amount

No dividends for AZUL!.
Industry RankSector Rank
Dividend Yield N/A

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AZUL SA-ADR

NYSE:AZUL (1/21/2025, 8:04:00 PM)

After market: 2.1989 +0.01 (+0.41%)

2.19

-0.14 (-6.01%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)11-14 2024-11-14/bmo
Earnings (Next)N/A N/A
Inst Owners25.34%
Inst Owner Change1.34%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap253.95M
Analysts71.43
Price Target4.81 (119.63%)
Short Float %18.11%
Short Ratio5
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-66.49%
Min EPS beat(2)-118.57%
Max EPS beat(2)-14.42%
EPS beat(4)0
Avg EPS beat(4)-155.88%
Min EPS beat(4)-425.48%
Max EPS beat(4)-14.42%
EPS beat(8)0
Avg EPS beat(8)-147.19%
EPS beat(12)0
Avg EPS beat(12)-102.55%
EPS beat(16)4
Avg EPS beat(16)-62.55%
Revenue beat(2)0
Avg Revenue beat(2)-84.73%
Min Revenue beat(2)-85.5%
Max Revenue beat(2)-83.97%
Revenue beat(4)0
Avg Revenue beat(4)-84.27%
Min Revenue beat(4)-85.5%
Max Revenue beat(4)-83.6%
Revenue beat(8)0
Avg Revenue beat(8)-75.99%
Revenue beat(12)0
Avg Revenue beat(12)-55.22%
Revenue beat(16)0
Avg Revenue beat(16)-43.48%
PT rev (1m)-1.49%
PT rev (3m)-9.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-72.16%
EPS NY rev (1m)0%
EPS NY rev (3m)-27.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-14.75%
Revenue NY rev (1m)-1.86%
Revenue NY rev (3m)-7.31%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.08
P/FCF 0.7
P/OCF 0.41
P/B N/A
P/tB N/A
EV/EBITDA 7.77
EPS(TTM)-2.58
EYN/A
EPS(NY)-0.06
Fwd EYN/A
FCF(TTM)3.15
FCFY143.74%
OCF(TTM)5.28
OCFY241.22%
SpS26.89
BVpS-37.1
TBVpS-39.26
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -25.94%
ROE N/A
ROCE 34.16%
ROIC 26.99%
ROICexc 35.2%
ROICexgc 59.25%
OM 8.84%
PM (TTM) N/A
GM 59.07%
FCFM 11.71%
ROA(3y)-12.73%
ROA(5y)-23.86%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y31.63%
ROICexc growth 3YN/A
ROICexc growth 5Y22.63%
OM growth 3YN/A
OM growth 5Y-10.44%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.18%
GM growth 5Y0.2%
F-Score5
Asset Turnover0.81
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 14.28
Debt/EBITDA 6.12
Cap/Depr 61.51%
Cap/Sales 7.94%
Interest Coverage 0.71
Cash Conversion 90.35%
Profit Quality N/A
Current Ratio 0.27
Quick Ratio 0.22
Altman-Z -1.33
F-Score5
WACC6.58%
ROIC/WACC4.1
Cap/Depr(3y)53.34%
Cap/Depr(5y)45.52%
Cap/Sales(3y)7.38%
Cap/Sales(5y)8.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%50.94%
EPS Next Y26.62%
EPS Next 2Y40.65%
EPS Next 3Y26.49%
EPS Next 5YN/A
Revenue 1Y (TTM)4.16%
Revenue growth 3Y47.82%
Revenue growth 5Y15.42%
Sales Q2Q%-8.09%
Revenue Next Year-12.45%
Revenue Next 2Y0.09%
Revenue Next 3Y1.99%
Revenue Next 5YN/A
EBIT growth 1Y36.91%
EBIT growth 3YN/A
EBIT growth 5Y3.37%
EBIT Next Year74.76%
EBIT Next 3Y29.67%
EBIT Next 5YN/A
FCF growth 1Y4712.27%
FCF growth 3Y67.66%
FCF growth 5Y33.66%
OCF growth 1Y194.2%
OCF growth 3Y52.17%
OCF growth 5Y14.28%