AZUL SA-ADR (AZUL)
US05501U1060 - ADR
Taking everything into account, AZUL scores 3 out of 10 in our fundamental rating. AZUL was compared to 23 industry peers in the Passenger Airlines industry. Both the profitability and financial health of AZUL have multiple concerns. While showing a medium growth rate, AZUL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year AZUL has reported negative net income.
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.
1.2 Ratios
The Return On Assets of AZUL (-25.94%) is worse than 73.91% of its industry peers.
With an excellent Return On Invested Capital value of 26.99%, AZUL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector 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
1.3 Margins
AZUL has a better Operating Margin (8.84%) than 69.57% of its industry peers.
AZUL's Operating Margin has declined in the last couple of years.
AZUL has a better Gross Margin (59.07%) than 60.87% of its industry peers.
AZUL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
The number of shares outstanding for AZUL remains at a similar level compared to 1 year ago.
AZUL has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AZUL is higher compared to a year ago.
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 has a Altman-Z score of -1.33. This is in the lower half of the industry: AZUL underperforms 78.26% of its industry peers.
The Debt to FCF ratio of AZUL is 14.28, which is on the high side as it means it would take AZUL, 14.28 years of fcf income to pay off all of its debts.
AZUL has a Debt to FCF ratio of 14.28. This is in the better half of the industry: AZUL outperforms 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 14.28 | ||
| Altman-Z | -1.33 |
ROIC/WACC4.22
WACC6.4%
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.
AZUL has a Current ratio of 0.27. This is amonst the worse of the industry: AZUL underperforms 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's Quick ratio of 0.22 is on the low side compared to the rest of the industry. AZUL is outperformed by 91.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.06% over the past year.
The Revenue has been growing slightly by 4.16% in the past year.
AZUL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.42% yearly.
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
The Earnings Per Share is expected to grow by 29.74% on average over the next years. This is a very strong growth
AZUL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.83% yearly.
EPS Next Y26.39%
EPS Next 2Y40.18%
EPS Next 3Y29.74%
EPS Next 5YN/A
Revenue Next Year-8.46%
Revenue Next 2Y1.6%
Revenue Next 3Y2.83%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AZUL reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year AZUL is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
AZUL's Enterprise Value to EBITDA ratio is in line with the industry average.
AZUL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AZUL is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.59 | ||
| EV/EBITDA | 7.71 |
4.3 Compensation for Growth
A more expensive valuation may be justified as AZUL's earnings are expected to grow with 29.74% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y40.18%
EPS Next 3Y29.74%
5. Dividend
5.1 Amount
AZUL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AZUL SA-ADR
NYSE:AZUL (12/20/2024, 8:04:00 PM)
After market: 1.82 +0.03 (+1.68%)1.79
+0.02 (+1.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners25.34%
Inst Owner Change-40.44%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap207.56M
Analysts71.43
Price Target4.88 (172.63%)
Short Float %6.34%
Short Ratio4.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-85.3%
Min Revenue beat(2)-86.03%
Max Revenue beat(2)-84.56%
Revenue beat(4)0
Avg Revenue beat(4)-84.85%
Min Revenue beat(4)-86.03%
Max Revenue beat(4)-84.2%
Revenue beat(8)0
Avg Revenue beat(8)-76.88%
Revenue beat(12)0
Avg Revenue beat(12)-56.88%
Revenue beat(16)0
Avg Revenue beat(16)-45.57%
PT rev (1m)-5.23%
PT rev (3m)-28.84%
EPS NQ rev (1m)-72.16%
EPS NQ rev (3m)-72.16%
EPS NY rev (1m)-9.94%
EPS NY rev (3m)-27.48%
Revenue NQ rev (1m)-14.75%
Revenue NQ rev (3m)-14.75%
Revenue NY rev (1m)-2.16%
Revenue NY rev (3m)-3.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.07 | ||
| P/FCF | 0.59 | ||
| P/OCF | 0.35 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.71 |
EPS(TTM)-2.58
EYN/A
EPS(NY)-0.1
Fwd EYN/A
FCF(TTM)3.03
FCFY169.35%
OCF(TTM)5.09
OCFY284.19%
SpS25.89
BVpS-35.72
TBVpS-37.81
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC6.4%
ROIC/WACC4.22
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 Y26.39%
EPS Next 2Y40.18%
EPS Next 3Y29.74%
EPS Next 5YN/A
Revenue 1Y (TTM)4.16%
Revenue growth 3Y47.82%
Revenue growth 5Y15.42%
Sales Q2Q%-8.09%
Revenue Next Year-8.46%
Revenue Next 2Y1.6%
Revenue Next 3Y2.83%
Revenue Next 5YN/A
EBIT growth 1Y36.91%
EBIT growth 3YN/A
EBIT growth 5Y3.37%
EBIT Next Year80.23%
EBIT Next 3Y32.85%
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%