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Azul SA (AZUL) Stock Fundamental Analysis

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

0.5  +0.01 (+2.33%)

Premarket: 0.49 -0.01 (-2%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to AZUL. AZUL was compared to 23 industry peers in the Passenger Airlines industry. AZUL has a medium profitability rating, but doesn't score so well on its financial health evaluation. AZUL has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

AZUL had negative earnings in the past year.
AZUL had a positive operating cash flow in the past year.
AZUL had negative earnings in each of the past 5 years.
AZUL had a positive operating cash flow in 4 of the past 5 years.
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 2024 0 -5B -10B

1.2 Ratios

AZUL has a worse Return On Assets (-24.97%) than 69.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 36.38%, AZUL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AZUL is significantly above the industry average of 10.40%.
The last Return On Invested Capital (36.38%) for AZUL is above the 3 year average (24.48%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -24.97%
ROE N/A
ROIC 36.38%
ROA(3y)-16.76%
ROA(5y)-28.32%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.48%
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 2024 0 100 -100 200

1.3 Margins

AZUL has a Operating Margin of 19.40%. This is amongst the best in the industry. AZUL outperforms 95.65% of its industry peers.
AZUL's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 56.60%, AZUL is doing good in the industry, outperforming 60.87% of the companies in the same industry.
In the last couple of years the Gross Margin of AZUL has remained more or less at the same level.
Industry RankSector Rank
OM 19.4%
PM (TTM) N/A
GM 56.6%
OM growth 3YN/A
OM growth 5Y2.99%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.57%
GM growth 5Y0.8%
AZUL Yearly Profit, Operating, Gross MarginsAZUL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100 -150

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1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AZUL is creating value.
AZUL has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, AZUL has more shares outstanding
AZUL has a worse debt/assets ratio than last year.
AZUL Yearly Shares OutstandingAZUL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
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 2024 10B 20B 30B

2.2 Solvency

Based on the Altman-Z score of -1.07, we must say that AZUL is in the distress zone and has some risk of bankruptcy.
AZUL has a worse Altman-Z score (-1.07) than 73.91% of its industry peers.
AZUL has a debt to FCF ratio of 26.68. This is a negative value and a sign of low solvency as AZUL would need 26.68 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 26.68, AZUL is in line with its industry, outperforming 52.17% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 26.68
Altman-Z -1.07
ROIC/WACC6.38
WACC5.7%
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 2024 0 10B -10B 20B -20B -30B

2.3 Liquidity

A Current Ratio of 0.35 indicates that AZUL may have some problems paying its short term obligations.
AZUL has a worse Current ratio (0.35) than 78.26% of its industry peers.
AZUL has a Quick Ratio of 0.35. 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 Quick ratio of 0.29. This is amonst the worse of the industry: AZUL underperforms 86.96% of its industry peers.
Industry RankSector Rank
Current Ratio 0.35
Quick Ratio 0.29
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 2024 5B 10B 15B 20B

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5

3. Growth

3.1 Past

AZUL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -46.22%.
The Revenue has been growing slightly by 7.93% in the past year.
Measured over the past years, AZUL shows a quite strong growth in Revenue. The Revenue has been growing by 11.28% on average per year.
EPS 1Y (TTM)-46.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-286.35%
Revenue 1Y (TTM)7.93%
Revenue growth 3Y25.09%
Revenue growth 5Y11.28%
Sales Q2Q%-2.44%

3.2 Future

The Earnings Per Share is expected to grow by 30.17% on average over the next years. This is a very strong growth
Based on estimates for the next years, AZUL will show a quite strong growth in Revenue. The Revenue will grow by 11.43% on average per year.
EPS Next Y76.26%
EPS Next 2Y41.52%
EPS Next 3Y30.17%
EPS Next 5YN/A
Revenue Next Year17.51%
Revenue Next 2Y13.22%
Revenue Next 3Y11.43%
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 stable.
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 2027 5B 10B 15B
AZUL Yearly EPS VS EstimatesAZUL Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2 -4 -6 -8

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4

4. Valuation

4.1 Price/Earnings Ratio

AZUL reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 91.45, which means the current valuation is very expensive for AZUL.
60.87% of the companies in the same industry are cheaper than AZUL, based on the Price/Forward Earnings ratio.
AZUL is valuated expensively when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 91.45
AZUL Price Earnings VS Forward Price EarningsAZUL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AZUL is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
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 0.63
EV/EBITDA 5.08
AZUL Per share dataAZUL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 -10 -15

4.3 Compensation for Growth

AZUL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AZUL's earnings are expected to grow with 30.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.52%
EPS Next 3Y30.17%

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0

5. Dividend

5.1 Amount

AZUL does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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Azul SA

NYSE:AZUL (5/27/2025, 8:04:00 PM)

Premarket: 0.49 -0.01 (-2%)

0.5

+0.01 (+2.33%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)05-14 2025-05-14/bmo
Earnings (Next)08-07 2025-08-07
Inst Owners12.85%
Inst Owner Change11.16%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap154.03M
Analysts47.5
Price Target1.68 (236%)
Short Float %20.35%
Short Ratio2.97
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)1
Avg EPS beat(2)-914.43%
Min EPS beat(2)-1853.43%
Max EPS beat(2)24.56%
EPS beat(4)1
Avg EPS beat(4)-490.46%
Min EPS beat(4)-1853.43%
Max EPS beat(4)24.56%
EPS beat(8)1
Avg EPS beat(8)-354.03%
EPS beat(12)1
Avg EPS beat(12)-252.9%
EPS beat(16)3
Avg EPS beat(16)-185.84%
Revenue beat(2)0
Avg Revenue beat(2)-82.37%
Min Revenue beat(2)-82.42%
Max Revenue beat(2)-82.31%
Revenue beat(4)0
Avg Revenue beat(4)-82.84%
Min Revenue beat(4)-84.14%
Max Revenue beat(4)-82.31%
Revenue beat(8)0
Avg Revenue beat(8)-82.65%
Revenue beat(12)0
Avg Revenue beat(12)-63.99%
Revenue beat(16)2
Avg Revenue beat(16)-48.48%
PT rev (1m)-54.35%
PT rev (3m)-58.3%
EPS NQ rev (1m)-24.77%
EPS NQ rev (3m)-99.29%
EPS NY rev (1m)-116.24%
EPS NY rev (3m)-218.58%
Revenue NQ rev (1m)-2.45%
Revenue NQ rev (3m)-2.85%
Revenue NY rev (1m)1.1%
Revenue NY rev (3m)1.2%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 91.45
P/S 0.04
P/FCF 0.63
P/OCF 0.34
P/B N/A
P/tB N/A
EV/EBITDA 5.08
EPS(TTM)-3.63
EYN/A
EPS(NY)0.01
Fwd EY1.09%
FCF(TTM)0.79
FCFY157.74%
OCF(TTM)1.49
OCFY297.52%
SpS11.87
BVpS-16.68
TBVpS-17.6
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -24.97%
ROE N/A
ROCE 46.05%
ROIC 36.38%
ROICexc 44.79%
ROICexgc 57.89%
OM 19.4%
PM (TTM) N/A
GM 56.6%
FCFM 6.65%
ROA(3y)-16.76%
ROA(5y)-28.32%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)24.48%
ROIC(5y)N/A
ROICexc(3y)33.92%
ROICexc(5y)N/A
ROICexgc(3y)57.91%
ROICexgc(5y)N/A
ROCE(3y)30.98%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y55.25%
ROICexc growth 3YN/A
ROICexc growth 5Y41.91%
OM growth 3YN/A
OM growth 5Y2.99%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.57%
GM growth 5Y0.8%
F-Score4
Asset Turnover0.79
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 26.68
Debt/EBITDA 4.64
Cap/Depr 43.11%
Cap/Sales 5.89%
Interest Coverage 1.67
Cash Conversion 37.91%
Profit Quality N/A
Current Ratio 0.35
Quick Ratio 0.29
Altman-Z -1.07
F-Score4
WACC5.7%
ROIC/WACC6.38
Cap/Depr(3y)56%
Cap/Depr(5y)48.67%
Cap/Sales(3y)7.33%
Cap/Sales(5y)7.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-46.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-286.35%
EPS Next Y76.26%
EPS Next 2Y41.52%
EPS Next 3Y30.17%
EPS Next 5YN/A
Revenue 1Y (TTM)7.93%
Revenue growth 3Y25.09%
Revenue growth 5Y11.28%
Sales Q2Q%-2.44%
Revenue Next Year17.51%
Revenue Next 2Y13.22%
Revenue Next 3Y11.43%
Revenue Next 5YN/A
EBIT growth 1Y123.92%
EBIT growth 3YN/A
EBIT growth 5Y14.61%
EBIT Next Year109.01%
EBIT Next 3Y34.3%
EBIT Next 5YN/A
FCF growth 1Y-44.24%
FCF growth 3YN/A
FCF growth 5Y4.57%
OCF growth 1Y-31.77%
OCF growth 3YN/A
OCF growth 5Y1.44%