AZUL SA-ADR (AZUL) Stock Fundamental Analysis
NYSE:AZUL - New York Stock Exchange, Inc. - US05501U1060 - ADR - Currency: USD
AZUL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows a decent growth rate.
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.
AZUL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
AZUL has a Return On Assets of -32.63%. This is in the lower half of the industry: AZUL underperforms 78.26% of its industry peers.
AZUL has a better Return On Invested Capital (56.18%) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -32.63% | ||
| ROE | N/A | ||
| ROIC | 56.18% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Operating Margin value of 17.96%, AZUL belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
AZUL's Operating Margin has improved in the last couple of years.
AZUL has a Gross Margin of 61.86%. This is in the better half of the industry: AZUL outperforms 65.22% of its industry peers.
AZUL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.96% | ||
| PM (TTM) | N/A | ||
| GM | 61.86% |
OM growth 3YN/A
OM growth 5Y4.02%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.57%
GM growth 5Y0.8%
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of -1.27, we must say that AZUL is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AZUL (-1.27) is worse than 73.91% of its industry peers.
The Debt to FCF ratio of AZUL is 29.03, which is on the high side as it means it would take AZUL, 29.03 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 29.03, AZUL is in line with its industry, outperforming 52.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 29.03 | ||
| Altman-Z | -1.27 |
ROIC/WACC4.16
WACC13.51%
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 95.65% 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 Quick ratio of 0.22. This is amonst the worse of the industry: AZUL underperforms 95.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.22 |
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%.
Looking at the last year, AZUL shows a small growth in Revenue. The Revenue has grown by 5.24% in the last year.
The Revenue has been growing by 11.28% on average over the past years. This is quite good.
EPS 1Y (TTM)-46.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-286.35%
Revenue 1Y (TTM)5.24%
Revenue growth 3Y25.09%
Revenue growth 5Y11.28%
Sales Q2Q%-2.44%
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 30.17% on average per year.
Based on estimates for the next years, AZUL will show a quite strong growth in Revenue. The Revenue will grow by 10.47% on average per year.
EPS Next Y76.26%
EPS Next 2Y41.52%
EPS Next 3Y30.17%
EPS Next 5YN/A
Revenue Next Year16.06%
Revenue Next 2Y12.44%
Revenue Next 3Y10.47%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for AZUL. In the last year negative earnings were reported.
AZUL is valuated quite expensively with a Price/Forward Earnings ratio of 96.94.
The rest of the industry has a similar Price/Forward Earnings ratio as AZUL.
AZUL's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 96.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AZUL indicates a somewhat cheap valuation: AZUL is cheaper than 60.87% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AZUL is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.72 | ||
| EV/EBITDA | 6.12 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as AZUL's earnings are expected to grow with 30.17% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.52%
EPS Next 3Y30.17%
5. Dividend
5.1 Amount
AZUL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
0.53
-0.01 (-1.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners12.85%
Inst Owner Change11.64%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap163.27M
Analysts72.31
Price Target3.69 (596.23%)
Short Float %15.42%
Short Ratio2.77
Dividend
| Industry Rank | Sector 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)5.07%
Min EPS beat(2)-14.42%
Max EPS beat(2)24.56%
EPS beat(4)1
Avg EPS beat(4)-43.37%
Min EPS beat(4)-118.57%
Max EPS beat(4)24.56%
EPS beat(8)1
Avg EPS beat(8)-135.14%
EPS beat(12)1
Avg EPS beat(12)-99%
EPS beat(16)4
Avg EPS beat(16)-65.65%
Revenue beat(2)0
Avg Revenue beat(2)-82.86%
Min Revenue beat(2)-82.89%
Max Revenue beat(2)-82.84%
Revenue beat(4)0
Avg Revenue beat(4)-83.29%
Min Revenue beat(4)-84.52%
Max Revenue beat(4)-82.84%
Revenue beat(8)0
Avg Revenue beat(8)-83.16%
Revenue beat(12)0
Avg Revenue beat(12)-59.19%
Revenue beat(16)2
Avg Revenue beat(16)-44.57%
PT rev (1m)-7.66%
PT rev (3m)-18.55%
EPS NQ rev (1m)-12.91%
EPS NQ rev (3m)-91.02%
EPS NY rev (1m)-116.24%
EPS NY rev (3m)-218.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 96.94 | ||
| P/S | 0.05 | ||
| P/FCF | 0.72 | ||
| P/OCF | 0.33 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.12 |
EPS(TTM)-3.63
EYN/A
EPS(NY)0.01
Fwd EY1.03%
FCF(TTM)0.74
FCFY139.72%
OCF(TTM)1.6
OCFY301.08%
SpS11.18
BVpS-17.43
TBVpS-18.32
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -32.63% | ||
| ROE | N/A | ||
| ROCE | 71.11% | ||
| ROIC | 56.18% | ||
| ROICexc | 75.91% | ||
| ROICexgc | 132.52% | ||
| OM | 17.96% | ||
| PM (TTM) | N/A | ||
| GM | 61.86% | ||
| FCFM | 6.62% |
ROA(3y)N/A
ROA(5y)N/A
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 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5Y4.02%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.57%
GM growth 5Y0.8%
F-Score4
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 29.03 | ||
| Debt/EBITDA | 4.76 | ||
| Cap/Depr | 58.26% | ||
| Cap/Sales | 7.65% | ||
| Interest Coverage | 1.69 | ||
| Cash Conversion | 45.9% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z | -1.27 |
F-Score4
WACC13.51%
ROIC/WACC4.16
Cap/Depr(3y)55.99%
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)5.24%
Revenue growth 3Y25.09%
Revenue growth 5Y11.28%
Sales Q2Q%-2.44%
Revenue Next Year16.06%
Revenue Next 2Y12.44%
Revenue Next 3Y10.47%
Revenue Next 5YN/A
EBIT growth 1Y147.81%
EBIT growth 3YN/A
EBIT growth 5Y15.75%
EBIT Next Year110.79%
EBIT Next 3Y35.98%
EBIT Next 5YN/A
FCF growth 1Y-47.58%
FCF growth 3YN/A
FCF growth 5Y4.57%
OCF growth 1Y-18.97%
OCF growth 3YN/A
OCF growth 5Y1.44%