AZUL SA-ADR (AZUL)

US05501U1060 - ADR

5.91  +0.2 (+3.5%)

After market: 5.89 -0.02 (-0.34%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to AZUL. AZUL was compared to 24 industry peers in the Passenger Airlines industry. AZUL has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, AZUL is valued expensive at the moment.



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2

1. Profitability

1.1 Basic Checks

In the past year AZUL has reported negative net income.
AZUL had a positive operating cash flow in the past year.
In the past 5 years AZUL always reported negative net income.
In multiple years AZUL reported negative operating cash flow during the last 5 years.

1.2 Ratios

AZUL has a Return On Assets (-0.06%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 17.37%, AZUL belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
Industry RankSector Rank
ROA -0.06%
ROE N/A
ROIC 17.37%
ROA(3y)-31.73%
ROA(5y)-22.33%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

Looking at the Operating Margin, with a value of 6.72%, AZUL is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
AZUL's Operating Margin has declined in the last couple of years.
AZUL has a Gross Margin of 54.37%. This is comparable to the rest of the industry: AZUL outperforms 58.33% of its industry peers.
In the last couple of years the Gross Margin of AZUL has declined.
Industry RankSector Rank
OM 6.72%
PM (TTM) N/A
GM 54.37%
OM growth 3Y-75.88%
OM growth 5Y-58.16%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.55%
GM growth 5Y-5.62%

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2

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

AZUL has an Altman-Z score of -1.00. This is a bad value and indicates that AZUL is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -1.00, AZUL is doing worse than 79.17% of the companies in the same industry.
The Debt to FCF ratio of AZUL is 12.33, which is on the high side as it means it would take AZUL, 12.33 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AZUL (12.33) is better than 87.50% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 12.33
Altman-Z -1
ROIC/WACC2.83
WACC6.13%

2.3 Liquidity

A Current Ratio of 0.42 indicates that AZUL may have some problems paying its short term obligations.
With a Current ratio value of 0.42, AZUL is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
AZUL has a Quick Ratio of 0.42. This is a bad value and indicates that AZUL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.37, AZUL is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.42
Quick Ratio 0.37

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5

3. Growth

3.1 Past

AZUL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.63%.
Looking at the last year, AZUL shows a quite strong growth in Revenue. The Revenue has grown by 19.00% in the last year.
Measured over the past years, AZUL shows a quite strong growth in Revenue. The Revenue has been growing by 15.66% on average per year.
EPS 1Y (TTM)3.63%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q10.49%
Revenue 1Y (TTM)19%
Revenue growth 3Y11.7%
Revenue growth 5Y15.66%
Revenue growth Q2Q12.33%

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 27.36% 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 11.74% on average per year.
EPS Next Y49.55%
EPS Next 2Y40.87%
EPS Next 3Y32.23%
EPS Next 5Y27.36%
Revenue Next Year22.19%
Revenue Next 2Y17.33%
Revenue Next 3Y14.09%
Revenue Next 5Y11.74%

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

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3

4. Valuation

4.1 Price/Earnings Ratio

AZUL reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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

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 62.50% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AZUL indicates a rather cheap valuation: AZUL is cheaper than 100.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 1.63
EV/EBITDA 7.87

4.3 Compensation for Growth

AZUL's earnings are expected to grow with 32.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y40.87%
EPS Next 3Y32.23%

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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-ADR

NYSE:AZUL (5/2/2024, 7:04:00 PM)

After market: 5.89 -0.02 (-0.34%)

5.91

+0.2 (+3.5%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap684.29M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.06%
ROE N/A
ROCE
ROIC
ROICexc
ROICexgc
OM 6.72%
PM (TTM) N/A
GM 54.37%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.92
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.42
Quick Ratio 0.37
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)3.63%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y49.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19%
Revenue growth 3Y11.7%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y