NYSE:AZUL

Stock Analysis Report

Executive Summary

Azul S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Brazil.


Snowflake Analysis

Limited growth with imperfect balance sheet.


Similar Companies

Share Price & News

How has Azul's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AZUL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

47.8%

AZUL

28.0%

US Airlines

9.9%

US Market


1 Year Return

-60.8%

AZUL

-43.9%

US Airlines

-11.9%

US Market

Return vs Industry: AZUL underperformed the US Airlines industry which returned -43.3% over the past year.

Return vs Market: AZUL underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

AZULIndustryMarket
7 Day47.8%28.0%9.9%
30 Day-61.2%-36.1%-15.0%
90 Day-73.6%-49.5%-21.5%
1 Year-60.8%-60.8%-43.0%-43.9%-10.0%-11.9%
3 Yearn/a-42.3%-44.7%12.3%5.1%
5 Yearn/a-31.2%-35.2%32.5%18.1%

Price Volatility Vs. Market

How volatile is Azul's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Azul undervalued compared to its fair value and its price relative to the market?


Share Price vs. Fair Value

Below Fair Value: AZUL ($11.44) is trading above our estimate of fair value ($6.3)

Significantly Below Fair Value: AZUL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AZUL is unprofitable, so we can't compare its PE Ratio to the Airlines industry average.

PE vs Market: AZUL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AZUL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AZUL has negative assets, so we can't compare its PB Ratio to the US Airlines industry average.


Next Steps

Future Growth

How is Azul forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

12.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if AZUL's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if AZUL's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AZUL's revenue (12.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: AZUL's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AZUL's Return on Equity is forecast to be very high in 3 years time (188.2%).


Next Steps

Past Performance

How has Azul performed over the past 5 years?

10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AZUL is currently unprofitable.

Growing Profit Margin: AZUL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AZUL is unprofitable, but has reduced losses over the past 5 years at a rate of 10.5% per year.

Accelerating Growth: Unable to compare AZUL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AZUL is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (41.8%).


Return on Equity

High ROE: AZUL's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Azul's financial position?


Financial Position Analysis

Short Term Liabilities: AZUL has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: AZUL has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: AZUL has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: AZUL's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: AZUL has a high level of physical assets or inventory.

Debt Coverage by Assets: AZUL has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable AZUL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AZUL is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 14.2% per year.


Next Steps

Dividend

What is Azul's current dividend yield, its reliability and sustainability?

5.61%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AZUL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AZUL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AZUL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AZUL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AZUL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

John Rodgerson (43yo)

2.67s

Tenure

Mr. John Peter Rodgerson has been Chief Executive Officer of Azul S.A since July 24, 2017 and has been its Member of Board of Executive Officers since January 17, 2013. Mr. Rodgerson served as Investors Re ...


Leadership Team

NamePositionTenureCompensationOwnership
John Rodgerson
CEO & Member of Board of Executive Officers2.67yrsno data2.23% R$29.1m
Alexandre Malfitani
CFO, Investor Relations Officer & Member of Board of Executive Officers2.67yrsno datano data
José Mario dos Santos
Member of Board of Executive Officers7.58yrsno data0.20% R$2.6m
Abhi Shah
Chief Revenue Officer & Member of Board of Executive Officers5.5yrsno datano data
Renê Santos
Chief Accounting Officerno datano datano data
Jason Ward
Vice President of People & Customersno datano datano data
Mariana Lourenço
Controllerno datano datano data
Joanna Portella
Secretaryno datano datano data
Andrea Bottcher
Investor Relations Managerno datano datano data

4.1yrs

Average Tenure

45yo

Average Age

Experienced Management: AZUL's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
José Mario dos Santos
Member of Board of Executive Officers7.58yrsno data0.20% R$2.6m
Michael Lazarus
Independent Director7yrsno datano data
David Neeleman
Chairman12.17yrsno data3.04% R$39.6m
Sérgio de Salles Pinto
Independent Director12yrsno datano data
Henri Courpron
Independent Director4.83yrsno datano data
Gelson Pizzirani
Independent Director7.92yrsno datano data
Carolyn Trabuco
Independent Director12yrsno datano data
John Gebo
Independent Director4.17yrsno datano data
Renan Chieppe
Independent Director7.58yrsno datano data
Decio Chieppe
Independent Director7.58yrsno datano data

7.6yrs

Average Tenure

56.5yo

Average Age

Experienced Board: AZUL's board of directors are considered experienced (7.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Azul S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Azul S.A.
  • Ticker: AZUL
  • Exchange: NYSE
  • Founded: 2008
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: R$6.659b
  • Listing Market Cap: R$1.304b
  • Shares outstanding: 341.51m
  • Website: https://www.voeazul.com.br

Number of Employees


Location

  • Azul S.A.
  • Edifício Jatobá
  • 8th floor, Castelo Branco Office Park
  • Barueri
  • São Paulo
  • 06460-040
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AZULNYSE (New York Stock Exchange)SPONSR ADR PFDUSUSDApr 2017
AZUL4BOVESPA (Bolsa de Valores de Sao Paulo)YesPreferred SharesBRBRLApr 2017
8AZADB (Deutsche Boerse AG)SPONSR ADR PFDDEEURApr 2017
AZULB NBMV (Bolsa Mexicana de Valores)SPONSR ADR PFDMXMXNApr 2017

Biography

Azul S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Brazil. As of December 31, 2019, it operated 916 daily flights to 116 destinations through a network of 249 non-stop routes with a fleet of 140 aircraft. The company was incorporated in 2008 and is headquartered in Barueri, Brazil. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 03:04
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.