NYSE:AZUL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Fair value with acceptable track record.

Risks

  • Azul has significant price volatility in the past 3 months.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-10.3%

NYSE:AZUL

-0.6%

US Airlines

0.9%

US Market


1 Year Return

106.2%

NYSE:AZUL

-6.5%

US Airlines

0.3%

US Market

AZUL outperformed the Airlines industry which returned -6% over the past year.

AZUL outperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

AZULIndustryMarket
7 Day-10.3%-0.6%0.9%
30 Day-7.6%-5.6%-1.9%
90 Day38.4%0.8%1.6%
1 Year106.2%106.2%-5.1%-6.5%2.6%0.3%
3 Yearn/a46.6%41.0%41.0%31.8%
5 Yearn/a52.9%44.1%55.2%38.0%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Azul's share price is below the future cash flow value, and at a moderate discount (> 20%).

Azul's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Azul is overvalued based on earnings compared to the US Airlines industry average.

Azul is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Azul is poor value based on expected growth next year.


Price Based on Value of Assets

Azul has negative assets, we can't compare the value of its assets to the US Airlines industry average.


Next Steps

Future Growth

How is Azul expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

0.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Azul's revenue is expected to grow by 16.3% yearly, however this is not considered high growth (20% yearly).

Azul's earnings are expected to grow by 0.5% yearly, however this is not considered high growth (20% yearly).

Azul's revenue growth is expected to exceed the United States of America market average.

Azul's earnings growth is positive but not above the United States of America market average.

Azul's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Azul is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Azul performed over the past 5 years?

41.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Azul has delivered over 20% year on year earnings growth in the past 5 years.

Azul has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Azul has become profitable in the last year making it difficult to compare the US Airlines industry average.


Return on Equity

It is difficult to establish if Azul has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

Azul used its assets more efficiently than the US Airlines industry average last year based on Return on Assets.


Return on Capital Employed

Azul has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Azul's financial position?


Financial Position Analysis

Azul's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Azul's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Azul has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Azul's debt level has increased considering it has negative shareholder equity.

Debt is well covered by operating cash flow (28.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Azul has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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

1.38%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Azul's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Azul's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Azul has not reported any payouts.

Unable to verify if Azul's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Azul has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).


Next Steps

Management

What is the CEO of Azul's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

John Rodgerson (43yo)

2.1yrs

Tenure

0

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 ...


Management Age and Tenure

3.5yrs

Average Tenure

45yo

Average Age

The tenure for the Azul management team is about average.


Board Age and Tenure

7.0yrs

Average Tenure

56.5yo

Average Age

The tenure for the Azul board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • José Mario dos Santos (48yo)

    Member of Board of Executive Officers

    • Tenure: 7.0yrs
  • John Rodgerson (43yo)

    CEO & Member of Board of Executive Officers

    • Tenure: 2.1yrs
  • Renê Santos

    Chief Accounting Officer

    • Tenure: 0.0yrs
  • Abhi Shah (41yo)

    Chief Revenue Officer & Member of Board of Executive Officers

    • Tenure: 4.9yrs
  • Mariana Lourenço

    Controller

    • Tenure: 0.0yrs
  • Alex Malfitani (47yo)

    CFO, Investor Relations Officer & Member of Board of Executive Officers

    • Tenure: 2.1yrs
  • Joanna Portella

    Secretary

    • Tenure: 0.0yrs

Board Members

  • Michael Lazarus (64yo)

    Independent Director

    • Tenure: 6.5yrs
  • David Neeleman (60yo)

    Chairman

    • Tenure: 11.6yrs
  • Sérgio de Salles Pinto (55yo)

    Independent Director

    • Tenure: 11.4yrs
  • Henri Courpron (56yo)

    Independent Director

    • Tenure: 4.3yrs
  • Gelson Pizzirani (68yo)

    Independent Director

    • Tenure: 7.3yrs
  • Carolyn Trabuco (50yo)

    Independent Director

    • Tenure: 11.4yrs
  • John Gebo (49yo)

    Independent Director

    • Tenure: 3.6yrs
  • José Mario dos Santos (48yo)

    Member of Board of Executive Officers

    • Tenure: 7.0yrs
  • Renan Chieppe (57yo)

    Independent Director

    • Tenure: 7.0yrs
  • Decio Chieppe (59yo)

    Independent Director

    • Tenure: 7.0yrs

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$16.995b
  • Listing Market Cap: R$4.216b
  • Shares outstanding: 341.07m
  • 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)SPON ADR EACH REP 3 PFD SHSUSUSDApr 2017
AZUL4BOVESPA (Bolsa de Valores de Sao Paulo)YesPreferred SharesBRBRLApr 2017
8AZADB (Deutsche Boerse AG)SPON ADR EACH REP 3 PFD SHSDEEURApr 2017

Biography

Azul S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Brazil. As of December 31, 2018, it operated 821 daily flights to 110 destinations through a network o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 00:42
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.