Azul S.A. Fundamental Analysis
Azul S.A. (AZUL) shows moderate financial fundamentals with a PE ratio of 0.11, profit margin of 20.31%, and ROE of -20.33%. The company generates $36.9B in annual revenue with moderate year-over-year growth of 5.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AZUL's fundamental strength across five key dimensions:
Efficiency Score
ExcellentAZUL demonstrates superior asset utilization.
Valuation Score
ExcellentAZUL trades at attractive valuation levels.
Growth Score
ModerateAZUL shows steady but slowing expansion.
Financial Health Score
ModerateAZUL shows balanced financial health with some risks.
Profitability Score
WeakAZUL struggles to sustain strong margins.
Key Financial Metrics
Is AZUL Expensive or Cheap?
P/E Ratio
AZUL trades at 0.11 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AZUL's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Azul S.A. at -0.13 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.50 times EBITDA. This is generally considered low.
How Well Does AZUL Make Money?
Net Profit Margin
For every $100 in sales, Azul S.A. keeps $20.31 as profit after all expenses.
Operating Margin
Core operations generate 15.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-20.33 in profit for every $100 of shareholder equity.
ROA
Azul S.A. generates $14.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Azul S.A. generates limited operating cash flow of $-1.74B, signaling weaker underlying cash strength.
Free Cash Flow
Azul S.A. generates weak or negative free cash flow of $-2.17B, restricting financial flexibility.
FCF Per Share
Each share generates $-6.97 in free cash annually.
FCF Yield
AZUL converts -1.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
0.11
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
-0.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-5.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.50
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.20
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How AZUL Stacks Against Its Sector Peers
| Metric | AZUL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 0.11 | 25.99 | Better (Cheaper) |
| ROE | -20.33% | 1259.00% | Weak |
| Net Margin | 20.31% | -34891.00% (disorted) | Strong |
| Debt/Equity | -5.47 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 0.50 | 9.71 | Weak Liquidity |
| ROA | 14.24% | -1482943.00% (disorted) | Strong |
AZUL outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Azul S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
67.63%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-274.08%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
5.51%
Industry Style: Cyclical, Value, Infrastructure
Growing