Azul SA (AZULQ) AI Stock Analysis

• Market Cap: $115.70M
• Dividend Yield: N/A
• Average Volume (3M): 11.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -1.94%
• EPS Growth: 68.93%
• Country: US
• Employees: 15,367
• Sector: Industrials
• Sector Strength: 75
• Industry: Airlines, Airports & Air Services
• EPS (TTM): -0.30
• Shares Outstanding: 298,679,930
• 10 Day Avg. Volume: 9,985
• 30 Day Avg. Volume: 11,405
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 52.74
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $0.50
• Price Target Upside: -3.85% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: $0.50 ▼(-3.85% Downside)

Azul SA's overall score is primarily influenced by its financial challenges, including high leverage and ongoing losses, which are partially offset by positive cash flow from operations. Technical indicators show bearish momentum, contributing to the low score. Despite some positive aspects highlighted in the earnings call, valuation concerns due to negative P/E and lack of dividends further impact the stock's attractiveness.

Positive Factors

Liquidity improvement

Liquidity is expected to improve with actions taken to secure additional funding, including a government-guaranteed credit line.

Operational trends

Revenue and demand are tracking well, with operational, FX, and fuel trends moving in a favorable direction since March.

Revenue growth

Revenue trends are strong with Azul's top-line results exceeding expectations and showing growth in both domestic and international markets.

Negative Factors

Cost concerns

Costs proved disappointing due to the impact of the Brazilian real’s depreciation against the U.S. dollar and a temporary increase in irregular operations.

Market performance downgrade

The downgrade from Outperform to Market Perform is influenced by the belief that further dilution is inevitable, impacting the stock's ability to reflect its true value until the equity raise is completed.

Stock dilution

Further dilution is now inevitable and shares cannot reflect the underlying fundamentals until the $200M optional equity raise is completed and the level of dilution is clear.

Azul SA Business Overview & Revenue Model

Company Description

Azul SA (AZULQ) is a Brazilian airline based in Barueri, São Paulo, founded in 2008. It operates both domestic and international flights, serving a wide range of destinations across Brazil and in select international markets. The company is known for its low-cost carrier model and a strong focus on customer service, operating a modern fleet that includes Airbus and Embraer aircraft. In addition to passenger transport, Azul also offers cargo services and has established a robust loyalty program to enhance customer retention.

How the Company Makes Money

Azul SA generates revenue primarily through the sale of passenger tickets, which constitutes the bulk of its earnings. The company utilizes a low-cost carrier model to attract price-sensitive travelers, while also offering premium services on certain routes. Additionally, Azul earns revenue from cargo services, which involve the transportation of freight and goods. Ancillary revenue streams include fees for checked baggage, in-flight services, and seat selection. The airline's loyalty program, TudoAzul, further contributes to revenue through partnerships with hotels, car rental services, and credit card companies, allowing members to accumulate and redeem points. Key partnerships with other airlines for code-sharing and connecting flights also enhance its network and customer base, ultimately driving additional revenue.

Azul SA Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Azul SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AZULQ, the sentiment is Negative. The current price of 0.52 is above the 20-day moving average (MA) of 0.52, below the 50-day MA of 0.52, and below the 200-day MA of 1.41, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 39.21 is Neutral, neither overbought nor oversold. The STOCH value of 73.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AZULQ.

Azul SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UAL	82 Outperform	$33.13B	10.25	27.70%	―	4.23%	13.13%
LTM	72 Outperform	$14.70B	12.37	161.29%	2.05%	5.64%	63.23%
AAL	66 Neutral	$8.58B	16.71	-21.27%	―	1.50%	―
Sector *	64 Neutral	$10.95B	16.10	8.81%	1.99%	2.59%	-16.41%
LUV	63 Neutral	$17.54B	48.90	4.30%	2.16%	1.64%	284.24%
JBLU	52 Neutral	$1.91B	―	-15.12%	―	-1.90%	61.06%
AZULQ	45 Neutral	$115.70M	―		―	-1.94%	68.93%