GOL Linhas Aereas Inteligentes SA (GOLLQ) AI Stock Analysis

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GOL Linhas Aereas Inteligentes SA

(OTC:GOLLQ)

42Neutral

GOL Linhas Aereas is undergoing a challenging period financially, with high leverage and negative profitability impacting overall performance. While technical analysis provides mixed signals, the stock's valuation reflects its financial difficulties. The company's restructuring efforts and operational achievements are positive, but significant risks remain due to rising costs and high debt levels. These factors combine to give the stock a low overall score, emphasizing the need for caution.

GOL Linhas Aereas Inteligentes SA (GOLLQ) vs. S&P 500 (SPY)

Market Cap

$97.98M

Dividend YieldN/A

Average Volume (3M)35.88K

Price to Earnings (P/E)―

Beta (1Y)0.35

Revenue Growth-0.57%

EPS Growth-3894.62%

CountryUS

Employees13,900

SectorIndustrials

Sector Strength70

IndustryAirlines, Airports & Air Services

Share Statistics

EPS (TTM)-4.80

Shares Outstanding169,297,160

10 Day Avg. Volume22,372

30 Day Avg. Volume35,884

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.59

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

GOL Linhas Aereas Inteligentes SA Business Overview & Revenue Model

Company DescriptionGOL Linhas Aereas Inteligentes SA, commonly known as GOL Airlines, is a prominent low-cost airline based in Brazil. The company operates primarily in the passenger transportation sector, offering domestic and international flights across South America, the Caribbean, and North America. GOL Airlines focuses on providing efficient, affordable air travel options, and is renowned for its extensive network within Brazil and strategic partnerships with other airlines.

How the Company Makes MoneyGOL Linhas Aereas Inteligentes SA generates revenue through the sale of passenger tickets, which is the primary source of income. The company's low-cost carrier model enables it to offer competitive fares, attracting budget-conscious travelers. Additionally, GOL earns ancillary revenue from services such as baggage fees, seat selection, in-flight sales, and loyalty programs. The company also benefits from strategic partnerships and codeshare agreements with other airlines, which extend its route network and enhance passenger volume. Furthermore, GOL's cargo operations contribute to its earnings by transporting freight and mail across its routes.

GOL Linhas Aereas Inteligentes SA Financial Statement Overview

Summary

GOL Linhas Aereas Inteligentes SA is facing significant financial challenges, characterized by declining revenues, persistent losses, and high leverage. While there were some improvements in 2023, the latest TTM results indicate a reversal, raising concerns about sustainability and financial stability. The company needs to address its liquidity and profitability issues to mitigate risks.

Income Statement

Negative

The company shows a volatile revenue trend with a recent decline in TTM revenue compared to the previous year. Gross and net profit margins are negative, reflecting ongoing financial challenges. Although there was a significant improvement in EBIT and EBITDA margins in 2023, the TTM figures indicate a reversal, suggesting profitability issues.

Balance Sheet

Very Negative

The balance sheet is heavily leveraged with a negative stockholders' equity, indicating significant financial distress. The debt-to-equity ratio is incalculable due to negative equity, and the equity ratio is also negative, suggesting over-reliance on debt financing.

Cash Flow

Negative

Cash flows are under pressure with negative free cash flow in the TTM period. The operating cash flow to net income ratio is unfavorable due to negative net income and operating cash flow. Previous periods showed positive free cash flow, but recent performance highlights liquidity issues.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
18.65B	18.77B	15.20B	7.43B	6.37B	3.45B
	Gross Profit
4.91B	5.80B	3.15B	-1.16B	-1.15B	1.01B
	EBIT
-1.69B	3.34B	78.83M	-688.82M	-289.47M	528.62M
	EBITDA
1.28B	3.91B	2.81B	-3.84B	-2.33B	2.61B
	Net Income Common Stockholders
-5.10B	-1.22B	-1.56B	-7.22B	-5.99B	-29.18M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
336.98M	639.83M	573.15M	777.62M	1.65B	646.66M
	Total Assets
2.68B	16.73B	16.97B	14.40B	12.81B	3.81B
	Total Debt
1.83B	20.02B	23.19B	22.66B	17.56B	3.25B
	Net Debt
1.62B	19.70B	23.02B	22.18B	16.90B	2.84B
	Total Liabilities
3.84B	39.89B	38.33B	35.46B	26.58B	5.57B
	Stockholders Equity
-1.29B	-23.17B	-21.36B	-21.05B	-14.41B	-1.91B
Cash Flow		Free Cash Flow
-1.82B	1.65B	1.96B	233.05M	91.99M	387.55M
	Operating Cash Flow
-525.87M	1.82B	2.17B	705.56M	753.94M	612.30M
	Investing Cash Flow
-1.47B	-871.99M	-787.51M	-179.62M	31.77M	-187.74M
	Financing Cash Flow
2.86B	-626.46M	-1.67B	-672.02M	-1.94B	-221.97M

GOL Linhas Aereas Inteligentes SA Technical Analysis

Technical Analysis Sentiment

Positive

Last Price0.50

Price Trends

50DMA

0.49

Positive

100DMA

0.49

Positive

200DMA

0.45

Positive

Market Momentum

MACD

<0.01

Negative

RSI

53.87

Neutral

STOCH

95.13

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOLLQ, the sentiment is Positive. The current price of 0.5 is above the 20-day moving average (MA) of 0.48, above the 50-day MA of 0.49, and above the 200-day MA of 0.45, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 95.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GOLLQ.

GOL Linhas Aereas Inteligentes SA Risk Analysis

GOL Linhas Aereas Inteligentes SA disclosed 34 risk factors in its most recent earnings report. GOL Linhas Aereas Inteligentes SA reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

GOL Linhas Aereas Inteligentes SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAL	74 Outperform	$26.69B	7.25	27.52%	1.31%	4.91%	-27.21%
UAL	74 Outperform	$21.53B	6.97	33.57%	―	5.31%	35.95%
Sector *	63 Neutral	$4.28B	11.33	5.43%	214.88%	4.12%	-8.65%
LUV	61 Neutral	$15.19B	31.42	5.63%	2.72%	3.26%	27.77%
AAL	58 Neutral	$6.43B	11.26	-21.27%	―	1.92%	36.07%
ALGT	48 Neutral	$845.76M	―	-19.93%	5.11%	0.11%	-311.73%
GOLLQ	42 Neutral	$97.98M	―	21.23%	―	-0.57%	-3894.62%

* Industrials Sector Average

Performance Comparison

GOLLQ

GOL Linhas Aereas Inteligentes SA

0.50

0.02

4.17%

ALGT

Allegiant Travel Company

46.12

-10.32

-18.28%

DAL

Delta Air Lines

41.58

-7.80

-15.80%

LUV

Southwest Airlines

26.49

0.09

0.34%

UAL

United Airlines Holdings

68.20

15.36

29.07%

AAL

American Airlines

9.75

-4.13

-29.76%

GOL Linhas Aereas Inteligentes SA Earnings Call Summary

Earnings Call Date: Mar 28, 2025 | % Change Since: -1.96% | Next Earnings Date: May 15, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted GOL's strong operational performance, capacity growth, and significant achievements in restructuring efforts. However, these were tempered by challenges related to rising costs, currency impacts, and substantial debt levels. The strategic steps taken in the Chapter 11 process are seen as positive for future sustainability.

Highlights

Punctuality Achievement

GOL was recognized as the world's most punctual low-cost airline for the fourth consecutive month with an on-time performance rate of 87.9% and the most punctual company in Brazil over the last 7 months with an 88.1% rate.

Capacity and Network Expansion

GOL increased capacity by 6.7% year-over-year with a notable 57% increase in international capacity, resuming flights to key international destinations and launching a new route to Bogota.

Smiles and GOLLOG Growth

Smiles membership increased by 9.3% and sales grew by 14% compared to Q3 2023. GOLLOG's revenue grew by 34% for the first 9 months of the year, driven by a 38% increase in transported tons.

Strong Passenger and Revenue Performance

Passenger revenue reached BRL 4.4 billion for the quarter, with a load factor above 83%.

Chapter 11 Restructuring Milestone

A restructuring support agreement was signed to address $1.7 billion in Chapter 11 debt, with plans to raise up to $1.85 billion in new capital through an exit credit facility.

Lowlights

Rising Costs and Currency Impact

Total CASK increased by 3.7% year-over-year due to the depreciation of the Brazilian real. Total recurring costs were up by 10.8%.

Chapter 11 Nonrecurring Costs

There were BRL 700 million in nonrecurring costs related to the Chapter 11 process.

Net Debt and Leverage

Adjusted net debt reached BRL 27.6 billion with a net leverage ratio of 5.5x.

Company Guidance

During the third quarter of 2024, GOL Linhas Aéreas reported significant achievements and challenges. The airline increased its total capacity by 6.7% year-over-year, with a notable 57% rise in international capacity, serving 8 million passengers and achieving a load factor above 83%. Passenger revenue amounted to BRL 4.4 billion, contributing to a net revenue of BRL 5 billion, which marked a 6% increase compared to the previous year. Despite a slight decrease in fuel costs, the total CASK increased by 3.7%, mainly due to currency devaluation, while total recurring costs rose by 10.8%, reaching BRL 4.2 billion. The Smiles loyalty program expanded by 14% in sales, reaching BRL 1.3 billion, and GOLLOG's revenue grew by 34% in the first nine months. The airline also made progress in its Chapter 11 process, addressing up to $1.7 billion in debt and planning to raise $1.85 billion in new capital, aiming for an exit by April 2025. GOL's liquidity position stood at BRL 5.3 billion, with an adjusted net debt of BRL 27.6 billion and a net leverage ratio of 5.5x.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.