Azul SA (AZULQ) AI Stock Analysis

• Market Cap: $235.92M
• Dividend Yield: N/A
• Average Volume (3M): 16.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -1.94%
• EPS Growth: 68.93%
• Country: US
• Employees: 15,367
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): -0.30
• Shares Outstanding: 298,679,930
• 10 Day Avg. Volume: 33,303
• 30 Day Avg. Volume: 16,933
• 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: 25.86
• 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: Hold
• Number of Analyst Covering: 0

• 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

Operational Efficiency

Improved operational efficiency indicates Azul's ability to manage costs and enhance service reliability, which can lead to better customer satisfaction and profitability over the long term.

Revenue Growth

Revenue growth and increased capacity suggest Azul's successful expansion strategy, which can strengthen its market position and drive future earnings.

Loyalty Program Expansion

The expansion of the loyalty program enhances customer retention and provides a stable revenue stream, supporting long-term financial health.

Negative Factors

High Leverage

High leverage and negative equity pose financial risks, limiting Azul's ability to invest in growth and weather economic downturns.

Operational Disruptions

Operational disruptions from OEM challenges can increase costs and affect service quality, potentially harming Azul's competitive position.

Equity Raise Challenges

Challenges in raising equity can restrict Azul's access to capital needed for strategic initiatives, impacting long-term growth potential.

Azul SA Business Overview & Revenue Model

Company Description

Azul S.A., together with its subsidiaries, provides passenger and cargo transportation services in Brazil. As of December 31, 2021, the company operated 850 daily departures to 125 destinations through a network of 259 non-stop routes with a fleet of 179 aircraft. It is also involved in the loyalty programs, travel packages, investment fund, logistics solutions, and aircraft financing activities. The company was incorporated in 2008 and is headquartered in Barueri, Brazil.

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

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Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
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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 1.22, 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	34.42B	10.65	24.74%	―	4.23%	13.13%
LTM	72 Outperform	14.03B	12.14	128.15%	2.14%	5.64%	63.23%
LUV	61 Neutral	17.08B	48.90	4.90%	2.21%	1.64%	284.24%
AAL	58 Neutral	8.21B	16.01	-14.65%	―	1.50%	0.00%
JBLU	47 Neutral	1.83B	-4.61	-16.03%	―	-1.90%	61.06%
AZULQ	45 Neutral	$235.92M	―		―	-1.94%	68.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%