Azul S.A. American Depositary Shares (each representing three preferred shares) (AZUL) Company Bio
AZUL S.A. operates as an airline in Brazil. It provides passenger and cargo air transportation services through a fleet of jet aircraft to various destinations in Brazil and the United States. The company was founded in 2008 and is based in Barueri, Brazil.
AZUL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Azul Sa. To summarize, we found that Azul Sa ranked in the 96th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 7030%. In terms of the factors that were most noteworthy in this DCF analysis for AZUL, they are:
The company's compound free cash flow growth rate over the past 2.63 years comes in at 1.42%; that's greater than 94.37% of US stocks we're applying DCF forecasting to.
As a business, AZUL is generating more cash flow than 88.9% of positive cash flow stocks in the Industrials.
Azul Sa's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.91. This coverage rate is greater than that of merely 17.23% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AZUL, try TEX, VRTV, NAV, CCNC, and SNDR.
Shares of Brazilian discount airline Azul (NYSE: AZUL) bounced back from a 6.5% loss Tuesday and were racing ahead 22% today as of 10:40 a.m. EDT. As recently as February, Azul was still in growth mode, with consolidated passenger traffic up 25% year over year. By May, things were so bad that S&P Global Ratings downgraded the Brazilian airline's debt to CCC+ (a junk level) with a negative outlook promising more downgrades ahead.
Tripping air travel demand due to COVID-19 causes consolidated load factor to tank by 1560 basis points.Tripping air travel demand due to COVID-19 causes consolidated load factor to tank by 1560 basis points.