Azul SA Profitability Analysis
| AZUL Stock | USD 2.55 0.03 1.19% |
For Azul SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Azul SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Azul SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Azul SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Azul SA over time as well as its relative position and ranking within its peers.
Azul |
Is Passenger Airlines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Azul SA. If investors know Azul will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Azul SA listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.56) | Earnings Share (8.75) | Revenue Per Share 161.325 | Quarterly Revenue Growth (0.02) | Return On Assets 0.0685 |
The market value of Azul SA is measured differently than its book value, which is the value of Azul that is recorded on the company's balance sheet. Investors also form their own opinion of Azul SA's value that differs from its market value or its book value, called intrinsic value, which is Azul SA's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Azul SA's market value can be influenced by many factors that don't directly affect Azul SA's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Azul SA's value and its price as these two are different measures arrived at by different means. Investors typically determine if Azul SA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Azul SA's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Azul SA Profit Margin vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Azul SA's current stock value. Our valuation model uses many indicators to compare Azul SA value to that of its competitors to determine the firm's financial worth. Azul SA is rated fourth in return on asset category among its peers. It is rated below average in profit margin category among its peers . Comparative valuation analysis is a catch-all technique that is used if you cannot value Azul SA by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Azul Profit Margin vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Azul SA |
| = | 0.0685 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Azul SA |
| = | (0.35) % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Azul Profit Margin Comparison
Azul SA is currently under evaluation in profit margin category among its peers.
Azul SA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Azul SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Azul SA will eventually generate negative long term returns. The profitability progress is the general direction of Azul SA's change in net profit over the period of time. It can combine multiple indicators of Azul SA, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Azul S.A., together with its subsidiaries, provides passenger and cargo transportation services in Brazil. The company was incorporated in 2008 and is headquartered in Barueri, Brazil. Azul SA operates under Airlines classification in the United States and is traded on New York Stock Exchange. It employs 12485 people.
Azul Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Azul SA. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Azul SA position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Azul SA's important profitability drivers and their relationship over time.
Azul SA Profitability Trends
Azul SA profitability trend refers to the progression of profit or loss within a business. An upward trend means that Azul SA's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Azul SA's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Use Azul SA in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Azul SA position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Azul SA will appreciate offsetting losses from the drop in the long position's value.Azul SA Pair Trading
Azul SA Pair Trading Analysis
The ability to find closely correlated positions to Azul SA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Azul SA when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Azul SA - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Azul SA to buy it.
The correlation of Azul SA is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Azul SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Azul SA moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Azul SA can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Azul SA position
In addition to having Azul SA in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Trending Equities. For more information on how to buy Azul Stock please use our How to buy in Azul Stock guide.You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
To fully project Azul SA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Azul SA at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Azul SA's income statement, its balance sheet, and the statement of cash flows.