Gol Linhas Aereas Inteligentes SA (GOL, Financial) has experienced a notable shift in its stock performance over recent periods. With a current market capitalization of $5.34 billion, the stock price stands at $3.34. Over the past week, GOL's stock has seen a slight decline of 2.10%. However, looking at a broader timeframe, the stock has gained an impressive 15.55% over the past three months. This growth is particularly significant when considering the stock's valuation. The GF Value is currently at $3.58, suggesting that the stock is fairly valued at its current price. This is a stark contrast to the past GF Value of $7.75, which indicates that investors should exercise caution as the past data may be out of date.
Introduction to Gol Linhas Aereas Inteligentes SA
Gol Linhas Aereas Inteligentes SA, operating in the transportation industry, is a Brazilian airline known for its domestic and international flight operations. The company's business model is divided into flight transportation, which provides air transportation services, and the Smiles loyalty program segment, which allows for the redemption of miles for flight tickets. The majority of GOL's revenue is generated from its domestic operations, which is a critical aspect of its business strategy. 
Analyzing GOL's Profitability
When it comes to profitability, GOL has a Profitability Rank of 4 out of 10, which suggests moderate profitability within the industry. The company's operating margin stands at 14.10%, outperforming 69.24% of 959 companies in the industry. However, the reported Return on Equity (ROE) of 10000.00% is not applicable, and the Return on Assets (ROA) is at a modest 0.63%. The Return on Invested Capital (ROIC) is more favorable at 6.77%, indicating a decent ability to generate cash flow relative to the capital invested. Over the past decade, GOL has managed to be profitable for only two years, which is a concern for long-term investors.
Growth Prospects of GOL
The Growth Rank for GOL is currently at 1 out of 10, reflecting significant challenges in the company's growth trajectory. The 3-Year Revenue Growth Rate per Share has declined by 50.60%, and the 5-Year Revenue Growth Rate per Share has decreased by 43.60%. Despite these concerning historical figures, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is estimated at 16.12%, which is more optimistic and outperforms 89.39% of 179 companies in the industry. This suggests potential for recovery and growth in the coming years.
Significant Shareholders in GOL
Among the notable shareholders of GOL, Jim Simons (Trades, Portfolio) holds 313,100 shares, representing a 0.02% share percentage, while Jefferies Group (Trades, Portfolio) owns 177,549 shares, accounting for 0.01% of the company. The involvement of these investors indicates a level of confidence in the company's future performance and strategic direction.
Competitive Landscape
In comparison to its competitors, GOL stands in a unique position. Azul SA (BSP:AZUL4, Financial) has a market cap of $1.11 billion, significantly smaller than GOL's. On the other hand, Delta Air Lines Inc (DAL, Financial) and Ryanair Holdings PLC (DUB:RYA, Financial) have much larger market caps of $26.26 billion and $22.78 billion, respectively. This places GOL in a competitive environment where it must leverage its strengths in domestic operations to maintain and grow its market share.
Conclusion
In summary, Gol Linhas Aereas Inteligentes SA's recent stock performance has been a mix of short-term losses and medium-term gains, with the stock currently being fairly valued according to the GF Value. The company's profitability metrics present a mixed picture, with a moderate profitability rank but challenges in maintaining consistent profitability over the past decade. Growth prospects seem to be on the horizon, with future revenue estimates indicating potential improvement. The competitive landscape is challenging, with GOL positioned between smaller and much larger competitors. The investments by major holders like Jim Simons (Trades, Portfolio) and Jefferies Group (Trades, Portfolio) may reflect a belief in the company's strategic direction and future growth. Value investors will need to weigh these factors carefully when considering GOL as a potential addition to their portfolios.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
