Azure Stock Story

All Stories . Valuation . 
Ellen Johnson .  Story
AZRE
 Stock
  

USD 11.80  0.42  3.69%   

By Ellen Johnson
Macroaxis Story
While some of us are excited about utilities space, it makes sense to digest Azure Power Global in greater detail to make a better assessment of its actual value. What exactly are Azure Power shareholders getting in August? Is the firm operations in 2022 sustainable? Here we are going to cover Azure Power Global perspective on valuation to give you a better outlook on taking a position in this stock.
Published over a month ago
View all stories for Azure Power | View All Stories

Will Azure Power (NYSE:AZRE) price increase in August 2022?

The company currently holds 123.41 B in liabilities with Debt to Equity (D/E) ratio of 5.19, indicating Azure Power may have difficulties to generate enough cash to satisfy its financial obligations.
Our trade advice tool can cross-verify current analyst consensus on Azure Power Global and to analyze the company potential to grow in the current economic cycle.
We determine the current worth of Azure Power Global using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Azure Power Global based exclusively on its fundamental and basic technical indicators. By analyzing Azure Power's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Azure Power's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Azure Power. We calculate exposure to Azure Power's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Azure Power's related companies.

Azure Power Global Investment Alerts

Azure investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Azure Power Global performance across your portfolios.Please check all investment alerts for Azure

Azure Power Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Azure value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Azure Power competition to find correlations between indicators driving the intrinsic value of Azure.

How does Azure utilize its cash?

To perform a cash flow analysis of Azure Power, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Azure Power is receiving and how much cash it distributes out in a given period. The Azure Power cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Azure Power Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 5.72 Billion

A Deeper Perspective

The big decline in price over the last few months for Azure Power Global could raise concerns from shareholders as the firm is trading at a share price of 11.53 on 45,924 in volume. The company directors and management failed to add value to investors and position the firm supply of money to exploit market volatility in June. However, diversifying your holdings with Azure Power Global or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 6.07. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Azure Power partners.
 2019 2020 2021 2022 (projected)
Interest Expense7.96 B8.41 B9.67 B7.74 B
Gross Profit11.81 B13.97 B16.07 B17.34 B

Margins Breakdown

Azure profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Azure Power itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Azure Power profit margins.
EBITDA Margin0.66
Gross Margin0.83
Profit Margin(0.34)


Azure Power Earnings before Tax is decreasing over the last 8 years. Also, Azure Power Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. The previous year's value of Azure Power Earnings Before Interest Taxes and Depreciation Amortization EBITDA was 7,570,004,429.

Momentum Analysis of Azure Power suggests possible reversal in August

Latest value at risk is at -9.42.
As of the 1st of July, Azure Power shows the risk adjusted performance of (0.13), and Mean Deviation of 4.32. Azure Power Global technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Azure Power Global, which can be compared to its rivals. Please confirm Azure Power Global variance, maximum drawdown, as well as the relationship between the Maximum Drawdown and semi variance to decide if Azure Power Global is priced correctly, providing market reflects its regular price of 11.53 per share. Given that Azure Power has jensen alpha of (0.29), we suggest you to validate Azure Power Global's prevailing market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Azure Power

Although many other companies within the utilities—renewable industry are still a little expensive, even after the recent corrections, Azure Power may offer a potential longer-term growth to shareholders. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither trade new shares of Azure nor trade your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Azure Power.

Editorial Staff

Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Azure Power Global. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2022 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY