# Azzas 2154 (AZZA3.SA)

Canonical: https://gigainvestors.com/s/AZZA3.SA

Analysis as of: 2026-10-16T07:44:09.708Z. Financial observations: FY2008–FY2025.

Listing currency: BRL. Reporting currency: BRL.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: BRL 23.61 per share; close as of 2026-10-15.

Estimated value: low BRL 38.01 per share, central BRL 47.98 per share, high BRL 51.57 per share. Buy at or below the central value BRL 47.98 per share. Valuation as of 2026-10-16T07:44:09.708Z; scenarios are not confidence intervals.

Expected annual return: 32.9% at the stated quote. About 32.9% a year at today's price (required return 17.0%). required return 17.0% a year (BR 10-year bond 13.0% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.25×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.12×

- FY2017: 0.13×

- FY2018: 0.13×

- FY2019: 0.13×

- FY2020: 0.07×

- FY2021: 0.16×

- FY2022: 0.13×

- FY2023: 0.12×

- FY2024: 0.06×

- FY2025: 0.10×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 20.6%

- ROIC, second-lowest year: 8.6%

- Typical minus recent gross margin: -4.2 pp

- Typical gross margin (annual median): 50.0%

- Recent gross margin (lower of latest and 3-year median): 54.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.6%

- ROIC including acquisitions, ten-year median: 12.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 21.0%

- FY2017: 28.8%

- FY2018: 27.3%

- FY2019: 20.3%

- FY2020: 8.6%

- FY2021: 25.9%

- FY2022: 22.2%

- FY2023: 19.3%

- FY2024: 4.3%

- FY2025: 12.1%

### economics: pass

- Owner earnings / net income, 5-yr: 0.90×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: BRL 2.2B

- Net income, five-year total: BRL 2.4B

- Return on incremental invested capital: 36.7%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 4.4 pp

- Working capital / revenue, final three-year average: 32.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.87×

- FY2022: 0.82×

- FY2023: 0.74×

- FY2024: 0.49×

- FY2025: 1.18×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 27.3% vs 12.1%

- Per-share earnings: 1.35 to 3.48 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 8.5%

- Ordinary dilution, 5-year annual growth: 17.2%

- Market cap gain: BRL 2.8B

- Cumulative retained earnings: BRL 5.6B

- Diluted shares, 10-year annual growth: 8.5%

- Diluted shares, 5-year annual growth: 17.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 12.6%

- Per-share value change: BRL 2.13

- Per-share value, starting three-year median: BRL 1.35

- Per-share value, ending three-year median: BRL 3.48

- Buybacks concentrated in cheaper years (correlation): 0.79

- Average buyback yield: 0.6%

- Buyback history: 7 years

- Debt-funded buybacks: No

- Acquisition spending: BRL 3.7B

- Cumulative net income, 10 years: BRL 3.0B

- ROIC, first three-year median: 27.3%

- ROIC, last three-year median: 12.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: BRL 1.30

- FY2017: BRL 1.72

- FY2018: BRL 1.56

- FY2019: BRL 1.79

- FY2020: BRL 0.53

- FY2021: BRL 3.43

- FY2022: BRL 3.76

- FY2023: BRL 3.48

- FY2024: BRL 2.66

- FY2025: BRL 4.51

### accounting: pass

- Sloan accruals: -1.1%

- Receivables to sales index (DSRI): 0.68×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.18×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.44×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 1.6%

- FY2017: -1.7%

- FY2018: 2.4%

- FY2019: -3.0%

- FY2020: -6.1%

- FY2021: 3.1%

- FY2022: 6.1%

- FY2023: -0.2%

- FY2024: -0.1%

- FY2025: -1.1%

## Holders

## Price story

Down 77% since Oct 2022 · sales +41%

Story as of 2026-10-16T10:00:12.935Z; price observation 2026-10-15.

Price needs cash profits to shrink 5.8% a year for ten years

### Sales · FY2024–2025

sales +41%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: BRL 1.2B 

- FY2017: BRL 1.4B 

- FY2018: BRL 1.5B 

- FY2019: BRL 1.7B 

- FY2020: BRL 1.6B 

- FY2021: BRL 2.9B 

- FY2022: BRL 4.2B 

- FY2023: BRL 4.8B 

- FY2024: BRL 8.4B 

- FY2025: BRL 12B 

### Gross margin · FY2025

gross margin 55%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 44.3% 

- FY2017: 45.8% 

- FY2018: 46.6% 

- FY2019: 46.2% 

- FY2020: 47.5% 

- FY2021: 52.6% 

- FY2022: 53.9% 

- FY2023: 54.2% 

- FY2024: 53.3% 

- FY2025: 55.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in footwear & accessories; annual sales are BRL 11.8 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:09.708Z); FY2025: revenue 11819492000; grossProfit 6495420000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 53.3% to 55% during 2023–25; it earns 20.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:09.708Z); FY2023: grossProfit / revenue = 54.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:09.708Z); FY2024: grossProfit / revenue = 53.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:09.708Z); FY2025: grossProfit / revenue = 55%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:09.708Z); 10-year return on capital observations [[2016,0.21007791336516343],[2017,0.2881708582358476],[2018,0.27344451934806213],[2019,0.20268176376862812],[2020,0.08612233060644334],[2021,0.25876539519623787],[2022,0.22181756097778324],[2023,0.19345334298587955],[2024,0.04340043745398885],[2025,0.12103287614011617]]; median 0.2063798385668958. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 54% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:09.708Z); Gross margin observations: [[2021,0.5262554863882165],[2022,0.5393910706550211],[2023,0.5424359078049538]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back BRL 166.8 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:09.708Z); FY2016: growth capex 0; upkeep 25066000; owner earnings 116898000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:09.708Z); FY2017: growth capex 0; upkeep 21548000; owner earnings 165554000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:09.708Z); FY2018: growth capex 7732000; upkeep 40882000; owner earnings 142644000. Growth capex / owner earnings = 0.054204873671517904.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:09.708Z); FY2019: growth capex 0; upkeep 65607000; owner earnings 176854000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:09.708Z); FY2020: growth capex 0; upkeep 46185000; owner earnings 83502000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:09.708Z); FY2021: growth capex 63133000; upkeep 105748000; owner earnings 298854800. Growth capex / owner earnings = 0.2112497440228499.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:09.708Z); FY2022: growth capex 67113000; upkeep 166030000; owner earnings 349801600. Growth capex / owner earnings = 0.1918601858882292.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:09.708Z); FY2023: growth capex 12257000; upkeep 222944000; owner earnings 296363000. Growth capex / owner earnings = 0.04135806426578217.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:09.708Z); FY2024: growth capex 4107000; upkeep 414855000; owner earnings 166593000. Growth capex / owner earnings = 0.024652896580288488.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:09.708Z); FY2025: growth capex 0; upkeep 383747000; owner earnings 1071005000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:09.708Z); Dividend observations: [[2016,29961000],[2017,141807000],[2018,73796000],[2019,100000000],[2020,28577000],[2021,2582000],[2022,76215000],[2023,32960000],[2024,60000000],[2025,500000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:09.708Z); FY2025: cash repurchases 166755000 BRL.

### Are managers owners

Insiders own 37% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AZZA3.SA SharesStats.PercentInsiders = 36.954 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 5.8% yearly over ten years; actual growth was 14.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:09.708Z); Ten-year compound average after fade. Initial solved rate -0.0948005171345066. Price 23.61; FX 1; discount 0.1695; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.346019297783837 → FY2025 5.303963741064769. Closing-price date 2026-10-15.

## Monthly share-price history (BRL per share)

- 2016-10: BRL 29.57 per share

- 2016-11: BRL 27.50 per share

- 2016-12: BRL 25.06 per share

- 2017-01: BRL 29.10 per share

- 2017-02: BRL 31.49 per share

- 2017-03: BRL 31.38 per share

- 2017-04: BRL 33.70 per share

- 2017-05: BRL 32.09 per share

- 2017-06: BRL 32.71 per share

- 2017-07: BRL 37.00 per share

- 2017-08: BRL 45.78 per share

- 2017-09: BRL 50.00 per share

- 2017-10: BRL 50.55 per share

- 2017-11: BRL 46.21 per share

- 2017-12: BRL 54.70 per share

- 2018-01: BRL 59.77 per share

- 2018-02: BRL 56.10 per share

- 2018-03: BRL 50.55 per share

- 2018-04: BRL 52.98 per share

- 2018-05: BRL 42.75 per share

- 2018-06: BRL 44.60 per share

- 2018-07: BRL 42.65 per share

- 2018-08: BRL 39.57 per share

- 2018-09: BRL 42.86 per share

- 2018-10: BRL 47.40 per share

- 2018-11: BRL 49.94 per share

- 2018-12: BRL 55.06 per share

- 2019-01: BRL 55.00 per share

- 2019-02: BRL 53.97 per share

- 2019-03: BRL 49.98 per share

- 2019-04: BRL 51.00 per share

- 2019-05: BRL 50.50 per share

- 2019-06: BRL 50.20 per share

- 2019-07: BRL 50.39 per share

- 2019-08: BRL 49.48 per share

- 2019-09: BRL 49.52 per share

- 2019-10: BRL 59.10 per share

- 2019-11: BRL 62.50 per share

- 2019-12: BRL 64.00 per share

- 2020-01: BRL 60.30 per share

- 2020-02: BRL 60.10 per share

- 2020-03: BRL 36.87 per share

- 2020-04: BRL 42.50 per share

- 2020-05: BRL 42.10 per share

- 2020-06: BRL 47.90 per share

- 2020-07: BRL 52.76 per share

- 2020-08: BRL 56.12 per share

- 2020-09: BRL 54.34 per share

- 2020-10: BRL 60.30 per share

- 2020-11: BRL 69.45 per share

- 2020-12: BRL 68.18 per share

- 2021-01: BRL 70.57 per share

- 2021-02: BRL 71.32 per share

- 2021-03: BRL 70.35 per share

- 2021-04: BRL 75.65 per share

- 2021-05: BRL 88.63 per share

- 2021-06: BRL 94.50 per share

- 2021-07: BRL 90.52 per share

- 2021-08: BRL 89.42 per share

- 2021-09: BRL 82.87 per share

- 2021-10: BRL 73.90 per share

- 2021-11: BRL 67.16 per share

- 2021-12: BRL 76.77 per share

- 2022-01: BRL 81.79 per share

- 2022-02: BRL 81.22 per share

- 2022-03: BRL 90.18 per share

- 2022-04: BRL 89.47 per share

- 2022-05: BRL 80.20 per share

- 2022-06: BRL 69.55 per share

- 2022-07: BRL 79.15 per share

- 2022-08: BRL 92.40 per share

- 2022-09: BRL 98.41 per share

- 2022-10: BRL 104.50 per share

- 2022-11: BRL 89.57 per share

- 2022-12: BRL 78.25 per share

- 2023-01: BRL 87.60 per share

- 2023-02: BRL 74.60 per share

- 2023-03: BRL 63.51 per share

- 2023-04: BRL 66.38 per share

- 2023-05: BRL 73.77 per share

- 2023-06: BRL 79.07 per share

- 2023-07: BRL 82.40 per share

- 2023-08: BRL 70.67 per share

- 2023-09: BRL 64.96 per share

- 2023-10: BRL 58.39 per share

- 2023-11: BRL 59.34 per share

- 2023-12: BRL 64.53 per share

- 2024-01: BRL 62.59 per share

- 2024-02: BRL 59.23 per share

- 2024-03: BRL 64.27 per share

- 2024-04: BRL 51.92 per share

- 2024-05: BRL 49.40 per share

- 2024-06: BRL 51.35 per share

- 2024-07: BRL 48.65 per share

- 2024-08: BRL 49.00 per share

- 2024-09: BRL 42.17 per share

- 2024-10: BRL 41.24 per share

- 2024-11: BRL 36.69 per share

- 2024-12: BRL 29.58 per share

- 2025-01: BRL 34.15 per share

- 2025-02: BRL 26.00 per share

- 2025-03: BRL 24.50 per share

- 2025-04: BRL 31.84 per share

- 2025-05: BRL 44.15 per share

- 2025-06: BRL 43.00 per share

- 2025-07: BRL 35.68 per share

- 2025-08: BRL 34.71 per share

- 2025-09: BRL 30.15 per share

- 2025-10: BRL 28.71 per share

- 2025-11: BRL 28.96 per share

- 2025-12: BRL 25.16 per share

- 2026-01: BRL 26.74 per share

- 2026-02: BRL 26.17 per share

- 2026-03: BRL 25.70 per share

- 2026-04: BRL 21.62 per share

- 2026-05: BRL 19.31 per share

- 2026-06: BRL 17.88 per share

- 2026-07: BRL 16.42 per share

- 2026-08: BRL 14.86 per share

- 2026-09: BRL 17.38 per share

- 2026-10: BRL 25.30 per share

## Annual estimated value (BRL per share)

- FY2016: low BRL 9.61 per share, central BRL 10.10 per share, high BRL 10.67 per share

- FY2017: low BRL 12.00 per share, central BRL 12.59 per share, high BRL 13.26 per share

- FY2018: low BRL 11.65 per share, central BRL 12.30 per share, high BRL 13.04 per share

- FY2019: low BRL 16.40 per share, central BRL 19.42 per share, high BRL 20.76 per share

- FY2020: low BRL 16.12 per share, central BRL 17.42 per share, high BRL 18.30 per share

- FY2021: low BRL 23.46 per share, central BRL 29.83 per share, high BRL 32.13 per share

- FY2022: low BRL 28.74 per share, central BRL 36.25 per share, high BRL 38.96 per share

- FY2023: low BRL 30.84 per share, central BRL 38.31 per share, high BRL 41.01 per share

- FY2024: low BRL 30.76 per share, central BRL 35.09 per share, high BRL 37.46 per share

- FY2025: low BRL 39.09 per share, central BRL 49.46 per share, high BRL 53.20 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:49:46.012Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations