Dallas, Texas 02/03/2014 (FINANCIALSTRENDS) – The Brazilian small capped regional airline Gol Linhas Aereas Inteligentes SA (ADR)(NYSE:GOL) has been facing tribulations in its operations for a extended period of time. These challenges have forced the stock of the $1 billion market capped airline to shed its market value steadily. Even on 31st January the stock was down 4.1 percent, adding to the close to 14 percent dip in value in the past one month. Share price had bottomed out at $3.93 at end of the day. The latest downward spiral of this airline stock was induced by the downgrade recommended by rating agency Raymond James which has pegged Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL) down to perform from previous outperform.
The popular regional airline Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL) recorded net revenue of $3.93 billion over the trailing 12 months and had recorded earnings per share of negative $1.98 for the trailing 12 months. The revenue recorded is a big 67 percent dip over its 2012 numbers and has led to the regional airline accumulating losses to the tune of half a billion dollars over the past 12 months. The operational pressure’s have resulted in the airline seeing its profit margins dip by 8.83 percent in the past quarter and has been losing investors by the droves as it has not paid out dividends even once in the past 12 months.
The rating agencies have been pointing out that the prevailing price to book value ratio of 3.86 coupled with a quarterly debt to equity ratio of 8.67 has made the stock of Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL) over valued at its current share price of $3.93. Investors should also note that in the trailing 12 months, the firm has provided a 141 percent return on equity and has managed to maintain cash flow of $280 million for the quarter.