EMBRAER SA-SPON ADR (ERJ)
US29082A1079 - ADR
ERJ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 65 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of ERJ while its profitability can be described as average. ERJ is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
ERJ had positive earnings in the past year.
ERJ had a positive operating cash flow in the past year.
ERJ had negative earnings in 4 of the past 5 years.
ERJ had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ERJ has a Return On Assets of 3.16%. This is comparable to the rest of the industry: ERJ outperforms 53.85% of its industry peers.
With a decent Return On Equity value of 12.01%, ERJ is doing good in the industry, outperforming 73.85% of the companies in the same industry.
With a Return On Invested Capital value of 3.32%, ERJ perfoms like the industry average, outperforming 43.08% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ERJ is significantly below the industry average of 7.71%.
The last Return On Invested Capital (3.32%) for ERJ is above the 3 year average (2.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 12.01% | ||
| ROIC | 3.32% |
ROA(3y)-0.26%
ROA(5y)-2.1%
ROE(3y)-1.05%
ROE(5y)-7.46%
ROIC(3y)2.58%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 6.75%, ERJ is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
The Operating Margin of ERJ (5.78%) is comparable to the rest of the industry.
With a Gross Margin value of 17.19%, ERJ is not doing good in the industry: 66.15% of the companies in the same industry are doing better.
ERJ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.78% | ||
| PM (TTM) | 6.75% | ||
| GM | 17.19% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y12.04%
GM growth 5Y13.63%
2. Health
2.1 Basic Checks
ERJ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ERJ has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ERJ has about the same amount of shares outstanding.
ERJ has a better debt/assets ratio than last year.
2.2 Solvency
ERJ has an Altman-Z score of 1.31. This is a bad value and indicates that ERJ is not financially healthy and even has some risk of bankruptcy.
ERJ's Altman-Z score of 1.31 is on the low side compared to the rest of the industry. ERJ is outperformed by 73.85% of its industry peers.
ERJ has a debt to FCF ratio of 10.46. This is a negative value and a sign of low solvency as ERJ would need 10.46 years to pay back of all of its debts.
ERJ has a Debt to FCF ratio of 10.46. This is comparable to the rest of the industry: ERJ outperforms 60.00% of its industry peers.
ERJ has a Debt/Equity ratio of 0.91. This is a neutral value indicating ERJ is somewhat dependend on debt financing.
The Debt to Equity ratio of ERJ (0.91) is worse than 70.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 10.46 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.23
WACC14.14%
2.3 Liquidity
ERJ has a Current Ratio of 1.50. This is a normal value and indicates that ERJ is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ERJ (1.50) is worse than 61.54% of its industry peers.
ERJ has a Quick Ratio of 1.50. This is a bad value and indicates that ERJ is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.66, ERJ is doing worse than 81.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
ERJ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 182.16%, which is quite impressive.
ERJ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.35%.
The Revenue has been growing by 27.05% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)182.16%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%16970.9%
Revenue 1Y (TTM)11.35%
Revenue growth 3Y9.95%
Revenue growth 5Y27.05%
Sales Q2Q%649.79%
3.2 Future
Based on estimates for the next years, ERJ will show a very strong growth in Earnings Per Share. The EPS will grow by 89.49% on average per year.
The Revenue is expected to grow by 12.14% on average over the next years. This is quite good.
EPS Next Y335.23%
EPS Next 2Y136.32%
EPS Next 3Y89.49%
EPS Next 5YN/A
Revenue Next Year12.65%
Revenue Next 2Y13.99%
Revenue Next 3Y12.14%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.07 indicates a reasonable valuation of ERJ.
ERJ's Price/Earnings ratio is rather cheap when compared to the industry. ERJ is cheaper than 96.92% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.20. ERJ is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 106.97, ERJ can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ERJ is valued a bit more expensive than 60.00% of the companies in the same industry.
ERJ's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 106.97 |
4.2 Price Multiples
70.77% of the companies in the same industry are more expensive than ERJ, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ERJ is valued cheaper than 86.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.44 | ||
| EV/EBITDA | 16.63 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ERJ's earnings are expected to grow with 89.49% in the coming years.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y136.32%
EPS Next 3Y89.49%
5. Dividend
5.1 Amount
ERJ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EMBRAER SA-SPON ADR
NYSE:ERJ (11/22/2024, 8:04:00 PM)
After market: 39 0 (0%)39
+0.18 (+0.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 106.97 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.02
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 12.01% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.78% | ||
| PM (TTM) | 6.75% | ||
| GM | 17.19% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)182.16%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y335.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.35%
Revenue growth 3Y9.95%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y