EMBRAER SA-SPON ADR (ERJ)
US29082A1079 - ADR
Overall ERJ gets a fundamental rating of 4 out of 10. We evaluated ERJ against 64 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 growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year ERJ was profitable.
In the past year ERJ had a positive cash flow from operations.
In the past 5 years ERJ reported 4 times negative net income.
ERJ had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.09%, ERJ is in line with its industry, outperforming 57.81% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.22%, ERJ belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
ERJ has a Return On Invested Capital (5.60%) which is in line with its industry peers.
ERJ had an Average Return On Invested Capital over the past 3 years of 2.58%. This is significantly below the industry average of 7.71%.
The 3 year average ROIC (2.58%) for ERJ is below the current ROIC(5.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.09% | ||
| ROE | 15.22% | ||
| ROIC | 5.6% |
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
ERJ's Profit Margin of 8.27% is fine compared to the rest of the industry. ERJ outperforms 73.44% of its industry peers.
ERJ's Operating Margin of 9.23% is fine compared to the rest of the industry. ERJ outperforms 65.63% of its industry peers.
With a Gross Margin value of 17.43%, ERJ is not doing good in the industry: 65.63% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ERJ has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.23% | ||
| PM (TTM) | 8.27% | ||
| GM | 17.43% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ERJ is destroying value.
Compared to 1 year ago, ERJ has about the same amount of shares outstanding.
ERJ has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for ERJ has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.42, we must say that ERJ is in the distress zone and has some risk of bankruptcy.
ERJ has a Altman-Z score of 1.42. This is in the lower half of the industry: ERJ underperforms 75.00% of its industry peers.
The Debt to FCF ratio of ERJ is 26.50, which is on the high side as it means it would take ERJ, 26.50 years of fcf income to pay off all of its debts.
ERJ's Debt to FCF ratio of 26.50 is in line compared to the rest of the industry. ERJ outperforms 48.44% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that ERJ is somewhat dependend on debt financing.
ERJ has a Debt to Equity ratio of 0.84. This is in the lower half of the industry: ERJ underperforms 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 26.5 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.38
WACC14.66%
2.3 Liquidity
ERJ has a Current Ratio of 1.56. This is a normal value and indicates that ERJ is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.56, ERJ is doing worse than 64.06% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that ERJ may have some problems paying its short term obligations.
With a Quick ratio value of 0.76, ERJ is not doing good in the industry: 73.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
ERJ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 6451.84%, which is quite impressive.
The Revenue has grown by 17.03% in the past year. This is quite good.
ERJ shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.05% yearly.
EPS 1Y (TTM)6451.84%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%650.05%
Revenue 1Y (TTM)17.03%
Revenue growth 3Y9.95%
Revenue growth 5Y27.05%
Sales Q2Q%31.77%
3.2 Future
ERJ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 89.50% yearly.
The Revenue is expected to grow by 12.14% on average over the next years. This is quite good.
EPS Next Y335.26%
EPS Next 2Y136.33%
EPS Next 3Y89.5%
EPS Next 5YN/A
Revenue Next Year12.65%
Revenue Next 2Y13.99%
Revenue Next 3Y12.14%
Revenue Next 5YN/A
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 113.66, which means the current valuation is very expensive for ERJ.
Compared to the rest of the industry, the Price/Earnings ratio of ERJ is on the same level as its industry peers.
ERJ's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.55.
ERJ is valuated quite expensively with a Price/Forward Earnings ratio of 106.13.
The rest of the industry has a similar Price/Forward Earnings ratio as ERJ.
When comparing the Price/Forward Earnings ratio of ERJ to the average of the S&P500 Index (24.00), we can say ERJ is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 113.66 | ||
| Fwd PE | 106.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ERJ indicates a rather cheap valuation: ERJ is cheaper than 90.63% of the companies listed in the same industry.
ERJ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.93 | ||
| EV/EBITDA | 10.66 |
4.3 Compensation for Growth
ERJ's 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 89.50% in the coming years.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y136.33%
EPS Next 3Y89.5%
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 (12/27/2024, 1:30:58 PM)
36.37
-0.03 (-0.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners52.71%
Inst Owner Change3.2%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.68B
Analysts77.33
Price Target38.54 (5.97%)
Short Float %0.61%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)-7.73%
DP2.56%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-9.56%
Min EPS beat(2)-22.39%
Max EPS beat(2)3.26%
EPS beat(4)2
Avg EPS beat(4)-5%
Min EPS beat(4)-74.8%
Max EPS beat(4)73.93%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)1.75%
Min Revenue beat(2)-0.39%
Max Revenue beat(2)3.89%
Revenue beat(4)2
Avg Revenue beat(4)-0.64%
Min Revenue beat(4)-7.01%
Max Revenue beat(4)3.89%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)11.66%
PT rev (3m)17.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-27.96%
EPS NY rev (1m)0%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 113.66 | ||
| Fwd PE | 106.13 | ||
| P/S | 1.32 | ||
| P/FCF | 72.93 | ||
| P/OCF | 12.79 | ||
| P/B | 2.42 | ||
| P/tB | 11.39 | ||
| EV/EBITDA | 10.66 |
EPS(TTM)0.32
EY0.88%
EPS(NY)0.34
Fwd EY0.94%
FCF(TTM)0.5
FCFY1.37%
OCF(TTM)2.84
OCFY7.82%
SpS27.61
BVpS15.01
TBVpS3.19
PEG (NY)0.34
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.09% | ||
| ROE | 15.22% | ||
| ROCE | 7.09% | ||
| ROIC | 5.6% | ||
| ROICexc | 6.96% | ||
| ROICexgc | 11.77% | ||
| OM | 9.23% | ||
| PM (TTM) | 8.27% | ||
| GM | 17.43% | ||
| FCFM | 1.81% |
ROA(3y)-0.26%
ROA(5y)-2.1%
ROE(3y)-1.05%
ROE(5y)-7.46%
ROIC(3y)2.58%
ROIC(5y)N/A
ROICexc(3y)3.83%
ROICexc(5y)N/A
ROICexgc(3y)7.29%
ROICexgc(5y)N/A
ROCE(3y)3.26%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y12.04%
GM growth 5Y13.63%
F-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 26.5 | ||
| Debt/EBITDA | 3.41 | ||
| Cap/Depr | 203.28% | ||
| Cap/Sales | 8.49% | ||
| Interest Coverage | 3.17 | ||
| Cash Conversion | 76.79% | ||
| Profit Quality | 21.83% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.42 |
F-Score5
WACC14.66%
ROIC/WACC0.38
Cap/Depr(3y)143%
Cap/Depr(5y)154.87%
Cap/Sales(3y)6.75%
Cap/Sales(5y)7.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6451.84%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%650.05%
EPS Next Y335.26%
EPS Next 2Y136.33%
EPS Next 3Y89.5%
EPS Next 5YN/A
Revenue 1Y (TTM)17.03%
Revenue growth 3Y9.95%
Revenue growth 5Y27.05%
Sales Q2Q%31.77%
Revenue Next Year12.65%
Revenue Next 2Y13.99%
Revenue Next 3Y12.14%
Revenue Next 5YN/A
EBIT growth 1Y134.76%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year109.6%
EBIT Next 3Y39.22%
EBIT Next 5YN/A
FCF growth 1Y-82.82%
FCF growth 3YN/A
FCF growth 5Y-22.11%
OCF growth 1Y-31%
OCF growth 3YN/A
OCF growth 5Y-6.76%