EMBRAER SA-SPON ADR (ERJ) Stock Fundamental Analysis
NYSE:ERJ - New York Stock Exchange, Inc. - US29082A1079 - ADR - Currency: USD
Taking everything into account, ERJ scores 4 out of 10 in our fundamental rating. ERJ was compared to 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 growing strongly while it is still valued neutral. This is a good combination!
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.
Of the past 5 years ERJ 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 4.09%, ERJ perfoms like the industry average, outperforming 54.69% 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.
The Return On Invested Capital of ERJ (5.60%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ERJ is significantly below the industry average of 7.61%.
The last Return On Invested Capital (5.60%) for ERJ is above the 3 year average (2.58%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 8.27%, ERJ is doing good in the industry, outperforming 73.44% of the companies in the same industry.
ERJ has a Operating Margin of 9.23%. This is in the better half of the industry: ERJ outperforms 62.50% of its industry peers.
ERJ has a Gross Margin of 17.43%. This is in the lower half of the industry: ERJ underperforms 67.19% of its industry peers.
ERJ's Gross Margin has improved in the last couple of years.
| 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
ERJ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ERJ has about the same amount of shares outstanding.
Compared to 5 years ago, ERJ has about the same amount of shares outstanding.
Compared to 1 year ago, ERJ has an improved debt to assets ratio.
2.2 Solvency
ERJ has an Altman-Z score of 1.44. This is a bad value and indicates that ERJ is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ERJ (1.44) is worse than 73.44% 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 has a Debt to FCF ratio (26.50) which is in line with its industry peers.
ERJ has a Debt/Equity ratio of 0.84. This is a neutral value indicating ERJ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.84, ERJ is doing worse than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 26.5 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.37
WACC15.14%
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.
With a Current ratio value of 1.56, ERJ is not doing good in the industry: 64.06% of the companies in the same industry are doing better.
A Quick Ratio of 0.76 indicates that ERJ may have some problems paying its short term obligations.
ERJ has a worse Quick ratio (0.76) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 6451.84% over the past year.
The Revenue has grown by 17.03% in the past year. This is quite good.
The Revenue has been growing by 27.05% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)6451.84%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%650%
Revenue 1Y (TTM)17.03%
Revenue growth 3Y9.95%
Revenue growth 5Y27.05%
Sales Q2Q%31.77%
3.2 Future
The Earnings Per Share is expected to grow by 89.49% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 13.93% 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 Year12.94%
Revenue Next 2Y14.9%
Revenue Next 3Y13.93%
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
Based on the Price/Earnings ratio of 120.47, the valuation of ERJ can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ERJ is on the same level as its industry peers.
ERJ is valuated expensively when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 112.84, which means the current valuation is very expensive for ERJ.
ERJ's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ERJ is more expensive than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 91.29, ERJ is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 120.47 | ||
| Fwd PE | 112.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ERJ is valued cheaply inside the industry as 92.19% of the companies are valued more expensively.
ERJ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.55 | ||
| EV/EBITDA | 11.11 |
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.
ERJ's earnings are expected to grow with 89.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y136.32%
EPS Next 3Y89.49%
5. Dividend
5.1 Amount
No dividends for ERJ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EMBRAER SA-SPON ADR
NYSE:ERJ (1/30/2025, 4:15:00 PM)
After market: 40.6009 -0.36 (-0.88%)40.96
+0.63 (+1.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners52.71%
Inst Owner Change-1.53%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.52B
Analysts77.33
Price Target37.48 (-8.5%)
Short Float %2.26%
Short Ratio3.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.09
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)-2.75%
PT rev (3m)8.59%
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)0.25%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 120.47 | ||
| Fwd PE | 112.84 | ||
| P/S | 1.4 | ||
| P/FCF | 77.55 | ||
| P/OCF | 13.6 | ||
| P/B | 2.58 | ||
| P/tB | 12.11 | ||
| EV/EBITDA | 11.11 |
EPS(TTM)0.34
EY0.83%
EPS(NY)0.36
Fwd EY0.89%
FCF(TTM)0.53
FCFY1.29%
OCF(TTM)3.01
OCFY7.35%
SpS29.25
BVpS15.9
TBVpS3.38
PEG (NY)0.36
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 | 1.44 |
F-Score5
WACC15.14%
ROIC/WACC0.37
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%
EPS Next Y335.23%
EPS Next 2Y136.32%
EPS Next 3Y89.49%
EPS Next 5YN/A
Revenue 1Y (TTM)17.03%
Revenue growth 3Y9.95%
Revenue growth 5Y27.05%
Sales Q2Q%31.77%
Revenue Next Year12.94%
Revenue Next 2Y14.9%
Revenue Next 3Y13.93%
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%