EMBRAER SA-SPON ADR (ERJ) Fundamental Analysis & Valuation

NYSE:ERJ • US29082A1079

Current stock price

64.48 USD
-0.74 (-1.13%)
At close:
64.48 USD
0 (0%)
After Hours:

This ERJ fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. ERJ Profitability Analysis

1.1 Basic Checks

  • ERJ had positive earnings in the past year.
  • ERJ had a positive operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: ERJ reported negative net income in multiple years.
  • Of the past 5 years ERJ 4 years had a positive operating cash flow.
ERJ Yearly Net Income VS EBIT VS OCF VS FCFERJ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B 4B -4B -6B

1.2 Ratios

  • ERJ has a Return On Assets of 3.25%. This is comparable to the rest of the industry: ERJ outperforms 54.79% of its industry peers.
  • The Return On Equity of ERJ (11.75%) is better than 78.08% of its industry peers.
  • ERJ has a Return On Invested Capital of 6.92%. This is in the better half of the industry: ERJ outperforms 60.27% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ERJ is significantly below the industry average of 9.30%.
  • The last Return On Invested Capital (6.92%) for ERJ is above the 3 year average (3.04%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.25%
ROE 11.75%
ROIC 6.92%
ROA(3y)0.77%
ROA(5y)-0.96%
ROE(3y)2.92%
ROE(5y)-3.58%
ROIC(3y)3.04%
ROIC(5y)N/A
ERJ Yearly ROA, ROE, ROICERJ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 -20

1.3 Margins

  • ERJ has a Profit Margin (5.37%) which is comparable to the rest of the industry.
  • With a decent Operating Margin value of 10.98%, ERJ is doing good in the industry, outperforming 71.23% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ERJ has grown nicely.
  • Looking at the Gross Margin, with a value of 18.48%, ERJ is doing worse than 68.49% of the companies in the same industry.
  • ERJ's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 10.98%
PM (TTM) 5.37%
GM 18.48%
OM growth 3Y26.36%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.14%
GM growth 5Y4.37%
ERJ Yearly Profit, Operating, Gross MarginsERJ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10

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3

2. ERJ Health Analysis

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.
  • The number of shares outstanding for ERJ remains at a similar level compared to 1 year ago.
  • The number of shares outstanding for ERJ remains at a similar level compared to 5 years ago.
  • ERJ has a better debt/assets ratio than last year.
ERJ Yearly Shares OutstandingERJ Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
ERJ Yearly Total Debt VS Total AssetsERJ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

  • ERJ has an Altman-Z score of 1.80. This is a bad value and indicates that ERJ is not financially healthy and even has some risk of bankruptcy.
  • ERJ has a Altman-Z score of 1.80. This is in the lower half of the industry: ERJ underperforms 72.60% of its industry peers.
  • ERJ has a debt to FCF ratio of 4.50. This is a neutral value as ERJ would need 4.50 years to pay back of all of its debts.
  • ERJ's Debt to FCF ratio of 4.50 is fine compared to the rest of the industry. ERJ outperforms 73.97% of its industry peers.
  • A Debt/Equity ratio of 0.65 indicates that ERJ is somewhat dependend on debt financing.
  • ERJ's Debt to Equity ratio of 0.65 is on the low side compared to the rest of the industry. ERJ is outperformed by 68.49% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.65
Debt/FCF 4.5
Altman-Z 1.8
ROIC/WACC0.54
WACC12.84%
ERJ Yearly LT Debt VS Equity VS FCFERJ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B 15B 20B

2.3 Liquidity

  • ERJ has a Current Ratio of 1.33. This is a normal value and indicates that ERJ is financially healthy and should not expect problems in meeting its short term obligations.
  • ERJ's Current ratio of 1.33 is on the low side compared to the rest of the industry. ERJ is outperformed by 72.60% of its industry peers.
  • ERJ has a Quick Ratio of 1.33. This is a bad value and indicates that ERJ is not financially healthy enough and could expect problems in meeting its short term obligations.
  • ERJ's Quick ratio of 0.60 is on the low side compared to the rest of the industry. ERJ is outperformed by 86.30% of its industry peers.
Industry RankSector Rank
Current Ratio 1.33
Quick Ratio 0.6
ERJ Yearly Current Assets VS Current LiabilitesERJ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. ERJ Growth Analysis

3.1 Past

  • ERJ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 251.40%, which is quite impressive.
  • Looking at the last year, ERJ shows a very strong growth in Revenue. The Revenue has grown by 35.67%.
  • The Revenue has been growing by 10.19% on average over the past years. This is quite good.
EPS 1Y (TTM)251.4%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%439.99%
Revenue 1Y (TTM)35.67%
Revenue growth 3Y16.04%
Revenue growth 5Y10.19%
Sales Q2Q%539.25%

3.2 Future

  • The Earnings Per Share is expected to grow by 19.02% on average over the next years. This is quite good.
  • Based on estimates for the next years, ERJ will show a very strong growth in Revenue. The Revenue will grow by 67.32% on average per year.
EPS Next Y-19.18%
EPS Next 2Y16.82%
EPS Next 3Y19.02%
EPS Next 5YN/A
Revenue Next Year23.64%
Revenue Next 2Y17.29%
Revenue Next 3Y14.45%
Revenue Next 5Y67.32%

3.3 Evolution

  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
ERJ Yearly Revenue VS EstimatesERJ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 10B 20B 30B 40B
ERJ Yearly EPS VS EstimatesERJ Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 4

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3

4. ERJ Valuation Analysis

4.1 Price/Earnings Ratio

  • ERJ is valuated quite expensively with a Price/Earnings ratio of 49.60.
  • ERJ's Price/Earnings is on the same level as the industry average.
  • ERJ is valuated expensively when we compare the Price/Earnings ratio to 25.96, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 100.24, ERJ can be considered very expensive at the moment.
  • 63.01% of the companies in the same industry are cheaper than ERJ, based on the Price/Forward Earnings ratio.
  • ERJ's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.04.
Industry RankSector Rank
PE 49.6
Fwd PE 100.24
ERJ Price Earnings VS Forward Price EarningsERJ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

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 95.89% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, ERJ is valued cheaply inside the industry as 90.41% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 22.54
EV/EBITDA 11.36
ERJ Per share dataERJ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • A more expensive valuation may be justified as ERJ's earnings are expected to grow with 19.02% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.82%
EPS Next 3Y19.02%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. ERJ Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.19%, ERJ is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.65, ERJ pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.19, ERJ pays less dividend than the S&P500 average, which is at 1.91.
Industry RankSector Rank
Dividend Yield 0.19%

5.2 History

  • ERJ has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
ERJ Yearly Dividends per shareERJ Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2025 0.1 0.2 0.3

5.3 Sustainability

  • ERJ pays out 2.42% of its income as dividend. This is a sustainable payout ratio.
DP2.42%
EPS Next 2Y16.82%
EPS Next 3Y19.02%
ERJ Yearly Income VS Free CF VS DividendERJ Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B -4B -6B
ERJ Dividend Payout.ERJ Dividend Payout, showing the Payout Ratio.ERJ Dividend Payout.PayoutRetained Earnings

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ERJ Fundamentals: All Metrics, Ratios and Statistics

EMBRAER SA-SPON ADR

NYSE:ERJ (10/31/2025, 8:04:00 PM)

After market: 64.48 0 (0%)

64.48

-0.74 (-1.13%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)11-04
Earnings (Next)02-25
Inst Owners41.68%
Inst Owner Change-1.09%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap11.84B
Revenue(TTM)35.42B
Net Income(TTM)2.14B
Analysts78.46
Price Target66.24 (2.73%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.19%
Yearly Dividend0
Dividend Growth(5Y)N/A
DP2.42%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-272.61%
Min EPS beat(2)-435.01%
Max EPS beat(2)-110.2%
EPS beat(4)1
Avg EPS beat(4)-143.24%
Min EPS beat(4)-435.01%
Max EPS beat(4)3.26%
EPS beat(8)2
Avg EPS beat(8)-84.2%
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)0
Avg Revenue beat(2)-5.43%
Min Revenue beat(2)-9.14%
Max Revenue beat(2)-1.72%
Revenue beat(4)1
Avg Revenue beat(4)-2.07%
Min Revenue beat(4)-9.14%
Max Revenue beat(4)3.89%
Revenue beat(8)2
Avg Revenue beat(8)-3.54%
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)8.75%
PT rev (3m)19.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-59.9%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)11.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.23%
Valuation
Industry RankSector Rank
PE 49.6
Fwd PE 100.24
P/S 1.6
P/FCF 22.54
P/OCF 11.36
P/B 3.49
P/tB 16.02
EV/EBITDA 11.36
EPS(TTM)1.3
EY2.02%
EPS(NY)0.64
Fwd EY1%
FCF(TTM)2.86
FCFY4.44%
OCF(TTM)5.68
OCFY8.8%
SpS40.41
BVpS18.47
TBVpS4.03
PEG (NY)N/A
PEG (5Y)N/A
Graham Number23.24
Profitability
Industry RankSector Rank
ROA 3.25%
ROE 11.75%
ROCE 11.18%
ROIC 6.92%
ROICexc 8.39%
ROICexgc 15.02%
OM 10.98%
PM (TTM) 5.37%
GM 18.48%
FCFM 7.08%
ROA(3y)0.77%
ROA(5y)-0.96%
ROE(3y)2.92%
ROE(5y)-3.58%
ROIC(3y)3.04%
ROIC(5y)N/A
ROICexc(3y)4.39%
ROICexc(5y)N/A
ROICexgc(3y)8.44%
ROICexgc(5y)N/A
ROCE(3y)4.92%
ROCE(5y)N/A
ROICexgc growth 3Y38.8%
ROICexgc growth 5YN/A
ROICexc growth 3Y37.44%
ROICexc growth 5YN/A
OM growth 3Y26.36%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.14%
GM growth 5Y4.37%
F-Score7
Asset Turnover0.6
Health
Industry RankSector Rank
Debt/Equity 0.65
Debt/FCF 4.5
Debt/EBITDA 2.05
Cap/Depr 192.1%
Cap/Sales 6.97%
Interest Coverage 4.75
Cash Conversion 96.2%
Profit Quality 131.81%
Current Ratio 1.33
Quick Ratio 0.6
Altman-Z 1.8
F-Score7
WACC12.84%
ROIC/WACC0.54
Cap/Depr(3y)162.83%
Cap/Depr(5y)138.44%
Cap/Sales(3y)6.98%
Cap/Sales(5y)6.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)251.4%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%439.99%
EPS Next Y-19.18%
EPS Next 2Y16.82%
EPS Next 3Y19.02%
EPS Next 5YN/A
Revenue 1Y (TTM)35.67%
Revenue growth 3Y16.04%
Revenue growth 5Y10.19%
Sales Q2Q%539.25%
Revenue Next Year23.64%
Revenue Next 2Y17.29%
Revenue Next 3Y14.45%
Revenue Next 5Y67.32%
EBIT growth 1Y167.12%
EBIT growth 3Y46.63%
EBIT growth 5YN/A
EBIT Next Year63.72%
EBIT Next 3Y30.25%
EBIT Next 5Y84.28%
FCF growth 1Y2182.11%
FCF growth 3Y29.27%
FCF growth 5Y15.04%
OCF growth 1Y213.88%
OCF growth 3Y24.7%
OCF growth 5Y8.09%

EMBRAER SA-SPON ADR / ERJ Fundamental Analysis FAQ

What is the fundamental rating for ERJ stock?

ChartMill assigns a fundamental rating of 4 / 10 to ERJ.


What is the valuation status for ERJ stock?

ChartMill assigns a valuation rating of 3 / 10 to EMBRAER SA-SPON ADR (ERJ). This can be considered as Overvalued.


How profitable is EMBRAER SA-SPON ADR (ERJ) stock?

EMBRAER SA-SPON ADR (ERJ) has a profitability rating of 5 / 10.


What are the PE and PB ratios of EMBRAER SA-SPON ADR (ERJ) stock?

The Price/Earnings (PE) ratio for EMBRAER SA-SPON ADR (ERJ) is 49.6 and the Price/Book (PB) ratio is 3.49.


How sustainable is the dividend of EMBRAER SA-SPON ADR (ERJ) stock?

The dividend rating of EMBRAER SA-SPON ADR (ERJ) is 3 / 10 and the dividend payout ratio is 2.42%.