EMBRAER SA-SPON ADR (ERJ) Stock Fundamental Analysis
NYSE:ERJ - US29082A1079 - ADR
56.09 USD
+0.18 (+0.32%)
Overall ERJ gets a fundamental rating of 4 out of 10. We evaluated ERJ against 68 industry peers in the Aerospace & Defense industry. While ERJ is still in line with the averages on profitability rating, there are concerns on its financial health. ERJ is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year ERJ was profitable.
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.
1.2 Ratios
ERJ has a Return On Assets (3.25%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 11.75%, ERJ is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.92%, ERJ is in the better half of the industry, outperforming 61.76% 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 8.61%.
The 3 year average ROIC (3.04%) for ERJ is below the current ROIC(6.92%), indicating increased profibility in the last year.
| Industry Rank | Sector 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
1.3 Margins
With a decent Profit Margin value of 5.37%, ERJ is doing good in the industry, outperforming 60.29% of the companies in the same industry.
ERJ's Operating Margin of 10.98% is fine compared to the rest of the industry. ERJ outperforms 73.53% of its industry peers.
ERJ's Operating Margin has improved in the last couple of years.
ERJ has a worse Gross Margin (18.48%) than 67.65% of its industry peers.
ERJ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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.
ERJ has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, ERJ has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that ERJ is in the distress zone and has some risk of bankruptcy.
ERJ has a Altman-Z score of 1.70. This is in the lower half of the industry: ERJ underperforms 70.59% 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.
The Debt to FCF ratio of ERJ (4.50) is better than 76.47% of its industry peers.
A Debt/Equity ratio of 0.65 indicates that ERJ is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.65, ERJ is not doing good in the industry: 67.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.55
WACC12.56%
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 has a Current ratio of 1.33. This is in the lower half of the industry: ERJ underperforms 70.59% of its industry peers.
A Quick Ratio of 0.60 indicates that ERJ may have some problems paying its short term obligations.
ERJ has a Quick ratio of 0.60. This is amonst the worse of the industry: ERJ underperforms 83.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 80.67% over the past year.
The Revenue has grown by 40.55% in the past year. This is a very strong growth!
Measured over the past years, ERJ shows a quite strong growth in Revenue. The Revenue has been growing by 10.19% on average per year.
EPS 1Y (TTM)80.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-109.09%
Revenue 1Y (TTM)40.55%
Revenue growth 3Y16.04%
Revenue growth 5Y10.19%
Sales Q2Q%21.75%
3.2 Future
ERJ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.02% yearly.
Based on estimates for the next years, ERJ will show a very strong growth in Revenue. The Revenue will grow by 69.69% on average per year.
EPS Next Y-36%
EPS Next 2Y7.27%
EPS Next 3Y19.02%
EPS Next 5YN/A
Revenue Next Year23.54%
Revenue Next 2Y17.36%
Revenue Next 3Y14.62%
Revenue Next 5Y69.69%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 175.28, ERJ can be considered very expensive at the moment.
ERJ's Price/Earnings ratio is in line with the industry average.
ERJ's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.03.
A Price/Forward Earnings ratio of 104.66 indicates a quite expensive valuation of ERJ.
ERJ's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ERJ is more expensive than 64.71% 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 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 175.28 | ||
| Fwd PE | 104.66 |
4.2 Price Multiples
97.06% of the companies in the same industry are more expensive than ERJ, based on the Enterprise Value to EBITDA ratio.
ERJ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ERJ is cheaper than 95.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.84 | ||
| EV/EBITDA | 10.03 |
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 2Y7.27%
EPS Next 3Y19.02%
5. Dividend
5.1 Amount
With a yearly dividend of 0.21%, ERJ is not a good candidate for dividend investing.
ERJ's Dividend Yield is a higher than the industry average which is at 1.18.
With a Dividend Yield of 0.21, ERJ pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
5.2 History
ERJ has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ERJ pays out 2.42% of its income as dividend. This is a sustainable payout ratio.
DP2.42%
EPS Next 2Y7.27%
EPS Next 3Y19.02%
NYSE:ERJ (8/26/2025, 10:48:02 AM)
56.09
+0.18 (+0.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners44.8%
Inst Owner Change2.9%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.30B
Analysts78.57
Price Target55.68 (-0.73%)
Short Float %4.16%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP2.42%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)5.28%
PT rev (3m)19.11%
EPS NQ rev (1m)5.54%
EPS NQ rev (3m)-83.34%
EPS NY rev (1m)-68.25%
EPS NY rev (3m)-68.25%
Revenue NQ rev (1m)16.11%
Revenue NQ rev (3m)14.72%
Revenue NY rev (1m)3.6%
Revenue NY rev (3m)3.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 175.28 | ||
| Fwd PE | 104.66 | ||
| P/S | 1.41 | ||
| P/FCF | 19.84 | ||
| P/OCF | 10 | ||
| P/B | 3.07 | ||
| P/tB | 14.1 | ||
| EV/EBITDA | 10.03 |
EPS(TTM)0.32
EY0.57%
EPS(NY)0.54
Fwd EY0.96%
FCF(TTM)2.83
FCFY5.04%
OCF(TTM)5.61
OCFY10%
SpS39.92
BVpS18.24
TBVpS3.98
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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
ROICexcg growth 3Y38.8%
ROICexcg 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 Rank | Sector 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 | 1.7 |
F-Score7
WACC12.56%
ROIC/WACC0.55
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)80.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-109.09%
EPS Next Y-36%
EPS Next 2Y7.27%
EPS Next 3Y19.02%
EPS Next 5YN/A
Revenue 1Y (TTM)40.55%
Revenue growth 3Y16.04%
Revenue growth 5Y10.19%
Sales Q2Q%21.75%
Revenue Next Year23.54%
Revenue Next 2Y17.36%
Revenue Next 3Y14.62%
Revenue Next 5Y69.69%
EBIT growth 1Y167.12%
EBIT growth 3Y46.63%
EBIT growth 5YN/A
EBIT Next Year50.78%
EBIT Next 3Y28.65%
EBIT Next 5Y85.56%
FCF growth 1Y2182.11%
FCF growth 3Y29.27%
FCF growth 5Y15.04%
OCF growth 1Y213.88%
OCF growth 3Y24.7%
OCF growth 5Y8.09%