Logo image of ERJ

EMBRAER SA-SPON ADR (ERJ) Stock Fundamental Analysis

NYSE:ERJ - New York Stock Exchange, Inc. - US29082A1079 - ADR - Currency: USD

47.84  +0.23 (+0.48%)

After market: 47.91 +0.07 (+0.15%)

Fundamental Rating

5

Overall ERJ gets a fundamental rating of 5 out of 10. We evaluated ERJ against 67 industry peers in the Aerospace & Defense industry. ERJ has only an average score on both its financial health and profitability. ERJ is growing strongly while it is still valued neutral. This is a good combination!


Dividend Valuation Growth Profitability Health

Quickly go to:

5

1. Profitability

1.1 Basic Checks

ERJ had positive earnings in the past year.
In the past year ERJ had a positive cash flow from operations.
In multiple years ERJ reported negative net income over the last 5 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 2015 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 3.29%. This is comparable to the rest of the industry: ERJ outperforms 55.22% of its industry peers.
ERJ has a Return On Equity of 12.07%. This is in the better half of the industry: ERJ outperforms 77.61% of its industry peers.
ERJ's Return On Invested Capital of 5.88% is in line compared to the rest of the industry. ERJ outperforms 50.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERJ is significantly below the industry average of 8.49%.
The 3 year average ROIC (3.04%) for ERJ is below the current ROIC(5.88%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.29%
ROE 12.07%
ROIC 5.88%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 -20

1.3 Margins

Looking at the Profit Margin, with a value of 5.91%, ERJ is in the better half of the industry, outperforming 62.69% of the companies in the same industry.
ERJ has a better Operating Margin (10.15%) than 70.15% of its industry peers.
In the last couple of years the Operating Margin of ERJ has grown nicely.
Looking at the Gross Margin, with a value of 17.71%, ERJ is doing worse than 71.64% of the companies in the same industry.
In the last couple of years the Gross Margin of ERJ has grown nicely.
Industry RankSector Rank
OM 10.15%
PM (TTM) 5.91%
GM 17.71%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10

More info and screens

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ERJ is destroying value.
ERJ has about the same amout of shares outstanding than it did 1 year ago.
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.
ERJ Yearly Shares OutstandingERJ Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

ERJ has an Altman-Z score of 1.51. 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 (1.51) is worse than 74.63% of its industry peers.
The Debt to FCF ratio of ERJ is 3.94, which is a good value as it means it would take ERJ, 3.94 years of fcf income to pay off all of its debts.
ERJ has a better Debt to FCF ratio (3.94) than 82.09% of its industry peers.
ERJ has a Debt/Equity ratio of 0.64. This is a neutral value indicating ERJ is somewhat dependend on debt financing.
ERJ has a Debt to Equity ratio (0.64) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 3.94
Altman-Z 1.51
ROIC/WACC0.49
WACC11.98%
ERJ Yearly LT Debt VS Equity VS FCFERJ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B 15B 20B

2.3 Liquidity

ERJ has a Current Ratio of 1.32. 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 (1.32) is worse than 70.15% of its industry peers.
A Quick Ratio of 0.59 indicates that ERJ may have some problems paying its short term obligations.
ERJ has a worse Quick ratio (0.59) than 86.57% of its industry peers.
Industry RankSector Rank
Current Ratio 1.32
Quick Ratio 0.59
ERJ Yearly Current Assets VS Current LiabilitesERJ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

More info and screens

7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 177.78% over the past year.
ERJ shows a strong growth in Revenue. In the last year, the Revenue has grown by 39.31%.
ERJ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.19% yearly.
EPS 1Y (TTM)177.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-488.24%
Revenue 1Y (TTM)39.31%
Revenue growth 3Y16.04%
Revenue growth 5Y10.19%
Sales Q2Q%23.02%

3.2 Future

The Earnings Per Share is expected to grow by 17.65% on average over the next years. This is quite good.
The Revenue is expected to grow by 69.16% on average over the next years. This is a very strong growth
EPS Next Y101.3%
EPS Next 2Y67.61%
EPS Next 3Y17.65%
EPS Next 5YN/A
Revenue Next Year19.25%
Revenue Next 2Y16.43%
Revenue Next 3Y13.76%
Revenue Next 5Y69.16%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ERJ Yearly Revenue VS EstimatesERJ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 10B 20B 30B 40B 50B
ERJ Yearly EPS VS EstimatesERJ Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 4 6

More info and screens

4

4. Valuation

4.1 Price/Earnings Ratio

ERJ is valuated quite expensively with a Price/Earnings ratio of 119.60.
ERJ's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ERJ to the average of the S&P500 Index (28.04), we can say ERJ is valued expensively.
ERJ is valuated quite expensively with a Price/Forward Earnings ratio of 37.16.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ERJ is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of ERJ to the average of the S&P500 Index (37.64), we can say ERJ is valued inline with the index average.
Industry RankSector Rank
PE 119.6
Fwd PE 37.16
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 98.51% of the companies listed in the same industry.
ERJ's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ERJ is cheaper than 98.51% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.36
EV/EBITDA 9.61
ERJ Per share dataERJ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

ERJ's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ERJ's earnings are expected to grow with 17.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)N/A
EPS Next 2Y67.61%
EPS Next 3Y17.65%

More info and screens

3

5. Dividend

5.1 Amount

With a yearly dividend of 0.40%, ERJ is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.17, ERJ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, ERJ's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.4%

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
ERJ Yearly Dividends per shareERJ Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2025 0.1 0.2 0.3

5.3 Sustainability

DP0%
EPS Next 2Y67.61%
EPS Next 3Y17.65%
ERJ Yearly Income VS Free CF VS DividendERJ Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B -2B -4B -6B

More info and screens

EMBRAER SA-SPON ADR

NYSE:ERJ (7/25/2025, 8:04:00 PM)

After market: 47.91 +0.07 (+0.15%)

47.84

+0.23 (+0.48%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)05-06 2025-05-06/dmh
Earnings (Next)08-05 2025-08-05
Inst Owners44.8%
Inst Owner Change0.41%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.79B
Analysts78.57
Price Target52.89 (10.56%)
Short Float %4.29%
Short Ratio5.07
Dividend
Industry RankSector Rank
Dividend Yield 0.4%
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date05-13 2025-05-13 (0.19462141)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-233.01%
Min EPS beat(2)-435.01%
Max EPS beat(2)-31.01%
EPS beat(4)1
Avg EPS beat(4)-121.29%
Min EPS beat(4)-435.01%
Max EPS beat(4)3.26%
EPS beat(8)2
Avg EPS beat(8)-75.7%
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)-5.22%
Min Revenue beat(2)-9.14%
Max Revenue beat(2)-1.3%
Revenue beat(4)1
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-9.14%
Max Revenue beat(4)3.89%
Revenue beat(8)2
Avg Revenue beat(8)-3.75%
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)0.4%
PT rev (3m)21.42%
EPS NQ rev (1m)-67.78%
EPS NQ rev (3m)-81.07%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)6.51%
Revenue NQ rev (3m)4.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.14%
Valuation
Industry RankSector Rank
PE 119.6
Fwd PE 37.16
P/S 1.3
P/FCF 15.36
P/OCF 8.17
P/B 2.65
P/tB 13.18
EV/EBITDA 9.61
EPS(TTM)0.4
EY0.84%
EPS(NY)1.29
Fwd EY2.69%
FCF(TTM)3.11
FCFY6.51%
OCF(TTM)5.85
OCFY12.24%
SpS36.85
BVpS18.05
TBVpS3.63
PEG (NY)1.18
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 3.29%
ROE 12.07%
ROCE 9.5%
ROIC 5.88%
ROICexc 7.31%
ROICexgc 13.41%
OM 10.15%
PM (TTM) 5.91%
GM 17.71%
FCFM 8.45%
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 Turnover0.56
Health
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 3.94
Debt/EBITDA 2.26
Cap/Depr 197.19%
Cap/Sales 7.44%
Interest Coverage 3.98
Cash Conversion 114.1%
Profit Quality 142.94%
Current Ratio 1.32
Quick Ratio 0.59
Altman-Z 1.51
F-Score7
WACC11.98%
ROIC/WACC0.49
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)177.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-488.24%
EPS Next Y101.3%
EPS Next 2Y67.61%
EPS Next 3Y17.65%
EPS Next 5YN/A
Revenue 1Y (TTM)39.31%
Revenue growth 3Y16.04%
Revenue growth 5Y10.19%
Sales Q2Q%23.02%
Revenue Next Year19.25%
Revenue Next 2Y16.43%
Revenue Next 3Y13.76%
Revenue Next 5Y69.16%
EBIT growth 1Y148.11%
EBIT growth 3Y46.63%
EBIT growth 5YN/A
EBIT Next Year50.78%
EBIT Next 3Y28.65%
EBIT Next 5Y79.84%
FCF growth 1Y2305.46%
FCF growth 3Y29.27%
FCF growth 5Y15.04%
OCF growth 1Y343.29%
OCF growth 3Y24.7%
OCF growth 5Y8.09%