EMBRAER SA-SPON ADR (ERJ) Stock Fundamental Analysis
USA - NYSE:ERJ - US29082A1079 - ADR
56.19 USD
-0.93 (-1.63%)
ERJ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 69 industry peers in the Aerospace & Defense industry. ERJ has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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 3.25%, ERJ is in line with its industry, outperforming 56.52% of the companies in the same industry.
ERJ has a Return On Equity of 11.75%. This is in the better half of the industry: ERJ outperforms 78.26% 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 60.87% of its industry peers.
ERJ had an Average Return On Invested Capital over the past 3 years of 3.04%. This is significantly below the industry average of 8.22%.
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 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
ERJ has a Profit Margin (5.37%) which is in line with its industry peers.
ERJ has a Operating Margin of 10.98%. This is in the better half of the industry: ERJ outperforms 71.01% 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 18.48%, ERJ is doing worse than 69.57% of the companies in the same industry.
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.
The number of shares outstanding for ERJ remains at a similar level compared to 1 year ago.
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
ERJ has an Altman-Z score of 1.70. This is a bad value and indicates that ERJ is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.70, ERJ is not doing good in the industry: 72.46% of the companies in the same industry are doing better.
The Debt to FCF ratio of ERJ is 4.50, which is a neutral value as it means it would take ERJ, 4.50 years of fcf income to pay off all of its debts.
ERJ's Debt to FCF ratio of 4.50 is fine compared to the rest of the industry. ERJ outperforms 75.36% of its industry peers.
ERJ has a Debt/Equity ratio of 0.65. This is a neutral value indicating 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 68.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.55
WACC12.63%
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 71.01% of its industry peers.
A Quick Ratio of 0.60 indicates that ERJ may have some problems paying its short term obligations.
The Quick ratio of ERJ (0.60) is worse than 85.51% 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.
ERJ shows a strong growth in Revenue. In the last year, the Revenue has grown by 40.55%.
The Revenue has been growing by 10.19% on average over the past years. This is quite good.
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
Based on estimates for the next years, ERJ will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.02% on average per year.
Based on estimates for the next years, ERJ will show a very strong growth in Revenue. The Revenue will grow by 70.01% on average per year.
EPS Next Y-36%
EPS Next 2Y7.27%
EPS Next 3Y19.02%
EPS Next 5YN/A
Revenue Next Year23.64%
Revenue Next 2Y17.29%
Revenue Next 3Y14.45%
Revenue Next 5Y70.01%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 175.59 indicates a quite expensive valuation of ERJ.
The rest of the industry has a similar Price/Earnings ratio as ERJ.
Compared to an average S&P500 Price/Earnings ratio of 27.20, ERJ is valued quite expensively.
ERJ is valuated quite expensively with a Price/Forward Earnings ratio of 102.54.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ERJ indicates a slightly more expensive valuation: ERJ is more expensive than 63.77% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, ERJ is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 175.59 | ||
| Fwd PE | 102.54 |
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 98.55% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ERJ indicates a rather cheap valuation: ERJ is cheaper than 95.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.44 | ||
| EV/EBITDA | 10.02 |
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
ERJ has a yearly dividend return of 0.07%, which is pretty low.
Compared to an average industry Dividend Yield of 1.47, ERJ pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, ERJ's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
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
5.3 Sustainability
2.42% of the earnings are spent on dividend by ERJ. This is a low number and sustainable payout ratio.
DP2.42%
EPS Next 2Y7.27%
EPS Next 3Y19.02%
NYSE:ERJ (9/17/2025, 11:03:53 AM)
56.19
-0.93 (-1.63%)
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 Cap10.32B
Analysts78.57
Price Target59.35 (5.62%)
Short Float %2.06%
Short Ratio1.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.07% |
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)6.67%
PT rev (3m)29.14%
EPS NQ rev (1m)-16.54%
EPS NQ rev (3m)-83.34%
EPS NY rev (1m)-68.21%
EPS NY rev (3m)-68.25%
Revenue NQ rev (1m)11.77%
Revenue NQ rev (3m)14.72%
Revenue NY rev (1m)3.23%
Revenue NY rev (3m)3.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 175.59 | ||
| Fwd PE | 102.54 | ||
| P/S | 1.38 | ||
| P/FCF | 19.44 | ||
| P/OCF | 9.8 | ||
| P/B | 3.01 | ||
| P/tB | 13.82 | ||
| EV/EBITDA | 10.02 |
EPS(TTM)0.32
EY0.57%
EPS(NY)0.55
Fwd EY0.98%
FCF(TTM)2.89
FCFY5.14%
OCF(TTM)5.73
OCFY10.2%
SpS40.82
BVpS18.66
TBVpS4.07
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
WACC12.63%
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 Year23.64%
Revenue Next 2Y17.29%
Revenue Next 3Y14.45%
Revenue Next 5Y70.01%
EBIT growth 1Y167.12%
EBIT growth 3Y46.63%
EBIT growth 5YN/A
EBIT Next Year50.78%
EBIT Next 3Y28.65%
EBIT Next 5Y85.9%
FCF growth 1Y2182.11%
FCF growth 3Y29.27%
FCF growth 5Y15.04%
OCF growth 1Y213.88%
OCF growth 3Y24.7%
OCF growth 5Y8.09%