EMBRAER SA-SPON ADR (ERJ)
US29082A1079 - ADR
Taking everything into account, ERJ scores 3 out of 10 in our fundamental rating. ERJ was compared to 63 industry peers in the Aerospace & Defense industry. Both the profitability and financial health of ERJ have multiple concerns. ERJ is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ERJ was profitable.
ERJ had a positive operating cash flow in the past year.
In the past 5 years ERJ reported 4 times negative net income.
Of the past 5 years ERJ 4 years had a positive operating cash flow.
1.2 Ratios
ERJ has a Return On Assets (1.50%) which is in line with its industry peers.
ERJ has a Return On Equity of 5.81%. This is comparable to the rest of the industry: ERJ outperforms 59.38% of its industry peers.
ERJ's Return On Invested Capital of 2.91% is in line compared to the rest of the industry. ERJ outperforms 46.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ERJ is significantly below the industry average of 8.69%.
The last Return On Invested Capital (2.91%) for ERJ is above the 3 year average (2.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 5.81% | ||
| ROIC | 2.91% |
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
The Profit Margin of ERJ (3.00%) is comparable to the rest of the industry.
With a Operating Margin value of 4.87%, ERJ perfoms like the industry average, outperforming 46.88% of the companies in the same industry.
The Gross Margin of ERJ (17.10%) is worse than 65.63% of its industry peers.
ERJ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.87% | ||
| PM (TTM) | 3% | ||
| GM | 17.1% |
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.
The number of shares outstanding for ERJ remains at a similar level compared to 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 1.18, we must say that ERJ is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.18, ERJ is not doing good in the industry: 64.06% of the companies in the same industry are doing better.
The Debt to FCF ratio of ERJ is 21.09, which is on the high side as it means it would take ERJ, 21.09 years of fcf income to pay off all of its debts.
ERJ has a Debt to FCF ratio (21.09) which is in line with its industry peers.
ERJ has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
ERJ's Debt to Equity ratio of 1.02 is on the low side compared to the rest of the industry. ERJ is outperformed by 76.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 21.09 | ||
| Altman-Z | 1.18 |
ROIC/WACC0.24
WACC12.04%
2.3 Liquidity
A Current Ratio of 1.65 indicates that ERJ should not have too much problems paying its short term obligations.
With a Current ratio value of 1.65, ERJ perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
ERJ has a Quick Ratio of 1.65. This is a bad value and indicates that ERJ is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.93, ERJ is doing worse than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
ERJ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 169.69%, which is quite impressive.
Looking at the last year, ERJ shows a decrease in Revenue. The Revenue has decreased by -1.56% in the last year.
Measured over the past years, ERJ shows a very strong growth in Revenue. The Revenue has been growing by 27.05% on average per year.
EPS 1Y (TTM)169.69%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q691.91%
Revenue 1Y (TTM)-1.56%
Revenue growth 3Y9.95%
Revenue growth 5Y27.05%
Revenue growth Q2Q-6.96%
3.2 Future
The Earnings Per Share is expected to grow by 84.15% on average over the next years. This is a very strong growth
ERJ is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.38% yearly.
EPS Next Y467.15%
EPS Next 2Y193.39%
EPS Next 3Y84.15%
EPS Next 5YN/A
Revenue Next Year14.12%
Revenue Next 2Y12.75%
Revenue Next 3Y8.38%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 371.29, ERJ can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ERJ is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 24.84. ERJ is valued rather expensively when compared to this.
ERJ is valuated quite expensively with a Price/Forward Earnings ratio of 62.14.
ERJ's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ERJ to the average of the S&P500 Index (21.35), we can say ERJ is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 371.29 | ||
| Fwd PE | 62.14 |
4.2 Price Multiples
ERJ's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ERJ is cheaper than 98.44% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ERJ is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.93 | ||
| EV/EBITDA | 10.55 |
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 84.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)N/A
EPS Next 2Y193.39%
EPS Next 3Y84.15%
5. Dividend
5.1 Amount
No dividends for ERJ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EMBRAER SA-SPON ADR
NYSE:ERJ (4/26/2024, 7:04:00 PM)
After market: 25.99 0 (0%)25.99
+0.99 (+3.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 371.29 | ||
| Fwd PE | 62.14 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.79
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.5% | ||
| ROE | 5.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.87% | ||
| PM (TTM) | 3% | ||
| GM | 17.1% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.65 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)169.69%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y467.15%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.56%
Revenue growth 3Y9.95%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y