Embraer S.A.
Embraer S.A. Fundamental Analysis
Embraer S.A. (EMBJ) shows weak financial fundamentals with a PE ratio of 32.60, profit margin of 4.64%, and ROE of 10.43%. The company generates $7.6B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EMBJ's fundamental strength across five key dimensions:
Efficiency Score
WeakEMBJ struggles to generate sufficient returns from assets.
Valuation Score
WeakEMBJ trades at a premium to fair value.
Growth Score
ModerateEMBJ shows steady but slowing expansion.
Financial Health Score
ExcellentEMBJ maintains a strong and stable balance sheet.
Profitability Score
WeakEMBJ struggles to sustain strong margins.
Key Financial Metrics
Is EMBJ Expensive or Cheap?
P/E Ratio
EMBJ trades at 32.60 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EMBJ's PEG of 2.80 indicates potential overvaluation.
Price to Book
The market values Embraer S.A. at 3.34 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.62 times EBITDA. This signals the market has high growth expectations.
How Well Does EMBJ Make Money?
Net Profit Margin
For every $100 in sales, Embraer S.A. keeps $4.64 as profit after all expenses.
Operating Margin
Core operations generate 8.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.43 in profit for every $100 of shareholder equity.
ROA
Embraer S.A. generates $2.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Embraer S.A. produces operating cash flow of $858.99M, showing steady but balanced cash generation.
Free Cash Flow
Embraer S.A. produces free cash flow of $528.17M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.88 in free cash annually.
FCF Yield
EMBJ converts 4.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.80
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.50
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How EMBJ Stacks Against Its Sector Peers
| Metric | EMBJ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.60 | 25.96 | Worse (Expensive) |
| ROE | 10.43% | 1263.00% | Weak |
| Net Margin | 4.64% | -41827.00% (disorted) | Weak |
| Debt/Equity | 0.79 | 0.79 | Neutral |
| Current Ratio | 1.50 | 10.05 | Neutral |
| ROA | 2.73% | -1497918.00% (disorted) | Weak |
EMBJ outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Embraer S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure