Embraer S.A. Fundamental Analysis
Embraer S.A. (EMBJ) shows weak financial fundamentals with a PE ratio of 21.52, profit margin of 3.23%, and ROE of 6.61%. The company generates $14.2B 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 18.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F 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
ExcellentEMBJ trades at attractive valuation levels.
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 21.52 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, EMBJ's PEG of 1.66 indicates fair valuation.
Price to Book
The market values Embraer S.A. at 0.57 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.93 times EBITDA. This is generally considered low.
How Well Does EMBJ Make Money?
Net Profit Margin
For every $100 in sales, Embraer S.A. keeps $3.23 as profit after all expenses.
Operating Margin
Core operations generate 6.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.61 in profit for every $100 of shareholder equity.
ROA
Embraer S.A. generates $0.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Embraer S.A. generates limited operating cash flow of $-1.00B, signaling weaker underlying cash strength.
Free Cash Flow
Embraer S.A. generates weak or negative free cash flow of $-1.60B, restricting financial flexibility.
FCF Per Share
Each share generates $-8.72 in free cash annually.
FCF Yield
EMBJ converts -15.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.48
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How EMBJ Stacks Against Its Sector Peers
| Metric | EMBJ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.52 | 33.17 | Better (Cheaper) |
| ROE | 6.61% | 1178.00% | Weak |
| Net Margin | 3.23% | -29242.00% (disorted) | Weak |
| Debt/Equity | 0.86 | 0.74 | Neutral |
| Current Ratio | 1.48 | 25.78 | Neutral |
| ROA | 0.67% | -1368598.00% (disorted) | Weak |
EMBJ outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
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