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EMBRAER has one of the greatest growth potential amongst civil and military airplane manufacturers worldwide

PH
PhilthyInvested
Community Contributor

Published

July 02 2024

Updated

July 02 2024

Narratives are currently in beta

With increasing investments in defense in many regions of the world, Embraer's KC390 airplane is ready to dominate the military mid-size transport airplane market worldwide, given its proven low-operational costs and high technological capabilities. Adding to that, Embraer has a large corp of highly capable young aeronatical-military engineers from the Instituto Militar de Aeronáutica (ITA), while adding to its current industrial expertise the partnership with Swedish SAAB, which includes the on-going tranference of technology on the manufacturing the Grippen fighters in Embraer's plants in Brazil. On top of its proven know-how on the build of a extensive portfolio of airplanes, the strategic partership with SAAB is already increasing its capabilities in projecting and manufacturing top-class, highly-technological, low-cost, small and midium sized civil and military airplanes now and, more importantly, in the coming years.

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Disclaimer

The user Philthy has a position in BOVESPA:EMBR3. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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Fair Value
R$63.3
1.5% undervalued intrinsic discount
Philthy's Fair Value
Future estimation in
PastFuture-4b85b20132016201920222024202520282029Revenue R$85.2bEarnings R$4.1b
% p.a.
Decrease
Increase
Current revenue growth rate
14.91%
Aerospace & Defense revenue growth rate
0.35%