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EMBR

Embraer BOVESPA:EMBR3 Stock Report

Last Price

R$12.25

Market Cap

R$9.0b

7D

8.2%

1Y

-35.5%

Updated

27 Jun, 2022

Data

Company Financials +
EMBR3 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance0/6
Financial Health4/6
Dividends0/6

EMBR3 Stock Overview

Embraer S.A. designs, develops, manufactures, and sells aircrafts and systems in Brazil, North America, Latin America, the Asia Pacific, Brazil, Europe, and internationally.

Rewards

Earnings are forecast to grow 67.08% per year

Risk Analysis

No risks detected for EMBR3 from our risk checks.

Embraer Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Embraer
Historical stock prices
Current Share PriceR$12.25
52 Week HighR$26.60
52 Week LowR$11.03
Beta1.05
1 Month Change-3.39%
3 Month Change-21.58%
1 Year Change-35.49%
3 Year Change-37.18%
5 Year Change-19.41%
Change since IPO292.48%

Recent News & Updates

Jun 10
Here's What's Concerning About Embraer's (BVMF:EMBR3) Returns On Capital

Here's What's Concerning About Embraer's (BVMF:EMBR3) Returns On Capital

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Mar 14
Embraer (BVMF:EMBR3) Takes On Some Risk With Its Use Of Debt

Embraer (BVMF:EMBR3) Takes On Some Risk With Its Use Of Debt

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

EMBR3BR Aerospace & DefenseBR Market
7D8.2%3.4%0.7%
1Y-35.5%1.8%-28.8%

Return vs Industry: EMBR3 underperformed the BR Aerospace & Defense industry which returned -0.2% over the past year.

Return vs Market: EMBR3 underperformed the BR Market which returned -29.7% over the past year.

Price Volatility

Is EMBR3's price volatile compared to industry and market?
EMBR3 volatility
EMBR3 Average Weekly Movement6.4%
Aerospace & Defense Industry Average Movement6.7%
Market Average Movement5.9%
10% most volatile stocks in BR Market9.2%
10% least volatile stocks in BR Market2.8%

Stable Share Price: EMBR3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: EMBR3's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
196915,427Francisco Netohttps://www.embraer.com

Embraer S.A. designs, develops, manufactures, and sells aircrafts and systems in Brazil, North America, Latin America, the Asia Pacific, Brazil, Europe, and internationally. It operates through Commercial Aviation; Defense and Security; Executive Jets; Service & Support; and Other segments. The Commercial Aviation segment designs, develops, and manufactures a variety of commercial aircrafts.

Embraer Fundamentals Summary

How do Embraer's earnings and revenue compare to its market cap?
EMBR3 fundamental statistics
Market CapR$9.00b
Earnings (TTM)-R$274.82m
Revenue (TTM)R$22.67b

0.4x

P/S Ratio

-32.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EMBR3 income statement (TTM)
RevenueR$22.67b
Cost of RevenueR$19.13b
Gross ProfitR$3.54b
Other ExpensesR$3.81b
Earnings-R$274.82m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Jul 28, 2022

Earnings per share (EPS)-0.37
Gross Margin15.61%
Net Profit Margin-1.21%
Debt/Equity Ratio145.1%

How did EMBR3 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is EMBR3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EMBR3?

Other financial metrics that can be useful for relative valuation.

EMBR3 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.8x
Enterprise Value/EBITDA11.9x
PEG Ration/a

Price to Sales Ratio vs Peers

How does EMBR3's PS Ratio compare to its peers?

EMBR3 PS Ratio vs Peers
The above table shows the PS ratio for EMBR3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2.3x
TASA4 Taurus Armas
0.7xn/aR$2.0b
RAPT4 Randon Implementos e Participações
0.3x5.3%R$3.1b
ARML3 Armac Locação Logística e Serviços
7.9x49.9%R$4.2b
MYPK3 Iochpe-Maxion
0.2x9.5%R$2.4b
EMBR3 Embraer
0.4x11.9%R$9.0b

Price-To-Sales vs Peers: EMBR3 is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (2.3x).


Price to Earnings Ratio vs Industry

How does EMBR3's PE Ratio compare vs other companies in the Global Aerospace & Defense Industry?

Price-To-Sales vs Industry: EMBR3 is good value based on its Price-To-Sales Ratio (0.4x) compared to the Global Aerospace & Defense industry average (2.4x)


Price to Sales Ratio vs Fair Ratio

What is EMBR3's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EMBR3 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ratio0.8x

Price-To-Sales vs Fair Ratio: EMBR3 is good value based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (0.8x).


Share Price vs Fair Value

What is the Fair Price of EMBR3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EMBR3 (R$12.25) is trading above our estimate of fair value (R$7.87)

Significantly Below Fair Value: EMBR3 is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EMBR3's PEG Ratio to determine if it is good value.


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Future Growth

How is Embraer forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


67.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EMBR3 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (9.1%).

Earnings vs Market: EMBR3 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: EMBR3 is expected to become profitable in the next 3 years.

Revenue vs Market: EMBR3's revenue (11.9% per year) is forecast to grow faster than the BR market (5.7% per year).

High Growth Revenue: EMBR3's revenue (11.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EMBR3's Return on Equity is forecast to be low in 3 years time (7%).


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Past Performance

How has Embraer performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-48.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EMBR3 is currently unprofitable.

Growing Profit Margin: EMBR3 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EMBR3 is unprofitable, and losses have increased over the past 5 years at a rate of 48.8% per year.

Accelerating Growth: Unable to compare EMBR3's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EMBR3 is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (16.8%).


Return on Equity

High ROE: EMBR3 has a negative Return on Equity (-1.73%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Embraer's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: EMBR3's short term assets (R$32.8B) exceed its short term liabilities (R$15.8B).

Long Term Liabilities: EMBR3's short term assets (R$32.8B) exceed its long term liabilities (R$25.4B).


Debt to Equity History and Analysis

Debt Level: EMBR3's net debt to equity ratio (52.5%) is considered high.

Reducing Debt: EMBR3's debt to equity ratio has increased from 105% to 145.1% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable EMBR3 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: EMBR3 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 18.6% per year.


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Dividend

What is Embraer current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.31%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate EMBR3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EMBR3's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EMBR3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EMBR3's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: EMBR3 is not paying a notable dividend for the BR market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as EMBR3 has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Francisco Neto (62 yo)

3.08yrs

Tenure

Mr. Francisco Gomes Neto has been President and Chief Executive Officer at Embraer S.A. since May 2019. He served as Managing Director of Marcopolo S.A since August 10, 2015 and served as its Chief Executi...


Leadership Team

Experienced Management: EMBR3's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: EMBR3's board of directors are considered experienced (6.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Embraer S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: Embraer S.A.
  • Ticker: EMBR3
  • Exchange: BOVESPA
  • Founded: 1969
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Implied Market Cap: R$8.999b
  • Shares outstanding: 734.63m
  • Website: https://www.embraer.com

Number of Employees


Location

  • Embraer S.A.
  • Eldorado Business Tower
  • 30th floor
  • São Paulo
  • São Paulo
  • 05425-070
  • Brazil

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.