Embraer (EMBJ) AI Stock Analysis

• Market Cap: $11.41B
• Dividend Yield: 0.08%
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 36.3
• Beta (1Y): 0.78
• Revenue Growth: 19.76%
• EPS Growth: -37.08%
• Country: US
• Employees: 20,923
• Sector: Industrials
• Sector Strength: 72
• Industry: Asset Management
• EPS (TTM): N/A
• Shares Outstanding: 183,658,200
• 10 Day Avg. Volume: 871,028
• 30 Day Avg. Volume: 1,021,883
• PEG Ratio: 0.30
• Price to Book (P/B): 4.00
• Price to Sales (P/S): 1.92
• P/FCF Ratio: 30.35
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 9.39
• Enterprise Value/Ebitda: 10.38
• 1Y Price Target: $67.20
• Price Target Upside: 8.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 2.06
• Revenue Forecast (FY): $7.50B

No summary available

Embraer Business Overview & Revenue Model

Company Description

Embraer SA is a Brazilian aerospace company headquartered in São José dos Campos, specializing in the design, development, manufacturing, and sale of aircraft. It operates in several sectors, including commercial aviation, defense, and executive jets. Embraer is known for its innovative regional jets, such as the E-Jet series, as well as military aircraft and business jets, catering to a diverse global market.

How the Company Makes Money

Embraer generates revenue primarily through the sale of aircraft across its three main business segments: Commercial Aviation, Defense & Security, and Executive Jets. The company earns significant income from the sale of new aircraft, as well as from aftermarket services, which include maintenance, repair, and spare parts. Additionally, Embraer has established strategic partnerships and joint ventures, such as its collaboration with Boeing under the Embraer-Boeing joint venture, which enhances its market reach and product offerings. Government contracts and defense orders also contribute to its revenue, particularly in the military segment. Overall, Embraer's revenue model is driven by a combination of aircraft sales, service agreements, and partnerships that strengthen its position in the aerospace industry.

Embraer Financial Statement Overview

Summary

Embraer demonstrates a solid financial performance with steady revenue growth, improved profitability, and efficient cash flow management. The company has successfully turned around from past losses, showing resilience and a positive growth trajectory. While the balance sheet is stable, further reduction in debt could enhance financial flexibility.

Income Statement

Embraer has shown strong revenue growth with a TTM increase of 3.23% from the previous year. The gross profit margin stands at 17.78%, and the net profit margin has improved to 6.02% indicating enhanced profitability. The EBIT margin of 10.92% and EBITDA margin of 17.61% reflect operational efficiency. The company's trajectory from negative net income in 2020 to positive in recent years indicates a significant turnaround.

Balance Sheet

Embraer's balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.68, showing manageable leverage. The return on equity is 12.45%, which is a positive indicator of profitability for shareholders. The equity ratio is 27.26%, suggesting a solid equity base, though there is room for improvement in reducing liabilities further.

Cash Flow

The company exhibits strong cash flow management, with operating cash flow to net income ratio of 2.51 in TTM, indicating robust cash generation relative to earnings. Free cash flow has grown significantly, with a free cash flow to net income ratio of 1.26, highlighting the company's ability to generate cash efficiently and reinvest in growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.93B	6.39B	5.27B	4.54B	4.20B	3.78B
Gross Profit	1.29B	1.15B	909.60M	912.20M	659.60M	463.46M
EBITDA	1.16B	1.01B	598.20M	228.40M	479.90M	-106.16M
Net Income	376.30M	352.50M	164.00M	-185.40M	-44.70M	-696.27M
Balance Sheet
Total Assets	12.07B	11.82B	10.78B	10.14B	10.15B	10.53B
Cash, Cash Equivalents and Short-Term Investments	1.26B	2.20B	2.15B	2.31B	2.57B	2.70B
Total Debt	2.32B	2.60B	2.98B	3.27B	4.09B	4.52B
Total Liabilities	8.47B	8.48B	7.74B	7.32B	7.38B	7.61B
Stockholders Equity	3.33B	3.08B	2.79B	2.57B	2.67B	2.80B
Cash Flow
Free Cash Flow	473.70M	405.00M	186.20M	495.30M	247.10M	-1.35B
Operating Cash Flow	959.30M	871.20M	617.00M	751.30M	515.30M	-1.25B
Investing Cash Flow	-586.90M	-599.70M	-447.60M	-109.50M	-131.60M	-181.63M
Financing Cash Flow	-437.50M	-335.70M	-348.70M	-669.20M	-430.60M	1.01B

Embraer Technical Analysis

• Last Price: 61.93

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EMBJ, the sentiment is undefined. The current price of 61.93 is equal to the 20-day moving average (MA) of ―, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a undefined sentiment for EMBJ.

Embraer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%