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Embraer SA
ERJ : NYSE : Industrial Goods
$28.29 | %
Today's Range: 27.77 - 28.49
Avg. Daily Volume: 907,900
02/12/16 - 4:02 PM ET

Financial Analysis


EMBRAER SA's gross profit margin for the third quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. EMBRAER SA has average liquidity. Currently, the Quick Ratio is 1.19 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.65% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY15 Q3 FY14
Net Sales ($mil)1284.61239.7
EBITDA ($mil)168.5149.4
EBIT ($mil)95.081.6
Net Income ($mil)-109.6-10.7


Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)2478.52046.4
Total Assets ($mil)11295.910454.0
Total Debt ($mil)3787.12774.6
Equity ($mil)3662.43724.0


Profitability Q3 FY15 Q3 FY14
Gross Profit Margin23.2125.0
EBITDA Margin13.1112.05
Operating Margin7.46.58
Sales Turnover0.520.63
Return on Assets0.434.85
Return on Equity1.3413.63
Debt Q3 FY15 Q3 FY14
Current Ratio2.282.03
Debt/Capital0.510.43
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)183.74182.74
Div / share0.040.08
EPS-0.6-0.06
Book value / share19.9320.38
Institutional Own % n/a n/a
Avg Daily Volume930518.0932504.0

Valuation


HOLD. EMBRAER SA's P/E ratio indicates a significant premium compared to an average of 19.66 for the Aerospace & Defense industry and a significant premium compared to the S&P 500 average of 21.13. To use another comparison, its price-to-book ratio of 1.43 indicates a discount versus the S&P 500 average of 2.51 and a significant discount versus the industry average of 8.08. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ERJ 105.44 Peers 19.66   ERJ 7.61 Peers 13.36

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

ERJ is trading at a significant premium to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ERJ is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ERJ 12.65 Peers 16.35   ERJ 7.53 Peers 3.22

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

ERJ is trading at a discount to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

ERJ trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ERJ 1.43 Peers 8.08   ERJ -90.22 Peers 2.80

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ERJ is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, ERJ is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ERJ 0.89 Peers 1.48   ERJ -9.90 Peers 0.02

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

ERJ is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

ERJ significantly trails its peers on the basis of sales growth

 

 

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