ERJ : NYSE : Industrial Goods
$19.68 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 1081500.0
07/25/17 - 4:02 PM ET

Financial Analysis


EMBRAER SA's gross profit margin for the first quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. EMBRAER SA has average liquidity. Currently, the Quick Ratio is 1.35 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.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.36% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)1026.31309.0
EBITDA ($mil)110.8196.2
EBIT ($mil)32.8114.3
Net Income ($mil)42.5103.9


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)3095.12687.4
Total Assets ($mil)12147.411801.5
Total Debt ($mil)4664.24047.3
Equity ($mil)3901.63849.2


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin22.6526.22
EBITDA Margin10.7914.98
Operating Margin3.28.73
Sales Turnover0.490.52
Return on Assets0.861.98
Return on Equity2.686.09
Debt Q1 FY17 Q1 FY16
Current Ratio2.441.94
Debt/Capital0.540.51
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)183.64184.24
Div / share0.050.05
EPS0.230.57
Book value / share21.2520.89
Institutional Own % n/a n/a
Avg Daily Volume1106418.0985861.0

Valuation


HOLD. This stock's P/E ratio indicates a premium compared to an average of 28.66 for the Aerospace & Defense industry and a significant premium compared to the S&P 500 average of 24.66. For additional comparison, its price-to-book ratio of 0.93 indicates a significant discount versus the S&P 500 average of 3.07 and a significant discount versus the industry average of 287.12. 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 34.72 Peers 28.66   ERJ NM Peers 17.40

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

ERJ is trading at a premium to its peers.

 

Neutral. 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's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ERJ 12.10 Peers 22.19   ERJ 0.31 Peers 9.75

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 significant discount to its peers.

 

Discount. 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ERJ 0.93 Peers 287.12   ERJ -55.82 Peers 22.70

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 0.61 Peers 1.81   ERJ -3.99 Peers 4.70

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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