ERJ : NYSE : Industrial Goods
$20.13 | %
Today's Range: 20.115 - 20.6001
Avg. Daily Volume: 1201800.0
05/26/17 - 4:01 PM ET

Financial Analysis


EMBRAER SA's gross profit margin for the fourth quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. EMBRAER SA has average liquidity. Currently, the Quick Ratio is 1.21 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 2.85% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)2027.82074.4
EBITDA ($mil)377.2286.6
EBIT ($mil)263.0188.3
Net Income ($mil)195.3111.2


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)3017.02788.1
Total Assets ($mil)11664.611669.5
Total Debt ($mil)4133.83915.3
Equity ($mil)3848.83741.8


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin25.7121.6
EBITDA Margin18.613.81
Operating Margin12.979.08
Sales Turnover0.530.51
Return on Assets1.420.59
Return on Equity4.311.84
Debt Q4 FY16 Q4 FY15
Current Ratio2.132.08
Debt/Capital0.520.51
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)183.64184.24
Div / share0.00.04
EPS1.060.61
Book value / share20.9620.31
Institutional Own % n/a n/a
Avg Daily Volume1155475.01071572.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 21.59 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 25.02. For additional comparison, its price-to-book ratio of 0.88 indicates a significant discount versus the S&P 500 average of 3.00 and a significant discount versus the industry average of 224.99. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, EMBRAER SA proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ERJ 20.27 Peers 21.59   ERJ NM Peers 16.44

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

ERJ is trading at a valuation on par with 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 10.73 Peers 20.62   ERJ 0.19 Peers 9.97

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 0.88 Peers 224.99   ERJ 139.47 Peers 22.88

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.

 

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

ERJ is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ERJ 0.54 Peers 1.69   ERJ 4.88 Peers 5.52

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 trails its peers on the basis of sales growth

 

 

Latest Stock Upgrades/Downgrades