ERJ : NYSE : Electronic Technology
$25.39 | %
Today's Range: 25.22 - 25.47
Avg. Daily Volume: 1759600.0
03/16/18 - 4:02 PM ET

Financial Analysis

EMBRAER SA's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged 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 strong liquidity. Currently, the Quick Ratio is 1.63 which shows 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 increased by 5.71% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)1733.02027.8
EBITDA ($mil)294.3377.2
EBIT ($mil)196.6263.0
Net Income ($mil)35.2195.3

Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)3636.43017.0
Total Assets ($mil)11936.211664.6
Total Debt ($mil)4562.64133.8
Equity ($mil)4068.63848.8

Profitability Q4 FY17 Q4 FY16
Gross Profit Margin25.625.71
EBITDA Margin16.9818.6
Operating Margin11.3412.97
Sales Turnover0.490.53
Return on Assets2.061.42
Return on Equity6.064.31
Debt Q4 FY17 Q4 FY16
Current Ratio2.532.13
Interest Expense0.00.0
Interest Coverage0.00.0

Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)183.64183.64
Div / share0.110.0
Book value / share22.1620.96
Institutional Own % n/a n/a
Avg Daily Volume1813686.01575035.0


BUY. The current P/E ratio indicates a significant discount compared to an average of 31.46 for the Aerospace & Defense industry and a discount compared to the S&P 500 average of 25.58. For additional comparison, its price-to-book ratio of 1.15 indicates a significant discount versus the S&P 500 average of 3.27 and a significant discount versus the industry average of 173.77. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ERJ 19.01 Peers 31.46   ERJ 6.18 Peers 19.02

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

ERJ is trading at a significant discount 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
ERJ 15.07 Peers 22.43   ERJ NM Peers 2.74

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

ERJ is trading at a valuation on par with its peers.


Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ERJ 1.15 Peers 173.77   ERJ 47.25 Peers 13.01

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ERJ 0.80 Peers 2.20   ERJ -6.09 Peers 9.47

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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