Loading...

You're on the old version of Simply Wall St. We will no longer be supporting this site, so we recommend you switch to our brand new platform.

Embraer

NYSE:ERJ
Snowflake Description

Excellent balance sheet with high growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ERJ
NYSE
R$6B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Embraer S.A. designs, develops, manufactures, and sells aircraft and systems in Brazil, North America, Latin America, the Asia Pacific, Europe, and internationally. The last earnings update was 9 days ago. More info.


Add to Portfolio Compare Print
  • Embraer has significant price volatility in the past 3 months.
ERJ Share Price and Events
7 Day Returns
-10.9%
NYSE:ERJ
-14.4%
US Aerospace & Defense
-2%
US Market
1 Year Returns
-68.1%
NYSE:ERJ
-23.1%
US Aerospace & Defense
-15.1%
US Market
ERJ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Embraer (ERJ) -10.9% -55.2% -68.1% -68.1% -70.9% -79.8%
US Aerospace & Defense -14.4% -31.2% -37.5% -23.1% -11.4% 10.4%
US Market -2% -19.7% -23.2% -15.1% 3.7% 14.4%
1 Year Return vs Industry and Market
  • ERJ underperformed the Aerospace & Defense industry which returned -23.1% over the past year.
  • ERJ underperformed the Market in United States of America which returned -15.1% over the past year.
Price Volatility
ERJ
Industry
5yr Volatility vs Market

Value

 Is Embraer undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Embraer to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Embraer.

NYSE:ERJ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:ERJ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 9.3%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.82
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.821 (1 + (1- 34%) (9.5%))
0.915
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.91
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.915 * 9.25%)
10.2%

Discounted Cash Flow Calculation for NYSE:ERJ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Embraer is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:ERJ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (BRL, Millions) Source Present Value
Discounted (@ 10.2%)
2020 561.94 Analyst x1 509.93
2021 1,422.49 Analyst x1 1,171.36
2022 1,114.62 Est @ -21.64% 832.90
2023 951.58 Est @ -14.63% 645.25
2024 859.11 Est @ -9.72% 528.63
2025 805.15 Est @ -6.28% 449.58
2026 773.96 Est @ -3.87% 392.16
2027 757.01 Est @ -2.19% 348.07
2028 749.36 Est @ -1.01% 312.67
2029 747.97 Est @ -0.19% 283.20
Present value of next 10 years cash flows R$5,473.00
NYSE:ERJ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= R$747.97 × (1 + 1.74%) ÷ (10.2% – 1.74%)
R$8,995.83
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= R$8,995.83 ÷ (1 + 10.2%)10
R$3,406.07
NYSE:ERJ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= R$5,473.00 + R$3,406.07
R$8,879.07
Equity Value per Share
(BRL)
= Total value / Shares Outstanding
= R$8,879.07 / 736.08
R$12.06
NYSE:ERJ Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NYSE:ERJ represents 0.75354x of BOVESPA:EMBR3
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.75354x
Value per Share
(Listing Adjusted, USD)
= Value per Share (BRL) x Listing Adjustment Factor
= R$ 12.06 x 0.75354
$9.09
Value per share (USD) From above. $9.09
Current discount Discount to share price of $6.39
= -1 x ($6.39 - $9.09) / $9.09
29.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Embraer is available for.
Intrinsic value
30%
Share price is $6.39 vs Future cash flow value of $9.09
Current Discount Checks
For Embraer to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Embraer's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Embraer's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Embraer's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Embraer's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:ERJ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in BRL R$-1.18
BOVESPA:EMBR3 Share Price ** BOVESPA (2020-04-03) in BRL R$8.48
United States of America Aerospace & Defense Industry PE Ratio Median Figure of 39 Publicly-Listed Aerospace & Defense Companies 12.78x
United States of America Market PE Ratio Median Figure of 2,947 Publicly-Listed Companies 12.4x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Embraer.

NYSE:ERJ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BOVESPA:EMBR3 Share Price ÷ EPS (both in BRL)

= 8.48 ÷ -1.18

-7.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Embraer is loss making, we can't compare its value to the US Aerospace & Defense industry average.
  • Embraer is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Embraer's expected growth come at a high price?
Raw Data
NYSE:ERJ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -7.17x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
68.2%per year
United States of America Aerospace & Defense Industry PEG Ratio Median Figure of 31 Publicly-Listed Aerospace & Defense Companies 1.65x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.89x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Embraer, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Embraer's assets?
Raw Data
NYSE:ERJ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in BRL R$19.26
BOVESPA:EMBR3 Share Price * BOVESPA (2020-04-03) in BRL R$8.48
United States of America Aerospace & Defense Industry PB Ratio Median Figure of 53 Publicly-Listed Aerospace & Defense Companies 1.7x
United States of America Market PB Ratio Median Figure of 5,144 Publicly-Listed Companies 1.2x
NYSE:ERJ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BOVESPA:EMBR3 Share Price ÷ Book Value per Share (both in BRL)

= 8.48 ÷ 19.26

0.44x

* Primary Listing of Embraer.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Embraer is good value based on assets compared to the US Aerospace & Defense industry average.
X
Value checks
We assess Embraer's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Embraer has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Embraer expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
68.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Embraer expected to grow at an attractive rate?
  • Embraer's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Embraer's earnings growth is expected to exceed the United States of America market average.
  • Embraer's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:ERJ Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:ERJ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 68.2%
NYSE:ERJ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 33.3%
United States of America Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 10.7%
United States of America Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 4.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:ERJ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in BRL Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:ERJ Future Estimates Data
Date (Data in BRL Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 38,001 971 2
2021-12-31 25,743 2,029 16 8
2020-12-31 23,415 3,065 -1,543 6
2020-04-04
NYSE:ERJ Past Financials Data
Date (Data in BRL Millions) Revenue Cash Flow Net Income *
2019-12-31 10,468 3,749 -870
2019-09-30 19,874 828 140
2019-06-30 19,912 938 117
2019-03-31 18,848 1,708 -612
2018-12-31 7,888 4,013 -1,002
2018-09-30 10,838 5,149 -782
2018-06-30 12,383 4,711 -418
2018-03-31 16,894 5,316 610
2017-12-31 18,776 2,497 851
2017-09-30 19,821 837 1,361
2017-06-30 20,618 1,365 917
2017-03-31 19,655 -1,411 368

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Embraer's earnings are expected to grow significantly at over 20% yearly.
  • Embraer's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:ERJ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Embraer Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ERJ Future Estimates Data
Date (Data in BRL Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31
2020-04-04
NYSE:ERJ Past Financials Data
Date (Data in BRL Millions) EPS *
2019-12-31 -1.18
2019-09-30 0.19
2019-06-30 0.16
2019-03-31 -0.83
2018-12-31 -1.36
2018-09-30 -1.07
2018-06-30 -0.57
2018-03-31 0.83
2017-12-31 1.16
2017-09-30 1.84
2017-06-30 1.24
2017-03-31 0.50

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Embraer is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Embraer's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Embraer has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Embraer performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Embraer's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Embraer does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Embraer's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Embraer's 1-year growth to the US Aerospace & Defense industry average as it is not currently profitable.
Earnings and Revenue History
Embraer's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Embraer Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ERJ Past Revenue, Cash Flow and Net Income Data
Date (Data in BRL Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 10,467.93 -870.37 1,138.35 78.44
2019-09-30 19,874.20 139.61 1,828.02 172.08
2019-06-30 19,912.37 117.27 1,888.34 171.58
2019-03-31 18,848.00 -612.04 1,844.76 168.53
2018-12-31 7,888.03 -1,001.89 1,053.94 70.87
2018-09-30 10,838.11 -782.41 1,209.09 98.65
2018-06-30 12,382.94 -417.86 1,266.52 129.17
2018-03-31 16,893.64 609.84 1,424.93 131.83
2017-12-31 18,776.09 850.70 1,582.36 157.56
2017-09-30 19,821.11 1,360.62 1,529.91 162.68
2017-06-30 20,617.96 917.46 1,556.90 156.24
2017-03-31 19,655.36 368.22 1,680.65 162.40
2016-12-31 21,435.70 585.43 1,863.17 161.99
2016-09-30 22,728.22 362.98 2,014.58 157.53
2016-06-30 22,392.11 86.53 2,054.95 149.53
2016-03-31 22,282.01 823.42 1,989.78 146.47
2015-12-31 20,301.77 241.60 1,815.84 142.30
2015-09-30 17,558.34 57.61 1,681.68 128.06
2015-06-30 15,808.39 421.01 1,595.46 119.33
2015-03-31 15,075.41 341.26 1,519.02 111.70
2014-12-31 14,935.91 796.09 1,478.54 112.61
2014-09-30 14,980.32 1,161.52 1,426.73 101.32
2014-06-30 15,096.57 1,304.49 1,456.67 100.38
2014-03-31 14,407.92 974.72 1,442.47 137.48
2013-12-31 13,635.85 777.69 1,432.49 158.06
2013-09-30 12,252.96 424.03 1,503.84 178.32
2013-06-30 12,154.40 437.89 1,474.64 201.02

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Embraer has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Embraer has efficiently used its assets last year compared to the US Aerospace & Defense industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Embraer improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Embraer's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Embraer has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Embraer's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Embraer's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Embraer is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Embraer's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Embraer's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 78.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Embraer Company Filings, last reported 3 months ago.

NYSE:ERJ Past Debt and Equity Data
Date (Data in BRL Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 14,569.55 437.81 5,098.81
2019-09-30 15,834.32 1,007.12 4,058.46
2019-06-30 14,984.33 1,117.49 5,415.28
2019-03-31 15,165.18 584.45 5,693.12
2018-12-31 15,266.99 15,456.81 11,718.34
2018-09-30 15,894.52 17,521.28 11,573.88
2018-06-30 15,384.92 17,081.85 11,910.97
2018-03-31 13,906.54 15,136.76 10,562.01
2017-12-31 13,819.51 15,092.93 12,030.85
2017-09-30 13,219.71 14,852.54 10,116.58
2017-06-30 13,411.86 15,187.33 10,457.83
2017-03-31 12,662.47 14,777.69 9,806.49
2016-12-31 12,844.86 13,472.25 9,832.76
2016-09-30 12,282.56 13,649.07 8,737.32
2016-06-30 12,257.55 13,016.91 7,367.96
2016-03-31 14,042.56 14,403.59 9,564.19
2015-12-31 15,008.67 15,287.82 10,886.98
2015-09-30 14,976.68 15,045.18 9,846.71
2015-06-30 12,115.39 12,184.89 9,365.83
2015-03-31 12,099.87 8,940.04 5,800.05
2014-12-31 10,265.49 7,723.69 6,437.80
2014-09-30 9,377.20 6,800.42 5,015.65
2014-06-30 8,528.42 6,192.25 5,061.85
2014-03-31 8,460.56 5,923.98 5,138.11
2013-12-31 8,509.01 6,076.56 6,146.14
2013-09-30 7,613.52 5,769.05 4,831.95
2013-06-30 7,437.12 5,810.87 5,056.63
  • Embraer's level of debt (3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (75.2% vs 3% today).
  • Debt is well covered by operating cash flow (856.4%, greater than 20% of total debt).
  • Unable to confirm if the interest payments on Embraer's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Embraer's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Embraer has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Embraer's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Embraer dividends.
If you bought $2,000 of Embraer shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Embraer's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Embraer's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:ERJ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United States of America Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1938 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2.1%
United States of America Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:ERJ Future Dividends Estimate Data
Date (Data in R$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31
2020-04-04
NYSE:ERJ Past Annualized Dividends Data
Date (Data in R$) Dividend per share (annual) Avg. Yield (%)
2020-03-26 0.000 0.000
2019-11-12 0.000 0.000
2019-08-14 0.000 0.000
2019-05-31 0.000 0.000
2019-05-15 0.000 0.000
2019-03-15 0.060 0.316
2019-03-14 0.060 0.312
2016-10-31 0.080 0.456
2016-07-29 0.160 1.073
2016-04-29 0.160 0.877
2016-03-03 0.160 0.707
2015-03-04 0.270 1.057
2014-03-13 0.360 1.645
2014-02-26 0.360 1.758
2013-10-31 0.160 0.862
2013-10-15 0.160 0.915
2013-04-30 0.160 0.828
2013-04-29 0.160 0.944
2013-03-12 0.210 1.218
2012-04-04 0.250 1.752
2012-03-20 0.250 1.733
2011-03-24 0.277 2.366
2010-08-03 0.084 0.681
2010-08-02 0.084 0.722
2010-03-18 0.290 2.888
2009-10-29 0.000 0.000
2009-07-31 0.000 0.000
2009-07-30 0.000 0.000
2009-04-29 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Embraer has not reported any payouts.
  • Unable to verify if Embraer's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Embraer's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Embraer has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Embraer's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Embraer afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Embraer has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Embraer's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Francisco Neto
TENURE AS CEO 1 years
CEO Bio

Mr. Francisco Gomes Neto has been President and Chief Executive Officer at Embraer S.A. since April 22, 2019. He served as Managing Director of Marcopolo S.A since August 10, 2015 and served as its Chief Executive Officer. Mr. Neto served as the Chief Executive Officer and President of Mann + Hummel USA, Inc. since August 2008. He served as Vice President of Americas at Mann Hummel since 15 years. He serves as the Chairman of Mann+Hummel Mexico. He has been a Director of Volgren Australia Pty Limited since October 1, 2015. He holds undergraduate degree in Electrical Engineering from UMC-SP, graduate degree in Business Management from FGV-SP, MBA in Controllership, Finance and Risk Management from USP and complementary degrees from St. John's University, New York and the University of Michigan, in Ann Arbor.

CEO Compensation
  • Insufficient data for Francisco to compare compensation growth.
  • Insufficient data for Francisco to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Embraer management team in years:

2.7
Average Tenure
54
Average Age
  • The tenure for the Embraer management team is about average.
Management Team

Francisco Neto

TITLE
President & CEO
TENURE
1 yrs

Antonio Garcia

TITLE
CFO & Investor Relations Officer
TENURE
0.3 yrs

Hélio Filho

TITLE
Executive Vice President of Operations
AGE
56
TENURE
2.5 yrs

Eduardo Couto

TITLE
Head of Investor Relations

Fabiana Leschziner

TITLE
Chief Compliance Officer
AGE
45
TENURE
3.8 yrs

Mauro Kern

TITLE
Executive Vice President for Engineering
AGE
58
TENURE
2.6 yrs

Jackson de Farias Schneider

TITLE
Executive Vice President of Defense & Security
AGE
54
TENURE
6.3 yrs

John Slattery

TITLE
EVP - Commercial Aviation
AGE
50
TENURE
3.5 yrs

Rodrigo Rosa

TITLE
Chief Financial Officer of Embraer Europe
TENURE
3 yrs

Steve Friedrich

TITLE
Chief Commercial Officer of Executive Aviation Business Unit
TENURE
2.7 yrs
Board of Directors Tenure

Average tenure and age of the Embraer board of directors in years:

6.3
Average Tenure
63.5
Average Age
  • The tenure for the Embraer board of directors is about average.
Board of Directors

Alexandre Silva

TITLE
Independent Chairman
AGE
74
TENURE
8.1 yrs

Sérgio de Salles Pinto

TITLE
Vice-Chairman
AGE
55

João Neto

TITLE
Independent Director
AGE
56
TENURE
9.3 yrs

Ivan do Carmo

TITLE
President of Fiscal Council
AGE
56

Jose Mauro Vilela

TITLE
Vice President of Fiscal Council
AGE
71
TENURE
4 yrs

Israel Vainboim

TITLE
Independent Director
AGE
75
TENURE
11 yrs

Cecília Mendes Siqueira

TITLE
Independent Director
AGE
61
TENURE
4.6 yrs

José Magno de Araújo

TITLE
Director
AGE
59
TENURE
7.3 yrs

Alexandre Filho

TITLE
Director
AGE
66
TENURE
5.3 yrs

Pedro Wongtschowski

TITLE
Independent Director
AGE
72
TENURE
4.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Embraer's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Embraer has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Embraer SA (NYSE:ERJ): Disecting current projections

To get a preliminary understanding, I will shine a light on the behaviour of Embraer’s margins to help recognise the underlying make-up of revenue and expenses that is responsible for driving future earnings expectations and what it means for ERJ's returns relative to its competitors. … Breaking Down ERJ's Profit Margin In general, the value that accrues to equity holders is partly reliant on the ability of a company to convert sales revenue in to earnings. … Based on future expectations, ERJ's profit margin will further the previous contraction, with annual revenue growth tipped at 2.51% and earnings expected to fall at -13.01% on an annual basis.

Simply Wall St -

Embraer SA (NYSE:ERJ): Time For A Financial Health Check

NYSE:ERJ Historical Debt Dec 23rd 17 While ideally the debt-to equity ratio of a financially healthy company should be less than 40%, several factors such as industry life-cycle and economic conditions can result in a company raising a significant amount of debt. … ERJ's debt-to-equity ratio exceeds 100%, which indicates that the company is holding a high level of debt relative to its net worth. … NYSE:ERJ Net Worth Dec 23rd 17 Debt to equity ratio is an important aspect of financial strength.

Simply Wall St -

Company Info

Description

Embraer S.A. designs, develops, manufactures, and sells aircraft and systems in Brazil, North America, Latin America, the Asia Pacific, Europe, and internationally. It operates through Commercial Aviation, Defense and Security, Executive Jets, Service & Support, and Other segments. The Commercial Aviation segment develops, produces, and sells commercial jets; and provides support services, as well as leases aircraft. Its products include ERJ 145 family, EMBRAER 170/190 family, and E-Jets family of commercial aircraft. The Defense and Security segment engages in the research, development, production, modification, and support for military defense and security aircraft, as well as offers a range of products and integrated solutions that include radars, special space systems (satellites), and information and communications systems, such as command, control, communications, computer, intelligence, surveillance, and reconnaissance systems. The Executive Jets segment develops, produces, and sells executive jets; and offers support services. It also leases Legacy 600 and Legacy 650 executive jets in the super midsize and large categories; Legacy 450 and Legacy 500 executive jets in the midlight and midsize categories; Phenom family executive jets in the entry jet and light jet categories; Lineage 1000, an ultra-large executive jet; and Praetor 500 and Praetor 600, disruptive executive jets in the midsize and super midsize categories. The Service & Support segment after-service solutions and support services. The Other segment is involved in the supply of fuel systems, structural parts, and mechanical and hydraulic systems; and production of agricultural crop-spraying aircraft. The company has a strategic partnership with The Boeing Company. The company was formerly known as Embraer-Empresa Brasileira de Aeronáutica S.A. and changed its name to Embraer S.A. in November 2010. Embraer S.A. was founded in 1969 and is headquartered in São Paulo, Brazil.

Details
Name: Embraer S.A.
ERJ
Exchange: NYSE
Founded: 1969
R$1,175,997,009
736,079,826
Website: http://www.embraer.com
Address: Embraer S.A.
São Paulo Corporate Towers,
14th and 15th Floors,
São Paulo,
São Paulo, 04543-907,
Brazil
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BOVESPA EMBR3 Common Shares Bolsa de Valores de Sao Paulo BR BRL 25. Jul 1994
NYSE ERJ SPONSORED ADS New York Stock Exchange US USD 21. Jul 2000
DB EMY SPONSORED ADS Deutsche Boerse AG DE EUR 21. Jul 2000
BMV ERJ N SPONSORED ADS Bolsa Mexicana de Valores MX MXN 21. Jul 2000
Number of employees
Current staff
Staff numbers
18,734
Embraer employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/04 23:47
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/03
Last earnings filing: 2020/03/26
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.