Embraer-Empresa Stock Analysis, Valuation (NYSE:ERJ)

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$18.62 $0.32 (1.69%) ERJ stock closing price Sep 24, 2018 (Closing)

Investors can watch the Amigobulls Embraer-Empresa stock analysis video here. This is our analyst opinion covering the buy and sell arguments for ERJ stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Embraer SA (ADR) Stock Rating 2.2/5

Amigobulls ERJ stock analysis uses latest quarter 2018 Q2 financial data like Embraer-Empresa revenue growth, profit margins and cash flows. We compare Embraer-Empresa valuation with its sector peers to gauge relative attractiveness of ERJ stock. Embraer-Empresa stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy ERJ stock?

  • ERJ stock is trading at a favorable price to sales multiple of 0.6 as against the Aerospace sector average multiple of 1.7.
  • Embraer-Empresa has a healthy FCF (Free Cash Flow) margin of 16.8.

Should you sell ERJ stock?

  • Sales declined by -2.3 annually over the last 5 years.
  • Embraer-Empresa had a poor average operating margin of 2.66 over the last 4 quarters.
  • Embraer-Empresa's LTM Net margins were poor at 0.1%.
  • Embraer-Empresa is debt laden and has a high debt/equity ratio of 1.11.
  • ERJ stock is trading at a PE ratio of 29.6, which is worse than the sector average multiple of 23.4.
  • Embraer-Empresa has a low ROIC (Return on Invested Capital) of 1.6.
  • Embraer-Empresa has a low Return On Equity (ROE) of 0.2.

Comments on this video and Embraer-Empresa stock

Amigobulls Embraer-Empresa stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of ERJ stock. The fundamentals of a company are vital to identify long-term investment opportunities.

Among the financials of the company, Embraer-Empresa revenue growth along with the profit or net income give a clear picture of the financial health. Investors could make use of ERJ technical analysis to check whether the fundamental story is reflected in the market sentiment.