Embraer SA

Embraer maintains a leveraged capital structure with total liabilities of BRL 52.1 billion against total equity of BRL 19.0 billion, resulting in a debt-to-equity ratio of 0.79. The company holds BRL 7.0 billion in cash and equivalents, which is insufficient to cover its BRL 14.9 billion in long-term debt, leading to a negative net cash position. Liquidity is assessed as medium, supported by a current ratio of 1.5, indicating adequate short-term asset coverage for current liabilities. Operating cash flow stands at BRL 4.5 billion, while free cash flow is BRL 606 million after capital expenditures of BRL 2.7 billion.

Profitability metrics show a net income of BRL 1.95 billion on revenue of BRL 41.9 billion, yielding a net margin of approximately 4.7%. Return on equity is 8.94%, and return on assets is 2.38%. The company trades at a price-to-earnings ratio of 34.64 and an EV/EBITDA of 19.16, reflecting premium valuation multiples relative to its asset base. The price-to-book ratio is 3.1, consistent with the price-to-tangible-book ratio, suggesting the market values the company's intangible assets and future earnings potential highly.

Revenue concentration is not detailed in segment or geographic breakdowns in the available data, but the total revenue of BRL 41.9 billion indicates a significant scale in the aerospace market. The company's activity is classified under Aerospace & Defense, implying exposure to both commercial aviation cycles and defense procurement budgets. Without specific segment data, the revenue mix is assumed to be diversified across its core aerospace business lines.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current revenue figure of BRL 41.9 billion serves as the baseline for performance evaluation. The company's ability to sustain growth depends on order book conversion and delivery rates, which are not explicitly provided but are implied by the positive operating income and cash flow generation.

Risk assessment highlights medium liquidity risk and low dilution risk. A key flag is the negative net cash position, which increases sensitivity to interest rate fluctuations and refinancing needs. The dilution risk is low, with basic and diluted shares outstanding both at 711.8 million, indicating no significant in-the-money options or convertible securities impacting share count.

Recent observations include analyst estimates with a mean price target of BRL 86.88 and a median of BRL 86.50, suggesting modest upside from the current market price of BRL 82.42. The mean recommendation is 2.20, with four buy ratings and one hold, indicating positive sentiment among analysts. There are no strong-buy ratings, reflecting a cautious but optimistic outlook.

Revenue grew 16.6% annually over four years, demonstrating strong top-line expansion momentum for the aerospace manufacturer.

Return on equity of 8.9% significantly outperforms the 3.2% cohort median, highlighting effective capital utilization.

Analysts project 8.6% upside to a mean price target of 86.88, reflecting positive market sentiment.

Cash conversion of 2.65 is best-in-class compared to the 0.92 cohort median, showing strong earnings quality.

Debt-to-equity ratio of 0.79 places the company in the bottom quartile, signaling high leverage risk.

Free cash flow is expected to drop 17.4% year-over-year, indicating weakening cash generation capabilities.

Net margin of 3.9% trails the 4.4% aerospace median, revealing lower bottom-line efficiency than peers.

Medium liquidity and credit risk flags suggest potential vulnerabilities in financial stability and borrowing costs.

Revenue BRL 7.58B, +18,4% YoY; Operating income +43,3% YoY.

• ▍Revenue BRL 7.58B, +18,4% YoY
• ▍Operating income +43,3% YoY
• ▍Net income −59,7% YoY
• ▍Free cash flow −1 040,6% YoY
• ▍Net margin 2.3%

Revenue BRL 14.34B, +4,3% YoY; Operating income −23,8% YoY.

• ▍Revenue BRL 14.34B, +4,3% YoY
• ▍Operating income −23,8% YoY
• ▍Net income +69,6% YoY
• ▍Free cash flow +714,0% YoY
• ▍Net margin 3.1%

Revenue BRL 10.87B, +15,8% YoY; Operating income −45,6% YoY.

• ▍Revenue BRL 10.87B, +15,8% YoY
• ▍Operating income −45,6% YoY
• ▍Net income −37,2% YoY
• ▍Free cash flow −54,9% YoY
• ▍Net margin 5.7%

Revenue BRL 10.27B, +30,9% YoY; Operating income +52,2% YoY.

• ▍Revenue BRL 10.27B, +30,9% YoY
• ▍Operating income +52,2% YoY
• ▍Net income −13,8% YoY
• ▍Free cash flow −50,0% YoY
• ▍Net margin 4.4%

Revenue BRL 6.41B; Operating income BRL 295.9M.

• ▍Revenue BRL 6.41B
• ▍Operating income BRL 295.9M
• ▍Net margin 6.8%

Revenue BRL 13.74B; Operating income BRL 1.54B.

• ▍Revenue BRL 13.74B
• ▍Operating income BRL 1.54B
• ▍Net margin 1.9%

Revenue BRL 9.39B; Operating income BRL 1.58B.

• ▍Revenue BRL 9.39B
• ▍Operating income BRL 1.58B
• ▍Net margin 10.6%

Revenue BRL 7.85B; Operating income BRL 668.5M.

• ▍Revenue BRL 7.85B
• ▍Operating income BRL 668.5M
• ▍Net margin 6.6%

Revenue BRL 41.88B, +18,2% YoY; Operating income −11,2% YoY.

• ▍Revenue BRL 41.88B, +18,2% YoY
• ▍Operating income −11,2% YoY
• ▍Net income +1,8% YoY
• ▍Free cash flow −17,4% YoY
• ▍Net margin 4.7%

Revenue BRL 35.42B, +35,7% YoY; Operating income +147,7% YoY.

• ▍Revenue BRL 35.42B, +35,7% YoY
• ▍Operating income +147,7% YoY
• ▍Net income +144,9% YoY
• ▍Free cash flow +429,4% YoY
• ▍Net margin 5.4%

Revenue BRL 26.11B, +11,3% YoY; Operating income +374,1% YoY.

• ▍Revenue BRL 26.11B, +11,3% YoY
• ▍Operating income +374,1% YoY
• ▍Net income +182,2% YoY
• ▍Free cash flow +82,6% YoY
• ▍Net margin 3.0%

Revenue BRL 23.45B, +3,4% YoY; Operating income −152,7% YoY.

• ▍Revenue BRL 23.45B, +3,4% YoY
• ▍Operating income −152,7% YoY
• ▍Net income −247,0% YoY
• ▍Free cash flow −114,4% YoY
• ▍Net margin -4.1%