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ERJEmbraer S.A.
$65.43$12.0B
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  4. Financial Ratios

Embraer S.A. (ERJ) Financial Ratios

Latest Ratios: P/E Ratio 34.1x · EV/EBITDA 14.3x · ROE 11.0%. (1999–2024 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

ERJ Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
Market Cap$12.0B$6.7B$3.4B$2.0B$3.3B$1.3B$3.6B$4.1B$4.4B$3.5B$5.4B
Enterprise Value$13.0B$7.8B$4.7B$3.5B$5.5B$3.9B$2.9B$6.8B$15.3B$13.0B$12.3B
P/E Ratio →34.0819.1020.97—————5.036.1519.96
P/S Ratio1.881.050.640.440.780.330.660.800.520.180.23
P/B Ratio3.592.011.110.711.170.430.991.060.330.280.37
P/FCF29.6316.6318.204.0513.19—11.00—2.53—2.17
P/OCF13.777.735.492.676.33—4.01—1.76—1.49

P/E links to full P/E history page with 30-year chart

ERJ EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
EV / Revenue—1.220.900.761.321.030.531.341.810.640.53
EV / EBITDA14.318.548.5334.7213.49—21.6818.5216.015.293.77
EV / EBIT19.5310.1113.30191.4220.39—130.2018.5216.015.293.77
EV / FCF—19.2025.477.0022.39—8.83—8.81—4.94

ERJ Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
Gross Margin18.0%18.0%17.3%20.1%15.6%12.7%14.6%15.1%11.7%19.7%18.7%
Operating Margin10.4%10.4%6.0%-2.4%4.8%-8.6%-1.4%1.8%-5.9%5.9%6.1%
Net Profit Margin5.5%5.5%3.1%-4.1%-1.1%-19.4%-5.9%-3.5%10.4%2.9%1.2%

Return on Capital

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
ROE11.0%11.0%5.6%-6.6%-1.6%-22.4%-8.6%-2.1%6.7%4.3%2.3%
ROA3.1%3.1%1.6%-1.8%-0.4%-6.9%-2.9%-0.7%2.2%1.4%0.8%
ROIC11.4%11.4%5.4%-1.8%2.9%-5.7%-1.2%0.4%-1.6%4.1%6.3%
ROCE9.2%9.2%4.5%-1.6%2.6%-5.3%-1.2%0.5%-1.7%3.9%5.3%

ERJ Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
Debt / Equity0.780.780.981.161.471.550.041.041.121.081.05
Debt / EBITDA2.862.865.3632.819.98—1.1110.9115.805.494.72
Net Debt / Equity—0.310.450.520.820.90-0.200.700.810.750.47
Net Debt / EBITDA1.141.142.4314.605.54—-5.347.4011.403.842.11
Debt / FCF—2.577.272.949.20—-2.17—6.28—2.76
Interest Coverage3.413.411.480.081.06-1.740.101.597.023.704.69

ERJ Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
Current Ratio1.471.471.651.792.082.521.342.332.532.112.08
Quick Ratio0.820.820.941.081.391.531.141.521.771.341.36
Cash Ratio0.500.500.590.720.911.110.201.001.300.930.91
Asset Turnover—0.540.490.450.410.360.520.450.210.530.51
Inventory Turnover1.811.811.671.581.811.383.661.741.062.002.16
Days Sales Outstanding—62.6664.9969.5077.7976.2547.1638.6269.1728.2253.77

ERJ Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
Dividend Yield——0.4%———0.1%1.0%3.9%2.8%3.4%
Payout Ratio——8.2%—————19.8%17.1%67.0%

Total Shareholder Return Metrics

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
Earnings Yield2.9%5.2%4.8%—————19.9%16.3%5.0%
FCF Yield3.4%6.0%5.5%24.7%7.6%—9.1%—39.5%—46.0%
Buyback Yield0.0%0.0%0.0%0.0%0.1%0.0%0.0%0.0%1.1%1.7%0.0%
Total Shareholder Yield0.0%0.0%0.4%0.0%0.1%0.0%0.1%1.0%5.0%4.5%3.4%
Shares Outstanding—$184M$184M$184M$184M$184M$184M$184M$184M$184M$183M

Key Metrics

Growth RegimeExpanding
ProfitabilityModerate
Balance SheetHealthy
Cash FlowMixed
Top Statement Risk

Supply chain delivery bottlenecks

Market Pricing Reflects Cyclical Recovery

Based on current market data, Embraer trades at a forward P/E of 4.47, which suggests that investors are pricing in significant earnings growth compared to the trailing P/E of 34.08, reflecting a market expectation that the company will successfully normalize margins as delivery volumes scale over time.

The wide disparity between trailing and forward multiples indicates that the market is discounting current earnings volatility in favor of anticipated operational leverage. While the EV/EBITDA of 14.31 appears elevated relative to historical norms, it may be justified if the C-390 and E2 programs achieve the expected production cadence.

Capital Efficiency Remains Under Pressure

As reported in financial statements, Embraer's ROIC has struggled to maintain momentum, fluctuating between -0.1% and 4.1% over the last ten quarters, which indicates that the company is still in the process of effectively deploying capital to generate sustainable returns above its cost of capital.

The low ROIC figures suggest that the heavy R&D investment required for new aircraft platforms is currently suppressing returns on invested capital. Investors should monitor whether the ramp-up of the E2 family and the expansion of the Services segment can drive a structural improvement in capital efficiency.

Working Capital Cycles Impede Liquidity

According to quarterly data, Embraer's cash conversion cycle remains extended, peaking at 347 days in 2024Q1 and settling at 189 days in 2025Q3, which highlights the significant impact of inventory bottlenecks and the 'glider' aircraft phenomenon on the company's ability to efficiently convert production into cash.

The high days-in-inventory (DIO) metric, which reached 314 days in 2025Q1, underscores the operational drag caused by supply chain delays in the aerospace sector. This inefficiency forces the company to carry substantial working capital, which may continue to pressure free cash flow until engine and component availability stabilizes.

Misapplication of Standard P/E Multiples

Based on the company's unique business model, the trailing P/E ratio is a frequently misapplied metric that obscures the true earning power of the firm, as it fails to account for the lumpy, milestone-driven nature of aircraft deliveries and the significant impact of non-recurring accounting adjustments.

Investors should prioritize EV/EBITDA or P/FCF metrics, as these better reflect the underlying cash-generating capability of the business by stripping out the noise of seasonal delivery timing. Relying on P/E in this context may lead to an inaccurate assessment of the company's valuation relative to its long-term growth potential.

Download Financial Ratios Data

Includes 30+ ratios · 26 years · Updated daily

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ERJ — Frequently Asked Questions

Quick answers to the most common questions about buying ERJ stock.

What is Embraer S.A.'s P/E ratio?

Embraer S.A.'s current P/E ratio is 34.1x. The historical average is 9.7x. This places it at the 100th percentile of its historical range.

What is Embraer S.A.'s EV/EBITDA?

Embraer S.A.'s current EV/EBITDA is 14.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.9x.

What is Embraer S.A.'s ROE?

Embraer S.A.'s return on equity (ROE) is 11.0%. The historical average is 12.6%.

Is ERJ stock overvalued?

Based on historical data, Embraer S.A. is trading at a P/E of 34.1x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What are Embraer S.A.'s profit margins?

Embraer S.A. has 18.0% gross margin and 10.4% operating margin. Operating margin between 10-20% is typical for established companies.

How much debt does Embraer S.A. have?

Embraer S.A.'s Debt/EBITDA ratio is 2.9x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.