Embraer S.A. ADR (ERJ) Stock: A Value Analysis

The price-to-earnings ratio for Embraer S.A. ADR (NYSE: ERJ) is 29.26x, which is above its average ratio. Moreover, the 36-month beta value for ERJ is 1.68. Analysts have varying opinions on the stock, with 5 analysts rating it as a “buy,” 2 as “overweight,” 7 as “hold,” and 4 as “sell.”

The public float for ERJ is 183.56M and currently, short sellers hold a 1.19% of that float. On April 03, 2024, ERJ’s average trading volume was 1.60M shares.

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ERJ) stock’s latest price update

Embraer S.A. ADR (NYSE: ERJ) has seen a rise in its stock price by 0.90 in relation to its previous close of 25.64. However, the company has experienced a -4.33% decline in its stock price over the last five trading sessions. Seeking Alpha reported 2024-03-28 that Embraer has completed a multi-year turnaround, with an improved cost structure and EBITDA margins of over 10%. Embraer is guiding for 20% revenue and EBITDA growth in 2024. The stock has performed well, with potential for positive surprises in the commercial aircraft segment and the hidden asset of its eVTOL subsidiary, Eve Holdings.

ERJ’s Market Performance

Embraer S.A. ADR (ERJ) has experienced a -4.33% fall in stock performance for the past week, with a 24.08% rise in the past month, and a 40.22% rise in the past quarter. The volatility ratio for the week is 2.67%, and the volatility levels for the past 30 days are at 3.29% for ERJ. The simple moving average for the past 20 days is 8.53% for ERJ’s stock, with a 53.50% simple moving average for the past 200 days.

Analysts’ Opinion of ERJ

Many brokerage firms have already submitted their reports for ERJ stocks, with UBS repeating the rating for ERJ by listing it as a “Neutral.” The predicted price for ERJ in the upcoming period, according to UBS is $28.50 based on the research report published on March 26, 2024 of the current year 2024.

HSBC Securities, on the other hand, stated in their research note that they expect to see ERJ reach a price target of $19, previously predicting the price at $18. The rating they have provided for ERJ stocks is “Hold” according to the report published on February 06th, 2024.

Citigroup gave a rating of “Buy” to ERJ, setting the target price at $16 in the report published on October 16th of the previous year.

ERJ Trading at 26.17% from the 50-Day Moving Average

After a stumble in the market that brought ERJ to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -5.05% of loss for the given period.

Volatility was left at 3.29%, however, over the last 30 days, the volatility rate increased by 2.67%, as shares surge +19.05% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +49.36% upper at present.

During the last 5 trading sessions, ERJ fell by -4.33%, which changed the moving average for the period of 200-days by +53.90% in comparison to the 20-day moving average, which settled at $24.04. In addition, Embraer S.A. ADR saw 40.22% in overturn over a single year, with a tendency to cut further gains.

Stock Fundamentals for ERJ

Current profitability levels for the company are sitting at:

  • 0.04 for the present operating margin
  • 0.17 for the gross margin

The net margin for Embraer S.A. ADR stands at 0.03. The total capital return value is set at 0.03. Equity return is now at value 6.11, with 1.56 for asset returns.

Based on Embraer S.A. ADR (ERJ), the company’s capital structure generated 0.51 points at debt to capital in total, while cash flow to debt ratio is standing at 0.2. The debt to equity ratio resting at 1.04. The interest coverage ratio of the stock is 0.85.

Currently, EBITDA for the company is 448.32 million with net debt to EBITDA at 2.99. When we switch over and look at the enterprise to sales, we see a ratio of 1.16. The receivables turnover for the company is 5.21for trailing twelve months and the total asset turnover is 0.49. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.65.

Conclusion

To wrap up, the performance of Embraer S.A. ADR (ERJ) has been better in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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