Thinking about investing in Embraer, or just curious about how the company is doing? You’ve come to the right place. We’re going to break down the Embraer stock price, looking at where it’s been, where it might be going, and what’s really driving its performance. It’s a big company in the aviation world, and understanding its stock is key if you’re looking at this sector.
Key Takeaways
- Embraer’s stock (ERJ) has shown strong performance over the last year, significantly outperforming the broader US market.
- While the company has faced past volatility, its recent price movements have been relatively stable compared to the market.
- Financials show a mixed picture with solid revenue and earnings, but analysts are forecasting slower revenue growth compared to the US market.
- Embraer is expected to see earnings growth, but its future Return on Equity is projected to be modest.
- The company operates in a competitive aviation sector, with its strategic moves and market position being important factors for investors to watch.
Embraer Stock Price: A Comprehensive Overview
Let’s take a look at Embraer’s stock, ERJ, and see how it’s been doing. It’s a big player in the aviation world, designing and building planes and systems. They operate all over the globe, so their business is pretty widespread.
Current Market Performance of ERJ
Right now, ERJ is trading around $59.39. That’s actually a bit higher than its 52-week low of $32.26, but still a little off its 52-week high of $62.09. The stock has seen some movement lately, with a 2.80% jump in the last month and a pretty solid 19.28% increase over the past three months. Looking back a full year, it’s up about 70.66%. That’s a good sign, showing it’s been performing well.
Historical Trends and Volatility
Over the last five years, Embraer’s stock has really climbed, showing a gain of over 1,000%. That’s a huge jump. When we talk about volatility, ERJ’s average weekly movement is around 6.0%. That’s a bit lower than the average for the aerospace and defense industry, which sits at 7.1%, and also a little less than the general market average of 6.4%. This suggests that ERJ’s price hasn’t been wildly swinging around compared to its peers or the broader market, which can be a good thing for investors looking for a bit more stability.
Key Financial Metrics and Ratios
Looking at the numbers, Embraer has a market cap of about $11.06 billion. Their earnings over the last twelve months (TTM) were around $395.46 million, with revenue at $7.36 billion. The price-to-earnings (P/E) ratio is about 27.5x, and the price-to-sales (P/S) ratio is 1.5x. The company’s gross margin is 18.57%, and the net profit margin is 5.37%. Their debt-to-equity ratio is 61.1%, which gives us an idea of how they finance their operations. Overall, the company seems to be in decent financial shape based on these figures.
Analyzing Embraer’s Financial Health and Performance
Let’s take a look at how Embraer is doing financially. It’s not just about the stock price going up or down; we need to see the numbers behind the scenes. This helps us get a clearer picture of the company’s stability and its ability to grow.
Revenue and Earnings Analysis
Embraer’s revenue streams come from different areas like commercial jets, defense systems, and executive aircraft. Looking at their past performance, we can see how these segments have contributed. For instance, in the last reported period, Embraer brought in about R$39.80 billion in revenue. Their earnings, or profit, for the trailing twelve months (TTM) were around R$2.14 billion. It’s good to see that their revenue has been growing, which is a positive sign for any company.
| Metric | Value (TTM) |
|---|---|
| Revenue | R$39.80b |
| Earnings | R$2.14b |
Profitability and Margins
When we talk about profitability, we’re looking at how much money Embraer keeps after covering its costs. Their gross margin, which is revenue minus the cost of goods sold, was about 18.57%. The net profit margin, the actual profit left after all expenses, stood at 5.37%. These figures give us an idea of how efficiently the company manages its operations. While these numbers are important, it’s also worth comparing them to industry averages to see how Embraer stacks up against its competitors. You can find more details on equity crowdfunding analytics if you’re interested in market comparisons.
Debt and Equity Position
Understanding a company’s debt and equity is key to assessing its financial structure. Embraer’s Debt-to-Equity ratio was reported at 61.1%. This ratio tells us how much debt the company uses to finance its assets compared to the value of shareholders’ equity. A lower ratio generally suggests less financial risk. It’s always a good idea to keep an eye on this figure as it can change based on the company’s financing decisions and overall economic conditions.
Future Growth Prospects for Embraer
When we look at Embraer’s future, there are some pretty interesting things happening. The company seems to be on a good track, with expectations for growth in both earnings and revenue. It’s not just about selling more planes; it’s about how efficiently they’re doing it and what that means for their bottom line.
Projected Earnings and Revenue Growth
Analysts are putting out some numbers that suggest Embraer could see its earnings grow by about 17.2% each year. Revenue is also expected to climb, maybe around 8.7% annually. That’s a decent pace, especially in the aviation industry, which can be a bit of a rollercoaster. They’re also forecasting earnings per share to jump by a solid 28.1% per year. It looks like the company is really pushing to improve its financial performance.
Return on Equity Forecasts
Looking ahead a few years, the forecast for Embraer’s return on equity (ROE) is around 14.4%. ROE is a way to measure how well a company is using its shareholders’ money to make profits. A higher ROE generally means the company is doing a better job of generating returns for its investors. So, this 14.4% figure is a positive sign for shareholders.
Analyst Expectations and Guidance
Overall, the sentiment from analysts seems to be leaning positive. Many have a "Buy" rating on ERJ stock. The average 12-month price target is around $55.75, though this is a bit lower than the current price. Embraer itself has been reiterating its earnings and operational guidance, which usually means they feel confident about hitting their targets. For instance, they’ve provided guidance for 2025, showing they’re planning ahead and communicating their expectations. It’s always good to keep an eye on these updates, as they can give us a clearer picture of where the company is headed. You can find more details on their financial performance and outlook.
Embraer’s Competitive Landscape and Market Position
When we look at Embraer, it’s clear they operate in a pretty intense industry. They’re not the biggest player out there, but they’ve carved out a significant niche for themselves, especially in the regional jet market. Think of them as a strong contender, not necessarily the market leader across the board, but definitely a company that commands respect.
Key Competitors in the Aviation Sector
Embraer faces competition from several major aircraft manufacturers. The landscape is dominated by giants, but Embraer’s focus on specific segments helps them compete effectively.
- Boeing: A massive player, particularly in larger commercial aircraft, but also competes in certain business jet segments.
- Airbus: Similar to Boeing, Airbus is a global giant with a broad portfolio that overlaps with Embraer in commercial and business aviation.
- Bombardier: Historically a direct competitor, especially in the regional jet market, though their strategic shifts have changed the dynamic.
- Textron Aviation (Cessna, Beechcraft): A significant competitor in the general aviation and business jet sectors.
- Mitsubishi Heavy Industries (Regional Jets): Competes directly with Embraer in the regional jet space.
Market Share and Industry Standing
Embraer holds a strong position in the regional jet market, often considered a leader in this segment. They’ve managed to capture a good chunk of orders for aircraft in the 70-150 seat category. While they don’t dominate the narrow-body or wide-body commercial aircraft markets like Boeing or Airbus, their specialization has paid off. Their success in the executive and defense sectors also adds to their overall industry standing. It’s a balancing act, focusing on areas where they can be a top-tier provider.
Strategic Partnerships and Acquisitions
Companies in this sector often rely on partnerships to stay competitive and expand their reach. Embraer has engaged in various collaborations and strategic moves over the years. While they haven’t made massive acquisitions that fundamentally change their size overnight, they have made calculated decisions to strengthen their position. For instance, their focus on developing new aircraft models and improving existing ones, like the E-Jets E2 family, shows a commitment to organic growth and technological advancement. They also work with suppliers and other aviation entities to streamline production and distribution, which is pretty standard in this business.
Understanding Embraer’s Shareholder Returns
Past Shareholder Returns vs. Market
When we look at how Embraer’s stock (ERJ) has performed compared to the broader market, it’s been a pretty good ride lately. Over the past year, ERJ has really outperformed. It returned about 70.7%, which is way more than the US market’s 19.1% return during the same period. Even when you compare it to the Aerospace & Defense industry average, which saw a 34.7% return, Embraer still came out ahead. It seems like investors have been rewarded well for holding onto ERJ recently.
Dividend Policy and Yield
Embraer has announced an annual dividend, with the next payment scheduled for May 23, 2025. While the company does pay a dividend, the specifics on the yield aren’t readily available in the data I have. It’s something to keep an eye on if dividends are a big part of your investment strategy. Companies can change their dividend policies, so checking the latest investor relations updates is always a good idea.
Stock Buybacks and Capital Allocation
Information about Embraer’s specific stock buyback programs and how they allocate capital isn’t detailed here. Generally, companies might buy back their own stock if they believe it’s undervalued, which can boost earnings per share. They also use capital for things like research and development, expanding operations, or paying down debt. Without specific details on Embraer’s buyback history or their capital allocation plans, it’s hard to say much more on this point. It’s a factor that can influence shareholder value, so it’s worth looking into their financial reports for more clarity.
Navigating Risks and Opportunities for ERJ
When looking at Embraer (ERJ), it’s not just about the numbers; you also have to consider what could go wrong and what could go right. The aviation industry, as you might imagine, is pretty sensitive to all sorts of global events.
Potential Risks in the Aviation Industry
There are a few big things that can really shake up an aircraft manufacturer like Embraer. Think about fuel prices – if they shoot up unexpectedly, it can make airlines hesitant to buy new planes or even ground existing ones. Then there’s the whole regulatory side of things; new environmental rules or safety standards can mean big costs for development and manufacturing. Geopolitical tensions are another factor. If there’s instability in key regions where Embraer operates or sells, it can disrupt supply chains or reduce demand. We also saw how the pandemic really hit the industry hard, showing how vulnerable it is to widespread health crises. The ongoing supply chain issues, particularly with critical materials like titanium, can also cause production delays and increase costs.
Emerging Opportunities and Market Trends
On the flip side, there are some pretty exciting opportunities out there for Embraer. The demand for more fuel-efficient aircraft is growing, and Embraer has been investing in technologies to meet that need. The market for regional jets, where Embraer has a strong presence, is expected to see steady growth as airlines look to optimize their networks. Plus, the business jet market has shown resilience, and Embraer’s executive aviation segment could benefit from that. There’s also a lot of talk about sustainable aviation fuels and new aircraft designs, which could open up entirely new markets down the road. It’s interesting to see how companies like AeroMobil are exploring new forms of personal air travel, though that’s a bit different from Embraer’s current focus Slovakian flying car plans.
Impact of Global Economic Factors
Embraer’s performance is definitely tied to the broader economy. When economies are strong, people travel more, and businesses expand, which usually means more orders for aircraft. Conversely, during economic downturns, airlines often cut back on spending, impacting manufacturers. Interest rates also play a role; higher rates can make financing new aircraft more expensive for airlines. Inflation can increase Embraer’s own production costs. So, keeping an eye on global economic indicators is pretty important for understanding Embraer’s potential.
Here’s a quick look at some key economic indicators that could influence Embraer:
- Global GDP Growth: Higher growth generally means more air travel and business activity.
- Interest Rates: Affects the cost of financing for airline customers.
- Inflation: Impacts raw material costs and operational expenses for Embraer.
- Currency Exchange Rates: As a global company, fluctuations can affect reported earnings.
Wrapping Up: Embraer’s Path Forward
So, looking at Embraer, it seems like they’ve had a pretty good run lately, with the stock price showing solid gains over the past year. They’re making planes and systems for folks all over the world, and the numbers suggest they’re bringing in more money and making more profit. Analysts are expecting good things ahead too, with growth in earnings and revenue predicted. While there’s always stuff to watch out for in the aviation world, Embraer appears to be in a decent spot. It’s definitely a company worth keeping an eye on as they continue to build and deliver aircraft.
Frequently Asked Questions
What does Embraer do?
Embraer is a company that designs, builds, and sells airplanes and airplane parts. They operate in different areas like commercial planes, defense aircraft, and private jets. They also offer services to keep planes running smoothly.
How has Embraer’s stock performed recently?
Embraer’s stock has shown strong performance over the past year, going up by about 70%. It has also done better than the overall US market in that time. While there’s been some ups and downs, its price has been pretty steady in the last few months.
What are Embraer’s future growth expectations?
Experts think Embraer’s earnings could grow by over 17% each year, and its sales might increase by about 8.7% annually. They also expect the company’s ability to make money from its owners’ investments to improve over the next few years.
Who are Embraer’s main competitors?
Embraer competes with other big names in the aviation world. While the exact competitors can depend on the type of aircraft, companies like Boeing and Airbus are major players in the larger aircraft market, and there are others in the regional jet and business jet sectors.
Does Embraer pay dividends to its shareholders?
Embraer does pay a dividend, which is a small portion of its profits given to shareholders. However, the amount is quite small compared to the stock’s price, meaning the yearly return from the dividend is currently very low.
What are the main risks for Embraer?
Like any company in the airline business, Embraer faces risks. These can include changes in the global economy that affect travel, issues with supplying parts like titanium, and competition from other aircraft makers. Unexpected events, like tariffs or global health concerns, can also impact its business.
