Embraer S.A. Stock Price and Value Analysis

Should you buy Embraer S.A. stock? (NYSE:ERJ). Let's see how it does in our automated value investing analysis system.

ERJ Free Cash Flow Trend

Free Cash Flow trendline for ERJ
Free Cash Flow trendline for Embraer S.A.

Based on historical returns, we believe that Embraer S.A. can grow its free cash at a rate of about 1%. That's positive!

  • This stock is available at a great discount!
  • This company is less known than others.
  • This company is making money at a modest rate.
  • This company has wild ups and downs.
  • This company pays no dividend.

Inside the ERJ Numbers

ERJ Price
(Embraer S.A. stock price per share)
[?] ERJ Fair Price
(based on intrinsic value)
[?] ERJ Safety Price (based on a variable margin of safety) $54.14
[?] PE Ratio versus Sector 73% higher than other Industrial Goods stocks
[?] PE Ratio versus Industry 34% higher than other Aerospace & Defense stocks
[?] Cash Yield 24.35%
[?] Free Cash Flow Jitter 94%

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 9,025,409 shares shorted. With 174,103,099 shares available for purchase and an average trading volume over the past 10 trading days of 7,615,842, it would take at least 1.185 days for all of the short holders to cover their shorts.

Is Embraer S.A. Stock on Sale?

We believe that Embraer S.A. may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Even better, Embraer S.A. looks like a stock on sale. Based on our analysis—if the company keeps making money the way it has been—you may be looking at a bargain. Keep this stock in mind as you put together your portfolio! See Before You Buy for your next steps (and read our disclaimer about investing risk).

Should You Buy ERJ Stock?

Does Embraer S.A. have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.