Embraer SA Net Income vs. Current Valuation
| ERJ Stock | USD 39.00 0.18 0.46% |
Net Income | First Reported 2000-03-31 | Previous Quarter 99.4 M | Current Value 178.8 M | Quarterly Volatility 92.9 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.25 | 0.1726 |
|
|
For Embraer SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Embraer SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Embraer SA ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Embraer SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Embraer SA ADR over time as well as its relative position and ranking within its peers.
Embraer |
Is Aerospace & Defense space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Embraer SA. If investors know Embraer will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Embraer SA listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 2.257 | Earnings Share 2.71 | Revenue Per Share 171.024 | Quarterly Revenue Growth 0.491 | Return On Assets 0.0234 |
The market value of Embraer SA ADR is measured differently than its book value, which is the value of Embraer that is recorded on the company's balance sheet. Investors also form their own opinion of Embraer SA's value that differs from its market value or its book value, called intrinsic value, which is Embraer SA's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Embraer SA's market value can be influenced by many factors that don't directly affect Embraer SA's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Embraer SA's value and its price as these two are different measures arrived at by different means. Investors typically determine if Embraer SA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Embraer SA's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Embraer SA ADR Current Valuation vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Embraer SA's current stock value. Our valuation model uses many indicators to compare Embraer SA value to that of its competitors to determine the firm's financial worth. Embraer SA ADR is rated below average in net income category among its peers. It is rated below average in current valuation category among its peers reporting about 53.81 of Current Valuation per Net Income. At this time, Embraer SA's Net Income is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Embraer SA by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Embraer Current Valuation vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Embraer SA |
| = | 156.87 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Embraer SA |
| = | 8.44 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Embraer Current Valuation vs Competition
Embraer SA ADR is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is currently estimated at about 242.28 Billion. Embraer SA holds roughly 8.44 Billion in current valuation claiming about 3% of equities under Industrials industry.
Embraer SA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Embraer SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Embraer SA will eventually generate negative long term returns. The profitability progress is the general direction of Embraer SA's change in net profit over the period of time. It can combine multiple indicators of Embraer SA, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 2.1 B | 1.1 B | |
| Operating Income | 314.5 M | 244.4 M | |
| Income Before Tax | 120.7 M | 189.4 M | |
| Total Other Income Expense Net | -193.8 M | -184.1 M | |
| Net Income | 156.9 M | 128.1 M | |
| Income Tax Expense | -43.6 M | -41.4 M | |
| Net Loss | -858.3 M | -815.4 M | |
| Net Income From Continuing Ops | 164.3 M | 172.5 M | |
| Interest Income | 119.5 M | 113.5 M | |
| Net Interest Income | -151.5 M | -159.1 M | |
| Change To Netincome | 2.1 B | 2.2 B | |
| Net Income Per Share | 0.22 | 0.32 | |
| Income Quality | 3.76 | 3.94 | |
| Net Income Per E B T | 1.36 | 0.91 |
Embraer Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Embraer SA. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Embraer SA position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Embraer SA's important profitability drivers and their relationship over time.
Use Embraer SA in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Embraer SA position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Embraer SA will appreciate offsetting losses from the drop in the long position's value.Embraer SA Pair Trading
Embraer SA ADR Pair Trading Analysis
The ability to find closely correlated positions to Embraer SA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Embraer SA when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Embraer SA - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Embraer SA ADR to buy it.
The correlation of Embraer SA is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Embraer SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Embraer SA ADR moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Embraer SA can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Embraer SA position
In addition to having Embraer SA in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Exotic Funds Thematic Idea Now
Exotic Funds
Funds or Etfs with high minimum investment requirement that manage portfolios of alternative investments such as hedge funds, options, futures, real estate or commodities. The Exotic Funds theme has 43 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Exotic Funds Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Investing Opportunities. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
To fully project Embraer SA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Embraer SA ADR at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Embraer SA's income statement, its balance sheet, and the statement of cash flows.