Embraer S.A. Common Stock (EMBJ)

FairStock Score: 46/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking for a business I can understand, bought at a sensible price. Embraer designs and builds aircraft across commercial, defense, executive aviation, and services. In fiscal Q2 2026 it produced revenue of $2.2 billion and net income of $212.6 million, a 9.51% net margin. That is respectable, but not a wide-moat cash machine. The filing history is short, and the Lynch category is none because only zero years of filed results are available, so I treat the growth story as unproven. Financial health is mixed. The Piotroski F-Score is 8/9, which is strong, and debt to equity is 0.69, not alarming. But ROCE is only 3.70%, Altman Z-Score is 1.20, and trailing free cash flow is $367.8 million, a 3.2% FCF yield. Those are not the marks of a fortress. Valuation is the real problem. At the 2026-10-13 close of $71.86, FairStock shows P/E 29.09, P/B 3.66, EV/EBITDA 15.01, and PEG 0.17. The low PEG hints at expected growth, but the Graham Number of $16.43 and margin of safety of -337.37% tell me the price is far above asset-based value. A beta of 0.69 and a 1.26% dividend are modest comforts. I would want a much lower price or several years of durable profit and cash flow before calling this a value purchase.

In plain English: Embraer makes commercial, military and executive aircraft and provides related services. Its latest reported quarter showed revenue of $2.2 billion and net income of $212.6 million, so the business is profitable. At $71.86, however, the price looks expensive compared with the company's earnings and accounting value, and the FairStock score is 46 out of 100.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer