EMBJEmbraer S.A.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.8×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 10% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is EMBJ?
Embraer S.A. earns 32% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 23 points above what the capital costs: growth creates value
- Operating margin
- 8.0%
Operating margin · Aerospace & Defense median 9.6% · fiscal year to FY2025
- Cash conversion
- 1.81×
Cash conversion · 2.05× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.30%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | −8.6% |
| FY2021 | 4.8% |
| FY2022 | −2.4% |
| FY2023 | 6.0% |
| FY2024 | 10% |
| FY2025 | 8.0% |
Details›
- Gross marginfiscal year to FY2025
- 18%
- Operating marginfiscal year to FY2025
- 8.0%
- Net marginfiscal year to FY2025
- 4.6%
- Free cash flow margin
- 9.0%
- R&D as % of revenue
- 0.98%
- Revenue, trailing twelve months
- $7.58B
- Free cash flow, trailing twelve months
- $683M
- Net income, trailing twelve months
- $352M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 32%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Aerospace & Defense
Ranks #18 of 36 by RyuScore