Important note
This AI stock analysis for Embraer is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!
Embraer - AI Stock Analysis
Analysis generated February 23, 2025
Embraer SA is a Brazilian aerospace company that produces commercial, military, executive, and agricultural aircraft. It is the third largest producer of civil aircraft after Boeing and Airbus. Founded in 1969, Embraer plays a significant role in the global aerospace industry with a substantial product lineup that caters to various markets across the globe.
Fundamental Analysis
Revenue for the last quarter was $1.69 billion. This marks a 13.26% increase compared to the previous quarter and a substantial 31.24% increase compared to the same quarter last year. This continuous growth in revenue indicates robust market demand and effective business strategies.
Net income for the last quarter stood at $179 million, reflecting a 79.88% increase from the previous quarter and a remarkable 186.74% increase year-over-year. This substantial profit growth speaks volumes about the company's efficient cost management and revenue-generating capabilities.
EBITDA for the last quarter was $436 million, showcasing a 75.46% increase from the previous quarter and a tremendous 270.37% increase year-over-year. EBITDA growth highlights improved operational efficiency and profitability.
The current Price-to-Earnings (P/E) ratio is 15.16. This is within a normal range, suggesting that the stock is neither overvalued nor undervalued at present market conditions. A P/E ratio within this range is typically considered fair, reflecting modest investor expectations regarding future earnings growth.
Technical Analysis
Today's stock price is $41.24, representing a 0.63% decrease from a month ago, which might be concerning in the short term. However, on a year-over-year basis, the stock price has increased by 126.72%, indicating a positive long-term trend.
The trend, at the moment, is bearish. The current Simple Moving Average (SMA10) is $42.10, slightly lower than the previous SMA10 of $42.19. This suggests a potential downward trend in price movement.
The Relative Strength Index (RSI) stands at 90.7, indicating an overbought bearish condition. High RSI levels usually signal that the stock might be overvalued and could be due for a price correction.
Alternative Data Analysis
In terms of employment, Embraer has 118 open positions as per data from major job boards, with this number remaining stable over the last few months. This stability suggests a solid human resource management and operational stability.
The business outlook among employees is very high, with an estimated 86% having a positive outlook. This favorable internal sentiment is a positive sign, indicating employee confidence in the company's future.
Regarding customer acquisition, Embraer has an estimated 240,000 visitors to their website. However, the number of visitors has decreased by 11% in the last couple of months. This downward trend could indicate potential challenges in attracting or retaining customers.
Customer engagement is also tracked through social media platforms. Embraer has 870,000 followers on Instagram and 170,000 followers on Twitter, with no meaningful increase or decrease in recent months. Stable social media presence suggests consistent, though not growing, customer engagement.
AltIndex's AI score, which predicts a company's stock price based on various data analyses, scores Embraer at 62. This is considered a buy signal, implying a positive outlook for Embraer's stock based on the current data.
Conclusion
Embraer has demonstrated strong growth in fundamental metrics like revenue, net income, and EBITDA, indicating robust operational performance. However, the short-term bearish technical indicators and the decrease in webpage visitor traffic bring certain concerns.
Considering the company's strong year-over-year fundaments, stable employee sentiment, and a solid buy signal from the AI model, the overall outlook for Embraer's stock is positive. However, investors should monitor short-term technical indicators and webpage visitor trends closely to reassess their positions if needed.
Recommendation: Based on the presented data, the recommendation is to buy Embraer stock, keeping a close watch on short-term trends and customer acquisition metrics.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
