Stock fact sheet · data as of
Embraer S.A. (EMBJ): fair value, margin of safety and Wheel Score
Industrials · Aerospace & Defense · Brazil · ADR · Blend
Is EMBJ undervalued?
EMBJ has a margin of safety of 56%: the stock closed at 72.10 on 16 Oct 2026 against a GLS average fair value of 164.45. 4 of the 8 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 8 models disagree widely: EPV gives 28.40 while 10 Cap gives 631.88. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files EMBJ under Blend.
Nine valuation models for EMBJ
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 42.91 | -40% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 93.82 | +30% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 37.11 | -49% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 156.48 | +117% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 631.88 | +776% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 253.03 | +251% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 71.95 | -0% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 28.40 | -61% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -58.44 | -181% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 81.00 | +12% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health EMBJ scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 3.9 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are moderate - ROIC 5.7%, ROE 10.2%, ROA 2.7% - with debt at 0.79 times equity and a free-cash-flow yield of 7.9%.
The dividend yield is 1.33% with a payout ratio of 20% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Services 100% (fiscal year FY2025).
Institutional ownership scores 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 5.7% |
|---|---|---|---|
| GLS Moat | 3.9 / 10 | ROE | 10.2% |
| Debt / equity | 0.79 | ROA | 2.7% |
| Free-cash-flow yield | 7.9% | Payout ratio | 20% |
| Institutions | 5 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 88: Prime
EMBJ scores 88 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 25/25), Piotroski health (18/20), the GLS moat (6/15), the option premium on offer (20/20) and how easily the stock trades (20/20).
Implied volatility is 46% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 44,840 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.8M shares a day on a market cap of $13.2B, with a beta of 0.72 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 56% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 6 / 15 | moat 3.9/10 | |
| Premium | 20 / 20 | implied volatility 46% | |
| Stability | 20 / 20 | 1.8M shares/day, $13.2B cap, beta 0.72 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 10 Nov 2026 (before the open), 25 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Aerospace & Defense
The 12 companies below are the closest to Embraer S.A. by market cap within the Aerospace & Defense industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| TXT Textron Inc. | 73.80 | 67.48 | -9% | 70Good | $12.7B |
| BWXT BWX Technologies, Inc. | 137.20 | 74.35 | -85% | 61Fair | $12.6B |
| HII Huntington Ingalls Industries, Inc. | 267.22 | 290.42 | +8% | 72Good | $10.5B |
| FTAIM FTAI Aviation Ltd. | 26.41 | 27.14 | +3% | 39No options | $16.7B |
| FTAI FTAI Aviation Ltd. | 168.56 | 132.21 | -27% | 53Fair | $17.3B |
| DRS Leonardo DRS, Inc. | 35.47 | 29.97 | -18% | 68Good | $9.5B |
| CW Curtiss-Wright Corporation | 501.49 | 304.81 | -65% | 67Good | $18.5B |
| WWD Woodward, Inc. | 328.53 | 194.75 | -69% | 60Fair | $19.4B |
| CAE CAE Inc. | 23.91 | 24.87 | +4% | 76Good | $7.7B |
| KTOS Kratos Defense & Security Solutions, Inc. | 40.74 | 5.79 | -604% | 55Fair | $7.6B |
| HXL Hexcel Corporation | 89.86 | 53.30 | -69% | 58Fair | $6.8B |
| SARO StandardAero, Inc. | 19.76 | 25.77 | +23% | 87Prime | $6.5B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about EMBJ
Is EMBJ undervalued right now?
By the GLS models, yes: at 72.10 the stock is 56% below the average fair value of 164.45 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of EMBJ and what does it mean?
EMBJ scores 88 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for EMBJ?
164.45 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Embraer S.A. report earnings next?
The next earnings report is due on 10 Nov 2026 (before the open), 25 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does EMBJ have listed options, and how liquid are they?
Yes. The nightly snapshot found 244 listed contracts with 44,840 open interest across all expiries and implied volatility of 46% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.