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Is this Large Market Cap Stock target price reasonable for Embraer S.A. (NYSE:ERJ)?

The company in question is, Embraer S.A. (NYSE:ERJ) currently with a stock price of 18.46 (2.67% today). The market cap for Embraer S.A. is 3373.23, and is in the sector Industrial Goods, and Aerospace/Defense Products & Services industry. The target price for Embraer S.A. is 25.15. Currently Embraer S.A. is trading with a P/E of 129.35, and a forward P/E of 10.69. Average volume for Embraer S.A. is 1411.68 and so far today it is 1087009.

Performance in the last year for Embraer S.A. has been -31.66%. For EPS growth, Embraer S.A. has seen a growth of -27.40%, and is looking to grow in the next year to 71.11%. More long term stats show that EPS growth has been -6.30% over the last five years and could be 10.30% for the next five years. Embraer S.A. has seen sales growth quarter over quarter at 215.30%, with EPS growth quarter over quarter at -361.60%. The 20-day simple moving average is 1.24%, with the 200-day simple moving average coming to -18.73%.

Since the IPO date for Embraer S.A. on the 7/21/2000, Embraer S.A. has seen performance year to date to be -38.81%. With Embraer S.A. trading at 18.46, the dividend yield is 0.88%, and the EPS is 0.14.

So could Embraer S.A., be undervalued? Well as said before P/E is 129.35. The PEG is 12.56, P/S is 0.49 and the P/B is at 0.89. The P/cash is 1.48, with P/free cash flow at *TBA.

Embraer S.A. ability to deal with debt shows that the current ratio is 1.8, and the quick ratio is 1.1. This is with long term debt/equity at 0.86, and total debt/equity at 0.99.

In terms of margins, Embraer S.A. has a gross margin of 18.60%, an operating margin of 2.00% and a profit margin of 0.40%.Payout ratio for Embraer S.A. is 128.10%. Return on assets come to 0.20% with return on investment coming to 1.00%.

Insider ownership for Embraer S.A., is at 12.40% and institutional ownership comes to 53.10%. Outstanding shares are at 187.61. While shares float is 172.78. The float short is currently 1.04%, and short ratio is 1.28.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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