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EmbraerMEX:ERJN 63 Interest Coverage is 4.59 as of Jun. 2026, which is 337% above its 10-year median of 1.05. GuruFocus rates MEX:ERJN with a GF Score™ of 63/100 and a GF Value™ of MXN977.05 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 243 Aerospace & Defense companies, Embraer ranks better than 68.31% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Embraer's
Operating Income
for the
three
months ended in Jun. 2026 was MXN5,032 Mil. Embraer's Interest Expense for the
three
months ended in Jun. 2026 was MXN-1,098 Mil.
Embraer's interest coverage for the quarter that ended in Jun. 2026 was 4.59.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Embraer's Interest Coverage or its related term are showing as below:
MEX:ERJN'
s Interest Coverage Range Over the Past 10 Years
Min: 0.4 Med: 1.05 Max: 17.23
Current: 17.23
MEX:ERJN's Interest Coverage is ranked better than 68.31% of 243
companies
in the Aerospace & Defense industry
Industry Median: 9.13
vs MEX:ERJN: 17.23
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Embraer Interest Coverage Related Terms
Embraer Interest Coverage Historical Data
* Premium members only.
The historical data trend for Embraer's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:ERJN vs SPCX, GE, RTX: Interest Coverage Comparison
For the Aerospace & Defense subindustry, Embraer's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Embraer Interest Coverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Embraer's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Embraer's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Embraer (MEX:ERJN) has a Interest Coverage of 4.59 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Embraer and its competitors. This is 337% above median its historical median of 1.05. Over the past decade, Embraer's Interest Coverage has ranged from 0.40 to 17.23. According to the industry distribution chart, Embraer ranks #77 out of 243 companies in the Aerospace & Defense industry, placing it in the top 31.7%.
Is Embraer's Interest Coverage too high?
Embraer's current Interest Coverage of 4.59 is 337% above median its 10-year median of 1.05. Over the past 10 years, this metric has ranged from a low of 0.40 to a high of 17.23. The Aerospace & Defense industry median Interest Coverage is 9.13. Embraer's value of 4.59 is 49.7% below this industry median. Based on the distribution chart, Embraer ranks #77 out of 243 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Embraer has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Embraer's Interest Coverage compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Embraer ranks #77 out of 243 companies for Interest Coverage. This puts Embraer in the upper half of its industry. The industry median Interest Coverage is 9.13. Embraer's value of 4.59 is 49.7% below this benchmark. Historically, Embraer's own Interest Coverage has ranged from 0.40 to 17.23 over the past decade. While the company's 10-year median is 1.05 vs. the industry median of 9.13, Embraer has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Aerospace & Defense company?
The median Interest Coverage among Aerospace & Defense companies is 9.13, based on 243 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Embraer's current Interest Coverage of 4.59 is 49.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Embraer and its competitors. For the Aerospace & Defense industry, the median Interest Coverage is 9.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Embraer's current Interest Coverage is 4.59, which is 337% above median its own 10-year median of 1.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Embraer stock overvalued right now?
Based on GuruFocus' analysis, Embraer (MEX:ERJN) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN977.05, compared to a current price of MXN1,294.00 — trading 32.4% above its estimated fair value. The current Interest Coverage is 4.59, which is 337% above median its 10-year median of 1.05 and 49.7% below the Aerospace & Defense industry median of 9.13. Embraer's overall GF Score™ is 63/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Embraer (MEX:ERJN), the current Interest Coverage is 4.59 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Embraer (MEX:ERJN) Overvalued in 2026?
Based on GuruFocus' analysis, Embraer stock appears to be overvalued.
The current stock price of MXN1,294.00 is trading 32.4% above its estimated GF Value™ of MXN977.05.
GuruFocus considers Embraer to be Significantly Overvalued.
Key valuation signals for MEX:ERJN:
Interest Coverage: 4.59 (337% above median its 10-year median of 1.05)
GF Value™: MXN977.05 vs. price of MXN1,294.00 (32.4% above fair value)
Industry Position: 49.7% below the Aerospace & Defense median (#77 of 243)
No single metric tells the full story. See the MEX:ERJN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Embraer SA based in Sao Paulo, Brazil, manufacturer of jets. Its focus is to achieve customer satisfaction with and services addressing the commercial airline, executive jets, and defense and security markets. It has developed a customer-centric technology-driven portfolio of commercial aviation products and services that allows it to build long-term relationships with clients in the commercial aviation, executive jets, and defense and security markets. It operates through the various segments namely Commercial Aviation, Defense and Security, Executive Aviation, Service and Support, and Other Segments. The company generates maximum revenue from the Commercial Aviation segment. Geographically, the company operates in Brazil, Europe, Asia Pacific, North America, and Others.
63GF Score
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