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EmbraerSTU:EMY +0.71%68 ROA % is 1.04% as of Mar. 2026, which is 112% above its 10-year median of 0.49. GuruFocus rates STU:EMY with a GF Score™ of 68/100 and a GF Value™ of €51.81 (Fairly Valued). The stock has 3 warning signs investors should review. Among 359 Aerospace & Defense companies, Embraer ranks better than 50.42% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Embraer's annualizedNet Income for the quarter that ended in Mar. 2026 was €116 Mil.
Embraer's average Total Assets over the quarter that ended in Mar. 2026 was €11,122 Mil. Therefore, Embraer's annualized ROA % for the quarter that ended in Mar. 2026 was 1.04%.
The historical rank and industry rank for Embraer's ROA % or its related term are showing as below:
STU:EMY'
s ROA % Range Over the Past 10 Years
Min: -7.72 Med: 0.49 Max: 3.44
Current: 2.49
During the past 13 years, Embraer's highest ROA % was 3.44%. The lowest was -7.72%. And the median was 0.49%.
STU:EMY's ROA % is ranked better than 50.42% of 359
companies
in the Aerospace & Defense industry
Industry Median: 2.46
vs STU:EMY: 2.49
Embraer (STU:EMY) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Embraer ROA % Related Terms
Embraer ROA % Historical Data
* Premium members only.
The historical data trend for Embraer's ROA % 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.
For the Aerospace & Defense subindustry, Embraer's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Embraer's ROA % distribution charts can be found below:
* The bar in red indicates where Embraer's ROA % falls into.
* 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Embraer (STU:EMY) has a ROA % of 1.04% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Embraer and its competitors. This is 112% above median its historical median of 0.49. According to the industry distribution chart, Embraer ranks #178 out of 359 companies in the Aerospace & Defense industry, placing it in the top 49.6%.
Is Embraer's ROA % too high?
Embraer's current ROA % of 1.04% is 112% above median its 10-year median of 0.49. The Aerospace & Defense industry median ROA % is 2.46. Embraer's value of 1.04% is 57.7% below this industry median. Based on the distribution chart, Embraer ranks #178 out of 359 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Embraer has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Embraer's ROA % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Embraer ranks #178 out of 359 companies for ROA %. This puts Embraer in the upper half of its industry. The industry median ROA % is 2.46. Embraer's value of 1.04% is 57.7% below this benchmark. While the company's 10-year median is 0.49 vs. the industry median of 2.46, 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 ROA % for an Aerospace & Defense company?
The median ROA % among Aerospace & Defense companies is 2.46, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Embraer's current ROA % of 1.04% is 57.7% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Embraer and its competitors. For the Aerospace & Defense industry, the median ROA % is 2.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Embraer's current ROA % is 1.04%, which is 112% above median its own 10-year median of 0.49. 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 (STU:EMY) is currently considered Fairly Valued. The stock's GF Value™ is €51.81, compared to a current price of €57.00 — trading 10% above its estimated fair value. The current ROA % is 1.04%, which is 112% above median its 10-year median of 0.49 and 57.7% below the Aerospace & Defense industry median of 2.46. Embraer's overall GF Score™ is 68/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Embraer (STU:EMY), the current ROA % is 1.04% as of Mar. 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 (STU:EMY) Overvalued in 2026?
Based on GuruFocus' analysis, Embraer stock appears to be overvalued.
The current stock price of €57.00 is trading 10% above its estimated GF Value™ of €51.81.
GuruFocus considers Embraer to be Fairly Valued.
Key valuation signals for STU:EMY:
ROA %: 1.04% (112% above median its 10-year median of 0.49)
GF Value™: €51.81 vs. price of €57.00 (10% above fair value)
Industry Position: 57.7% below the Aerospace & Defense median (#178 of 359)
No single metric tells the full story. See the STU:EMY 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.
68GF Score
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