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EmbraerBSP:EMBJ3 +5.33%54 ROC (Joel Greenblatt) % is 22.27% as of Mar. 2026, which is 193% above its 10-year median of 7.61. GuruFocus rates BSP:EMBJ3 with a GF Score™ of 54/100 and a GF Value™ of R$76.05 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 359 Aerospace & Defense companies, Embraer ranks better than 61.28% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Embraer's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 22.27%.
The historical rank and industry rank for Embraer's ROC (Joel Greenblatt) % or its related term are showing as below:
BSP:EMBJ3'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -21.18 Med: 7.61 Max: 43.49
Current: 20.84
During the past 13 years, Embraer's highest ROC (Joel Greenblatt) % was 43.49%. The lowest was -21.18%. And the median was 7.61%.
BSP:EMBJ3's ROC (Joel Greenblatt) % is ranked better than 61.28% of 359
companies
in the Aerospace & Defense industry
Industry Median: 10.68
vs BSP:EMBJ3: 20.84
Embraer's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
The historical data trend for Embraer's ROC (Joel Greenblatt) % 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.
BSP:EMBJ3 vs SPCX, GE, RTX: ROC (Joel Greenblatt) % Comparison
For the Aerospace & Defense subindustry, Embraer's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Embraer's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Embraer's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 22.27% mean?
Embraer (BSP:EMBJ3) has a ROC (Joel Greenblatt) % of 22.27% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Embraer and its competitors. This is 193% above median its historical median of 7.61. According to the industry distribution chart, Embraer ranks #139 out of 359 companies in the Aerospace & Defense industry, placing it in the top 38.7%.
Is Embraer's ROC (Joel Greenblatt) % too high?
Embraer's current ROC (Joel Greenblatt) % of 22.27% is 193% above median its 10-year median of 7.61. The Aerospace & Defense industry median ROC (Joel Greenblatt) % is 10.68. Embraer's value of 22.27% is 108.5% above this industry median. Based on the distribution chart, Embraer ranks #139 out of 359 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Embraer has a GF Score™ of 54/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Embraer's ROC (Joel Greenblatt) % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Embraer ranks #139 out of 359 companies for ROC (Joel Greenblatt) %. This puts Embraer in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 10.68. Embraer's value of 22.27% is 108.5% above this benchmark. While the company's 10-year median is 7.61 vs. the industry median of 10.68, Embraer has consistently been above 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 ROC (Joel Greenblatt) % for an Aerospace & Defense company?
The median ROC (Joel Greenblatt) % among Aerospace & Defense companies is 10.68, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Embraer's current ROC (Joel Greenblatt) % of 22.27% is 108.5% above 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Embraer and its competitors. For the Aerospace & Defense industry, the median ROC (Joel Greenblatt) % is 10.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Embraer's current ROC (Joel Greenblatt) % is 22.27%, which is 193% above median its own 10-year median of 7.61. 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 (BSP:EMBJ3) is currently considered Modestly Overvalued. The stock's GF Value™ is R$76.05, compared to a current price of R$86.90 — trading 14.3% above its estimated fair value. The current ROC (Joel Greenblatt) % is 22.27%, which is 193% above median its 10-year median of 7.61 and 108.5% above the Aerospace & Defense industry median of 10.68. Embraer's overall GF Score™ is 54/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Embraer (BSP:EMBJ3), the current ROC (Joel Greenblatt) % is 22.27% 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 (BSP:EMBJ3) Overvalued in 2026?
Based on GuruFocus' analysis, Embraer stock appears to be overvalued.
The current stock price of R$86.90 is trading 14.3% above its estimated GF Value™ of R$76.05.
GuruFocus considers Embraer to be Modestly Overvalued.
Key valuation signals for BSP:EMBJ3:
ROC (Joel Greenblatt) %: 22.27% (193% above median its 10-year median of 7.61)
GF Value™: R$76.05 vs. price of R$86.90 (14.3% above fair value)
Industry Position: 108.5% above the Aerospace & Defense median (#139 of 359)
No single metric tells the full story. See the BSP:EMBJ3 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.
54GF Score
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