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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Embraer's 3-Year RORE % for the quarter that ended in Mar. 2026 was 9.19%.
The industry rank for Embraer's 3-Year RORE % or its related term are showing as below:
BSP:EMBJ3's 3-Year RORE % is ranked worse than 50.95% of 316
companies
in the Aerospace & Defense industry
Industry Median: 9.565
vs BSP:EMBJ3: 9.19
Embraer (BSP:EMBJ3) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Embraer 3-Year RORE % Related Terms
Embraer 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Embraer's 3-Year RORE % 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: 3-Year RORE % Comparison
For the Aerospace & Defense subindustry, Embraer's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Embraer's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Embraer's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Embraer (BSP:EMBJ3) has a 3-Year RORE % of 9.19 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Embraer and its competitors. According to the industry distribution chart, Embraer ranks #161 out of 316 companies in the Aerospace & Defense industry, placing it in the top 50.9%.
Is Embraer's 3-Year RORE % too high?
Embraer's current 3-Year RORE % is 9.19. The Aerospace & Defense industry median 3-Year RORE % is 9.57. Embraer's value of 9.19 is 3.9% below this industry median. Based on the distribution chart, Embraer ranks #161 out of 316 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Embraer has a GF Score™ of 51/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Embraer's 3-Year RORE % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Embraer ranks #161 out of 316 companies for 3-Year RORE %. This places Embraer in the lower half of its industry. The industry median 3-Year RORE % is 9.57. Embraer's value of 9.19 is 3.9% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for an Aerospace & Defense company?
The median 3-Year RORE % among Aerospace & Defense companies is 9.57, based on 316 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Embraer's current 3-Year RORE % of 9.19 is 3.9% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Embraer and its competitors. For the Aerospace & Defense industry, the median 3-Year RORE % is 9.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Embraer's current 3-Year RORE % is 9.19. 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 Fairly Valued. The stock's GF Value™ is R$75.81, compared to a current price of R$82.49 — trading 8.8% above its estimated fair value. The current 3-Year RORE % is 9.19 and 3.9% below the Aerospace & Defense industry median of 9.57. Embraer's overall GF Score™ is 51/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Embraer (BSP:EMBJ3), the current 3-Year RORE % is 9.19 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$82.49 is trading 8.8% above its estimated GF Value™ of R$75.81.
GuruFocus considers Embraer to be Fairly Valued.
Key valuation signals for BSP:EMBJ3:
3-Year RORE %: 9.19
GF Value™: R$75.81 vs. price of R$82.49 (8.8% above fair value)
Industry Position: 3.9% below the Aerospace & Defense median (#161 of 316)
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.
51GF Score
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