Embraer S.A. is the only aircraft maker Latin America has and likewise a star of the Brazilian manufacturing industry. In fact, after its foundation by the Brazilian government in 1969 with factories in the Brazilian state of São Paulo, this magnificent and well-managed enterprise has won ground from multinational competitors worldwide selling passenger and executive jets to airlines, businesses and entrepreneurs. Moreover, being solely a manufacturer of military and cargo aircraft for the Brazilian government until 1975, Embraer is today along with WEG S.A. a Brazilian exporting champion of high-value finished goods reaching countries in all the continents as well as possessing manufacturing plants in America and Europe besides Brazil.
Furthermore, despite of having been founded, owned and run by the Brazilian government until its privatization under the leadership of then President of the nation Itamar Franco back in 1994, the company went public in 2000 and as a consequence, it now trades and is widely-held in Brazil and here in the US as an ADR on the NYSE under the ticker symbol (ERJ). Currently, about 30% of the company’s stock belongs to a Brazilian pension fund and an investment vehicle belonging to Brazilian billionaire banker and angel investor Julio Bozano, the rest of the company’s common shares are widely-held among several aviation companies, retail investors and the Brazilian government. In addition, the company has sales offices in various countries and wholly-owned subsidiaries comprising maintenance operators and spare parts along with finished aircraft manufacturing units in the American states of Florida and Tennessee as well as Portugal in Europe. Presently, fetching close to $ 10 billion in market value and thus trading at a steep price/earnings multiple while reporting sales exceeding $ 6 billion a year, the company has enormous intrinsic value stemming from the fact that the Brazilian aircraft maker is now the undisputed leader worldwide fabricating small passenger aircraft of less than 120 seats. By the same token, the publicly-traded company is also winning ground aggressively in the market for executive jets trailing a few manufacturers only like Bombardier Aerospace Corporation, Gulfstream Aerospace Corporation, Dassault Aviation S.A. and Textron Aviation Corporation.
To conclude, with four operating divisions including commercial aviation, executive aviation, defense and systems, the company is also the country’s leading defense contractor. In fact, Embraer’s sales pipeline is evenly and harmoniously split between the domestic market including the Brazilian government and the export market around the globe. Consequently, these features translate into a healthy stream of orders the company is expecting to receive in the future and accordingly, lucrative opportunities to boost the top line, bottom line and the stock price of the entity. In other words, a true success story from Brazil making the nation proud.