GERDAU SA -SPON ADR (GGB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GGB - US3737371050 - ADR
3.74 USD
0 (0%)
3.68 USD
-0.06 (-1.6%)
We assign a fundamental rating of 6 out of 10 to GGB. GGB was compared to 156 industry peers in the Metals & Mining industry. GGB scores excellent on profitability, but there are some minor concerns on its financial health. GGB scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes GGB very considerable for value investing!
1. Profitability
1.1 Basic Checks
GGB had positive earnings in the past year.
GGB had a positive operating cash flow in the past year.
GGB had positive earnings in each of the past 5 years.
In the past 5 years GGB always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GGB (3.76%) is better than 69.23% of its industry peers.
GGB has a Return On Equity of 5.95%. This is in the better half of the industry: GGB outperforms 66.03% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.25%, GGB is in the better half of the industry, outperforming 64.74% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GGB is in line with the industry average of 13.25%.
The last Return On Invested Capital (6.25%) for GGB is well below the 3 year average (14.04%), which needs to be investigated, but indicates that GGB had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 5.95% | ||
| ROIC | 6.25% |
ROA(3y)10.31%
ROA(5y)11.13%
ROE(3y)16.07%
ROE(5y)18.44%
ROIC(3y)14.04%
ROIC(5y)15.33%
1.3 Margins
With a decent Profit Margin value of 4.73%, GGB is doing good in the industry, outperforming 67.31% of the companies in the same industry.
GGB's Profit Margin has improved in the last couple of years.
GGB's Operating Margin of 8.25% is fine compared to the rest of the industry. GGB outperforms 64.10% of its industry peers.
In the last couple of years the Operating Margin of GGB has grown nicely.
Looking at the Gross Margin, with a value of 12.41%, GGB is in line with its industry, outperforming 41.67% of the companies in the same industry.
In the last couple of years the Gross Margin of GGB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.25% | ||
| PM (TTM) | 4.73% | ||
| GM | 12.41% |
OM growth 3Y-27.13%
OM growth 5Y2.99%
PM growth 3Y-28.98%
PM growth 5Y18.44%
GM growth 3Y-19.75%
GM growth 5Y5.31%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GGB is still creating some value.
GGB has less shares outstanding than it did 1 year ago.
GGB has less shares outstanding than it did 5 years ago.
GGB has a worse debt/assets ratio than last year.
2.2 Solvency
GGB has an Altman-Z score of 2.48. This is not the best score and indicates that GGB is in the grey zone with still only limited risk for bankruptcy at the moment.
GGB's Altman-Z score of 2.48 is on the low side compared to the rest of the industry. GGB is outperformed by 62.82% of its industry peers.
The Debt to FCF ratio of GGB is 5.57, which is a neutral value as it means it would take GGB, 5.57 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.57, GGB is doing good in the industry, outperforming 66.03% of the companies in the same industry.
GGB has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
GGB has a Debt to Equity ratio of 0.30. This is in the lower half of the industry: GGB underperforms 64.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 5.57 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.46
WACC13.58%
2.3 Liquidity
GGB has a Current Ratio of 2.89. This indicates that GGB is financially healthy and has no problem in meeting its short term obligations.
GGB has a Current ratio (2.89) which is in line with its industry peers.
GGB has a Quick Ratio of 1.50. This is a normal value and indicates that GGB is financially healthy and should not expect problems in meeting its short term obligations.
GGB has a Quick ratio (1.50) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The earnings per share for GGB have decreased strongly by -18.60% in the last year.
GGB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.61% yearly.
The Revenue has decreased by -2.74% in the past year.
Measured over the past years, GGB shows a quite strong growth in Revenue. The Revenue has been growing by 11.07% on average per year.
EPS 1Y (TTM)-18.6%
EPS 3Y-36.8%
EPS 5Y23.61%
EPS Q2Q%-20.59%
Revenue 1Y (TTM)-2.74%
Revenue growth 3Y-5.07%
Revenue growth 5Y11.07%
Sales Q2Q%3.48%
3.2 Future
GGB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.95% yearly.
Based on estimates for the next years, GGB will show a small growth in Revenue. The Revenue will grow by 4.93% on average per year.
EPS Next Y-2.75%
EPS Next 2Y13.6%
EPS Next 3Y11.95%
EPS Next 5YN/A
Revenue Next Year3.85%
Revenue Next 2Y3.71%
Revenue Next 3Y4.06%
Revenue Next 5Y4.93%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.06, which indicates a correct valuation of GGB.
Compared to the rest of the industry, the Price/Earnings ratio of GGB indicates a rather cheap valuation: GGB is cheaper than 97.44% of the companies listed in the same industry.
GGB is valuated cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.81, the valuation of GGB can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GGB indicates a rather cheap valuation: GGB is cheaper than 92.31% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.03. GGB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 7.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GGB is valued cheaper than 92.31% of the companies in the same industry.
GGB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GGB is cheaper than 96.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.68 | ||
| EV/EBITDA | 6.62 |
4.3 Compensation for Growth
The decent profitability rating of GGB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y13.6%
EPS Next 3Y11.95%
5. Dividend
5.1 Amount
GGB has a Yearly Dividend Yield of 3.03%.
Compared to an average industry Dividend Yield of 1.02, GGB pays a better dividend. On top of this GGB pays more dividend than 92.95% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, GGB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
On average, the dividend of GGB grows each year by 28.72%, which is quite nice.
GGB has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)28.72%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
GGB pays out 41.54% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of GGB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.54%
EPS Next 2Y13.6%
EPS Next 3Y11.95%
3.74
0 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners37.76%
Inst Owner Change2.49%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.42B
Revenue(TTM)67.03B
Net Income(TTM)3.27B
Analysts83
Price TargetN/A
Short Float %1.4%
Short Ratio0.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend0.15
Dividend Growth(5Y)28.72%
DP41.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.29%
Min EPS beat(2)-32.81%
Max EPS beat(2)-9.77%
EPS beat(4)0
Avg EPS beat(4)-17.14%
Min EPS beat(4)-32.81%
Max EPS beat(4)-4.32%
EPS beat(8)1
Avg EPS beat(8)-16.72%
EPS beat(12)3
Avg EPS beat(12)-13.53%
EPS beat(16)5
Avg EPS beat(16)-9.55%
Revenue beat(2)0
Avg Revenue beat(2)-2.53%
Min Revenue beat(2)-3.92%
Max Revenue beat(2)-1.14%
Revenue beat(4)0
Avg Revenue beat(4)-2.52%
Min Revenue beat(4)-3.92%
Max Revenue beat(4)-1.14%
Revenue beat(8)1
Avg Revenue beat(8)-3.18%
Revenue beat(12)1
Avg Revenue beat(12)-3.81%
Revenue beat(16)3
Avg Revenue beat(16)-3.07%
PT rev (1m)2.78%
PT rev (3m)5.28%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)6.3%
EPS NY rev (1m)-1.08%
EPS NY rev (3m)-9.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 7.81 | ||
| P/S | 0.59 | ||
| P/FCF | 11.68 | ||
| P/OCF | 3.89 | ||
| P/B | 0.75 | ||
| P/tB | 0.97 | ||
| EV/EBITDA | 6.62 |
EPS(TTM)0.31
EY8.29%
EPS(NY)0.48
Fwd EY12.8%
FCF(TTM)0.32
FCFY8.57%
OCF(TTM)0.96
OCFY25.72%
SpS6.31
BVpS5.02
TBVpS3.86
PEG (NY)N/A
PEG (5Y)0.51
Graham Number5.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 5.95% | ||
| ROCE | 7.57% | ||
| ROIC | 6.25% | ||
| ROICexc | 6.25% | ||
| ROICexgc | 7.52% | ||
| OM | 8.25% | ||
| PM (TTM) | 4.73% | ||
| GM | 12.41% | ||
| FCFM | 5.07% |
ROA(3y)10.31%
ROA(5y)11.13%
ROE(3y)16.07%
ROE(5y)18.44%
ROIC(3y)14.04%
ROIC(5y)15.33%
ROICexc(3y)15.46%
ROICexc(5y)17.65%
ROICexgc(3y)19.57%
ROICexgc(5y)23.23%
ROCE(3y)16.99%
ROCE(5y)18.55%
ROICexgc growth 3Y-39.41%
ROICexgc growth 5Y0.17%
ROICexc growth 3Y-37.95%
ROICexc growth 5Y1.73%
OM growth 3Y-27.13%
OM growth 5Y2.99%
PM growth 3Y-28.98%
PM growth 5Y18.44%
GM growth 3Y-19.75%
GM growth 5Y5.31%
F-Score5
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 5.57 | ||
| Debt/EBITDA | 1.81 | ||
| Cap/Depr | 204.2% | ||
| Cap/Sales | 10.16% | ||
| Interest Coverage | 4.7 | ||
| Cash Conversion | 115.22% | ||
| Profit Quality | 107.27% | ||
| Current Ratio | 2.89 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 2.48 |
F-Score5
WACC13.58%
ROIC/WACC0.46
Cap/Depr(3y)168.5%
Cap/Depr(5y)137.07%
Cap/Sales(3y)7.13%
Cap/Sales(5y)5.8%
Profit Quality(3y)85.75%
Profit Quality(5y)103.93%
High Growth Momentum
Growth
EPS 1Y (TTM)-18.6%
EPS 3Y-36.8%
EPS 5Y23.61%
EPS Q2Q%-20.59%
EPS Next Y-2.75%
EPS Next 2Y13.6%
EPS Next 3Y11.95%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.74%
Revenue growth 3Y-5.07%
Revenue growth 5Y11.07%
Sales Q2Q%3.48%
Revenue Next Year3.85%
Revenue Next 2Y3.71%
Revenue Next 3Y4.06%
Revenue Next 5Y4.93%
EBIT growth 1Y-12.47%
EBIT growth 3Y-30.82%
EBIT growth 5Y14.4%
EBIT Next Year33.96%
EBIT Next 3Y17.54%
EBIT Next 5Y13%
FCF growth 1Y-32.95%
FCF growth 3Y-16.11%
FCF growth 5YN/A
OCF growth 1Y3.71%
OCF growth 3Y-3.12%
OCF growth 5Y47.27%
GERDAU SA -SPON ADR / GGB FAQ
What is the ChartMill fundamental rating of GERDAU SA -SPON ADR (GGB) stock?
ChartMill assigns a fundamental rating of 6 / 10 to GGB.
What is the valuation status for GGB stock?
ChartMill assigns a valuation rating of 7 / 10 to GERDAU SA -SPON ADR (GGB). This can be considered as Undervalued.
How profitable is GERDAU SA -SPON ADR (GGB) stock?
GERDAU SA -SPON ADR (GGB) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for GGB stock?
The Price/Earnings (PE) ratio for GERDAU SA -SPON ADR (GGB) is 12.06 and the Price/Book (PB) ratio is 0.75.
Can you provide the financial health for GGB stock?
The financial health rating of GERDAU SA -SPON ADR (GGB) is 5 / 10.