GERDAU SA -SPON ADR (GGB)

US3737371050 - ADR

3.09  0 (0%)

After market: 3.08 -0.01 (-0.32%)

Fundamental Rating

6

Overall GGB gets a fundamental rating of 6 out of 10. We evaluated GGB against 156 industry peers in the Metals & Mining industry. While GGB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. GGB has a bad growth rate and is valued cheaply. GGB also has an excellent dividend rating. These ratings would make GGB suitable for value and dividend investing!



9

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.
Of the past 5 years GGB 4 years were profitable.
GGB had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

GGB has a Return On Assets of 15.45%. This is amongst the best in the industry. GGB outperforms 95.51% of its industry peers.
The Return On Equity of GGB (24.08%) is better than 94.87% of its industry peers.
GGB has a Return On Invested Capital of 18.83%. This is amongst the best in the industry. GGB outperforms 98.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GGB is significantly above the industry average of 8.94%.
The last Return On Invested Capital (18.83%) for GGB is above the 3 year average (17.22%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 15.45%
ROE 24.08%
ROIC 18.83%
ROA(3y)13.41%
ROA(5y)9.39%
ROE(3y)22.94%
ROE(5y)16.45%
ROIC(3y)17.22%
ROIC(5y)12.77%

1.3 Margins

The Profit Margin of GGB (14.46%) is better than 87.18% of its industry peers.
GGB's Profit Margin has improved in the last couple of years.
The Operating Margin of GGB (19.56%) is better than 76.28% of its industry peers.
In the last couple of years the Operating Margin of GGB has grown nicely.
With a decent Gross Margin value of 21.25%, GGB is doing good in the industry, outperforming 60.26% of the companies in the same industry.
In the last couple of years the Gross Margin of GGB has grown nicely.
Industry RankSector Rank
OM 19.56%
PM (TTM) 14.46%
GM 21.25%
OM growth 3Y35.33%
OM growth 5Y27.01%
PM growth 3Y65.9%
PM growth 5YN/A
GM growth 3Y28.99%
GM growth 5Y18.44%

6

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.
There is no outstanding debt for GGB. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

An Altman-Z score of 3.29 indicates that GGB is not in any danger for bankruptcy at the moment.
GGB has a Altman-Z score of 3.29. This is in the better half of the industry: GGB outperforms 62.82% of its industry peers.
GGB has a debt to FCF ratio of 2.18. This is a good value and a sign of high solvency as GGB would need 2.18 years to pay back of all of its debts.
GGB has a better Debt to FCF ratio (2.18) than 77.56% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that GGB is not too dependend on debt financing.
The Debt to Equity ratio of GGB (0.21) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 2.18
Altman-Z 3.29
ROIC/WACC1.49
WACC12.65%

2.3 Liquidity

A Current Ratio of 2.49 indicates that GGB has no problem at all paying its short term obligations.
GGB has a Current ratio (2.49) which is in line with its industry peers.
A Quick Ratio of 1.17 indicates that GGB should not have too much problems paying its short term obligations.
The Quick ratio of GGB (1.17) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.49
Quick Ratio 1.17

2

3. Growth

3.1 Past

GGB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.42%.
Measured over the past years, GGB shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.53% on average per year.
EPS 1Y (TTM)-58.42%
EPS 3Y34.88%
EPS 5Y20.53%
EPS Q2Q%-57.35%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-14.11%

3.2 Future

GGB is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.90% yearly.
Based on estimates for the next years, GGB will show a small growth in Revenue. The Revenue will grow by 1.46% on average per year.
EPS Next Y-16.37%
EPS Next 2Y-10.78%
EPS Next 3Y-7.9%
EPS Next 5YN/A
Revenue Next Year-5.71%
Revenue Next 2Y-2.29%
Revenue Next 3Y0.23%
Revenue Next 5Y1.46%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

8

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 7.36 indicates a rather cheap valuation of GGB.
GGB's Price/Earnings ratio is rather cheap when compared to the industry. GGB is cheaper than 93.59% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.73, GGB is valued rather cheaply.
The Price/Forward Earnings ratio is 7.24, which indicates a rather cheap valuation of GGB.
GGB's Price/Forward Earnings ratio is rather cheap when compared to the industry. GGB is cheaper than 87.82% of the companies in the same industry.
GGB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.21.
Industry RankSector Rank
PE 7.36
Fwd PE 7.24

4.2 Price Multiples

98.72% of the companies in the same industry are more expensive than GGB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GGB is valued cheaper than 96.15% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.72
EV/EBITDA 2.1

4.3 Compensation for Growth

GGB has an outstanding profitability rating, which may justify a higher PE ratio.
GGB's earnings are expected to decrease with -7.90% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-10.78%
EPS Next 3Y-7.9%

7

5. Dividend

5.1 Amount

GGB has a Yearly Dividend Yield of 4.07%, which is a nice return.
Compared to an average industry Dividend Yield of 2.96, GGB pays a better dividend. On top of this GGB pays more dividend than 89.10% of the companies listed in the same industry.
GGB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
Industry RankSector Rank
Dividend Yield 4.07%

5.2 History

On average, the dividend of GGB grows each year by 131.13%, which is quite nice.
GGB has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)131.13%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

50.26% of the earnings are spent on dividend by GGB. This is a bit on the high side, but may be sustainable.
The Dividend Rate of GGB has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP50.26%
EPS Next 2Y-10.78%
EPS Next 3Y-7.9%

GERDAU SA -SPON ADR

NYSE:GGB (6/18/2024, 6:31:57 PM)

After market: 3.08 -0.01 (-0.32%)

3.09

0 (0%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.50B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.07%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 7.36
Fwd PE 7.24
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.36
Profitability
Industry RankSector Rank
ROA 15.45%
ROE 24.08%
ROCE
ROIC
ROICexc
ROICexgc
OM 19.56%
PM (TTM) 14.46%
GM 21.25%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.07
Health
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.49
Quick Ratio 1.17
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-58.42%
EPS 3Y34.88%
EPS 5Y
EPS Q2Q%
EPS Next Y-16.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y