GERDAU SA -SPON ADR (GGB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GGB - US3737371050 - ADR
3.6 USD
+0.01 (+0.28%)
3.62 USD
+0.02 (+0.56%)
Overall GGB gets a fundamental rating of 6 out of 10. We evaluated GGB against 154 industry peers in the Metals & Mining industry. GGB has an excellent profitability rating, but there are some minor concerns on its financial health. GGB may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, GGB could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
GGB had positive earnings in the past year.
In the past year GGB had a positive cash flow from operations.
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 69.48% of its industry peers.
Looking at the Return On Equity, with a value of 5.95%, GGB is in the better half of the industry, outperforming 66.23% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.25%, GGB is in the better half of the industry, outperforming 64.94% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GGB is in line with the industry average of 13.20%.
The 3 year average ROIC (14.04%) for GGB is well above the current ROIC(6.25%). The reason for the recent decline needs to be investigated.
| 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
GGB's Profit Margin of 4.73% is fine compared to the rest of the industry. GGB outperforms 68.18% of its industry peers.
In the last couple of years the Profit Margin of GGB has grown nicely.
The Operating Margin of GGB (8.25%) is better than 64.94% 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 42.86% 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
GGB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
GGB has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GGB has been reduced compared to 5 years ago.
GGB has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.42 indicates that GGB is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GGB (2.42) is worse than 61.04% of its industry peers.
GGB has a debt to FCF ratio of 5.57. This is a neutral value as GGB would need 5.57 years to pay back of all of its debts.
GGB has a better Debt to FCF ratio (5.57) than 68.18% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that GGB is not too dependend on debt financing.
GGB's Debt to Equity ratio of 0.30 is on the low side compared to the rest of the industry. GGB is outperformed by 64.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 5.57 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.47
WACC13.4%
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's Current ratio of 2.89 is fine compared to the rest of the industry. GGB outperforms 60.39% of 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.
Looking at the Quick ratio, with a value of 1.50, GGB is in line with its industry, outperforming 47.40% of the companies in the same industry.
| 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.
Measured over the past years, GGB shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.61% on average per year.
Looking at the last year, GGB shows a decrease in Revenue. The Revenue has decreased by -2.74% in the last year.
GGB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.07% yearly.
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 10.50% 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-1.58%
EPS Next 2Y12.81%
EPS Next 3Y10.5%
EPS Next 5YN/A
Revenue Next Year3.32%
Revenue Next 2Y4%
Revenue Next 3Y4.23%
Revenue Next 5Y4.93%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.25 indicates a reasonable valuation of GGB.
Based on the Price/Earnings ratio, GGB is valued cheaply inside the industry as 97.40% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.31. GGB is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.38 indicates a rather cheap valuation of GGB.
Based on the Price/Forward Earnings ratio, GGB is valued cheaply inside the industry as 93.51% of the companies are valued more expensively.
GGB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 7.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GGB is valued cheaply inside the industry as 90.26% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GGB is valued cheaper than 95.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.87 | ||
| EV/EBITDA | 6.31 |
4.3 Compensation for Growth
The decent profitability rating of GGB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y12.81%
EPS Next 3Y10.5%
5. Dividend
5.1 Amount
GGB has a Yearly Dividend Yield of 3.24%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.60, GGB pays a better dividend. On top of this GGB pays more dividend than 92.86% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, GGB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
On average, the dividend of GGB grows each year by 28.72%, 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)28.72%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
41.54% of the earnings are spent on dividend by GGB. This is a bit on the high side, but may be sustainable.
GGB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP41.54%
EPS Next 2Y12.81%
EPS Next 3Y10.5%
3.6
+0.01 (+0.28%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners40.18%
Inst Owner Change2.64%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.14B
Revenue(TTM)67.03B
Net Income(TTM)3.27B
Analysts82
Price Target4.35 (20.83%)
Short Float %1.84%
Short Ratio1.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
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)3.14%
PT rev (3m)8.13%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-1.77%
EPS NY rev (1m)-2.82%
EPS NY rev (3m)-8.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 7.38 | ||
| P/S | 0.55 | ||
| P/FCF | 10.87 | ||
| P/OCF | 3.62 | ||
| P/B | 0.69 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 6.31 |
EPS(TTM)0.32
EY8.89%
EPS(NY)0.49
Fwd EY13.56%
FCF(TTM)0.33
FCFY9.2%
OCF(TTM)0.99
OCFY27.63%
SpS6.53
BVpS5.19
TBVpS3.99
PEG (NY)N/A
PEG (5Y)0.48
Graham Number6.11
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 | 2.42 |
F-Score5
WACC13.4%
ROIC/WACC0.47
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-1.58%
EPS Next 2Y12.81%
EPS Next 3Y10.5%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.74%
Revenue growth 3Y-5.07%
Revenue growth 5Y11.07%
Sales Q2Q%3.48%
Revenue Next Year3.32%
Revenue Next 2Y4%
Revenue Next 3Y4.23%
Revenue Next 5Y4.93%
EBIT growth 1Y-12.47%
EBIT growth 3Y-30.82%
EBIT growth 5Y14.4%
EBIT Next Year35.56%
EBIT Next 3Y17.42%
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 8 / 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 11.25 and the Price/Book (PB) ratio is 0.69.
Can you provide the financial health for GGB stock?
The financial health rating of GERDAU SA -SPON ADR (GGB) is 5 / 10.