GERDAU SA -SPON ADR (GGB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GGB - US3737371050 - ADR
4.135 USD
-0.03 (-0.6%)
We assign a fundamental rating of 6 out of 10 to GGB. GGB was compared to 156 industry peers in the Metals & Mining industry. While GGB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on GGB. These ratings could make GGB a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- In the past year GGB was profitable.
- GGB had a positive operating cash flow in the past year.
- Each year in the past 5 years GGB has been profitable.
- Each year in the past 5 years GGB had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 3.76%, GGB is doing good in the industry, outperforming 70.51% of the companies in the same industry.
- GGB has a better Return On Equity (5.95%) than 67.31% of its industry peers.
- GGB has a better Return On Invested Capital (6.25%) than 66.03% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for GGB is above the industry average of 10.34%.
- 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
- The Profit Margin of GGB (4.73%) is better than 67.31% of its industry peers.
- GGB's Profit Margin has improved in the last couple of years.
- GGB has a Operating Margin of 8.25%. This is in the better half of the industry: GGB outperforms 64.74% of its industry peers.
- In the last couple of years the Operating Margin of GGB has grown nicely.
- With a Gross Margin value of 12.41%, GGB perfoms like the industry average, outperforming 42.95% 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.
- The number of shares outstanding for GGB has been reduced compared to 5 years ago.
- Compared to 1 year ago, GGB has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.54 indicates that GGB is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.54, GGB is not doing good in the industry: 62.18% of the companies in the same industry are doing better.
- 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.
- The Debt to FCF ratio of GGB (5.57) is better than 67.31% of its industry peers.
- 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 62.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 5.57 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.45
WACC14.01%
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 of 2.89. This is in the better half of the industry: GGB outperforms 61.54% of its industry peers.
- A Quick Ratio of 1.50 indicates that GGB should not have too much problems paying its short term obligations.
- GGB has a Quick ratio of 1.50. This is comparable to the rest of the industry: GGB outperforms 48.72% of 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.
- The Earnings Per Share has been growing by 29.46% on average over the past years. This is a very strong growth
- Looking at the last year, GGB shows a decrease in Revenue. The Revenue has decreased by -2.74% in the last year.
- The Revenue has been growing by 11.07% on average over the past years. This is quite good.
EPS 1Y (TTM)-18.6%
EPS 3Y-32.02%
EPS 5Y29.46%
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 11.78% yearly.
- The Revenue is expected to grow by 4.93% on average over the next years.
EPS Next Y-1.01%
EPS Next 2Y13.51%
EPS Next 3Y11.78%
EPS Next 5YN/A
Revenue Next Year3.93%
Revenue Next 2Y3.26%
Revenue Next 3Y3.63%
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.
- 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 12.92 indicates a correct valuation of GGB.
- 97.44% of the companies in the same industry are more expensive than GGB, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, GGB is valued rather cheaply.
- With a Price/Forward Earnings ratio of 8.41, the valuation of GGB can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, GGB is valued cheaper than 92.31% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. GGB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 8.41 |
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.
- Based on the Price/Free Cash Flow ratio, GGB is valued cheaply inside the industry as 96.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.55 | ||
| EV/EBITDA | 6.98 |
4.3 Compensation for Growth
- The excellent profitability rating of GGB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.44
EPS Next 2Y13.51%
EPS Next 3Y11.78%
5. Dividend
5.1 Amount
- GGB has a Yearly Dividend Yield of 2.78%.
- GGB's Dividend Yield is rather good when compared to the industry average which is at 0.96. GGB pays more dividend than 91.67% of the companies in the same industry.
- GGB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
5.2 History
- The dividend of GGB is nicely growing with an annual growth rate of 28.72%!
- 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 2Y13.51%
EPS Next 3Y11.78%
NYSE:GGB (1/20/2026, 3:25:01 PM)
4.135
-0.03 (-0.6%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-23 2026-02-23/amc
Inst Owners38.39%
Inst Owner Change5.75%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.20B
Revenue(TTM)67.03B
Net Income(TTM)3.27B
Analysts83
Price Target4.23 (2.3%)
Short Float %1.25%
Short Ratio1.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend0.15
Dividend Growth(5Y)28.72%
DP41.54%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-3.33%
PT rev (3m)0.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.09%
EPS NY rev (1m)1.78%
EPS NY rev (3m)-2.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 8.41 | ||
| P/S | 0.64 | ||
| P/FCF | 12.55 | ||
| P/OCF | 4.18 | ||
| P/B | 0.8 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 6.98 |
EPS(TTM)0.32
EY7.74%
EPS(NY)0.49
Fwd EY11.89%
FCF(TTM)0.33
FCFY7.97%
OCF(TTM)0.99
OCFY23.93%
SpS6.49
BVpS5.16
TBVpS3.97
PEG (NY)N/A
PEG (5Y)0.44
Graham Number6.1
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 | 2.54 |
F-Score5
WACC14.01%
ROIC/WACC0.45
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-32.02%
EPS 5Y29.46%
EPS Q2Q%-20.59%
EPS Next Y-1.01%
EPS Next 2Y13.51%
EPS Next 3Y11.78%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.74%
Revenue growth 3Y-5.07%
Revenue growth 5Y11.07%
Sales Q2Q%3.48%
Revenue Next Year3.93%
Revenue Next 2Y3.26%
Revenue Next 3Y3.63%
Revenue Next 5Y4.93%
EBIT growth 1Y-12.47%
EBIT growth 3Y-30.82%
EBIT growth 5Y14.4%
EBIT Next Year33.88%
EBIT Next 3Y17.66%
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.
Can you provide the valuation status for GERDAU SA -SPON ADR?
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 8 / 10.
What is the expected EPS growth for GERDAU SA -SPON ADR (GGB) stock?
The Earnings per Share (EPS) of GERDAU SA -SPON ADR (GGB) is expected to decline by -1.01% in the next year.
Can you provide the dividend sustainability for GGB stock?
The dividend rating of GERDAU SA -SPON ADR (GGB) is 6 / 10 and the dividend payout ratio is 41.54%.