GERDAU SA -SPON ADR (GGB) Fundamental Analysis & Valuation

NYSE:GGB • US3737371050

Current stock price

3.26 USD
-0.04 (-1.21%)
At close:
3.25 USD
-0.01 (-0.31%)
After Hours:

This GGB fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. GGB Profitability Analysis

1.1 Basic Checks

  • In the past year GGB was profitable.
  • In the past year GGB had a positive cash flow from operations.
  • Each year in the past 5 years GGB has been profitable.
  • In the past 5 years GGB always reported a positive cash flow from operatings.
GGB Yearly Net Income VS EBIT VS OCF VS FCFGGB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

1.2 Ratios

  • GGB has a Return On Assets of 1.70%. This is in the better half of the industry: GGB outperforms 61.25% of its industry peers.
  • GGB has a better Return On Equity (2.59%) than 61.88% of its industry peers.
  • The Return On Invested Capital of GGB (5.59%) is comparable to the rest of the industry.
  • The Average Return On Invested Capital over the past 3 years for GGB is below the industry average of 11.64%.
Industry RankSector Rank
ROA 1.7%
ROE 2.59%
ROIC 5.59%
ROA(3y)5.73%
ROA(5y)10.72%
ROE(3y)8.7%
ROE(5y)17.42%
ROIC(3y)7.37%
ROIC(5y)12.79%
GGB Yearly ROA, ROE, ROICGGB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30

1.3 Margins

  • GGB's Profit Margin of 1.98% is fine compared to the rest of the industry. GGB outperforms 61.88% of its industry peers.
  • GGB's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 8.15%, GGB is in the better half of the industry, outperforming 63.13% of the companies in the same industry.
  • GGB's Operating Margin has declined in the last couple of years.
  • GGB's Gross Margin of 11.41% is in line compared to the rest of the industry. GGB outperforms 43.13% of its industry peers.
  • In the last couple of years the Gross Margin of GGB has declined.
Industry RankSector Rank
OM 8.15%
PM (TTM) 1.98%
GM 11.41%
OM growth 3Y-25.99%
OM growth 5Y-6.87%
PM growth 3Y-47.62%
PM growth 5Y-18.13%
GM growth 3Y-20.56%
GM growth 5Y-3.37%
GGB Yearly Profit, Operating, Gross MarginsGGB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. GGB Health Analysis

2.1 Basic Checks

  • GGB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for GGB has been reduced compared to 1 year ago.
  • GGB has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, GGB has a worse debt to assets ratio.
GGB Yearly Shares OutstandingGGB Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
GGB Yearly Total Debt VS Total AssetsGGB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B

2.2 Solvency

  • An Altman-Z score of 2.48 indicates that GGB is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of GGB (2.48) is comparable to the rest of the industry.
  • GGB has a debt to FCF ratio of 11.93. This is a negative value and a sign of low solvency as GGB would need 11.93 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 11.93, GGB is doing good in the industry, outperforming 62.50% of the companies in the same industry.
  • GGB has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
  • With a Debt to Equity ratio value of 0.27, GGB perfoms like the industry average, outperforming 43.13% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 11.93
Altman-Z 2.48
ROIC/WACC0.45
WACC12.43%
GGB Yearly LT Debt VS Equity VS FCFGGB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B 40B 50B

2.3 Liquidity

  • A Current Ratio of 2.89 indicates that GGB has no problem at all paying its short term obligations.
  • The Current ratio of GGB (2.89) is better than 61.25% of its industry peers.
  • A Quick Ratio of 1.40 indicates that GGB should not have too much problems paying its short term obligations.
  • GGB has a Quick ratio of 1.40. This is comparable to the rest of the industry: GGB outperforms 48.13% of its industry peers.
Industry RankSector Rank
Current Ratio 2.89
Quick Ratio 1.4
GGB Yearly Current Assets VS Current LiabilitesGGB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. GGB Growth Analysis

3.1 Past

  • GGB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.49%.
  • GGB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.32% yearly.
  • The Revenue has been growing slightly by 4.22% in the past year.
  • GGB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.78% yearly.
EPS 1Y (TTM)-14.49%
EPS 3Y-32.15%
EPS 5Y9.32%
EPS Q2Q%18.51%
Revenue 1Y (TTM)4.22%
Revenue growth 3Y-5.36%
Revenue growth 5Y9.78%
Sales Q2Q%0.9%

3.2 Future

  • The Earnings Per Share is expected to grow by 17.20% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 5.11% on average over the next years.
EPS Next Y41.11%
EPS Next 2Y25.15%
EPS Next 3Y17.2%
EPS Next 5YN/A
Revenue Next Year2.4%
Revenue Next 2Y3.09%
Revenue Next 3Y3.84%
Revenue Next 5Y5.11%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
GGB Yearly Revenue VS EstimatesGGB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20B 40B 60B 80B
GGB Yearly EPS VS EstimatesGGB Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 2 4 6

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8

4. GGB Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 9.88, which indicates a very decent valuation of GGB.
  • Based on the Price/Earnings ratio, GGB is valued cheaply inside the industry as 95.00% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of GGB to the average of the S&P500 Index (25.23), we can say GGB is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 6.93, the valuation of GGB can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, GGB is valued cheaply inside the industry as 88.13% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 23.28. GGB is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.88
Fwd PE 6.93
GGB Price Earnings VS Forward Price EarningsGGB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 92.50% 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 a bit cheaper than the industry average as 78.75% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 25.93
EV/EBITDA 5.27
GGB Per share dataGGB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as GGB's earnings are expected to grow with 17.20% in the coming years.
PEG (NY)0.24
PEG (5Y)1.06
EPS Next 2Y25.15%
EPS Next 3Y17.2%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. GGB Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.12%, GGB is a good candidate for dividend investing.
  • GGB's Dividend Yield is rather good when compared to the industry average which is at 1.11. GGB pays more dividend than 94.38% of the companies in the same industry.
  • GGB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 4.12%

5.2 History

  • The dividend of GGB is nicely growing with an annual growth rate of 37.93%!
  • GGB has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)37.93%
Div Incr Years0
Div Non Decr Years0
GGB Yearly Dividends per shareGGB Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

  • 92.75% of the earnings are spent on dividend by GGB. This is not a sustainable payout ratio.
  • The dividend of GGB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP92.75%
EPS Next 2Y25.15%
EPS Next 3Y17.2%
GGB Yearly Income VS Free CF VS DividendGGB Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B
GGB Dividend Payout.GGB Dividend Payout, showing the Payout Ratio.GGB Dividend Payout.PayoutRetained Earnings

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GGB Fundamentals: All Metrics, Ratios and Statistics

GERDAU SA -SPON ADR

NYSE:GGB (3/20/2026, 9:56:02 PM)

After market: 3.25 -0.01 (-0.31%)

3.26

-0.04 (-1.21%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)02-23
Earnings (Next)04-27
Inst Owners60.24%
Inst Owner Change7.72%
Ins OwnersN/A
Ins Owner Change0%
Market Cap6.44B
Revenue(TTM)69.86B
Net Income(TTM)1.39B
Analysts80
Price Target4.79 (46.93%)
Short Float %0.12%
Short Ratio0.08
Dividend
Industry RankSector Rank
Dividend Yield 4.12%
Yearly Dividend0.12
Dividend Growth(5Y)37.93%
DP92.75%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-12
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.43%
Min EPS beat(2)-13.46%
Max EPS beat(2)-9.4%
EPS beat(4)0
Avg EPS beat(4)-16.36%
Min EPS beat(4)-32.81%
Max EPS beat(4)-9.4%
EPS beat(8)1
Avg EPS beat(8)-12.42%
EPS beat(12)2
Avg EPS beat(12)-13.88%
EPS beat(16)4
Avg EPS beat(16)-11.71%
Revenue beat(2)0
Avg Revenue beat(2)-0.99%
Min Revenue beat(2)-1.07%
Max Revenue beat(2)-0.91%
Revenue beat(4)0
Avg Revenue beat(4)-1.76%
Min Revenue beat(4)-3.92%
Max Revenue beat(4)-0.91%
Revenue beat(8)0
Avg Revenue beat(8)-2.45%
Revenue beat(12)1
Avg Revenue beat(12)-3.11%
Revenue beat(16)1
Avg Revenue beat(16)-3.48%
PT rev (1m)0%
PT rev (3m)9.3%
EPS NQ rev (1m)1.36%
EPS NQ rev (3m)1.75%
EPS NY rev (1m)-6.04%
EPS NY rev (3m)-6.42%
Revenue NQ rev (1m)-1.6%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.76%
Valuation
Industry RankSector Rank
PE 9.88
Fwd PE 6.93
P/S 0.48
P/FCF 25.93
P/OCF 4.24
P/B 0.63
P/tB 0.83
EV/EBITDA 5.27
EPS(TTM)0.33
EY10.12%
EPS(NY)0.47
Fwd EY14.43%
FCF(TTM)0.13
FCFY3.86%
OCF(TTM)0.77
OCFY23.6%
SpS6.73
BVpS5.16
TBVpS3.94
PEG (NY)0.24
PEG (5Y)1.06
Graham Number6.19
Profitability
Industry RankSector Rank
ROA 1.7%
ROE 2.59%
ROCE 7.93%
ROIC 5.59%
ROICexc 5.59%
ROICexgc 6.78%
OM 8.15%
PM (TTM) 1.98%
GM 11.41%
FCFM 1.87%
ROA(3y)5.73%
ROA(5y)10.72%
ROE(3y)8.7%
ROE(5y)17.42%
ROIC(3y)7.37%
ROIC(5y)12.79%
ROICexc(3y)7.93%
ROICexc(5y)14.52%
ROICexgc(3y)9.84%
ROICexgc(5y)18.84%
ROCE(3y)10.46%
ROCE(5y)18.16%
ROICexgc growth 3Y-37.08%
ROICexgc growth 5Y-9.99%
ROICexc growth 3Y-35.95%
ROICexc growth 5Y-7.31%
OM growth 3Y-25.99%
OM growth 5Y-6.87%
PM growth 3Y-47.62%
PM growth 5Y-18.13%
GM growth 3Y-20.56%
GM growth 5Y-3.37%
F-Score5
Asset Turnover0.86
Health
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 11.93
Debt/EBITDA 1.52
Cap/Depr 181.38%
Cap/Sales 9.57%
Interest Coverage 3.6
Cash Conversion 85.16%
Profit Quality 94.12%
Current Ratio 2.89
Quick Ratio 1.4
Altman-Z 2.48
F-Score5
WACC12.43%
ROIC/WACC0.45
Cap/Depr(3y)179.05%
Cap/Depr(5y)160.14%
Cap/Sales(3y)8.58%
Cap/Sales(5y)6.96%
Profit Quality(3y)97.03%
Profit Quality(5y)82.53%
High Growth Momentum
Growth
EPS 1Y (TTM)-14.49%
EPS 3Y-32.15%
EPS 5Y9.32%
EPS Q2Q%18.51%
EPS Next Y41.11%
EPS Next 2Y25.15%
EPS Next 3Y17.2%
EPS Next 5YN/A
Revenue 1Y (TTM)4.22%
Revenue growth 3Y-5.36%
Revenue growth 5Y9.78%
Sales Q2Q%0.9%
Revenue Next Year2.4%
Revenue Next 2Y3.09%
Revenue Next 3Y3.84%
Revenue Next 5Y5.11%
EBIT growth 1Y-9.8%
EBIT growth 3Y-29.96%
EBIT growth 5Y2.24%
EBIT Next Year94.34%
EBIT Next 3Y27.69%
EBIT Next 5Y23.92%
FCF growth 1Y-76.71%
FCF growth 3Y-42.48%
FCF growth 5Y-22.79%
OCF growth 1Y-29.82%
OCF growth 3Y-10.53%
OCF growth 5Y4.5%

GERDAU SA -SPON ADR / GGB Fundamental Analysis 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 9 / 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.


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 grow by 41.11% 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 92.75%.