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

NYSE:GGB • US3737371050

3.565 USD
-0.08 (-2.06%)
Last: Mar 6, 2026, 03:56 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

6

Overall GGB gets a fundamental rating of 6 out of 10. We evaluated GGB against 157 industry peers in the Metals & Mining industry. GGB scores excellent on profitability, but there are some minor concerns on its financial health. GGB has a bad growth rate and is valued cheaply. These ratings would make GGB suitable for value investing!


Dividend Valuation Growth Profitability Health

7

1. GGB Profitability Analysis

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 4 of the past 5 years.
  • GGB had a positive operating cash flow in 4 of the past 5 years.
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 0 5B 10B 15B

1.2 Ratios

  • GGB's Return On Assets of 3.76% is fine compared to the rest of the industry. GGB outperforms 70.06% 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 66.88% of the companies in the same industry.
  • The Return On Invested Capital of GGB (6.25%) is better than 64.33% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for GGB is above the industry average of 11.01%.
  • 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 RankSector 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%
GGB Yearly ROA, ROE, ROICGGB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

1.3 Margins

  • GGB has a Profit Margin of 4.73%. This is in the better half of the industry: GGB outperforms 65.61% of its industry peers.
  • GGB's Profit Margin has improved in the last couple of years.
  • With a decent Operating Margin value of 8.25%, GGB is doing good in the industry, outperforming 63.69% of the companies in the same industry.
  • 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 42.68% of the companies in the same industry.
  • GGB's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
GGB Yearly Profit, Operating, Gross MarginsGGB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

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5

2. GGB Health Analysis

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
GGB Yearly Shares OutstandingGGB Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 20B 40B 60B 80B

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 63.69% 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.
  • GGB has a Debt to FCF ratio of 5.57. This is in the better half of the industry: GGB outperforms 70.06% of its industry peers.
  • A Debt/Equity ratio of 0.30 indicates that GGB is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.30, GGB is doing worse than 61.15% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 5.57
Altman-Z 2.42
ROIC/WACC0.49
WACC12.87%
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 0 10B 20B 30B 40B 50B

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.
  • The Current ratio of GGB (2.89) is better than 61.15% 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.
  • GGB's Quick ratio of 1.50 is in line compared to the rest of the industry. GGB outperforms 48.41% of its industry peers.
Industry RankSector Rank
Current Ratio 2.89
Quick Ratio 1.5
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 10B 20B 30B

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3

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 -14.75%.
  • The Earnings Per Share has been growing by 9.00% on average over the past years. This is quite good.
EPS 1Y (TTM)-14.75%
EPS 3Y-32.48%
EPS 5Y9%
EPS Q2Q%16.79%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.9%

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 17.77% yearly.
  • GGB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.11% yearly.
EPS Next Y43.18%
EPS Next 2Y26.06%
EPS Next 3Y17.77%
EPS Next 5YN/A
Revenue Next Year2.4%
Revenue Next 2Y3.09%
Revenue Next 3Y3.84%
Revenue Next 5Y5.11%

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 accelerating.
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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9

4. GGB Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 10.80, which indicates a very decent 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 98.09% of the companies listed in the same industry.
  • GGB is valuated cheaply when we compare the Price/Earnings ratio to 26.69, which is the current average of the S&P500 Index.
  • GGB is valuated cheaply with a Price/Forward Earnings ratio of 7.46.
  • 92.36% of the companies in the same industry are more expensive than GGB, based on the Price/Forward Earnings ratio.
  • GGB is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.79, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.8
Fwd PE 7.46
GGB Price Earnings VS Forward Price EarningsGGB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, GGB is valued cheaper than 92.99% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, GGB is valued cheaper than 98.09% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.54
EV/EBITDA 6.27
GGB Per share dataGGB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • GGB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • GGB has a very decent profitability rating, which may justify a higher PE ratio.
  • GGB's earnings are expected to grow with 17.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.25
PEG (5Y)1.2
EPS Next 2Y26.06%
EPS Next 3Y17.77%

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6

5. GGB Dividend Analysis

5.1 Amount

  • GGB has a Yearly Dividend Yield of 3.46%.
  • GGB's Dividend Yield is rather good when compared to the industry average which is at 1.01. GGB pays more dividend than 94.90% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, GGB pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.46%

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
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

  • 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 2Y26.06%
EPS Next 3Y17.77%
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 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 (3/6/2026, 3:56:07 PM)

3.565

-0.08 (-2.06%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)02-23
Earnings (Next)04-27
Inst Owners38.39%
Inst Owner Change7.71%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.04B
Revenue(TTM)N/A
Net Income(TTM)3.27B
Analysts80
Price Target4.79 (34.36%)
Short Float %0.38%
Short Ratio0.25
Dividend
Industry RankSector Rank
Dividend Yield 3.46%
Yearly Dividend0.16
Dividend Growth(5Y)28.72%
DP41.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-12
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)13.06%
PT rev (3m)9.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.39%
EPS NY rev (1m)0%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.89%
Valuation
Industry RankSector Rank
PE 10.8
Fwd PE 7.46
P/S 0.53
P/FCF 10.54
P/OCF 3.51
P/B 0.67
P/tB 0.87
EV/EBITDA 6.27
EPS(TTM)0.33
EY9.26%
EPS(NY)0.48
Fwd EY13.41%
FCF(TTM)0.34
FCFY9.49%
OCF(TTM)1.02
OCFY28.49%
SpS6.67
BVpS5.3
TBVpS4.08
PEG (NY)0.25
PEG (5Y)1.2
Graham Number6.27
Profitability
Industry RankSector 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 RankSector 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
WACC12.87%
ROIC/WACC0.49
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)-14.75%
EPS 3Y-32.48%
EPS 5Y9%
EPS Q2Q%16.79%
EPS Next Y43.18%
EPS Next 2Y26.06%
EPS Next 3Y17.77%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%0.9%
Revenue Next Year2.4%
Revenue Next 2Y3.09%
Revenue Next 3Y3.84%
Revenue Next 5Y5.11%
EBIT growth 1Y-12.47%
EBIT growth 3Y-30.82%
EBIT growth 5Y14.4%
EBIT Next Year33.86%
EBIT Next 3Y17.16%
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 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 43.18% 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%.