GERDAU SA -SPON ADR (GGB)
US3737371050 - ADR
Taking everything into account, GGB scores 5 out of 10 in our fundamental rating. GGB was compared to 155 industry peers in the Metals & Mining industry. GGB has an average financial health and profitability rating. GGB has a bad growth rate and is valued cheaply. Finally GGB also has an excellent dividend rating. These ratings could make GGB a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
In the past year GGB was profitable.
In the past year GGB had a positive cash flow from operations.
GGB had positive earnings in 4 of the past 5 years.
Of the past 5 years GGB 4 years had a positive operating cash flow.
1.2 Ratios
GGB has negative profitability rations, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)13.41%
ROA(5y)9.39%
ROE(3y)22.94%
ROE(5y)16.45%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
GGB has a Profit Margin of 13.86%. This is amongst the best in the industry. GGB outperforms 85.16% of its industry peers.
GGB's Profit Margin has improved in the last couple of years.
GGB has a Operating Margin of 20.14%. This is in the better half of the industry: GGB outperforms 78.71% of its industry peers.
In the last couple of years the Operating Margin of GGB has grown nicely.
GGB's Gross Margin of 22.75% is fine compared to the rest of the industry. GGB outperforms 61.94% of its industry peers.
GGB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.14% | ||
| PM (TTM) | 13.86% | ||
| GM | 22.75% |
OM growth 3Y35.33%
OM growth 5Y27.01%
PM growth 3Y65.9%
PM growth 5YN/A
GM growth 3Y28.99%
GM growth 5Y18.44%
2. Health
2.1 Basic Checks
GGB does not have a ROIC to compare to the WACC, probably because it is not profitable.
GGB has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.24%
2.3 Liquidity
GGB has a Current Ratio of 2.32. This indicates that GGB is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.32, GGB perfoms like the industry average, outperforming 47.74% of the companies in the same industry.
A Quick Ratio of 1.00 indicates that GGB may have some problems paying its short term obligations.
The Quick ratio of GGB (1.00) is worse than 69.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The earnings per share for GGB have decreased strongly by -48.47% in the last year.
GGB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 55.02% yearly.
The Revenue has been growing slightly by 5.19% in the past year.
GGB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.42% yearly.
EPS 1Y (TTM)-48.47%
EPS 3Y112.47%
EPS 5Y55.02%
EPS growth Q2Q-57.29%
Revenue 1Y (TTM)5.19%
Revenue growth 3Y27.63%
Revenue growth 5Y17.42%
Revenue growth Q2QN/A
3.2 Future
The Earnings Per Share is expected to decrease by -18.85% on average over the next years. This is quite bad
Based on estimates for the next years, GGB will show a decrease in Revenue. The Revenue will decrease by -2.35% on average per year.
EPS Next Y-28.1%
EPS Next 2Y-34.05%
EPS Next 3Y-24.91%
EPS Next 5Y-18.85%
Revenue Next Year-13.07%
Revenue Next 2Y-8.95%
Revenue Next 3Y-5.32%
Revenue Next 5Y-2.35%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
The Price/Earnings ratio is 5.15, which indicates a rather cheap 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 96.77% of the companies listed in the same industry.
GGB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.25.
A Price/Forward Earnings ratio of 6.13 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 96.77% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GGB to the average of the S&P500 Index (21.67), we can say GGB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.15 | ||
| Fwd PE | 6.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GGB is valued cheaper than 99.35% of the companies in the same industry.
98.71% of the companies in the same industry are more expensive than GGB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.59 | ||
| EV/EBITDA | 1.64 |
4.3 Compensation for Growth
GGB's earnings are expected to decrease with -24.91% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.09
EPS Next 2Y-34.05%
EPS Next 3Y-24.91%
5. Dividend
5.1 Amount
GGB has a Yearly Dividend Yield of 4.17%, which is a nice return.
Compared to an average industry Dividend Yield of 2.87, GGB pays a better dividend. On top of this GGB pays more dividend than 92.26% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, GGB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
5.2 History
The dividend of GGB is nicely growing with an annual growth rate of 131.13%!
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
GGB pays out 51.57% of its income as dividend. 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.
DP51.57%
EPS Next 2Y-34.05%
EPS Next 3Y-24.91%
GERDAU SA -SPON ADR
NYSE:GGB (4/25/2024, 9:11:09 AM)
3.5
-0.06 (-1.69%)
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 Cap6.13B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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)
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Min EPS beat(4)
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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)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.15 | ||
| Fwd PE | 6.13 | ||
| 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)0.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.14% | ||
| PM (TTM) | 13.86% | ||
| GM | 22.75% | ||
| 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 TurnoverN/A
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.32 | ||
| Quick Ratio | 1 | ||
| 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)
Growth
EPS 1Y (TTM)-48.47%
EPS 3Y112.47%
EPS 5Y
EPS growth Q2Q
EPS Next Y-28.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.19%
Revenue growth 3Y27.63%
Revenue growth 5Y
Revenue growth 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