GERDAU SA -SPON ADR (GGB)
US3737371050 - ADR
We assign a fundamental rating of 6 out of 10 to GGB. GGB was compared to 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. This makes GGB very considerable 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.
Of the past 5 years GGB 4 years were profitable.
Of the past 5 years GGB 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GGB (15.45%) is better than 96.18% of its industry peers.
With an excellent Return On Equity value of 24.08%, GGB belongs to the best of the industry, outperforming 95.54% of the companies in the same industry.
With an excellent Return On Invested Capital value of 18.83%, GGB belongs to the best of the industry, outperforming 98.09% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GGB is significantly above the industry average of 8.91%.
The last Return On Invested Capital (18.83%) for GGB is above the 3 year average (17.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.45% | ||
| ROE | 24.08% | ||
| ROIC | 18.83% |
ROA(3y)13.41%
ROA(5y)9.39%
ROE(3y)22.94%
ROE(5y)16.45%
ROIC(3y)17.22%
ROIC(5y)12.77%
1.3 Margins
GGB has a better Profit Margin (14.46%) than 87.26% of its industry peers.
GGB's Profit Margin has improved in the last couple of years.
The Operating Margin of GGB (19.56%) is better than 76.43% of its industry peers.
In the last couple of years the Operating Margin of GGB has grown nicely.
GGB has a Gross Margin of 21.25%. This is in the better half of the industry: GGB outperforms 61.15% of its industry peers.
GGB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.56% | ||
| PM (TTM) | 14.46% | ||
| GM | 21.25% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GGB 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.
2.2 Solvency
An Altman-Z score of 3.37 indicates that GGB is not in any danger for bankruptcy at the moment.
GGB has a better Altman-Z score (3.37) than 61.78% of its industry peers.
The Debt to FCF ratio of GGB is 2.18, which is a good value as it means it would take GGB, 2.18 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GGB (2.18) is better than 77.71% of its industry peers.
GGB has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of GGB (0.21) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 3.37 |
ROIC/WACC1.48
WACC12.75%
2.3 Liquidity
GGB has a Current Ratio of 2.49. This indicates that GGB is financially healthy and has no problem in meeting its short term obligations.
GGB has a Current ratio (2.49) which is in line with its industry peers.
GGB has a Quick Ratio of 1.17. This is a normal value and indicates that GGB is financially healthy and should not expect problems in meeting its short term obligations.
GGB has a Quick ratio (1.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
GGB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.42%.
GGB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.53% yearly.
EPS 1Y (TTM)-58.42%
EPS 3Y34.88%
EPS 5Y20.53%
EPS Q2Q%-57.35%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-14.11%
3.2 Future
Based on estimates for the next years, GGB will show a decrease in Earnings Per Share. The EPS will decrease by -7.90% on average per year.
Based on estimates for the next years, GGB will show a small growth in Revenue. The Revenue will grow by 2.49% on average per year.
EPS Next Y-16.37%
EPS Next 2Y-10.78%
EPS Next 3Y-7.9%
EPS Next 5YN/A
Revenue Next Year-5.71%
Revenue Next 2Y-2.29%
Revenue Next 3Y0.23%
Revenue Next 5Y2.49%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.22, which indicates a very decent valuation of GGB.
Based on the Price/Earnings ratio, GGB is valued cheaply inside the industry as 92.36% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.29, GGB is valued rather cheaply.
The Price/Forward Earnings ratio is 7.90, which indicates a rather cheap valuation of GGB.
Based on the Price/Forward Earnings ratio, GGB is valued cheaply inside the industry as 87.26% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.35, GGB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.22 | ||
| Fwd PE | 7.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GGB indicates a rather cheap valuation: GGB is cheaper than 98.09% of the companies listed in the same industry.
94.90% 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 | 6.24 | ||
| EV/EBITDA | 2.29 |
4.3 Compensation for Growth
The excellent profitability rating of GGB may justify a higher PE ratio.
GGB's earnings are expected to decrease with -7.90% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y-10.78%
EPS Next 3Y-7.9%
5. Dividend
5.1 Amount
GGB has a Yearly Dividend Yield of 3.77%.
Compared to an average industry Dividend Yield of 2.65, GGB pays a better dividend. On top of this GGB pays more dividend than 92.36% of the companies listed in the same industry.
GGB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
5.2 History
On average, the dividend of GGB grows each year by 131.13%, 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)131.13%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
GGB pays out 50.26% of its income as dividend. This is a bit on the high side, but may be sustainable.
GGB's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP50.26%
EPS Next 2Y-10.78%
EPS Next 3Y-7.9%
GERDAU SA -SPON ADR
NYSE:GGB (7/26/2024, 12:58:08 PM)
3.205
-0.04 (-1.08%)
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 Cap6.74B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 8.22 | ||
| Fwd PE | 7.9 | ||
| 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)0.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.45% | ||
| ROE | 24.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.56% | ||
| PM (TTM) | 14.46% | ||
| GM | 21.25% | ||
| 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 Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.17 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-58.42%
EPS 3Y34.88%
EPS 5Y
EPS Q2Q%
EPS Next Y-16.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales 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