GERDAU SA -SPON ADR (GGB) Stock Fundamental Analysis
USA - NYSE:GGB - US3737371050 - ADR
3.57 USD
-0.03 (-0.83%)
3.5 USD
-0.07 (-1.96%)
GGB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 154 industry peers in the Metals & Mining industry. GGB has an excellent profitability rating, but 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 would make GGB suitable 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.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.76%, GGB is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
GGB's Return On Equity of 5.95% is fine compared to the rest of the industry. GGB outperforms 69.48% of its industry peers.
GGB's Return On Invested Capital of 6.25% is fine compared to the rest of the industry. GGB outperforms 68.18% of its industry peers.
GGB had an Average Return On Invested Capital over the past 3 years of 14.04%. This is in line with the industry average of 12.58%.
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 72.08% 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 66.23% of its industry peers.
GGB's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 12.41%, GGB perfoms like the industry average, outperforming 47.40% of the companies in the same industry.
GGB's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GGB is creating some value.
GGB has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GGB has less shares outstanding
GGB has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.43 indicates that GGB is not a great score, but indicates only limited risk for bankruptcy at the moment.
GGB has a Altman-Z score (2.43) which is in line with 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 better Debt to FCF ratio (5.57) than 70.13% 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.
With a Debt to Equity ratio value of 0.30, GGB is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 5.57 | ||
| Altman-Z | 2.43 |
ROIC/WACC0.47
WACC13.37%
2.3 Liquidity
A Current Ratio of 2.89 indicates that GGB has no problem at all paying its short term obligations.
With a Current ratio value of 2.89, GGB perfoms like the industry average, outperforming 59.74% of the companies in the same industry.
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 (1.50) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
GGB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.60%.
Measured over the past years, GGB shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.61% on average per year.
The Revenue has decreased by -2.74% in the past year.
GGB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.07% yearly.
EPS 1Y (TTM)-18.6%
EPS 3Y-36.8%
EPS 5Y23.61%
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
Based on estimates for the next years, GGB will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.50% on average per year.
GGB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.93% yearly.
EPS Next Y-1.58%
EPS Next 2Y12.81%
EPS Next 3Y10.5%
EPS Next 5YN/A
Revenue Next Year3.32%
Revenue Next 2Y4%
Revenue Next 3Y4.23%
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.
The Revenue 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
Based on the Price/Earnings ratio of 11.52, the valuation of GGB can be described as reasonable.
GGB's Price/Earnings ratio is rather cheap when compared to the industry. GGB is cheaper than 94.81% of the companies in the same industry.
When comparing the Price/Earnings ratio of GGB to the average of the S&P500 Index (25.67), we can say GGB is valued rather cheaply.
The Price/Forward Earnings ratio is 7.41, which indicates a rather cheap valuation of GGB.
90.26% of the companies in the same industry are more expensive than GGB, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 31.86, GGB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 7.41 |
4.2 Price Multiples
GGB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GGB is cheaper than 89.61% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GGB is valued cheaper than 94.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.91 | ||
| EV/EBITDA | 6.36 |
4.3 Compensation for Growth
The decent profitability rating of GGB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y12.81%
EPS Next 3Y10.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.34%, GGB has a reasonable but not impressive dividend return.
GGB's Dividend Yield is rather good when compared to the industry average which is at 2.64. GGB pays more dividend than 92.21% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, GGB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
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.
GGB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP41.54%
EPS Next 2Y12.81%
EPS Next 3Y10.5%
3.57
-0.03 (-0.83%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners40.18%
Inst Owner Change0.14%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.09B
Revenue(TTM)67.03B
Net Income(TTM)3.27B
Analysts82
Price Target4.31 (20.73%)
Short Float %1.9%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
Yearly Dividend0.15
Dividend Growth(5Y)28.72%
DP41.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)3.68%
PT rev (3m)2.26%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)0.75%
EPS NY rev (1m)-1.5%
EPS NY rev (3m)-15.22%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)-2.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 7.41 | ||
| P/S | 0.55 | ||
| P/FCF | 10.91 | ||
| P/OCF | 3.63 | ||
| P/B | 0.7 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 6.36 |
EPS(TTM)0.31
EY8.68%
EPS(NY)0.48
Fwd EY13.5%
FCF(TTM)0.33
FCFY9.16%
OCF(TTM)0.98
OCFY27.51%
SpS6.45
BVpS5.12
TBVpS3.94
PEG (NY)N/A
PEG (5Y)0.49
Graham Number5.98
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 | 2.43 |
F-Score5
WACC13.37%
ROIC/WACC0.47
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-36.8%
EPS 5Y23.61%
EPS Q2Q%-20.59%
EPS Next Y-1.58%
EPS Next 2Y12.81%
EPS Next 3Y10.5%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.74%
Revenue growth 3Y-5.07%
Revenue growth 5Y11.07%
Sales Q2Q%3.48%
Revenue Next Year3.32%
Revenue Next 2Y4%
Revenue Next 3Y4.23%
Revenue Next 5Y4.93%
EBIT growth 1Y-12.47%
EBIT growth 3Y-30.82%
EBIT growth 5Y14.4%
EBIT Next Year35.56%
EBIT Next 3Y17.42%
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.
What is the valuation status for GGB stock?
ChartMill assigns a valuation rating of 8 / 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.
Can you provide the PE and PB ratios for GGB stock?
The Price/Earnings (PE) ratio for GERDAU SA -SPON ADR (GGB) is 11.52 and the Price/Book (PB) ratio is 0.7.
Can you provide the financial health for GGB stock?
The financial health rating of GERDAU SA -SPON ADR (GGB) is 5 / 10.