(GGB) Gerdau - Ratings and Ratios

Gerdau S.A., a prominent steel producer with operations spanning multiple continents, specializes in the manufacturing and distribution of a diverse range of steel products. The company is organized into four main business segments: Brazil Business, North America Business, South America Business, and Special Steel Business. Its product portfolio includes semi-finished products like billets, blooms, and slabs, which serve as intermediates in steel production. The company also produces common long rolled products such as rebars, wire rods, and profiles, which are essential for construction and manufacturing industries. Additionally, Gerdau offers drawn products, including wire mesh, nails, and clamps, catering to construction, manufacturing, and agricultural sectors. Its special steel products are utilized in automotive components, heavy machinery, and renewable energy applications, showcasing the versatility of its offerings. Furthermore, the company produces flat steel products like hot-rolled coils and heavy plates, which are critical for various industrial applications. Gerdau also operates iron ore mines in Minas Gerais, Brazil, ensuring a stable supply of raw materials. Its distribution network includes independent distributors, direct mill sales, and a retail network, enabling efficient market penetration. Established in 1901 and headquartered in São Paulo, Brazil, Gerdau has built a legacy as a key player in the global steel industry.

From a technical perspective, GGBs stock has shown a recent decline, with its SMA 20 and SMA 50 below the current price of $2.66, indicating short-term weakness. However, the low ATR of 0.11 suggests reduced volatility, which could signal a period of consolidation. On the fundamental side, the stocks P/B ratio of 0.53 indicates undervaluation relative to its book value, while its P/E of 6.95 reflects a reasonable valuation given its earnings performance. The RoE of 7.88% highlights moderate profitability, which, combined with a market cap of $5.12 billion, positions Gerdau as a mid-sized company with stable financials. The forward P/E of 6.88 suggests expectations of continued earnings growth.