(GGB) Gerdau - Overview
Sector: Basic Materials | Industry: Steel | Exchange: NYSE (USA) | Market Cap: 9.246m USD | Total Return: 73.1% in 12m
Avg Turnover: 72.3M
EPS Trend: -90.9%
Qual. Beats: -1
Rev. Trend: -24.2%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Supp Ema20, Confidence
Gerdau S.A. is a multinational steel producer headquartered in Brazil, operating through three primary geographic segments: Brazil, North America, and South America. The company manufactures a diverse range of long and flat steel products, including rebars, billets, wire rods, and structural profiles, alongside specialized steel for the automotive and energy sectors.
The business model is vertically integrated, as Gerdau operates its own iron ore mines in Brazil to secure raw material inputs for its production facilities. As a participant in the cyclical steel industry, the company’s performance is closely tied to global infrastructure spending and industrial manufacturing demand.
Investors can evaluate additional valuation metrics and historical trends for this ticker on ValueRay. Gerdau’s long-standing presence in the market dates back to 1901, making it one of the most established industrial entities in Latin America.
- Brazilian domestic infrastructure spending and construction activity dictate core revenue growth
- North American manufacturing demand and automotive production drive special steel margins
- Iron ore price volatility impacts vertical integration benefits and production costs
- Brazilian Real exchange rate fluctuations affect export competitiveness and debt servicing
- Global steel overcapacity and Chinese export volumes pressure international pricing power
| Net Income: 1.64b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -2.57 > 1.0 |
| NWC/Revenue: 26.32% < 20% (prev 29.33%; Δ -3.01% < -1%) |
| CFO/TA 0.11 > 3% & CFO 8.60b > Net Income 1.64b |
| Net Debt (11.3b) to EBITDA (8.05b): 1.41 < 3 |
| Current Ratio: 2.76 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.98b) vs 12m ago -3.02% < -2% |
| Gross Margin: 12.02% > 18% (prev 0.13%; Δ 1.19k% > 0.5%) |
| Asset Turnover: 83.06% > 50% (prev 79.69%; Δ 3.37% > 0%) |
| Interest Coverage Ratio: 3.22 > 6 (EBITDA TTM 8.05b / Interest Expense TTM 1.35b) |
| A: 0.22 (Total Current Assets 28.6b - Total Current Liabilities 10.4b) / Total Assets 81.0b |
| B: 0.29 (Retained Earnings 23.7b / Total Assets 81.0b) |
| C: 0.05 (EBIT TTM 4.34b / Avg Total Assets 83.3b) |
| D: 1.90 (Book Value of Equity 53.3b / Total Liabilities 28.1b) |
| Altman-Z'' = 4.77 = AA |
| DSRI: 0.87 (Receivables 7.22b/8.20b, Revenue 69.2b/68.2b) |
| GMI: 1.07 (GM 12.02% / 12.80%) |
| AQI: 0.98 (AQ_t 0.25 / AQ_t-1 0.26) |
| SGI: 1.01 (Revenue 69.2b / 68.2b) |
| TATA: -0.09 (NI 1.64b - CFO 8.60b) / TA 81.0b) |
| Beneish M = -3.16 (Cap -4..+1) = AA |
As of May 26, 2026, the stock is trading at USD 4.75 with a total of 13,205,700 shares traded.
Over the past week, the price has changed by +3.26%,
over one month by +10.80%,
over three months by +15.95% and
over the past year by +73.06%.
Gerdau has received a consensus analysts rating of 3.50. Therefore, it is recommended to hold GGB.
- StrongBuy: 0
- Buy: 3
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 5.2 | 10.3% |
Market Cap BRL = 46.6b (9.25b USD * 5.0374 USD.BRL)
P/E Trailing = 29.375
P/E Forward = 6.9204
P/S = 0.1336
P/B = 0.8868
P/EG = 90.9541
Revenue TTM = 69.2b BRL
EBIT TTM = 4.34b BRL
EBITDA TTM = 8.05b BRL
Long Term Debt = 12.9b BRL (from longTermDebt, last quarter)
Short Term Debt = 1.38b BRL (from shortTermDebt, last quarter)
Debt = 16.9b BRL (from shortLongTermDebtTotal, last quarter) + Leases 1.54b
Net Debt = 11.3b BRL (calculated: Debt 16.9b - CCE 5.59b)
Enterprise Value = 57.9b BRL (46.6b + Debt 16.9b - CCE 5.59b)
Interest Coverage Ratio = 3.22 (Ebit TTM 4.34b / Interest Expense TTM 1.35b)
EV/FCF = 24.03x (Enterprise Value 57.9b / FCF TTM 2.41b)
FCF Yield = 4.16% (FCF TTM 2.41b / Enterprise Value 57.9b)
FCF Margin = 3.48% (FCF TTM 2.41b / Revenue TTM 69.2b)
Net Margin = 2.37% (Net Income TTM 1.64b / Revenue TTM 69.2b)
Gross Margin = 12.02% ((Revenue TTM 69.2b - Cost of Revenue TTM 60.9b) / Revenue TTM)
Gross Margin QoQ = 13.72% (prev 10.89%)
Tobins Q-Ratio = 0.71 (Enterprise Value 57.9b / Total Assets 81.0b)
Interest Expense / Debt = 7.96% (Interest Expense 1.35b / Debt 16.9b)
Taxrate = 33.04% (500.1m / 1.51b)
NOPAT = 2.91b (EBIT 4.34b * (1 - 33.04%))
Current Ratio = 2.76 (Total Current Assets 28.6b / Total Current Liabilities 10.4b)
Debt / Equity = 0.32 (Debt 16.9b / totalStockholderEquity, last quarter 52.8b)
Debt / EBITDA = 1.41 (Net Debt 11.3b / EBITDA 8.05b)
Debt / FCF = 4.70 (Net Debt 11.3b / FCF TTM 2.41b)
Total Stockholder Equity = 54.0b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.97% (Net Income 1.64b / Total Assets 81.0b)
RoE = 3.04% (Net Income TTM 1.64b / Total Stockholder Equity 54.0b)
RoCE = 6.49% (EBIT 4.34b / Capital Employed (Equity 54.0b + L.T.Debt 12.9b))
RoIC = 4.37% (NOPAT 2.91b / Invested Capital 66.5b)
WACC = 9.54% (E(46.6b)/V(63.5b) * Re(11.07%) + D(16.9b)/V(63.5b) * Rd(7.96%) * (1-Tc(0.33)))
Discount Rate = 11.07% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -89.89 | Cagr: -2.78%
[DCF] Terminal Value 68.77% ; FCFF base≈3.34b ; Y1≈2.93b ; Y5≈2.37b
[DCF] Fair Price = 16.37 (EV 31.8b - Net Debt 11.3b = Equity 20.5b / Shares 1.25b; r=9.54% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -90.94 | EPS CAGR: -48.02% | SUE: -1.99 | # QB: -1
Revenue Correlation: -24.23 | Revenue CAGR: -1.22% | SUE: -0.04 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.94 | Chg30d=+28.05% | Revisions=+20% | Analysts=1
EPS next Quarter (2026-09-30): EPS=0.83 | Chg30d=+25.24% | Revisions=+20% | Analysts=1
EPS current Year (2026-12-31): EPS=2.83 | Chg30d=+1.98% | Revisions=+20% | GrowthEPS=+71.9% | GrowthRev=+0.6%
EPS next Year (2027-12-31): EPS=2.85 | Chg30d=+2.40% | Revisions=+33% | GrowthEPS=+0.7% | GrowthRev=+4.0%
[Analyst] Revisions Ratio: +33%