Gerdau S.A. (NYSE:GGB)

Gerdau S.A. GGB

Basic Materials - Steel - NYSE - BR

Watchlist

$ 3.46

1.47 %

$ 6.99 B

Market Cap

8.65

P/E

1. INTRINSIC VALUE

Gerdau S.A. provides steel products and services. The company operates through Brazil Business, North America Business, South America Business, and Special Steel Business segments. It offers semi-finished products, including billets, blooms, and slabs; common long rolled products, such as rebars, wire rods, merchant bars, light shapes, and profiles to the construction and manufacturing industries; finished industrial products, including commercial rolled-steel bars, and light profiles and wires; agricultural products that include stakes and smooth wire products; and drawn products comprises barbed and barbless fence wires, galvanized wires, fences, concrete reinforcing wire meshes, nails, and clamps. The company also produces special steel products used in auto parts, light and heavy vehicles, and agricultural machinery, as well as the oil and gas, wind energy, machinery and equipment, mining and rail, and other markets.[ Read More ]

The intrinsic value of one GGB stock under the base case scenario is HIDDEN Compared to the current market price of 3.46 USD, Gerdau S.A. is HIDDEN

GGB Intrinsic Value
HIDDEN

SHOW

2. FUNDAMENTAL ANALYSIS

Price Chart GGB

FINANCIALS

Annual
Quarterly

68.9 B REVENUE

Growth Rates

1Year -16.38%

3Years 16.30%

5Years 8.35%

7Years 9.02%

10Years 5.63%

9.02 B OPERATING INCOME

Growth Rates

1Year -48.04%

3Years 15.44%

5Years 17.39%

7Years 33.39%

10Years 12.60%

7.5 B NET INCOME

Growth Rates

1Year -34.65%

3Years 46.45%

5Years 26.38%

7Years 24.36%

10Years 16.05%

10.5 B OPERATING CASH FLOW

Growth Rates

1Year -6.25%

3Years 17.72%

5Years 39.21%

7Years 16.84%

10Years 9.82%

-5.77 B INVESTING CASH FLOW

Growth Rates

1Year -29.45%

3Years -37.33%

5Years -27.90%

7Years -27.24%

10Years -7.88%

-4.13 B FINANCING CASH FLOW

Growth Rates

1Year 50.03%

3Years -18.27%

5Years 0.62%

7Years -8.45%

10Years -17.76%

17.4 B REVENUE

Growth Rates

1Year -16.38%

3Years 16.30%

5Years 8.35%

7Years 9.02%

10Years 5.63%

2.12 B OPERATING INCOME

Growth Rates

1Year -48.04%

3Years 15.44%

5Years 17.39%

7Years 33.39%

10Years 12.60%

1.36 B NET INCOME

Growth Rates

1Year -34.65%

3Years 46.45%

5Years 26.38%

7Years 24.36%

10Years 16.05%

5.83 B OPERATING CASH FLOW

Growth Rates

1Year -6.25%

3Years 17.72%

5Years 39.21%

7Years 16.84%

10Years 9.82%

-1.72 B INVESTING CASH FLOW

Growth Rates

1Year -29.45%

3Years -37.33%

5Years -27.90%

7Years -27.24%

10Years -7.88%

-838 M FINANCING CASH FLOW

Growth Rates

1Year 50.03%

3Years -18.27%

5Years 0.62%

7Years -8.45%

10Years -17.76%

Balance Sheet Decomposition Gerdau S.A.

74.9 B ASSETS
25.6 B LIABILITIES

Current Assets	29.2 B
Cash & Short-Term Investments	5.34 B
Receivables	4.88 B
Other Current Assets	19 B
Non-Current Assets	45.7 B
Long-Term Investments	5.92 B
PP&E	24.1 B
Other Non-Current Assets	15.7 B

Current Liabilities	11.3 B
Accounts Payable	5.9 B
Short-Term Debt	2.17 B
Other Current Liabilities	3.21 B
Non-Current Liabilities	14.4 B
Long-Term Debt	10 B
Other Non-Current Liabilities	4.36 B

EFFICIENCY

Earnings Waterfall Gerdau S.A.

Revenue	68.9 B
Cost Of Revenue	57.6 B
Gross Profit	11.3 B
Operating Expenses	2.22 B
Operating Income	9.02 B
Other Expenses	1.52 B
Net Income	7.5 B

RATIOS

16.44% GROSS MARGIN

Averages

1Year 16.44%

3Years 21.92%

5Years 17.98%

7Years 16.14%

10Years 14.41%

13.09% OPERATING MARGIN

Averages

1Year 13.09%

3Years 20.77%

5Years 16.75%

7Years 13.64%

10Years 9.06%

10.89% NET MARGIN

Averages

1Year 10.89%

3Years 14.84%

5Years 10.60%

7Years 8.16%

10Years 4.22%

15.29% ROE

Averages

1Year 15.29%

3Years 25.48%

5Years 17.72%

7Years 13.75%

10Years 7.41%

10.02% ROA

Averages

1Year 10.02%

3Years 15.50%

5Years 10.50%

7Years 8.05%

10Years 4.67%

11.85% ROIC

Averages

1Year 11.85%

3Years 21.04%

5Years 15.36%

7Years 15.57%

10Years 10.69%

FREE CASH FLOW ANALYSIS

Free Cash Flow Analysis Gerdau S.A.

Net Income	7.5 B
Depreciation & Amortization	3.05 B
Capital Expenditures	-5.34 B
Stock-Based Compensation	0
Change in Working Capital	114 M
Others	-937 M
Free Cash Flow	5.12 B

3. WALL STREET ANALYSTS ESTIMATES

Wall Street Analysts Price Targets Gerdau S.A.

Wall Street analysts predict an average 1-year price target for GGB of $5 , with forecasts ranging from a low of $5 to a high of $5 .

GGB Lowest Price Target Wall Street Target

5 USD 44.51%

GGB Average Price Target Wall Street Target

5 USD 44.51%

GGB Highest Price Target Wall Street Target

5 USD 44.51%

4. DIVIDEND ANALYSIS

0.63% DIVIDEND YIELD

0.0503 USD DIVIDEND PER SHARE

5. COMPETITION

Ternium S.A. manufactures, processes, and sells various steel products in Mexico, Argentina, Paraguay, Chile, Bolivia, Uruguay, Brazil, the United States, Colombia, Guatemala, Costa Rica, Honduras, El Salvador, and Nicaragua.

98 USD

Undervalued 186.51%

ArcelorMittal S.A., together with its subsidiaries, operates as integrated steel and mining companies in Europe, North and South America, Asia, and Africa.

56.3 USD

Undervalued 122.64%

POSCO Holdings Inc., together with its subsidiaries, manufactures and sells steel rolled products and plates in South Korea and internationally. It operates through four segments: Steel, Construction, Trading, and Others.

112 USD

PKX

Undervalued 126.15%

Steel Dynamics, Inc., together with its subsidiaries, operates as a steel producer and metal recycler in the United States. It operates through three segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations.

216 USD

STLD

Undervalued 54.80%

Nucor Corporation manufactures and sells steel and steel products. The company's Steel Mills segment produces hot-rolled, cold-rolled, and galvanized sheet steel products; plate steel products; wide-flange beams, beam blanks, and H-piling and sheet piling products; and bar steel products, such as blooms, billets, concrete reinforcing and merchant bars, and special bar quality products.

312 USD

NUE

Undervalued 112.04%

Reliance Steel & Aluminum Co. operates as a diversified metal solutions provider and the metals service center company in the United States, Canada, and internationally.

570 USD

Undervalued 83.56%

Olympic Steel, Inc. processes, distributes, and storage metal products in the United States and internationally. It operates in three segments: Carbon Flat Products; Specialty Metals Flat Products; and Tubular and Pipe Products.

121 USD

ZEUS

Undervalued 205.65%

Universal Stainless & Alloy Products, Inc., together with its subsidiaries, manufactures and markets semi-finished and finished specialty steel products in the United States and internationally.

-41.5 USD

USAP

Overvalued 194.45%

6. Ownership

Insider Ownership Gerdau S.A.

Summary
Transactions

Sold

0-3 MONTHS

0 USD 0

3-6 MONTHS

0 USD 0

6-9 MONTHS

0 USD 0

9-12 MONTHS

0 USD 0

Bought

0 USD 0

0-3 MONTHS

0 USD 0

3-6 MONTHS

0 USD 0

6-9 MONTHS

0 USD 0

9-12 MONTHS

Date	Value	Insider	Amount	Avg Price

7. News

Unusual Trading Volume in Gerdau: A Signal for Buyers? When stocks move exponentially, there are typically two major forces at play behind the move. One of them is momentum, but that can only be made possible through enough volume pressure to get the stock to move in the first place. marketbeat.com - 2 days ago

Gerdau S.A. (GGB) Q3 2024 Earnings Call Transcript Gerdau S.A. (NYSE:GGB ) Q3 2024 Earnings Conference Call November 6, 2024 10:00 AM ET Company Participants Mariana Dutra - Head, IR Gustavo Werneck - CEO Rafael Japur - CFO Conference Call Participants Daniel Sasson - Itau BBA Leonardo Correa - BTG Pactual Marcio Farid - Goldman Sachs Rafael Barcellos - Bradesco BBI Caio Ribeiro - Bank of America Ricardo Monegaglia - Safra Bank Igor Guedes - Genial Mariana Dutra Good morning, everyone, and thank you for joining us at Gerdau's Third Quarter Earnings Release. seekingalpha.com - 1 week ago

GERDAU S.A. - CONSOLIDATED INFORMATION SÃO PAULO, Nov. 5, 2024 /PRNewswire/ -- 3Q24 Highlights Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of R$ 3.0 billion in the third quarter, 14.9% higher compared to 2Q24. Investments (CAPEX) totaled R$ 1.5 billion in 3Q24, of which R$ 589 million was allocated to Maintenance and R$ 920 million was directed to the Competitiveness of the Business Divisions. prnewswire.com - 1 week ago

Gerdau: Demand From The Automotive Industry And Undervalued Gerdau S.A. is significantly undervalued, benefiting from the automotive industry growth, electric vehicle development, and electrical transmission renovation globally. The company has a strong financial position, with increasing tangible book value per share, positive net income, and long-term free cash flow growth. GGB's strategic asset sales and resource reallocation enhance its financials, while currency advantages from the Brazilian real's decline further improve profitability. seekingalpha.com - 2 months ago

Gerdau S.A. (GGB) Q2 2024 Earnings Call Transcript Gerdau S.A. (NYSE:GGB ) Q2 2024 Earnings Conference Call August 1, 2024 11:00 AM ET Company Participants Mariana Velho Dutra - Head, IR Gustavo Werneck - CEO Rafael Japur - CFO Conference Call Participants Daniel Sasson - Itau BBA Marcio Farid - Goldman Sachs Leonardo Correa - BTG Pactual Rafael Barcellos - Bradesco BBI Rodolfo De Angele - JPMorgan Carlos de Alba - Morgan Stanley Caio Ribeiro - Bank of America Ricardo Monegaglia - Safra Bank Lucas Laghi - XP Yuri Pereira - Santander Igor Guedes - Genial Mariana Velho Dutra Good morning, everyone, and welcome to Gerdau's Video Conference Call for the Second Quarter of ‘24. seekingalpha.com - 3 months ago

GERDAU S.A. - CONSOLIDATED INFORMATION SÃO PAULO, July 31, 2024 /PRNewswire/ -- 2Q24 Highlights Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of R$ 2.6 billion in the second quarter, down 6.7% compared to 1Q24. Investments (CAPEX) totaled R$ 1.4 billion in 2Q24, of which R$ 704 million was allocated to Maintenance and R$ 716 million was directed to the Competitiveness of the Business Divisions. prnewswire.com - 3 months ago

Are Investors Undervaluing Gerdau (GGB) Right Now? Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. zacks.com - 4 months ago

3 Solid Steel Stocks to Bet on Despite the Slump in Prices Declining prices, along with demand and economic headwinds paint a challenging picture for the steel industry. However, stocks like FSTR, CRS and GGB look promising in the current scenario. zacks.com - 4 months ago

Down -19.65% in 4 Weeks, Here's Why Gerdau (GGB) Looks Ripe for a Turnaround Gerdau (GGB) has become technically an oversold stock now, which implies exhaustion of the heavy selling pressure on it. This, combined with strong agreement among Wall Street analysts in revising earnings estimates higher, indicates a potential trend reversal for the stock in the near term. zacks.com - 5 months ago

Is Gerdau (GGB) Stock Undervalued Right Now? Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. zacks.com - 5 months ago

Is The Options Market Predicting a Spike In Gerdau (GGB) Stock? Investors need to pay close attention to Gerdau (GGB) stock based on the movements in the options market lately. zacks.com - 5 months ago

The Income Investor's Dream Team: 7 Sturdy Dividend Stocks Yielding 6% The most obvious reason investors should buy high-yield dividend stocks is that they provide income. Non-dividend stocks do not provide income and only provide cash when sold. investorplace.com - 5 months ago

8. Profile Summary

Gerdau S.A. GGB

COUNTRY BR

INDUSTRY Steel

MARKET CAP $ 6.99 B

Dividend Yield 0.63%

Description Gerdau S.A. provides steel products and services. The company operates through Brazil Business, North America Business, South America Business, and Special Steel Business segments. It offers semi-finished products, including billets, blooms, and slabs; common long rolled products, such as rebars, wire rods, merchant bars, light shapes, and profiles to the construction and manufacturing industries; finished industrial products, including commercial rolled-steel bars, and light profiles and wires; agricultural products that include stakes and smooth wire products; and drawn products comprises barbed and barbless fence wires, galvanized wires, fences, concrete reinforcing wire meshes, nails, and clamps. The company also produces special steel products used in auto parts, light and heavy vehicles, and agricultural machinery, as well as the oil and gas, wind energy, machinery and equipment, mining and rail, and other markets. In addition, it offers flat products, including hot rolled coils and heavy plates; and resells flat steel products, as well as mines and produces iron ore. It sells its products through independent distributors, direct sales from the mills, and through its retail network. The company was founded in 1901 and is based in Sao Paulo, Brazil.

Contact Av. Dra. Ruth Cardoso, 8,501, São Paulo, SP, 05425-070 https://www2.gerdau.com

IPO Date March 10, 1999

Employees 30000

Officers Mr. Rubens Fernandes Pereira Member of Board of Executive Officers and Vice President of operations in Brazil, Argentina & Uruguay Mr. Cesar Obino Da Rosa Peres Member of Board of Executive Officers & Commercial Officer of Gerdau Steel Brasil Mr. Wendel Gomes Da Silva Member of Board of Executive Officers and Director of Mining & Raw Materials Mr. Claudio Gerdau Johannpeter Vice Chairman of the Board Mr. Marcos Eduardo Faraco Wahrhaftig Executive Vice President of Strategy & Member of Board of Executive Officers Mr. Rafael Dorneles Japur Member of Board of Executive Officers, Executive Vice President, Chief Financial Officer & Investor Relations Officer Mr. Mauro De Paula Member of Board of Executive Officers & Commercial Executive Officer Mr. Aldo Tapia Castillo Member of Board of Executive Officers Mr. Clemir Uhlein Accounting Director Mr. Gustavo Werneck Da Cunha Member of Board Of Executive Officers Chief Executive Officer & Director

Price Chart GGB

Gerdau S.A. GGB

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