GERDAU SA -SPON ADR (GGB)
US3737371050 - ADR
We assign a fundamental rating of 6 out of 10 to GGB. GGB was compared to 155 industry peers in the Metals & Mining industry. While GGB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. GGB is valued quite cheap, but it does not seem to be growing. This makes GGB very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year GGB was profitable.
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
Looking at the Return On Assets, with a value of 15.45%, GGB belongs to the top of the industry, outperforming 94.84% of the companies in the same industry.
GGB has a better Return On Equity (24.08%) than 96.13% of its industry peers.
GGB has a better Return On Invested Capital (18.83%) than 96.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GGB is significantly above the industry average of 8.82%.
The 3 year average ROIC (17.22%) for GGB is below the current ROIC(18.83%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 14.46%, GGB belongs to the best of the industry, outperforming 86.45% of the companies in the same industry.
GGB's Profit Margin has improved in the last couple of years.
GGB has a better Operating Margin (19.56%) than 76.13% of its industry peers.
In the last couple of years the Operating Margin of GGB has grown nicely.
GGB has a Gross Margin (21.25%) which is in line with 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
GGB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
GGB has an Altman-Z score of 3.36. This indicates that GGB is financially healthy and has little risk of bankruptcy at the moment.
GGB's Altman-Z score of 3.36 is fine compared to the rest of the industry. GGB outperforms 61.94% 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.
GGB has a better Debt to FCF ratio (2.18) than 76.13% 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.
With a Debt to Equity ratio value of 0.21, GGB perfoms like the industry average, outperforming 45.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 3.36 |
ROIC/WACC1.17
WACC16.13%
2.3 Liquidity
A Current Ratio of 2.49 indicates that GGB has no problem at all paying its short term obligations.
GGB has a Current ratio of 2.49. This is comparable to the rest of the industry: GGB outperforms 54.19% of its industry peers.
A Quick Ratio of 1.17 indicates that GGB should not have too much problems paying its short term obligations.
GGB has a Quick ratio of 1.17. This is in the lower half of the industry: GGB underperforms 61.29% of its industry peers.
| 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 -46.98%.
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)-46.98%
EPS 3Y34.88%
EPS 5Y20.53%
EPS Q2Q%-8.19%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.84%
3.2 Future
GGB is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.71% yearly.
Based on estimates for the next years, GGB will show a small growth in Revenue. The Revenue will grow by 4.11% on average per year.
EPS Next Y-17.63%
EPS Next 2Y-8.67%
EPS Next 3Y-6.71%
EPS Next 5YN/A
Revenue Next Year-5.12%
Revenue Next 2Y-1.25%
Revenue Next 3Y1.09%
Revenue Next 5Y4.11%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.64, the valuation of GGB can be described as reasonable.
87.10% of the companies in the same industry are more expensive than GGB, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.54, GGB is valued rather cheaply.
A Price/Forward Earnings ratio of 7.58 indicates a rather cheap valuation of GGB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GGB indicates a rather cheap valuation: GGB is cheaper than 85.81% of the companies listed in the same industry.
GGB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 7.58 |
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 98.06% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GGB is valued cheaper than 94.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.19 | ||
| EV/EBITDA | 2.27 |
4.3 Compensation for Growth
The excellent profitability rating of GGB may justify a higher PE ratio.
A cheap valuation may be justified as GGB's earnings are expected to decrease with -6.71% in the coming years.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y-8.67%
EPS Next 3Y-6.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.61%, GGB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.22, GGB pays a better dividend. On top of this GGB pays more dividend than 87.10% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
5.2 History
On average, the dividend of GGB grows each year by 131.13%, which is quite nice.
GGB has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)131.13%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
50.26% of the earnings are spent on dividend by GGB. This is a bit on the high side, but may be sustainable.
The Dividend Rate of GGB has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP50.26%
EPS Next 2Y-8.67%
EPS Next 3Y-6.71%
GERDAU SA -SPON ADR
NYSE:GGB (12/26/2024, 10:10:39 AM)
2.98
-0.02 (-0.67%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners42.73%
Inst Owner Change-1.48%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.14B
Analysts83
Price Target4.38 (46.98%)
Short Float %0.81%
Short Ratio0.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
Dividend Growth(5Y)131.13%
DP50.26%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-18.29%
Min EPS beat(2)-39.18%
Max EPS beat(2)2.6%
EPS beat(4)3
Avg EPS beat(4)-1.27%
Min EPS beat(4)-39.18%
Max EPS beat(4)20.48%
EPS beat(8)5
Avg EPS beat(8)0.77%
EPS beat(12)9
Avg EPS beat(12)37.54%
EPS beat(16)10
Avg EPS beat(16)30.94%
Revenue beat(2)0
Avg Revenue beat(2)-6.39%
Min Revenue beat(2)-8.02%
Max Revenue beat(2)-4.75%
Revenue beat(4)0
Avg Revenue beat(4)-4.24%
Min Revenue beat(4)-8.02%
Max Revenue beat(4)-1.86%
Revenue beat(8)3
Avg Revenue beat(8)-2.12%
Revenue beat(12)7
Avg Revenue beat(12)8.45%
Revenue beat(16)7
Avg Revenue beat(16)4.83%
PT rev (1m)-1%
PT rev (3m)-5.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.83%
EPS NY rev (1m)1.26%
EPS NY rev (3m)2.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 7.58 | ||
| P/S | 0.47 | ||
| P/FCF | 6.19 | ||
| P/OCF | 3.52 | ||
| P/B | 0.78 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 2.27 |
EPS(TTM)0.28
EY9.4%
EPS(NY)0.39
Fwd EY13.2%
FCF(TTM)0.48
FCFY16.16%
OCF(TTM)0.85
OCFY28.4%
SpS6.35
BVpS3.81
TBVpS2.89
PEG (NY)N/A
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.45% | ||
| ROE | 24.08% | ||
| ROCE | 25.25% | ||
| ROIC | 18.83% | ||
| ROICexc | 20.75% | ||
| ROICexgc | 26.18% | ||
| OM | 19.56% | ||
| PM (TTM) | 14.46% | ||
| GM | 21.25% | ||
| FCFM | 7.59% |
ROA(3y)13.41%
ROA(5y)9.39%
ROE(3y)22.94%
ROE(5y)16.45%
ROIC(3y)17.22%
ROIC(5y)12.77%
ROICexc(3y)20.11%
ROICexc(5y)14.99%
ROICexgc(3y)26.89%
ROICexgc(5y)20.15%
ROCE(3y)23.1%
ROCE(5y)17.13%
ROICexcg growth 3Y48.97%
ROICexcg growth 5Y39.2%
ROICexc growth 3Y52.3%
ROICexc growth 5Y39.43%
OM growth 3Y35.33%
OM growth 5Y27.01%
PM growth 3Y65.9%
PM growth 5YN/A
GM growth 3Y28.99%
GM growth 5Y18.44%
F-Score4
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.18 | ||
| Debt/EBITDA | 0.54 | ||
| Cap/Depr | 159.22% | ||
| Cap/Sales | 5.75% | ||
| Interest Coverage | 15.33 | ||
| Cash Conversion | 57.55% | ||
| Profit Quality | 52.45% | ||
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 3.36 |
F-Score4
WACC16.13%
ROIC/WACC1.17
Cap/Depr(3y)109.86%
Cap/Depr(5y)95.39%
Cap/Sales(3y)4.28%
Cap/Sales(5y)3.97%
Profit Quality(3y)107.46%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-46.98%
EPS 3Y34.88%
EPS 5Y20.53%
EPS Q2Q%-8.19%
EPS Next Y-17.63%
EPS Next 2Y-8.67%
EPS Next 3Y-6.71%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.84%
Revenue Next Year-5.12%
Revenue Next 2Y-1.25%
Revenue Next 3Y1.09%
Revenue Next 5Y4.11%
EBIT growth 1Y-22.23%
EBIT growth 3Y72.71%
EBIT growth 5Y49.14%
EBIT Next Year-24.53%
EBIT Next 3Y-14.31%
EBIT Next 5Y-5.03%
FCF growth 1Y18.06%
FCF growth 3YN/A
FCF growth 5Y41.65%
OCF growth 1Y58.37%
OCF growth 3Y89.34%
OCF growth 5Y39.96%