GERDAU SA -SPON ADR (GGB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GGB - US3737371050 - ADR
3.74 USD
0 (0%)
3.68 USD
-0.06 (-1.6%)
We assign a fundamental rating of 6 out of 10 to GGB. GGB was compared to 156 industry peers in the Metals & Mining industry. While GGB has a great profitability rating, 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 could make GGB a good candidate 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.
GGB had positive earnings in each of the past 5 years.
Each year in the past 5 years GGB had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GGB (3.76%) is better than 69.23% of its industry peers.
With a decent Return On Equity value of 5.95%, GGB is doing good in the industry, outperforming 66.03% of the companies in the same industry.
GGB has a Return On Invested Capital of 6.25%. This is in the better half of the industry: GGB outperforms 64.74% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GGB is in line with the industry average of 13.25%.
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
GGB's Profit Margin of 4.73% is fine compared to the rest of the industry. GGB outperforms 67.31% of its industry peers.
GGB's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 8.25%, GGB is doing good in the industry, outperforming 64.10% of the companies in the same industry.
GGB's Operating Margin has improved in the last couple of years.
GGB has a Gross Margin (12.41%) 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 | 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
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 less shares outstanding than it did 1 year ago.
The number of shares outstanding for GGB has been reduced compared to 5 years ago.
Compared to 1 year ago, GGB has a worse debt to assets ratio.
2.2 Solvency
GGB has an Altman-Z score of 2.49. This is not the best score and indicates that GGB is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.49, GGB is doing worse than 61.54% of the companies in the same industry.
GGB has a debt to FCF ratio of 5.57. This is a neutral value as GGB would need 5.57 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.57, GGB is in the better half of the industry, outperforming 66.03% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that GGB is not too dependend on debt financing.
The Debt to Equity ratio of GGB (0.30) is worse than 64.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 5.57 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.46
WACC13.58%
2.3 Liquidity
GGB has a Current Ratio of 2.89. This indicates that GGB is financially healthy and has no problem in meeting its short term obligations.
GGB's Current ratio of 2.89 is in line compared to the rest of the industry. GGB outperforms 59.62% of its industry peers.
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 of 1.50. This is comparable to the rest of the industry: GGB outperforms 46.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The earnings per share for GGB have decreased strongly by -18.60% in the last year.
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.
GGB shows a decrease in Revenue. In the last year, the revenue decreased by -2.74%.
Measured over the past years, GGB shows a quite strong growth in Revenue. The Revenue has been growing by 11.07% on average per year.
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
GGB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.95% yearly.
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-2.75%
EPS Next 2Y13.6%
EPS Next 3Y11.95%
EPS Next 5YN/A
Revenue Next Year3.85%
Revenue Next 2Y3.71%
Revenue Next 3Y4.06%
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.
When comparing the Revenue 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
The Price/Earnings ratio is 12.47, which indicates a correct valuation of GGB.
97.44% of the companies in the same industry are more expensive than GGB, based on the Price/Earnings ratio.
GGB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.59.
GGB is valuated cheaply with a Price/Forward Earnings ratio of 7.91.
Based on the Price/Forward Earnings ratio, GGB is valued cheaper than 92.95% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, GGB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.47 | ||
| Fwd PE | 7.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GGB is valued cheaper than 92.31% of the companies in the same industry.
95.51% of the companies in the same industry are more expensive than GGB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.82 | ||
| EV/EBITDA | 6.67 |
4.3 Compensation for Growth
GGB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y13.6%
EPS Next 3Y11.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.03%, GGB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.02, GGB pays a better dividend. On top of this GGB pays more dividend than 92.95% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, GGB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
The dividend of GGB is nicely growing with an annual growth rate of 28.72%!
GGB has been paying a dividend for at least 10 years, so it has 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.
The dividend of GGB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.54%
EPS Next 2Y13.6%
EPS Next 3Y11.95%
3.74
0 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners37.76%
Inst Owner Change2.49%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.42B
Revenue(TTM)67.03B
Net Income(TTM)3.27B
Analysts83
Price TargetN/A
Short Float %1.4%
Short Ratio0.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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)2.78%
PT rev (3m)5.28%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)6.3%
EPS NY rev (1m)-1.08%
EPS NY rev (3m)-9.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.47 | ||
| Fwd PE | 7.91 | ||
| P/S | 0.6 | ||
| P/FCF | 11.82 | ||
| P/OCF | 3.93 | ||
| P/B | 0.75 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 6.67 |
EPS(TTM)0.3
EY8.02%
EPS(NY)0.47
Fwd EY12.65%
FCF(TTM)0.32
FCFY8.46%
OCF(TTM)0.95
OCFY25.41%
SpS6.24
BVpS4.96
TBVpS3.81
PEG (NY)N/A
PEG (5Y)0.53
Graham Number5.78
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 | 2.49 |
F-Score5
WACC13.58%
ROIC/WACC0.46
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-2.75%
EPS Next 2Y13.6%
EPS Next 3Y11.95%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.74%
Revenue growth 3Y-5.07%
Revenue growth 5Y11.07%
Sales Q2Q%3.48%
Revenue Next Year3.85%
Revenue Next 2Y3.71%
Revenue Next 3Y4.06%
Revenue Next 5Y4.93%
EBIT growth 1Y-12.47%
EBIT growth 3Y-30.82%
EBIT growth 5Y14.4%
EBIT Next Year33.96%
EBIT Next 3Y17.54%
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 7 / 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 12.47 and the Price/Book (PB) ratio is 0.75.
Can you provide the financial health for GGB stock?
The financial health rating of GERDAU SA -SPON ADR (GGB) is 5 / 10.