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Gerdau S.A. (GGB) stock analysis

GGBNYSESteel Works, Blast Furnaces & Rolling & Finishing MillsFiscal year ends December 31
Financials through fiscal 2025, year ended Dec 31, 2025Last filing: 20-F on Mar 13, 2026Score 1/30
$4.43−0.16 (-3.49%)

Close on Nov 12, 2026Market cap $3.18BP/E –Yield –

StockData Score

Prices as of Nov 12, 2026How the score works

Value0Growth0Performance0Health1Dividend0

Weak1 of 30 checks passed

Gerdau passes 1 of the 30 checks behind our score; 17 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
0/6
Growth
0/6
Past performance
0/6
Financial health
1/6
Dividend
0/6

What stands out

  • Short-term assets cover short-term debts

    Current assets are 2.89 times current liabilities.

What to watch

  • Return on equity under 15%

    Return on equity was 2.5% over the last twelve months and averaged 18.9% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was 4.3%, below the 10% that usually covers the cost of capital.

  • Earnings shrank over 5 years

    Net income shrank 10.1% a year on average over the last five fiscal years.

  • Revenue growing under 10% a year

    Revenue grew -5.4% a year over the last three fiscal years, short of the 10% we look for.

Valuation0/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B against the industry

    Needs positive book value.

  • Price against fair value

    We could not estimate a fair value: it needs at least two valuation methods with positive inputs.

  • Margin of safety

    Depends on the fair value estimate.

Growth0/6

  • Revenue growing under 10% a year

    Revenue grew -5.4% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings growth not accelerating

    Net income grew -69.6% over the last twelve months, against a 5-year average of -10.1% a year.

  • Growing slower than the industry

    Revenue grew 4.2% over the last twelve months; the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median is 9.8%.

  • Guidance issued

    The latest outlook (2026 CAPEX, Apr 28, 2026) was issued for the first time, so it neither adds nor takes away points.

  • Gross margin slipping

    Gross margin was 11.4% over the last twelve months, against 13.7% a year earlier.

Past performance0/6

  • Return on equity under 15%

    Return on equity was 2.5% over the last twelve months and averaged 18.9% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was 4.3%, below the 10% that usually covers the cost of capital.

  • Return on equity below the industry

    Gerdau's return on equity of 2.5% is below the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median of 3.6%.

  • Earnings shrank over 5 years

    Net income shrank 10.1% a year on average over the last five fiscal years.

  • Net margin below its 5-year average

    Net margin was 2.0% over the last twelve months, against a 5-year average of 10.7%.

  • Net margin below the industry

    Gerdau's net margin of 2.0% is below the Steel Works, Blast Furnaces, and Rolling and Finishing Mills median of 4.0%.

Financial health1/6

  • Debt level

    Needs debt and equity figures.

  • Debt trend

    Needs a balance sheet from five years ago with positive equity.

  • Debt coverage

    Needs operating cash flow.

  • Interest not well covered

    Operating income covers interest expense 1.8 times; we look for at least 5.

  • Short-term assets cover short-term debts

    Current assets are 2.89 times current liabilities.

  • Bankruptcy risk (Altman Z)

    Needs market value, working capital and retained earnings.

Dividend0/6

  • No dividend

    Gerdau has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

We don't publish a fair value for Gerdau. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$86.72M
Value traded per 1% price move
$34.12M

Downside

Medium risk

Typical loss in a bad month
19.0%
Volatility (annualized)
37%
Sharpe ratio, 1 year
0.45
Beta to the S&P 500 (5Y)
0.92

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2014 to 2025

Gross margin

11.4%−2.1 pts over 5 years

Operating margin

5.4%−6.5 pts over 5 years

Net margin

2.0%−3.4 pts over 5 years

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