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Gerdau SA (GGB)
NYSE:GGB
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Gerdau SA
(NYSE:GGB)
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Rating:67Neutral
Price Target:
$4.00
▲(18.69% Upside)
Gerdau SA's stock score is primarily influenced by its financial performance and technical analysis. The company's operational efficiency is offset by declining profitability and cash flow challenges. Positive technical indicators support the stock's trend, while a fair valuation and attractive dividend yield provide additional support.
Gerdau SA (GGB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.98B
Dividend Yield2.97%
Average Volume (3M)12.32M
Price to Earnings (P/E)14.3
Beta (1Y)0.93
Revenue Growth-2.53%
EPS Growth-36.08%
CountryUS
Employees30,000
SectorN/A
Sector StrengthN/A
IndustrySteel
Share Statistics
EPS (TTM)0.10
Shares Outstanding1,283,097,300
10 Day Avg. Volume11,984,020
30 Day Avg. Volume12,322,706
Financial Highlights & Ratios
PEG Ratio-0.21
Price to Book (P/B)0.64
Price to Sales (P/S)0.56
P/FCF Ratio6.87
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue0.12
Enterprise Value/Gross Profit1.00
Enterprise Value/Ebitda0.93
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Gerdau SA Business Overview & Revenue Model
Company DescriptionGerdau SA (GGB) is a leading Brazilian steel manufacturer and one of the largest in the Americas, with operations spanning several countries. The company specializes in producing long steel products, flat steel products, and special steel, catering primarily to the construction, automotive, and industrial sectors. Gerdau operates numerous steel mills and service centers, focusing on sustainability and innovation to enhance its production processes and product offerings.
How the Company Makes MoneyGerdau generates revenue primarily through the sale of steel products, including reinforcing bars, wire rods, and flat steel. The company benefits from a diverse portfolio that addresses various market segments, such as construction, automotive, and manufacturing. Key revenue streams include domestic sales in Brazil as well as exports to international markets. Additionally, Gerdau has established strategic partnerships with construction firms and automotive manufacturers to secure long-term contracts, which provide stable income. The company also invests in recycling operations, which not only bolster its sustainability initiatives but also lower production costs, thereby enhancing profit margins. Economic cycles, infrastructure projects, and demand for steel in various industries significantly influence Gerdau's earnings.
Gerdau SA Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Neutral
Gerdau's earnings call reflected strong performance in North America and significant progress in sustainability and shareholder returns. However, challenges in the Brazilian market due to high import penetration and increased net debt slightly offset the positive aspects.Q2-2025 Updates
Positive Updates
Record Low GHG Emissions
Gerdau reported an average greenhouse gas emissions of 0.85 tonnes of CO2 per tonne of steel, the lowest in its historical series and less than half of the global average for the steel production sector.
North American Operations Performance
The North American operations posted the highest all-time share in results, representing 61% of consolidated EBITDA due to a strong recovery and favorable market conditions.
Adjusted EBITDA and Net Income Growth
Adjusted EBITDA was BRL 2.6 billion, 6.6% higher than the first quarter of 2025. Net income stood at BRL 864 million, up 14% compared to the previous quarter.
Successful Debt Issuance
Gerdau issued a USD 650 million bond maturing in 2035 and a 7-year debenture totaling BRL 1.4 billion, aimed at strengthening the cash flow and extending the average maturity of the company's debt.
Shareholder Returns
The company approved a dividend distribution of BRL 0.12 per share and continued its 2025 share buyback program, achieving a payout ratio of 90% in the second quarter.
Miguel Burnier Sustainable Mining Project
The project reached 72% completion and is expected to generate about BRL 1.1 billion a year once the ramp-up is finalized.
Negative Updates
Challenges in Brazilian Market
The Brazilian domestic market continued to be impacted by excessive imports, with an import penetration rate of 23.4%, leading to reduced investments in Brazil.
Increased Net Debt
Net debt increased from BRL 5 billion at the end of the previous year to BRL 9 billion in Q2, driven by shareholder returns and a significant CapEx program.
Operational Challenges at Ouro Branco
Production pace at Ouro Branco was affected by several interventions, leading to a nonrecurring impact on costs.
Company Guidance
During Gerdau's second-quarter 2025 results presentation, the company outlined several key metrics and guidance for upcoming periods. The North American operations were highlighted for their strong performance, contributing 61% of the consolidated EBITDA, marking a record share. Gerdau's adjusted EBITDA was BRL 2.6 billion, a 6.6% increase from the first quarter. The company also reported a net income of BRL 864 million, or BRL 0.43 per share, a 14% rise compared to the previous quarter. The leverage ratio stood at 0.85x net debt over EBITDA. Investment-wise, Gerdau allocated BRL 1.6 billion in capex during the quarter, primarily towards the Miguel Burnier sustainable mining project, which is 72% complete and expected to add 5.5 million tonnes of high-quality iron ore. Additionally, the company issued a USD 650 million bond and a 7-year debenture totaling BRL 1.4 billion to strengthen cash flow. For shareholder returns, Gerdau announced dividends of BRL 0.12 per share and continued its share buyback program, reaching 68% completion. The company plans to reduce future investments in Brazil due to challenges in the domestic market but will maintain its investment focus in North America.Gerdau SA Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
72
Positive
Cash Flow
58
Neutral
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Gerdau SA Technical Analysis
Positive
3.37
Price Trends
3.46
Positive
3.23
Positive
3.00
Positive
Market Momentum
0.07
Negative
57.31
Neutral
83.78
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GGB, the sentiment is Positive. The current price of 3.37 is below the 20-day moving average (MA) of 3.57, below the 50-day MA of 3.46, and above the 200-day MA of 3.00, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 57.31 is Neutral, neither overbought nor oversold. The STOCH value of 83.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GGB.
Gerdau SA Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
73 Outperform | $5.03B | 25.12 | 5.84% | ― | -16.81% | -67.68% | |
71 Outperform | $7.89B | 95.70 | 1.99% | 1.03% | -1.61% | -81.36% | |
68 Neutral | $7.43B | 12.94 | 4.80% | 7.02% | -16.69% | 585.38% | |
67 Neutral | $6.98B | 14.27 | 5.21% | 2.97% | -2.53% | -36.08% | |
54 Neutral | $7.36B | -3.80 | -27.16% | ― | -6.76% | -255.94% | |
54 Neutral | $2.31B | -8.53 | -10.50% | ― | -5.79% | -5.30% |
* Sector Average
GGB
Gerdau SA
3.67
0.66
21.93%
CLF
Cleveland-Cliffs
12.93
3.60
38.59%
CMC
Commercial Metals Company
70.00
21.16
43.33%
SIM
Grupo Simec SA De CV
29.59
3.11
11.74%
SID
Companhia Siderúrgica Nacional
1.73
0.20
13.07%
TX
Ternium SA
38.47
11.89
44.73%
Gerdau SA Corporate Events
Gerdau S.A. Completes $500M Bond Prepayment
Dec 2, 2025
On December 2, 2025, Gerdau S.A. announced that its subsidiary, GUSAP III LP, completed the financial settlement for the prepayment of bonds worth $500 million, originally set to mature in 2030. This move, which involved a total redemption amount of over $509 million, reflects Gerdau’s strategic financial management and may impact its financial operations and investor relations positively.
Gerdau S.A. Cancels Shares to Optimize Capital Structure
Oct 31, 2025
On October 30, 2025, Gerdau S.A. announced the cancellation of 283,900 common shares and 12,650,000 preferred shares, which will not affect the capital stock value. This adjustment aims to streamline the company’s share structure, with the updated share count to be formalized in a future Shareholders’ Meeting. This move could potentially enhance shareholder value and optimize the company’s capital management strategy.
Gerdau S.A. Announces $500 Million Bond Redemption
Oct 30, 2025
On October 30, 2025, Gerdau S.A. announced that its subsidiary, GUSAP III LP, has been authorized to redeem all bonds issued with a principal amount of $500 million, an interest rate of 4.25%, and a maturity date in 2030. The redemption process, referred to as the ‘Make-Whole’, is set to occur on December 2, 2025, and is expected to impact the company’s financial strategy by potentially reducing future interest obligations.
Gerdau S.A. Reports Stable Financial Performance as of September 2025
Oct 30, 2025
On October 30, 2025, Gerdau S.A. released its condensed consolidated interim financial statements for the period ending September 30, 2025. The financial report indicates a stable financial position with total assets slightly increasing to R$87.26 billion from R$86.81 billion at the end of 2024. The report highlights a rise in cash and cash equivalents, as well as an increase in trade accounts receivable, suggesting improved liquidity and operational efficiency. This financial stability may enhance Gerdau’s industry positioning and provide confidence to stakeholders regarding its financial health.
Gerdau S.A. Announces Reduced CAPEX Plan for 2026
Oct 1, 2025
On October 1, 2025, Gerdau S.A. announced its CAPEX investment plan for 2025 and 2026, with a notable reduction in the 2026 budget to R$ 4.7 billion from R$ 6.0 billion in 2025. This plan focuses on maintenance and competitiveness projects, aiming to enhance equipment longevity and improve production efficiency. The company emphasizes that these investments are contingent on market conditions and economic scenarios, highlighting the potential variability in actual outcomes.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.