Gerdau SA (GGB) AI Stock Analysis

• Market Cap: $6.25B
• Dividend Yield: 3.29%
• Average Volume (3M): 17.62M
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.92
• Revenue Growth: -6.55%
• EPS Growth: -37.93%
• Country: US
• Employees: 30,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.08
• Shares Outstanding: 1,295,747,300
• 10 Day Avg. Volume: 24,475,428
• 30 Day Avg. Volume: 17,616,776
• PEG Ratio: -0.21
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 6.87
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 0.91
• Enterprise Value/Ebitda: 0.89
• 1Y Price Target: $3.50
• Price Target Upside: 7.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: $3.50 ▲(7.69% Upside)

Gerdau SA's overall stock score reflects a solid financial foundation with some challenges in growth and profitability. The strong performance in North America and attractive valuation are significant positives, while the Brazilian market challenges and increased net debt are concerns.

Gerdau SA Business Overview & Revenue Model

Company 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.

How the Company Makes Money

Gerdau generates revenue primarily through the sale of its steel products, which are sold to various industries, including construction, automotive, and manufacturing. The company has a diversified revenue model, with significant contributions from long steel products, flat steel products, and special steel segments. Key revenue streams include the sale of rebar, wire rod, and merchant bars, as well as flat rolled products used in various applications. Additionally, Gerdau benefits from strategic partnerships and collaborations with major industrial players and construction firms, which enhance its market reach and product demand. The company also engages in recycling operations, producing steel from scrap metal, which not only provides a cost-effective raw material source but also aligns with sustainability goals, adding to its profitability.

Gerdau SA Financial Statement Overview

Summary

Gerdau SA shows a stable financial position with some concerns. The income statement indicates pressures on profitability and growth, while the balance sheet is robust with controlled leverage. Cash flow management needs improvement, particularly in free cash flow generation.

Income Statement

Gerdau SA's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin and net profit margin have decreased compared to previous years, indicating pressure on profitability. Revenue growth has been inconsistent, with a slight increase in the TTM period following a decline in the previous year. The EBIT and EBITDA margins have also contracted, reflecting challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet remains relatively strong with a manageable debt-to-equity ratio, indicating prudent financial leverage. However, the return on equity has decreased over the years, suggesting reduced efficiency in generating profits from shareholders' equity. The equity ratio remains stable, highlighting a solid capital structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which could impact future investments and debt repayments. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has decreased, pointing to potential challenges in maintaining cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	69.10B	67.03B	68.92B	82.41B	78.35B	43.81B
Gross Profit	8.57B	9.20B	11.33B	18.75B	20.82B	5.93B
EBITDA	8.84B	9.39B	13.23B	19.69B	23.99B	8.36B
Net Income	3.27B	4.57B	7.50B	11.43B	15.49B	2.37B
Balance Sheet
Total Assets	86.85B	86.81B	74.89B	73.80B	73.81B	63.12B
Cash, Cash Equivalents and Short-Term Investments	8.97B	8.28B	5.34B	5.43B	6.79B	7.66B
Total Debt	19.52B	14.92B	12.20B	13.66B	14.98B	18.39B
Total Liabilities	31.73B	28.64B	25.65B	27.50B	31.00B	32.04B
Stockholders Equity	54.92B	57.95B	49.06B	46.12B	42.60B	30.86B
Cash Flow
Free Cash Flow	3.35B	5.43B	5.80B	6.67B	9.32B	4.60B
Operating Cash Flow	10.53B	11.38B	11.14B	11.15B	12.52B	6.41B
Investing Cash Flow	-8.44B	-5.03B	-5.77B	-4.46B	-3.00B	-2.23B
Financing Cash Flow	1.51B	-2.69B	-4.13B	-8.26B	-9.98B	-2.49B

Gerdau SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 3.25 is above the 20-day moving average (MA) of 3.18, above the 50-day MA of 3.09, and above the 200-day MA of 2.89, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 57.42 is Neutral, neither overbought nor oversold. The STOCH value of 70.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GGB.

Gerdau SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TX	73 Outperform	$6.93B	11.85	4.89%	7.65%	-16.83%	―
CMC	72 Outperform	$6.20B	74.80	1.99%	1.30%	-5.64%	-93.26%
GGB	71 Outperform	$6.25B	11.62	5.77%	3.29%	-6.55%	-37.93%
SIM	65 Neutral	$4.61B	12.62	10.49%	―	-18.58%	-35.32%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SID	53 Neutral	$2.06B	―	-15.57%	14.80%	-10.77%	-192.16%
CLF	52 Neutral	$6.71B	―	-25.79%	―	-12.14%	-4329.00%

Gerdau SA Corporate Events

Gerdau S.A. Announces Reduced CAPEX Plan for 2026

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.

Gerdau S.A. Reports Strong Q2 2025 Results Amid Market Challenges

Gerdau S.A. reported its second-quarter 2025 results, highlighting a 6.6% increase in adjusted EBITDA to R$2.6 billion compared to the first quarter, driven by strong performance in North America, which contributed 61% of the consolidated EBITDA. Despite challenges in Brazil due to high steel imports and market competition, Gerdau’s geographic diversification proved advantageous. The company announced dividends of R$239.5 million and continued its share buyback program, repurchasing 43.8 million shares. Gerdau also focused on sustainability, achieving the lowest greenhouse gas emissions in its history and progressing on key projects like the Itabiritos Project and Ouro Branco’s hot-rolled coil production.

Gerdau S.A. Releases Interim Financial Statements for June 2025

On July 31, 2025, Gerdau S.A. released its condensed consolidated interim financial statements for the period ending June 30, 2025. The financial report highlights a slight increase in total assets compared to December 31, 2024, indicating stable financial health. The report also shows changes in current and non-current liabilities, reflecting the company’s ongoing financial strategies. These updates provide stakeholders with insights into Gerdau’s operational efficiency and financial positioning within the steel industry.