Gerdau (GGB) Stock Price, News & Analysis

Company Overview

Gerdau S.A., together with its subsidiaries, operates as a steel producer company. The company operates through Brazil Business, North America Business, South America Business, and Special Steel Business segments. It also provides 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; drawn products comprising barbed and barbless fence wires, galvanized wires, fences, concrete reinforcing wire mesh, nails, and clamps for manufacturing, construction, and agricultural industries; and special steel products used in auto parts, light and heavy vehicles, and agricultural machinery, as well as in the oil and gas, wind energy, machinery and equipment, mining and rail, and other markets. In addition, the company offers flat products, such as hot-rolled steel coils and heavy plates; and resells flat steel products. Further, it operates mines that produce iron ore located in the Brazilian state of Minas Gerais. The company sells its products through independent distributors, direct sales from the mills, and its retail network. Gerdau S.A. was founded in 1901 and is based in São Paulo, Brazil.

Key Stats

• Today's Range: $3.42 to $3.50
• 50-Day Range: $3.07 to $3.60
• 52-Week Range: $2.92 to $4.10
• Volume: 5.66 million shs
• Average Volume: 8.41 million shs
• Market Capitalization: $7.31 billion
• P/E Ratio: 7.56
• Dividend Yield: 5.77%
• Price Target: $5.00
• Consensus Rating: Buy

Gerdau Stock Analysis - MarketRank™

Gerdau scored higher than 81% of companies evaluated by MarketBeat, and ranked 59th out of 193 stocks in the basic materials sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.5 / 5
• Analyst Rating: Buy

Consensus Rating

Gerdau has received a consensus rating of Buy. The company's average rating score is 3.00, and is based on 2 buy ratings, no hold ratings, and no sell ratings.

Amount of Analyst Coverage

Gerdau has received no research coverage in the past 90 days.

Earnings and Valuation

• Score: 1.9 / 5
• Proj. Earnings Growth: -1.72%

Earnings Growth

Earnings for Gerdau are expected to decrease by -1.72% in the coming year, from $0.58 to $0.57 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Gerdau is 7.56, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 134.38.

Price to Earnings Ratio vs. Sector

The P/E ratio of Gerdau is 7.56, which means that it is trading at a less expensive P/E ratio than the Basic Materials sector average P/E ratio of about 118.21.

Price to Book Value per Share Ratio

Gerdau has a P/B Ratio of 0.74. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

Short Interest

• Score: 5.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

0.39% of the float of Gerdau has been sold short.

Short Interest Ratio / Days to Cover

Gerdau has a short interest ratio ("days to cover") of 0.6, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Gerdau has recently decreased by 22.78%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 2.5 / 5
• Dividend Strength: Moderate

Dividend Yield

Gerdau pays a meaningful dividend of 2.54%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Gerdau does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Gerdau is 43.48%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Gerdau will have a dividend payout ratio of 35.09% next year. This indicates that Gerdau will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

0.39% of the float of Gerdau has been sold short.

Short Interest Ratio / Days to Cover

Gerdau has a short interest ratio ("days to cover") of 0.6, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Gerdau has recently decreased by 22.78%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 2.7 / 5
• News Sentiment: 0.83

News Sentiment

Gerdau has a news sentiment score of 0.83. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.52 average news sentiment score of Basic Materials companies.

News Coverage This Week

MarketBeat has tracked 3 news articles for Gerdau this week, compared to 2 articles on an average week.

MarketBeat Follows

Only 3 people have added Gerdau to their MarketBeat watchlist in the last 30 days. This is a decrease of -25% compared to the previous 30 days.

Company Ownership

• Score: 0.0 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Gerdau insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 0.02% of the stock of Gerdau is held by insiders.

Percentage Held by Institutions

Only 1.49% of the stock of Gerdau is held by institutions.

GGB Stock Analysis - Frequently Asked Questions

How have GGB shares performed this year?

Gerdau's stock was trading at $4.0417 on January 1st, 2024. Since then, GGB stock has decreased by 14.3% and is now trading at $3.4650.
View the best growth stocks for 2024 here.

How were Gerdau's earnings last quarter?

Gerdau S.A. (NYSE:GGB) posted its earnings results on Sunday, October, 3rd. The basic materials company reported $1.56 EPS for the quarter, missing analysts' consensus estimates of $1.80 by $0.25. Gerdau had a trailing twelve-month return on equity of 7.86% and a net margin of 7.47%.

When did Gerdau's stock split?

Gerdau shares split on Tuesday, April 30th 2024. The 6-5 split was announced on Tuesday, April 30th 2024. The newly minted shares were distributed to shareholders after the closing bell on Tuesday, April 30th 2024. An investor that had 100 shares of stock prior to the split would have 120 shares after the split.

Who are Gerdau's major shareholders?

Gerdau's top institutional shareholders include FMR LLC (4.22%), Healthcare of Ontario Pension Plan Trust Fund (0.40%), Two Sigma Advisers LP (0.29%) and Rockefeller Capital Management L.P. (0.16%).

How do I buy shares of Gerdau?

Shares of GGB stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Gerdau own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Gerdau investors own include Bank of America (BAC), Ford Motor (F), Vale (VALE), Advanced Micro Devices (AMD), Cisco Systems (CSCO), NVIDIA (NVDA) and Tesla (TSLA).

Company Calendar

• Last Earnings: 10/03/2021
• Ex-Dividend for 8/27 Dividend: 8/13/2024
• Dividend Payable: 8/27/2024
• Today: 11/21/2024
• Ex-Dividend for 12/23 Dividend: 11/21/2024
• Dividend Payable: 12/23/2024
• Fiscal Year End: 12/31/2024
• Next Earnings (Estimated): 3/27/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Basic Materials
• Industry: Steel works, blast furnaces, & rolling & finishing mills
• Sub-Industry: Steel Works
• Current Symbol: NYSE:GGB
• CUSIP: N/A
• CIK: 1073404
• Web: www2.gerdau.com
• Phone: 551130946300
• Fax: 55-51-3323-2222
• Employees: 27,371
• Year Founded: N/A

Price Target and Rating

• Average Stock Price Target: $5.00
• High Stock Price Target: $5.00
• Low Stock Price Target: $5.00
• Potential Upside/Downside: +44.3%
• Consensus Rating: Buy
• Rating Score (0-4): 3.00
• Research Coverage: 2 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $0.46
• Trailing P/E Ratio: 7.56
• Forward P/E Ratio: 5.97
• P/E Growth: N/A
• Net Income: $1.50 billion
• Net Margins: 7.47%
• Pretax Margin: 9.13%
• Return on Equity: 7.86%
• Return on Assets: 5.28%

Debt

• Debt-to-Equity Ratio: 0.21
• Current Ratio: 2.98
• Quick Ratio: 1.53

Sales & Book Value

• Annual Sales: $64.92 billion
• Price / Sales: 0.11
• Cash Flow: $1.00 per share
• Price / Cash Flow: 3.45
• Book Value: $4.68 per share
• Price / Book: 0.74

Miscellaneous

• Outstanding Shares: 2,108,480,000
• Free Float: 2,108,058,000
• Market Cap: $7.31 billion
• Optionable: Optionable
• Beta: 1.75