About GERDAU S.A.
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. Gerdau S.A. is a subsidiary of Metalúrgica Gerdau S.A.
GGB operates in the Manufacturing | Steel Works | approximately 30,000 employees | led by CEO Gustavo Werneck da Cunha.
$2.0 billion 3.8x P/E 0.2x P/B 1.8x EV/EBITDA 7.6% ROE -23.7% rev. growth 5.1% yield
GERDAU S.A. earns a Buy rating from our quantitative model with a composite score of 74/100, ranking #27 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is value at 98/100, which places GGB in the top 2 percent of all stocks on this measure. stability at 79/100 provides secondary support. No single factor falls below the average threshold, which is a constructive sign.
Within the Manufacturing sector, GGB ranks 13th out of 50 peers, placing it in the 74th percentile. At $2.0 billion, the company is a mid-cap name with room to grow.
Quality Analysis
GERDAU S.A.'s quality score of 76/100 reflects solid profitability that ranks above the majority of stocks. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 7.6% exceeds the sector median of -2.0%. Gross margins of 13.7% suggest a commodity-like business with thin pricing power. Operating margins of 9.2% sit above the 3.0% sector average.
Net margins of 6.9% show the company is profitable, though not with exceptional efficiency.
Valuation Assessment
A value score of 98/100 puts GGB in the top 2 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 3.8x, an EV/EBITDA of 1.8x, a price-to-book of 0.2x, a price-to-sales of 0.2x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
A momentum score of 68/100 shows GGB is trending above average, with its stock price outperforming the majority of the market. This is not explosive, meme-stock-style momentum — it is the gradual, fundamental-driven kind that tends to persist.
Revenue growth of -23.7% is declining, which makes the momentum signal more precarious. A beta of 1.01 means GERDAU S.A. moves roughly in line with the broader market.
Our entry timing model currently signals Favorable, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support GERDAU S.A.'s rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
GERDAU S.A. earns a Buy rating with a composite score of 74/100 and 4 out of 5 stars, ranking #27 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position GGB above the majority of the market.
Explore the full GGB analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
