# Gerdau S.A. (GGB) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Basic Materials / Metals & Mining. Price $4.97, market value $9.8 billion.

## Valuation
- **P/E (trailing): 21.6×** (5-yr avg 0.5×). Gerdau S.A. trades at 21.6× trailing earnings, well above its own five-year average of 0.5×: investors are paying up relative to the company's past. The Basic Materials median in the September 2026 study was 19.0×. Forward P/E is 8.4×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.7×**. Each dollar of revenue is priced at 0.7×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 0.9×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **Free-cash-flow yield: 7.1%**. Free cash flow equals 7.1% of the market value. Above 5% is generally attractive.
- **Earnings yield: 4.6%**. The inverse of the P/E: 4.6% of the price is earned each year.

## Profitability
- **Gross margin: 13.1%**. Gerdau S.A. keeps 13.1% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 9.8%**. 9.8% of revenue is left after running the business.
- **Net margin: 2.0%**. 2.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 2.6%**. 2.6% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on assets: 2.8%**. Each dollar of assets produces 2.8% of profit.

## Growth
- **Revenue growth (1 yr): 4.2%** (3-yr -5.4%/yr, 5-yr 9.8%/yr). Revenue grew 4.2% over the last year, against 9.8% a year compounded over five years: growth is slowing.
- **Free-cash-flow growth (3 yr): -42.5%/yr**. Free cash flow has compounded at -42.5% a year over three years.

## Financial health
- **Interest coverage: 4.5×**. Operating profit covers interest 4.5× over, a safe margin.
- **Current ratio: 2.89** (quick 2.89). Current assets cover the next year's liabilities 2.89 times.
- **Altman Z-score: 2.41**. A Z-score of 2.41 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.02%** ($0.15 per share, trailing). Gerdau S.A. yields 3.02%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 91%** (39% of free cash flow). 91% of earnings goes out as dividends, leaving a thin cushion.
- **Dividend growth (5 yr): 17.6%/yr** (1-yr -23.0%). The dividend has compounded at 17.6% a year over five years, doubling roughly every 4 years at that pace.
- **Shareholder yield: 4.4%**. Dividends plus net buybacks return 4.4% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (5 analysts). 5 analysts cover Gerdau S.A.; the consensus is buy, with an average price target of $5.53 (+11% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 63.5%** (YTD 36.4%, 3-mo 8.3%). The shares are up 63.5% over twelve months including dividends.
- **From 52-week high: -4.1%** (64.0% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 62**. An RSI of 62 is neutral.
- **Beta (1 yr): 1.20** (volatility 35%). Beta of 1.20 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=GGB · Page: https://foliofundamentals.com/stocks/ggb

Not investment advice.