Gerdau S.A. (GGBR4.SA) stock analysis

In our weekly check, Gerdau S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 5, red flags: 5.

About Gerdau S.A.

Gerdau S.A. is a Basic Materials company (Steel) based in Brazil, listed on SAO as GGBR4.SA.

What our checks show for GGBR4.SA

Red flags

• The net margin fell by 15.9 points over 5 years, to 3.9%: the company keeps less of each sale as profit.
• The gross margin fell by 11.9 points, to 14.7%: costs are rising faster than prices.
• Revenue fell 5.2% a year over the last 3 years.
• The net margin is only 3.9%: little room if costs rise.
• The stock has fallen as much as 92% from a peak. Would you have held through that?

Warning signs

• Analysts expect only about 3.3% a year of growth in revenue.
• Earnings per share fell 40.2% a year over the last 3 years.
• Net profit fell 38.1% a year over the last 3 years.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 8.3%.

Strengths

• Net debt is only 1x a year of EBITDA: the balance sheet has room.
• Operating cash flow is 3.25x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 43.8% a year over the next years.
• Analysts expect the net margin to improve by 4.5 points from today's 3.9%.
• Actively traded: about 11 million shares a day.
• Pay in shares is only 0% of free cash flow.

Similar companies

CLF · TX · CMC · CRS · RS · STLD

Questions

What grade does Gerdau S.A. (GGBR4.SA) have?

In our weekly check, Gerdau S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 5, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of GGBR4.SA stock?

This week's biggest flags for Gerdau S.A.: Margins falling, Gross margin falling, Weak revenue growth. In total 10 of 25 checks show a warning or a red flag.

What does Gerdau S.A. do?

Gerdau S.A. is a Basic Materials company (Steel) based in Brazil, listed on SAO as GGBR4.SA.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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