Is Gerdau SA Stock a Good Investment?
Gerdau SA Investment Advice | GGB |
- Examine Gerdau SA's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Gerdau SA's leadership team and their track record. Good management can help Gerdau SA navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Metals & Mining space and any emerging trends that could impact Gerdau SA's business and its evolving consumer preferences.
- Compare Gerdau SA's performance and market position to its competitors. Analyze how Gerdau SA is positioned in terms of product offerings, innovation, and market share.
- Check if Gerdau SA pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Gerdau SA's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Gerdau SA ADR stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Gerdau SA ADR is a good investment.
Sell | Buy |
Hold
Market Performance | Weak | Details | |
Volatility | Slightly risky | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Gerdau SA Stock
Researching Gerdau SA's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 25.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 0.74. Some equities with similar Price to Book (P/B) outperform the market in the long run. Gerdau SA ADR last dividend was issued on the 21st of November 2024. The entity had 6:5 split on the 18th of April 2024.
To determine if Gerdau SA is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Gerdau SA's research are outlined below:
| Latest headline from investing.com: Gerdau reports updates to foreign private issuer status |
Gerdau SA Quarterly Cost Of Revenue |
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Gerdau SA uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Gerdau SA ADR. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Gerdau SA's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 20th of February 2024 Upcoming Quarterly Report | View | |
| 1st of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 20th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Gerdau SA's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Gerdau SA's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2003-07-29 | 2003-06-30 | 0.06 | 0.07 | 0.01 | 16 | ||
1999-08-06 | 1999-06-30 | 0.03 | 0.02 | -0.01 | 33 | ||
2024-05-02 | 2024-03-31 | 0.09 | 0.11 | 0.02 | 22 | ||
2016-05-05 | 2016-03-31 | 0.03 | 0.01 | -0.02 | 66 | ||
2016-03-15 | 2015-12-31 | -0.04 | -0.02 | 0.02 | 50 | ||
2003-01-29 | 2002-12-31 | 0.08 | 0.06 | -0.02 | 25 | ||
2002-07-18 | 2002-06-30 | 0.07 | 0.05 | -0.02 | 28 | ||
2019-10-31 | 2019-09-30 | 0.2 | 0.17 | -0.03 | 15 |
Know Gerdau SA's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Gerdau SA is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Gerdau SA ADR backward and forwards among themselves. Gerdau SA's institutional investor refers to the entity that pools money to purchase Gerdau SA's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Two Sigma Investments Llc | 2024-06-30 | 3.7 M | Bank Of America Corp | 2024-06-30 | 3.4 M | Rockefeller Capital Management L.p. | 2024-06-30 | 3.3 M | Grantham, Mayo, Van Otterloo & Co., Llc | 2024-09-30 | 3.2 M | Vanguard Group Inc | 2024-09-30 | 3.2 M | American Century Companies Inc | 2024-09-30 | 3.2 M | State Street Corp | 2024-06-30 | 2.8 M | Causeway Capital Management Llc | 2024-09-30 | 2.7 M | New York State Common Retirement Fund | 2024-09-30 | 2.5 M | Fmr Inc | 2024-09-30 | 89 M | Capital Research & Mgmt Co - Division 3 | 2024-09-30 | 77.4 M |
Gerdau SA's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 7 B.Market Cap |
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Gerdau SA's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.12 | 0.07 | |
| Return On Capital Employed | 0.14 | 0.14 | |
| Return On Assets | 0.10 | 0.07 | |
| Return On Equity | 0.15 | 0.17 |
Determining Gerdau SA's profitability involves analyzing its financial statements and using various financial metrics to determine if Gerdau SA is a good buy. For example, gross profit margin measures Gerdau SA's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Gerdau SA's profitability and make more informed investment decisions.
Please note, the presentation of Gerdau SA's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Gerdau SA's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Gerdau SA's management manipulating its earnings.
Evaluate Gerdau SA's management efficiency
Gerdau SA ADR has Return on Asset of 0.049 % which means that on every $100 spent on assets, it made $0.049 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0915 %, implying that it generated $0.0915 on every 100 dollars invested. Gerdau SA's management efficiency ratios could be used to measure how well Gerdau SA manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Equity is expected to grow to 0.17, whereas Return On Tangible Assets are forecasted to decline to 0.07. At present, Gerdau SA's Non Currrent Assets Other are projected to increase significantly based on the last few years of reporting. The current year's Other Current Assets is expected to grow to about 3.9 B, whereas Total Assets are forecasted to decline to about 47.1 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 28.16 | 29.56 | |
| Tangible Book Value Per Share | 21.75 | 22.84 | |
| Enterprise Value Over EBITDA | 3.43 | 3.26 | |
| Price Book Value Ratio | 0.68 | 0.65 | |
| Enterprise Value Multiple | 3.43 | 3.26 | |
| Price Fair Value | 0.68 | 0.65 | |
| Enterprise Value | 42.6 B | 40.5 B |
At Gerdau SA ADR, effective management practices are pivotal to sustaining long-term profitability. We delve into financial metrics and market conditions to provide a comprehensive analysis of the stock's prospects.
Dividend Yield 0.0433 | Forward Dividend Yield 0.0433 | Forward Dividend Rate 0.15 | Beta 1.342 |
Basic technical analysis of Gerdau Stock
As of the 23rd of November, Gerdau SA retains the Risk Adjusted Performance of 0.033, downside deviation of 2.03, and Market Risk Adjusted Performance of 0.057. Gerdau SA technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices.Gerdau SA's Outstanding Corporate Bonds
Gerdau SA issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Gerdau SA ADR uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Gerdau bonds can be classified according to their maturity, which is the date when Gerdau SA ADR has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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| International Game Technology Corp BondUS460599AD57 | View |
Understand Gerdau SA's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Gerdau SA's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.033 | |||
| Market Risk Adjusted Performance | 0.057 | |||
| Mean Deviation | 1.57 | |||
| Semi Deviation | 1.81 | |||
| Downside Deviation | 2.03 | |||
| Coefficient Of Variation | 2935.14 | |||
| Standard Deviation | 2.43 | |||
| Variance | 5.93 | |||
| Information Ratio | (0.02) | |||
| Jensen Alpha | (0.11) | |||
| Total Risk Alpha | (0.31) | |||
| Sortino Ratio | (0.02) | |||
| Treynor Ratio | 0.047 | |||
| Maximum Drawdown | 16.26 | |||
| Value At Risk | (3.68) | |||
| Potential Upside | 3.44 | |||
| Downside Variance | 4.14 | |||
| Semi Variance | 3.27 | |||
| Expected Short fall | (1.94) | |||
| Skewness | 2.04 | |||
| Kurtosis | 10.03 |
| Risk Adjusted Performance | 0.033 | |||
| Market Risk Adjusted Performance | 0.057 | |||
| Mean Deviation | 1.57 | |||
| Semi Deviation | 1.81 | |||
| Downside Deviation | 2.03 | |||
| Coefficient Of Variation | 2935.14 | |||
| Standard Deviation | 2.43 | |||
| Variance | 5.93 | |||
| Information Ratio | (0.02) | |||
| Jensen Alpha | (0.11) | |||
| Total Risk Alpha | (0.31) | |||
| Sortino Ratio | (0.02) | |||
| Treynor Ratio | 0.047 | |||
| Maximum Drawdown | 16.26 | |||
| Value At Risk | (3.68) | |||
| Potential Upside | 3.44 | |||
| Downside Variance | 4.14 | |||
| Semi Variance | 3.27 | |||
| Expected Short fall | (1.94) | |||
| Skewness | 2.04 | |||
| Kurtosis | 10.03 |
Consider Gerdau SA's intraday indicators
Gerdau SA intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Gerdau SA stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Gerdau SA Corporate Filings
6K | 21st of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
13A | 12th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
| 23rd of September 2024 Other Reports | ViewVerify | |
| 13th of August 2024 Other Reports | ViewVerify |
Gerdau Stock media impact
Far too much social signal, news, headlines, and media speculation about Gerdau SA that are available to investors today. That information is available publicly through Gerdau media outlets and privately through word of mouth or via Gerdau internal channels. However, regardless of the origin, that massive amount of Gerdau data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Gerdau SA news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Gerdau SA relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Gerdau SA's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Gerdau SA alpha.
Gerdau SA Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Gerdau SA can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Gerdau SA Corporate Directors
| Clemir Uhlein | Accounting Director | Profile | |
| Claudia Ramirez | Independent Director | Profile | |
| Richard Johannpeter | Independent Director | Profile | |
| Fernando Iunes | Independent Director | Profile |
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Gerdau SA ADR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Is Metals & Mining space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Gerdau SA. If investors know Gerdau will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Gerdau SA listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.14) | Dividend Share 0.783 | Earnings Share 0.39 | Revenue Per Share 30.909 | Quarterly Revenue Growth 0.018 |
The market value of Gerdau SA ADR is measured differently than its book value, which is the value of Gerdau that is recorded on the company's balance sheet. Investors also form their own opinion of Gerdau SA's value that differs from its market value or its book value, called intrinsic value, which is Gerdau SA's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Gerdau SA's market value can be influenced by many factors that don't directly affect Gerdau SA's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Gerdau SA's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Gerdau SA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Gerdau SA's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.