Gerdau S.A. (GGB) AI Stock Analysis

Established in 1901 and headquartered in Sao Paulo, Brazil, Gerdau S.A. operates as a steel producer across the Americas. Its business is organized into four main divisions: Brazil Business, North America Business, South America Business, and Special Steel Business. The company provides a broad range of steel products for industries including construction, automotive, manufacturing, oil and gas, wind energy, mining, and rail. Offerings include semi-finished products such as billets and slabs, common long rolled products, drawn products, and specialized steel. Gerdau also operates three iron ore mines in the Brazilian state of Minas Gerais and distributes products via independent distributors, direct mill sales, and a dedicated retail network.

Gerdau's annual revenue rose from $78.35B in FY2021 to $82.41B in FY2022, before dropping 16.4% to $68.92B in FY2023 and 2.7% to $67.03B in FY2024. In FY2025, revenue increased 4.2% to $69.86B, reflecting a 5-year revenue CAGR of 9.8% from FY2020 to FY2025. Operating margin contracted from 25.6% in FY2021 to 8.0% in FY2025, while net income fell from $15.49B to $1.39B over the same period. For the trailing twelve months ending June 30, 2026, revenue was $69.54B with diluted EPS of $0.22. In the quarter ended June 30, 2026, quarterly revenue grew 2.0% year-over-year while quarterly earnings increased 73.5%.

As of June 30, 2026, Gerdau held $5.44B in cash and short-term investments against total debt of $15.17B, resulting in net debt of $9.73B. Total assets stood at $81.97B and shareholders' equity reached $53.54B, supported by a current ratio of 2.87 and a debt-to-equity ratio of 0.28. In FY2025, the company generated $7.99B in operating cash flow and $1.13B in free cash flow. Capital expenditures were $6.85B, while cash returns to shareholders included $1.17B in share buybacks and $1.29B in dividends paid.

At $5.02 per share, Gerdau trades at an enterprise value of $11.19B and a market cap of $9.85B. Its trailing P/E of 22.8x is above the 19.7x median of its US-listed Basic Materials peers, but its forward P/E of 6.2x trades at a discount to the peer median of 13.4x. Its price-to-sales of 0.1x and EV/EBITDA of 6.4x are also below peer medians of 1.8x and 10.5x, respectively. The stock's one-year return of 60.3% outperformed the S&P 500 (SPY) return of 16.8%, while its five-year return of 77.4% trailed the index's 83.0%.

Gerdau pays a quarterly dividend with an annualized forward payout of $0.18 per share, representing a 3.59% dividend yield. The payout ratio stands at 9.7%, and the company has paid dividends for 28 consecutive years. Its 5-year annualized dividend growth rate is 17.7%, and its most recent ex-dividend date was August 21, 2026.

Wall Street coverage includes 1 Strong Buy, 2 Buy, and 2 Hold ratings, with no Sell or Strong Sell ratings. The mean price target of $5.79 implies a 15.4% upside over the October 16, 2026 close of $5.02. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $2.88 on revenue of $70.67B. For FY2027, 3 analysts project EPS of $3.09 on revenue of $73.11B. Over the last four quarters, Gerdau recorded 0 EPS beats. The next earnings date is October 26, 2026.

This page is an AI-written research summary of Gerdau S.A. (GGB). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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