Gerdau SA ADR (GGB) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Gerdau SA ADR stock (GGB) is currently trading at $3.50. Gerdau SA ADR PE ratio is 26.46. Gerdau SA ADR PS ratio (Price-to-Sales) is 0.10. Analyst consensus price target for GGB is $4.66. WallStSmart rates GGB as Sell.
- GGB PE ratio analysis and historical PE chart
- GGB PS ratio (Price-to-Sales) history and trend
- GGB intrinsic value — DCF, Graham Number, EPV models
- GGB stock price prediction 2025 2026 2027 2028 2029 2030
- GGB fair value vs current price
- GGB insider transactions and insider buying
- Is GGB undervalued or overvalued?
- Gerdau SA ADR financial analysis — revenue, earnings, cash flow
- GGB Piotroski F-Score and Altman Z-Score
- GGB analyst price target and Smart Rating
Gerdau SA ADR
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GGB Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Gerdau SA ADR (GGB)
GGB trades 394% above its Graham fair value of $0.88, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Gerdau SA ADR (GGB) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in price/sales, price/book. Concerns around peg ratio and return on equity. Mixed signals suggest waiting for clearer direction before acting.
Gerdau SA ADR (GGB) Key Strengths (3)
Paying less than $1 for every $1 of annual revenue
Trading below book value, meaning the market prices it less than net assets
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
Gerdau SA ADR (GGB) Areas to Watch (7)
Earnings declining -15.60%, profits shrinking
Very low returns on shareholder equity
Very expensive relative to growth, significant premium
Very thin margins with limited operational efficiency
Revenue growing slowly at 0.90% annually
Very thin margins, barely profitable
Low institutional interest, mostly retail-driven
Supporting Valuation Data
Gerdau SA ADR (GGB) Detailed Analysis Report
Overall Assessment
This company scores 42/100 in our Smart Analysis, earning a D grade. Out of 10 metrics analyzed, 3 register as strengths (avg 9.0/10) while 7 fall into concern territory (avg 1.9/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Price/Sales, Price/Book, Market Cap. Valuation metrics including Price/Sales (0.10), Price/Book (0.63) suggest the stock is attractively priced.
The Bear Case
The primary concerns are EPS Growth, Return on Equity, PEG Ratio. Some valuation metrics including PEG Ratio (90.95) suggest expensive pricing. Growth concerns include Revenue Growth at 0.90%, EPS Growth at -15.60%, which may limit upside. Profitability pressure is visible in Return on Equity at 2.53%, Operating Margin at 7.03%, Profit Margin at 1.99%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 2.53% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 0.90% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. EPS Growth and Return on Equity are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
GGB Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
GGB's Price-to-Sales ratio of 0.10x trades at a deep discount to its historical average of 0.41x (9th percentile). The current valuation is 96% below its historical high of 2.24x set in May 2008, and 143% above its historical low of 0.04x in Feb 2016. Over the past 12 months, the PS ratio has compressed from ~0.1x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for Gerdau SA ADR (GGB) · BASIC MATERIALS › STEEL
The Big Picture
Gerdau SA ADR is a strong growth company balancing expansion with improving profitability. Revenue reached 69.9B with 90% growth year-over-year. Profit margins are strong at 199.0%, reflecting pricing power and operational efficiency.
Key Findings
Revenue growing at 90% YoY, reaching 69.9B. This pace significantly outperforms most STEEL peers.
ROE of 253.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
What to Watch Next
Growth sustainability: can Gerdau SA ADR maintain 90%+ revenue growth, or will competition slow it down?
Dividend sustainability with a current yield of 3.3%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor STEEL industry trends, competitive moves, and regulatory changes that could impact Gerdau SA ADR.
Bottom Line
Gerdau SA ADR offers an attractive blend of growth (90% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Gerdau SA ADR(GGB)
NYSE
BASIC MATERIALS
STEEL
USA
Gerdau SA is a leading Brazilian steel manufacturer and a prominent player in the Americas’ long steel segment, notably recognized through its American Depositary Receipts (ADRs). The company excels in producing a diverse range of steel products, serving critical industries such as construction, automotive, and manufacturing. Gerdau is committed to innovation and sustainability, employing advanced technologies to optimize operations and reduce environmental impact. With its robust operational network and focus on quality, Gerdau is strategically positioned to capitalize on emerging growth opportunities within the global steel industry.