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Upturn AI SWOT - About
Gerdau SA ADR (GGB)
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Upturn Advisory Summary
04/01/2025: GGB (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -51.29% | Avg. Invested days 25 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 5.61B USD | Price to earnings Ratio 7.68 | 1Y Target Price 4.16 |
Price to earnings Ratio 7.68 | 1Y Target Price 4.16 | ||
Volume (30-day avg) 10688472 | Beta 1.26 | 52 Weeks Range 2.65 - 3.88 | Updated Date 04/2/2025 |
52 Weeks Range 2.65 - 3.88 | Updated Date 04/2/2025 | ||
Dividends yield (FY) 4.93% | Basic EPS (TTM) 0.38 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 6.81% | Operating Margin (TTM) 5.37% |
Management Effectiveness
Return on Assets (TTM) 4.87% | Return on Equity (TTM) 8.56% |
Valuation
Trailing PE 7.68 | Forward PE 7.13 | Enterprise Value 6758226325 | Price to Sales(TTM) 0.08 |
Enterprise Value 6758226325 | Price to Sales(TTM) 0.08 | ||
Enterprise Value to Revenue 0.58 | Enterprise Value to EBITDA 4.15 | Shares Outstanding 1313920000 | Shares Floating 1331678628 |
Shares Outstanding 1313920000 | Shares Floating 1331678628 | ||
Percent Insiders 0.01 | Percent Institutions 25.5 |
Analyst Ratings
Rating 4.4 | Target Price 4.11 | Buy 3 | Strong Buy 2 |
Buy 3 | Strong Buy 2 | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Gerdau SA ADR
Company Overview
History and Background
Gerdau S.A. was founded in 1901 in Brazil as a nail factory. It has evolved into a major steel producer in the Americas, with operations in various countries. It has expanded through organic growth and strategic acquisitions, becoming a leading player in the global steel industry.
Core Business Areas
- Steel Production: Manufactures a wide range of steel products, including long steel, special steel, and flat steel.
- Steel Distribution: Distributes steel products through a network of service centers and distributors.
- Recycling: Operates recycling facilities that process scrap metal for use in steel production.
Leadership and Structure
Gerdau's leadership team consists of experienced executives in the steel industry. The organizational structure is hierarchical, with a board of directors overseeing the management team.
Top Products and Market Share
Key Offerings
- Long Steel: Includes products like rebar, wire rod, and structural steel. Gerdau holds a significant market share in long steel products in North and South America. Competitors include Nucor (NUE) and Commercial Metals Company (CMC). Estimated revenue from long steel is approximately 70% of Gerdau's total revenue.
- Special Steel: Specialty steel products for automotive, energy, and industrial applications. Market share varies by region and application. Competitors include TimkenSteel (TMST) and Carpenter Technology (CRS). Revenue generated from Special Steel is approximately 20% of Gerdau's total revenue.
Market Dynamics
Industry Overview
The steel industry is cyclical and heavily influenced by global economic conditions, infrastructure spending, and automotive production. Demand for steel is currently stable but faces potential headwinds from rising interest rates and inflation.
Positioning
Gerdau is a leading steel producer in the Americas, with a strong presence in both North and South America. It benefits from its diversified product portfolio and geographic reach.
Total Addressable Market (TAM)
The global steel market is estimated at over $1 trillion annually. Gerdau's TAM is significant, particularly in the long steel and special steel segments within the Americas.
Upturn SWOT Analysis
Strengths
- Strong market position in the Americas
- Diversified product portfolio
- Integrated operations (steel production, distribution, recycling)
- Efficient production processes
- Experienced management team
Weaknesses
- Exposure to volatile steel prices
- Dependence on economic cycles
- High debt levels compared to competitors
- Labor costs in certain regions
- Environmental regulations affecting operations
Opportunities
- Infrastructure development in emerging markets
- Increased demand for high-strength steel in automotive industry
- Expansion into new geographic markets
- Strategic acquisitions
- Investments in renewable energy and green steel production
Threats
- Global economic slowdown
- Increased competition from low-cost producers
- Trade barriers and tariffs
- Fluctuations in raw material prices (iron ore, scrap)
- Geopolitical instability
Competitors and Market Share
Key Competitors
- NUE
- CMC
- STLD
Competitive Landscape
Gerdau competes with major steel producers like Nucor and Commercial Metals Company, but distinguishes itself through its strong presence in South America and its recycling operations.
Major Acquisitions
Seaton Corp
- Year: 2022
- Acquisition Price (USD millions): 93
- Strategic Rationale: Expanded Gerdau's downstream services and distribution capabilities in North America.
Growth Trajectory and Initiatives
Historical Growth: Gerdau's growth has been driven by acquisitions, organic expansion, and increased demand for steel in the Americas.
Future Projections: Analyst estimates vary, but generally project moderate revenue growth driven by infrastructure spending and automotive production. Earnings growth will depend on steel prices and cost management.
Recent Initiatives: Focusing on reducing carbon emissions, investing in new technologies to increase production efficiency, and expanding into new markets.
Summary
Gerdau is a strong steel producer with a diversified portfolio and a major presence in the Americas. The company benefits from its recycling operations and integrated supply chain, but faces exposure to volatile steel prices and economic cycles. Gerdau is focusing on reducing emissions and expanding into new markets, which should drive future growth. The company needs to carefully manage its debt levels and adapt to changing environmental regulations to remain competitive.
Similar Companies
BHP
BHP Group Limited
BHP
BHP Group Limited
CMC
Commercial Metals Company
CMC
Commercial Metals Company
NUE
Nucor Corp
NUE
Nucor Corp
RIO
Rio Tinto ADR
RIO
Rio Tinto ADR
STLD
Steel Dynamics Inc
STLD
Steel Dynamics Inc
Sources and Disclaimers
Data Sources:
- Company Filings
- Industry Reports
- Analyst Estimates
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered investment advice. Market conditions are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Gerdau SA ADR
Exchange NYSE | Headquaters São Paulo, SP, Brazil | ||
IPO Launch date 1999-03-10 | Member of Board of Executive Officers, CEO & Director Mr. Gustavo Werneck Da Cunha | ||
Sector Basic Materials | Industry Steel | Full time employees 30000 | Website https://www2.gerdau.com |
Full time employees 30000 | Website https://www2.gerdau.com | ||
Gerdau S.A., together with its subsidiaries, operates as a steel producer company. The company operates through Brazil Business, North America Business, South America Business, and Special Steel Business segments. It also provides semi-finished products, including billets, blooms, and slabs; common long rolled products, such as rebars, wire rods, merchant bars, light shapes, and profiles to the construction and manufacturing industries; drawn products comprising barbed and barbless fence wires, galvanized wires, fences, concrete reinforcing wire mesh, nails, and clamps for manufacturing, construction, and agricultural industries; and special steel products used in auto parts, light and heavy vehicles, and agricultural machinery, as well as in the oil and gas, wind energy, machinery and equipment, mining and rail, and other markets. In addition, the company offers flat products, such as hot-rolled steel coils and heavy plates; and resells flat steel products. Further, it operates mines that produce iron ore located in the Brazilian state of Minas Gerais. The company sells its products through independent distributors, direct sales from the mills, and its retail network. Gerdau S.A. was founded in 1901 and is based in São Paulo, Brazil.
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