Gerdau Stock Analysis, Valuation (NYSE:GGB)

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$3.96 $0.04 (1.02%) GGB stock closing price Aug 17, 2018 (Closing)

Watch the robo advisor video of Gerdau stock analysis on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for GGB stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Gerdau SA (ADR) Stock Rating 2.1/5

Amigobulls GGB stock analysis uses latest quarter 2018 Q2 financial data like Gerdau revenue growth, profit margins and cash flows. We also use relative valuation metrics like PE ratio and price to sales ratio for Gerdau valuation analysis. Based on a company's historical fundamentals we arrive at Gerdau stock rating which is indicative of the company's financial performance.

Should you buy GGB stock?

  • GGB stock is trading at a favorable price to sales multiple of 0.5 as against the Basic Materials sector average multiple of 1.3.

Should you sell GGB stock?

  • Sales declined by -7.2 annually over the last 5 years.
  • Gerdau had a poor average operating margin of 3.45 over the last 4 quarters.
  • Gerdau posted an average Net loss of -0.4% in the last twelve months.
  • Gerdau has a negative ROE (Return On Equity) of -0.7, indicating the company is not profitable.

Comments on this video and Gerdau stock

Amigobulls Gerdau stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of GGB stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Gerdau revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.