GERDAU PN N1

Gerdau S.A. operates as a steel producer with segments including Brazil Business, North America Business, South America Business, and Special Steel Business. The company produces semi-finished products, common long rolled products, drawn products, and special steel products for various industries. It also offers flat products and resells flat steel products. Gerdau operates mines producing iron ore in Brazils Minas Gerais state. Products are sold through distributors, direct sales, and a retail network. The company was founded in 1901 and is headquartered in São Paulo, Brazil.

Overview

Sector

Steel

Target Price

34.5 BRL

Current Price

16.4 BRL

Potential

110%

Strengths

With an appreciation Potential of 103.00%, based on our fundamental analysis, it suggests the stock may be undervalued.
Current Price to Earnings Ratio (7.29) is lower than the sector mean (34.05).
Price to book ratio (0.57) is lower than the sector mean (0.94).
The company has low debt. Net Debt to EBITDA Ratio is 0.61 and it is lower than the sector mean.
EV/EBITDA (4.08) is lower than the sector mean (10.56).
EV/EBIT (6.25) is lower than the sector mean.
Price to free cash flow (6.12) is lower than the sector mean.

Weaknesses

Analysts expect revenues to decline in the coming year.

Key Financial Data

Indicator	Value
PER	7.3
EV/EBITDA	4.1
Price/Free Cash Flow'	6.2
ROIC	15.9%
Net Debt/EBITDA	0.6