Financials Gerdau S.A. Sao Paulo

Equities

GGBR3

BRGGBRACNOR1

Iron & Steel

Market Closed - Sao Paulo Other stock markets 01:37:00 21/05/2024 am IST			5-day change	1st Jan Change
17.02 ^BRL	+0.56%		-2.18%	-4.38%

03/05	Transcript : Gerdau S.A., Q1 2024 Earnings Call, May 03, 2024
03/05	Gerdau S.A. Reports Earnings Results for the First Quarter Ended March 31, 2024	CI

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	32,297	39,208	43,755	46,237	40,123	38,848	-	-
Enterprise Value (EV) ¹	42,052	49,065	51,008	53,410	45,671	43,118	42,139	42,389
P/E ratio	28.6 x	17.7 x	3.02 x	4.37 x	5.58 x	7.18 x	7.6 x	7.76 x
Yield	1.05%	1.72%	11.5%	13%	6.36%	4.17%	4.64%	4.55%
Capitalization / Revenue	0.81 x	0.89 x	0.56 x	0.56 x	0.58 x	0.59 x	0.58 x	0.56 x
EV / Revenue	1.06 x	1.12 x	0.65 x	0.65 x	0.66 x	0.65 x	0.63 x	0.61 x
EV / EBITDA	7.36 x	6.38 x	2.2 x	2.48 x	3.38 x	3.87 x	3.72 x	3.66 x
EV / FCF	9.56 x	10.3 x	5.37 x	7.79 x	7.7 x	15.4 x	11.6 x	11.6 x
FCF Yield	10.5%	9.7%	18.6%	12.8%	13%	6.48%	8.59%	8.65%
Price to Book	1.26 x	1.36 x	1.1 x	1.06 x	0.56 x	0.75 x	0.72 x	0.69 x
Nbr of stocks (in thousands)	21,38,840	21,43,463	21,49,034	21,02,851	20,99,197	20,99,427	-	-
Reference price ²	15.87	19.40	21.63	23.31	19.80	19.28	19.28	19.28
Announcement Date	19/02/20	24/02/21	23/02/22	01/03/23	20/02/24	-	-	-

¹BRL in Million²BRL

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	39,644	43,815	78,345	82,412	68,916	66,366	67,148	69,390
EBITDA ¹	5,712	7,690	23,222	21,508	13,502	11,132	11,341	11,592
EBIT ¹	3,184	5,194	21,023	17,751	10,453	7,618	7,354	7,499
Operating Margin	8.03%	11.86%	26.83%	21.54%	15.17%	11.48%	10.95%	10.81%
Earnings before Tax (EBT) ¹	1,675	3,496	20,273	15,859	9,347	7,214	6,835	7,085
Net income ¹	1,217	2,388	15,559	11,426	7,537	5,824	5,324	5,239
Net margin	3.07%	5.45%	19.86%	13.86%	10.94%	8.78%	7.93%	7.55%
EPS ²	0.5556	1.095	7.175	5.333	3.550	2.685	2.536	2.483
Free Cash Flow ¹	4,400	4,757	9,491	6,858	5,930	2,794	3,621	3,666
FCF margin	11.1%	10.86%	12.11%	8.32%	8.6%	4.21%	5.39%	5.28%
FCF Conversion (EBITDA)	77.03%	61.86%	40.87%	31.89%	43.92%	25.1%	31.93%	31.63%
FCF Conversion (Net income)	361.58%	199.21%	61%	60.03%	78.67%	47.98%	68.02%	69.98%
Dividend per Share ²	0.1667	0.3333	2.492	3.025	1.258	0.8036	0.8948	0.8772
Announcement Date	19/02/20	24/02/21	23/02/22	01/03/23	20/02/24	-	-	-

¹BRL in Million²BRL

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2021 Q4	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4	2025 Q1
Net sales ¹	21,555	20,330	22,968	21,149	17,964	18,872	18,265	17,063	14,716	16,210	17,514	18,000	15,363	18,000
EBITDA ¹	5,983	5,827	6,680	5,369	3,630	4,341	3,792	3,349	2,039	2,813	3,160	3,288	2,274	2,857
EBIT ¹	4,514	5,014	5,791	4,463	2,485	4,292	2,885	2,384	891.2	2,752	2,329	2,457	1,444	1,985
Operating Margin	20.94%	24.66%	25.21%	21.1%	13.83%	22.74%	15.79%	13.97%	6.06%	16.98%	13.3%	13.65%	9.4%	11.03%
Earnings before Tax (EBT) ¹	3,898	4,510	5,430	3,932	1,987	4,242	2,462	-	735.7	2,277	2,146	2,316	1,318	1,857
Net income ¹	3,560	2,940	4,298	3,022	1,208	3,206	2,136	1,592	587	2,053	1,503	1,621	922.5	1,300
Net margin	16.52%	14.46%	18.71%	14.29%	6.72%	16.99%	11.69%	9.33%	3.99%	12.66%	8.58%	9.01%	6%	7.22%
EPS ²	1.611	1.357	1.984	1.413	0.5873	1.517	1.008	0.7500	0.2750	0.9700	0.6190	0.6259	0.5512	-
Dividend per Share ²	0.1587	0.4524	0.5635	1.706	0.1667	0.4250	0.3583	-	0.0833	-	0.2799	0.2319	0.2319	0.1839
Announcement Date	23/02/22	05/05/22	03/08/22	09/11/22	01/03/23	03/05/23	08/08/23	06/11/23	20/02/24	02/05/24	-	-	-	-

¹BRL in Million²BRL

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	9,755	9,857	7,253	7,173	5,548	4,270	3,291	3,541
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	1.708 x	1.282 x	0.3123 x	0.3335 x	0.4109 x	0.3836 x	0.2902 x	0.3055 x
Free Cash Flow ¹	4,400	4,757	9,491	6,858	5,930	2,794	3,621	3,666
ROE (net income / shareholders' equity)	4.92%	8.33%	37.8%	26.1%	15.8%	10.8%	9.25%	8.53%
ROA (Net income/ Total Assets)	2.46%	4.08%	22.7%	15.7%	10.1%	8.3%	7.86%	7.47%
Assets ¹	49,463	58,562	68,469	72,728	74,344	70,166	67,708	70,187
Book Value Per Share ²	12.60	14.30	19.70	22.00	35.60	25.80	26.60	28.10
Cash Flow per Share	0.7500	2.940	5.800	5.210	8.010	-	5.690	5.050
Capex ¹	1,747	1,651	3,026	4,292	5,209	6,088	5,557	5,175
Capex / Sales	4.41%	3.77%	3.86%	5.21%	7.56%	9.17%	8.28%	7.46%
Announcement Date	19/02/20	24/02/21	23/02/22	01/03/23	20/02/24	-	-	-

¹BRL in Million²BRL

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Gerdau S.A.

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

19.28 BRL

Average target price

24.58 BRL

Spread / Average Target

+27.51%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Other Steel

	1st Jan change	Capi.
NUCOR CORPORATION	-1.79%	4.1TCr
TATA STEEL LIMITED	+23.69%	2.52TCr
POSCO HOLDINGS INC.	-19.72%	2.24TCr
ARCELORMITTAL	-5.86%	2.15TCr
STEEL DYNAMICS, INC.	+12.68%	2.09TCr
JFE HOLDINGS, INC.	+5.85%	951.12Cr
STEEL AUTHORITY OF INDIA LIMITED	+38.78%	838.76Cr
CLEVELAND-CLIFFS INC.	-13.27%	842.07Cr
UNITED STATES STEEL CORPORATION	-24.46%	826.32Cr

Other Steel