Fact based stock research
Metalurgica Gerdau (BOVESPA:GOAU4)

BRGOAUACNPR8

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

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Metalurgica Gerdau stock research in summary

gerdau.combrpt

ANALYSIS: With an Obermatt Combined Rank of 95 (better than 95% compared with investment alternatives), Metalurgica Gerdau (Steel, Brazil) shares have much better financial characteristics than comparable stocks. Shares of Metalurgica Gerdau are a good value (attractively priced) with a consolidated Value Rank of 75 (better than 75% of alternatives), are safely financed (Safety Rank of 93, which means low debt burdens), but show below-average growth (Growth Rank of 41). ...read more

RECOMMENDATION: A Combined Rank of 95, is a strong buy recommendation based on Metalurgica Gerdau's financial characteristics. As the company Metalurgica Gerdau's key financial metrics exhibit good value (Obermatt Value Rank of 75) but low growth (Obermatt Growth Rank of 41) while being safely financed (Obermatt Safety Rank of 93), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 75% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	75
Growth Rank	41
Safety Rank	93
Combined Rank	95

Country	Brazil
Industry	Steel
Index	BOVESPA, Water Efficiency
Size class	XX-Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Metalurgica Gerdau

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	95	91	71	75
GROWTH
GROWTH	81	31	15	41
SAFETY
SAFETY	61	65	83	93
SENTIMENT
SENTIMENT	n/a	28	42	^new
360° VIEW
360° VIEW	n/a	55	48	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Metalurgica Gerdau is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	95	91	71	75
GROWTH
GROWTH	81	31	15	41
SAFETY
SAFETY	61	65	83	93
COMBINED
COMBINED	92	79	61	95

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Metalurgica Gerdau the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 75 (better than 75% compared with alternatives) for 2024, Metalurgica Gerdau shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Metalurgica Gerdau. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 93 which means that the stock price compared with what market professionals expect for future profits is lower than for 93% of comparable companies, indicating a good value concerning Metalurgica Gerdau's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 90, and for Dividend Yield with a Dividend Yield Rank of 78. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 83% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 17). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 75, is a buy recommendation based on Metalurgica Gerdau's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Metalurgica Gerdau has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Metalurgica Gerdau shares. 9. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	100	100	15	17
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	90	95	89	93
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	90	92	92	90
DIVIDEND YIELD
DIVIDEND YIELD	100	70	83	78
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	95	91	71	75

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Metalurgica Gerdau; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 41 (better than 41% compared with alternatives), Metalurgica Gerdau shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Metalurgica Gerdau. Sales Growth has a rank of 55 which means that currently, professionals expect the company to grow more than 55% of its competitors. Capital Growth is also above 8% of competitors with a rank of 59, and Stock Returns with the rank of 59 is also an outperformance. Only Profit Growth is low with a rank of 8 which means that currently, professionals expect the company to grow its profits less than 92% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 41, is a hold recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Metalurgica Gerdau is a good growth stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	90	19	4	55
PROFIT GROWTH
PROFIT GROWTH	14	78	11	8
CAPITAL GROWTH
CAPITAL GROWTH	n/a	47	79	59
STOCK RETURNS
STOCK RETURNS	40	31	31	59
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	81	31	15	41

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Metalurgica Gerdau.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 93 (better than 93% compared with alternatives) for 2024, the company Metalurgica Gerdau has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Metalurgica Gerdau is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Metalurgica Gerdau. Leverage is at 64, meaning the company has a below-average debt-to-equity ratio. It has less debt than 64% of its competitors. Refinancing is at a rank of 99, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 99% of its competitors. Finally, Liquidity is also good at a rank of 61, which means that the company generates more profit to service its debt than 61% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 93 (better than 93% compared with alternatives), Metalurgica Gerdau has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Metalurgica Gerdau but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	4	34	60	64
REFINANCING
REFINANCING	98	100	97	99
LIQUIDITY
LIQUIDITY	52	40	59	61
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	61	65	83	93

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Metalurgica Gerdau and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	49	31	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	21	90	^new
MARKET PULSE
MARKET PULSE	n/a	n/a	5	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	28	42	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Metalurgica Gerdau.
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