Analyzing the Price-to-Earnings Ratio of Gerdau S.A. ADR (GGB)

The price-to-earnings ratio for Gerdau S.A. ADR (NYSE: GGB) is above average at 7.25x. The 36-month beta value for GGB is also noteworthy at 1.73. There are mixed opinions on the stock, with 1 analysts rating it as a “buy,” 0 rating it as “overweight,” 1 rating it as “hold,” and 0 rating it as “sell.”

The public float for GGB is 1.38B, and at present, short sellers hold a 0.45% of that float. The average trading volume of GGB on September 03, 2024 was 6.29M shares.

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GGB) stock’s latest price update

The stock price of Gerdau S.A. ADR (NYSE: GGB) has dropped by -0.91 compared to previous close of 3.29. Despite this, the company has seen a fall of -2.40% in its stock price over the last five trading days. seekingalpha.com reported 2024-08-01 that Gerdau S.A. (NYSE:GGB ) Q2 2024 Earnings Conference Call August 1, 2024 11:00 AM ET Company Participants Mariana Velho Dutra – Head, IR Gustavo Werneck – CEO Rafael Japur – CFO Conference Call Participants Daniel Sasson – Itau BBA Marcio Farid – Goldman Sachs Leonardo Correa – BTG Pactual Rafael Barcellos – Bradesco BBI Rodolfo De Angele – JPMorgan Carlos de Alba – Morgan Stanley Caio Ribeiro – Bank of America Ricardo Monegaglia – Safra Bank Lucas Laghi – XP Yuri Pereira – Santander Igor Guedes – Genial Mariana Velho Dutra Good morning, everyone, and welcome to Gerdau’s Video Conference Call for the Second Quarter of ‘24.

GGB’s Market Performance

GGB’s stock has fallen by -2.40% in the past week, with a monthly rise of 2.84% and a quarterly drop of -5.78%. The volatility ratio for the week is 1.66% while the volatility levels for the last 30 days are 2.41% for Gerdau S.A. ADR The simple moving average for the last 20 days is 2.02% for GGB’s stock, with a simple moving average of -8.48% for the last 200 days.

Analysts’ Opinion of GGB

Many brokerage firms have already submitted their reports for GGB stocks, with BofA Securities repeating the rating for GGB by listing it as a “Buy.” The predicted price for GGB in the upcoming period, according to BofA Securities is $5 based on the research report published on May 24, 2024 of the current year 2024.

GGB Trading at 0.26% from the 50-Day Moving Average

After a stumble in the market that brought GGB to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -25.54% of loss for the given period.

Volatility was left at 2.41%, however, over the last 30 days, the volatility rate increased by 1.66%, as shares surge +6.89% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +3.16% upper at present.

During the last 5 trading sessions, GGB fell by -2.40%, which changed the moving average for the period of 200-days by -18.33% in comparison to the 20-day moving average, which settled at $3.21. In addition, Gerdau S.A. ADR saw -19.34% in overturn over a single year, with a tendency to cut further losses.

Stock Fundamentals for GGB

Current profitability levels for the company are sitting at:

  • 0.11 for the present operating margin
  • 0.14 for the gross margin

The net margin for Gerdau S.A. ADR stands at 0.08. The total capital return value is set at 0.1. Equity return is now at value 10.14, with 6.76 for asset returns.

Based on Gerdau S.A. ADR (GGB), the company’s capital structure generated 0.19 points at debt to capital in total, while cash flow to debt ratio is standing at 0.56. The debt to equity ratio resting at 0.24. The interest coverage ratio of the stock is 9.14.

Currently, EBITDA for the company is 12.16 billion with net debt to EBITDA at 0.9. When we switch over and look at the enterprise to sales, we see a ratio of 0.71. The receivables turnover for the company is 8.25for trailing twelve months and the total asset turnover is 0.78. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.83.

Conclusion

In summary, Gerdau S.A. ADR (GGB) has had a bad performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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