Gerdau S.A. (GGB): a likely value trap?

Avoid — this is a low-margin, currency-exposed commodity steelmaker whose Brazil business is stuck in "survival mode" against cheap Chinese imports.

⚠ TRAP Fundamentals60/100

Down 75% from its all-time high of $20.06 — now $5.00

Why GGB dropped

GGB isn't crashing today, it's a stock that's been dead since 2008 and is still stuck near multi-year lows because its home market, Brazil, is being flooded with cheap Chinese steel and its profitability is structurally thin (3.2% net margin, 4.2% return on equity).

Fwd P/E 8.6Op margin 12.7%Rev growth 2.0%Debt/equity 28.2%Analyst upside 14.0%

How this scored 60/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 3.2%

✅ Generates cash Free cash flow $2.6B

✅ Not drowning in debt Debt/equity 28.2% (limit 200%)

✅ Can pay its bills Current ratio 2.9 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 6/25

Operating margin 12.7% 5/9

Net profit margin 3.2% 1/8

Return on equity 4.2% 0/8

Growth Is it getting bigger, or dying? 18/25

Revenue growth 2.0% 2/9

Earnings growth 73.5% 8/8

Expected profit change 165.8% 8/8

Value Is it cheap right now? 11/25

Forward P/E 8.6 10/10

PEG ratio 91.0 0/8

Analyst target upside 14.0% 2/7

Balance sheet Will it survive? 25/25

Debt / equity 28.2% 10/10

Current ratio 2.9 8/8

Free cash flow $2.6B 7/7

🔒 Read the full AI analysis

Create a free account to unlock the bull case and the risks for GGB — plus today's other picks.

Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-22. Research only — not financial advice.