Is the business good?
How good a business is GGB?
Gerdau S.A. earns 6.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
6.2%
Return on invested capital · cost of capital 9.0% · 2.8 points below what the capital costs: growth destroys value
- Operating margin
- 5.3%
Operating margin · Steel median 6.4% · fiscal year to FY2025
- Cash conversion
- 0.94×
Cash conversion · 1.23× a year ago · some of the reported profit has not turned into cash yet
- Gross margin
- 11%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 12% |
| FY2021 | 27% |
| FY2022 | 22% |
| FY2023 | 15% |
| FY2024 | 11% |
| FY2025 | 5.3% |
Details›
- Gross marginfiscal year to FY2025
- 11%
- Operating marginfiscal year to FY2025
- 5.3%
- Net marginfiscal year to FY2025
- 2.0%
- Free cash flow margin
- 1.9%
- Revenue, trailing twelve months
- $69.9B
- Free cash flow, trailing twelve months
- $1.31B
- Net income, trailing twelve months
- $1.39B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.