Gerdau S.A. cash flow to debt ratio of 51.30% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Gerdau S.A.'s free cash flow has decreased -79.12% from $5.43G last year to $1.13G, signaling decreasing performance

Gerdau S.A.'s debt to equity ratio is 0.31, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.

Gerdau S.A.'s debt has increased relative to shareholder equity from 0.26 last year to 0.31 today, signaling weakened financials

Gerdau S.A. has a net debt to EBITDA ratio of 1.27x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Gerdau S.A.'s interest coverage ratio of 2.85 indicates that earnings with margin can cover interest payments on company debt

Gerdau S.A.'s profit margin has decreased (-70.86%) in the last year from 6.81% to 1.99%, signaling decreasing performance

Gerdau S.A.'s short-term assets of $28.61G exceed its short-term liabilities of $9.89G

Gerdau S.A.'s return on assets of 1.70% is lower than the 5.00% threshold, indicating inefficient asset utilization

Gerdau S.A.'s return on equity of 2.53%, is lower than 15.00%, indicating bad performance

Gerdau S.A.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Gerdau S.A. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings

Gerdau S.A. has positive free cash flow, indicating the company generates cash after capital expenditures

Gerdau S.A. has a free cash flow yield of 13.75%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Gerdau S.A.'s yearly earnings has decreased -69.62% since last year from $4.57G to $1.39G, signaling decreasing performance

Gerdau S.A.'s yearly revenue has increased 4.22% since last year from $67.03G to $69.86G, signaling increasing performance

ROIC 2.98% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Gerdau S.A.'s 3-year revenue CAGR of -5.36% is negative, indicating declining revenue over the past 3 years

Gerdau S.A. had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance

Gerdau S.A. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity

Gerdau S.A. has insufficient data to evaluate this check.

Gerdau S.A. has an earnings yield of 16.92%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Gerdau S.A. is undervalued relative to its fair value price of 27.65 based on EBITDA multiple model

Gerdau S.A. has an EV/EBITDA ratio of 6.91x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Gerdau S.A. is undervalued relative to its fair value price of 84.42 based on Earnings Fair Value model

Gerdau S.A. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Gerdau S.A. has a price-to-book ratio of 0.79x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Gerdau S.A. has a price-to-sales ratio of 0.60x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue