# Metalurgica Gerdau (GOAU3.SA)

Canonical: https://gigainvestors.com/s/GOAU3.SA

Analysis as of: 2026-10-16T07:39:38.776Z. Financial observations: FY2015–FY2025.

Listing currency: BRL. Reporting currency: BRL.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: BRL 10.50 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 2

- Operating margin variation: 0.76×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.04×

- FY2017: 0.03×

- FY2018: 0.09×

- FY2019: 0.08×

- FY2020: 0.11×

- FY2021: 0.27×

- FY2022: 0.20×

- FY2023: 0.15×

- FY2024: 0.11×

- FY2025: 0.08×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 33.5%

- ROIC, second-lowest year: 6.0%

- Typical minus recent gross margin: 2.0 pp

- Typical gross margin (annual median): 13.4%

- Recent gross margin (lower of latest and 3-year median): 11.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.2%

- ROIC including acquisitions, ten-year median: 5.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -9.1%

- FY2017: 6.0%

- FY2018: 32.3%

- FY2019: 20.9%

- FY2020: 34.7%

- FY2021: >100%

- FY2022: 98.4%

- FY2023: 67.1%

- FY2024: 49.4%

- FY2025: 21.9%

### economics: pass

- Owner earnings / net income, 5-yr: 1.04×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: BRL 14B

- Net income, five-year total: BRL 13B

- Return on incremental invested capital: 157.7%

- Working capital / revenue, annual change: 0.7 pp

- Working capital / revenue, change between three-year averages: 4.8 pp

- Working capital / revenue, final three-year average: 22.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.46×

- FY2022: 1.22×

- FY2023: 0.68×

- FY2024: 0.33×

- FY2025: -0.61×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 6.0% vs 49.4%

- Per-share earnings: -1.45 to 1.50 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 6.4%

- Ordinary dilution, 5-year annual growth: 4.2%

- Market cap gain: BRL 8.5B

- Cumulative retained earnings: BRL 4.7B

- Diluted shares, 10-year annual growth: 6.4%

- Diluted shares, 5-year annual growth: 4.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: BRL 2.95

- Per-share value, starting three-year median: BRL -1.45

- Per-share value, ending three-year median: BRL 1.50

- Buybacks concentrated in cheaper years (correlation): 0.80

- Average buyback yield: 10.9%

- Buyback history: 5 years

- Debt-funded buybacks: No

- Acquisition spending: BRL 7.1B

- Cumulative net income, 10 years: BRL 14B

- ROIC, first three-year median: 6.0%

- ROIC, last three-year median: 49.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: BRL -1.45

- FY2017: BRL -0.21

- FY2018: BRL 0.82

- FY2019: BRL 0.40

- FY2020: BRL 0.81

- FY2021: BRL 4.56

- FY2022: BRL 3.61

- FY2023: BRL 2.48

- FY2024: BRL 1.50

- FY2025: BRL 0.36

### accounting: pass

- Sloan accruals: -8.9%

- Receivables to sales index (DSRI): 1.26×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 16.22×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.66×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -8.6%

- FY2017: -4.5%

- FY2018: -2.4%

- FY2019: -2.2%

- FY2020: -6.3%

- FY2021: -10.9%

- FY2022: -9.7%

- FY2023: -12.4%

- FY2024: -11.7%

- FY2025: -8.9%

## Holders

## Price story

Up 38% since Oct 2023 · sales +4.2%

Story as of 2026-10-16T10:00:10.931Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +4.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: BRL 38B 

- FY2017: BRL 37B 

- FY2018: BRL 46B 

- FY2019: BRL 40B 

- FY2020: BRL 44B 

- FY2021: BRL 78B 

- FY2022: BRL 82B 

- FY2023: BRL 69B 

- FY2024: BRL 67B 

- FY2025: BRL 70B 

### Gross margin · FY2025

gross margin 11.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 9.2% 

- FY2017: 9.8% 

- FY2018: 13.3% 

- FY2019: 10.6% 

- FY2020: 13.5% 

- FY2021: 26.6% 

- FY2022: 22.8% 

- FY2023: 16.4% 

- FY2024: 13.7% 

- FY2025: 11.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in steel; annual sales are BRL 69.9 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:38.776Z); FY2025: revenue 69858532000; grossProfit 7967493000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GOAU3.SA: Metalurgica Gerdau S.A., together with its subsidiaries, produces and supplies long steel products in Brazil, the Americas, and internationally. The company offers rebars, profiles, wires, thick plates, hot-rolled coils, billets, blooms, plates, wire rod, structural profiles, and flat steel and iron ore, as well as bars, including special steels. Metalurgica Gerdau S.A.was formerly known as METALÚRGICA HUGO GERDAU S.A and changed its name to Metalurgica Gerdau S.A. in June 1965. Metalurgica Gerdau S.A. was founded in 1901 and is headquartered in São Paulo, Brazil. Metalurgica Gerdau S.A. operates as a subsidiary of Indac - Indústria, Administração e Comércio S.A.

### Why customers stay

Margins ranged from 11.4% to 16.4% during 2023–25; it earns 33.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:38.776Z); FY2023: grossProfit / revenue = 16.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:38.776Z); FY2024: grossProfit / revenue = 13.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:38.776Z); FY2025: grossProfit / revenue = 11.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:38.776Z); 10-year return on capital observations [[2016,-0.09058395027680542],[2017,0.05974354283456441],[2018,0.3233943338908267],[2019,0.20926871811900394],[2020,0.34691285057341814],[2021,1.6707276680680951],[2022,0.983857172789551],[2023,0.6709316088830766],[2024,0.4941771611061169],[2025,0.21874026270599495]]; median 0.33515359223212243. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back BRL 1.3 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:38.776Z); FY2017: growth capex 0; upkeep 911268000; owner earnings 978008000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:38.776Z); FY2018: growth capex 0; upkeep 1262322000; owner earnings 1428513000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:38.776Z); FY2019: growth capex 0; upkeep 1846913000; owner earnings 491623200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:38.776Z); FY2020: growth capex 0; upkeep 154250000; owner earnings 2857614600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:38.776Z); FY2021: growth capex 0; upkeep 166310000; owner earnings 7371908000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:38.776Z); FY2022: growth capex 0; upkeep 189382000; owner earnings 4551938789.195731. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:38.776Z); FY2023: growth capex 0; upkeep 5209128000; owner earnings 1744341133.4822745. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:38.776Z); FY2024: growth capex 0; upkeep 5946417000; owner earnings 514059070.1258341. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:38.776Z); Dividend observations: [[2016,51371000],[2017,92872000],[2018,567781000],[2019,456154000],[2020,278901000],[2021,6163616000],[2022,5220630000],[2023,3401879000],[2024,1567719000],[2025,1247229000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:38.776Z); FY2025: cash repurchases 1272411000 BRL.

### Are managers owners

Insiders own 87.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GOAU3.SA SharesStats.PercentInsiders = 87.543 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.2 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:38.776Z); Closing price 10.5 BRL; reporting-to-trading FX 1; FY2025 annual sales per share 52.727188879084416; price multiple 0.19913824770895558. FY2025 cash earnings/share -0.2180279760981745. Closing-price date 2026-10-15.

## Monthly share-price history (BRL per share)

- 2016-11: BRL 3.85 per share

- 2016-12: BRL 3.24 per share

- 2017-01: BRL 3.50 per share

- 2017-02: BRL 3.53 per share

- 2017-03: BRL 3.28 per share

- 2017-04: BRL 3.07 per share

- 2017-05: BRL 3.02 per share

- 2017-06: BRL 3.21 per share

- 2017-07: BRL 3.44 per share

- 2017-08: BRL 3.75 per share

- 2017-09: BRL 3.68 per share

- 2017-10: BRL 3.60 per share

- 2017-11: BRL 3.49 per share

- 2017-12: BRL 3.82 per share

- 2018-01: BRL 4.58 per share

- 2018-02: BRL 5.16 per share

- 2018-03: BRL 4.49 per share

- 2018-04: BRL 5.00 per share

- 2018-05: BRL 4.44 per share

- 2018-06: BRL 4.12 per share

- 2018-07: BRL 5.03 per share

- 2018-08: BRL 5.67 per share

- 2018-09: BRL 5.59 per share

- 2018-10: BRL 5.78 per share

- 2018-11: BRL 5.38 per share

- 2018-12: BRL 5.54 per share

- 2019-01: BRL 5.76 per share

- 2019-02: BRL 5.58 per share

- 2019-03: BRL 5.38 per share

- 2019-04: BRL 5.18 per share

- 2019-05: BRL 4.94 per share

- 2019-06: BRL 5.22 per share

- 2019-07: BRL 4.95 per share

- 2019-08: BRL 4.57 per share

- 2019-09: BRL 4.55 per share

- 2019-10: BRL 4.54 per share

- 2019-11: BRL 5.48 per share

- 2019-12: BRL 6.49 per share

- 2020-01: BRL 6.41 per share

- 2020-02: BRL 5.33 per share

- 2020-03: BRL 3.12 per share

- 2020-04: BRL 3.65 per share

- 2020-05: BRL 4.25 per share

- 2020-06: BRL 4.99 per share

- 2020-07: BRL 5.50 per share

- 2020-08: BRL 5.78 per share

- 2020-09: BRL 6.18 per share

- 2020-10: BRL 6.26 per share

- 2020-11: BRL 6.65 per share

- 2020-12: BRL 7.38 per share

- 2021-01: BRL 7.16 per share

- 2021-02: BRL 7.49 per share

- 2021-03: BRL 8.57 per share

- 2021-04: BRL 10.30 per share

- 2021-05: BRL 10.54 per share

- 2021-06: BRL 9.64 per share

- 2021-07: BRL 9.55 per share

- 2021-08: BRL 8.62 per share

- 2021-09: BRL 8.49 per share

- 2021-10: BRL 8.96 per share

- 2021-11: BRL 7.17 per share

- 2021-12: BRL 7.97 per share

- 2022-01: BRL 7.65 per share

- 2022-02: BRL 7.22 per share

- 2022-03: BRL 8.00 per share

- 2022-04: BRL 7.88 per share

- 2022-05: BRL 8.29 per share

- 2022-06: BRL 6.77 per share

- 2022-07: BRL 7.33 per share

- 2022-08: BRL 7.13 per share

- 2022-09: BRL 7.39 per share

- 2022-10: BRL 7.81 per share

- 2022-11: BRL 9.05 per share

- 2022-12: BRL 9.05 per share

- 2023-01: BRL 10.28 per share

- 2023-02: BRL 8.42 per share

- 2023-03: BRL 8.30 per share

- 2023-04: BRL 8.25 per share

- 2023-05: BRL 8.18 per share

- 2023-06: BRL 8.69 per share

- 2023-07: BRL 9.98 per share

- 2023-08: BRL 8.81 per share

- 2023-09: BRL 8.36 per share

- 2023-10: BRL 7.61 per share

- 2023-11: BRL 7.91 per share

- 2023-12: BRL 8.31 per share

- 2024-01: BRL 7.62 per share

- 2024-02: BRL 7.77 per share

- 2024-03: BRL 7.95 per share

- 2024-04: BRL 8.02 per share

- 2024-05: BRL 8.12 per share

- 2024-06: BRL 8.03 per share

- 2024-07: BRL 8.02 per share

- 2024-08: BRL 7.91 per share

- 2024-09: BRL 8.06 per share

- 2024-10: BRL 7.63 per share

- 2024-11: BRL 8.54 per share

- 2024-12: BRL 7.64 per share

- 2025-01: BRL 7.34 per share

- 2025-02: BRL 7.00 per share

- 2025-03: BRL 6.84 per share

- 2025-04: BRL 6.50 per share

- 2025-05: BRL 6.43 per share

- 2025-06: BRL 6.71 per share

- 2025-07: BRL 7.04 per share

- 2025-08: BRL 7.04 per share

- 2025-09: BRL 7.14 per share

- 2025-10: BRL 8.32 per share

- 2025-11: BRL 7.95 per share

- 2025-12: BRL 8.73 per share

- 2026-01: BRL 9.51 per share

- 2026-02: BRL 9.03 per share

- 2026-03: BRL 8.32 per share

- 2026-04: BRL 9.49 per share

- 2026-05: BRL 9.17 per share

- 2026-06: BRL 8.51 per share

- 2026-07: BRL 9.80 per share

- 2026-08: BRL 9.39 per share

- 2026-09: BRL 9.87 per share

- 2026-10: BRL 10.58 per share

## Annual estimated value (BRL per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations