# Usinas Siderúrgicas de Minas Gerais (USIM3.SA)

Canonical: https://gigainvestors.com/s/USIM3.SA

Analysis as of: 2026-10-16T07:42:04.188Z. Financial observations: FY2002–FY2025.

Listing currency: BRL. Reporting currency: BRL.

## Verdict

Not a wonderful business

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

Share price: BRL 6.47 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

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

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 3

- Operating margin variation: 0.96×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.02×

- FY2017: 0.09×

- FY2018: 0.10×

- FY2019: 0.08×

- FY2020: 0.15×

- FY2021: 0.30×

- FY2022: 0.14×

- FY2023: 0.02×

- FY2024: 0.02×

- FY2025: 0.02×

### moat: fail

- ROIC median below threshold

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

- Recent gross margin fell 7.4pp below the typical margin (limit 4pp)

- ROIC, median of available years: 4.4%

- ROIC, second-lowest year: 1.8%

- Typical minus recent gross margin: 7.4 pp

- Typical gross margin (annual median): 13.9%

- Recent gross margin (lower of latest and 3-year median): 6.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.2%

- ROIC including acquisitions, ten-year median: 2.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -0.7%

- FY2017: 4.0%

- FY2018: 4.9%

- FY2019: 5.5%

- FY2020: 10.1%

- FY2021: 38.1%

- FY2022: 11.4%

- FY2023: 2.6%

- FY2024: 1.8%

- FY2025: 2.2%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.75×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: BRL 6.7B

- Net income, five-year total: BRL 8.9B

- Return on incremental invested capital: 23.3%

- 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: 30.6%

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

- FY2021: 1.00×

- FY2022: 0.42×

- FY2023: -0.18×

- FY2024: -0.41×

- FY2025: 0.93×

### management: fail

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

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 4.0% vs 2.2%

- Per-share earnings: -0.58 to -0.12 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.2%

- Ordinary dilution, 5-year annual growth: -0.0%

- Market cap gain: BRL -2.3B

- Cumulative retained earnings: BRL 6.4B

- Diluted shares, 10-year annual growth: 2.2%

- Diluted shares, 5-year annual growth: -0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: BRL 0.46

- Per-share value, starting three-year median: BRL -0.58

- Per-share value, ending three-year median: BRL -0.12

- Average buyback yield: 2.3%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: BRL 1.7B

- Cumulative net income, 10 years: BRL 10B

- ROIC, first three-year median: 4.0%

- ROIC, last three-year median: 2.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: BRL -0.58

- FY2017: BRL 0.19

- FY2018: BRL 0.59

- FY2019: BRL 0.17

- FY2020: BRL 0.55

- FY2021: BRL 7.37

- FY2022: BRL 1.31

- FY2023: BRL 1.13

- FY2024: BRL -0.12

- FY2025: BRL -2.50

### accounting: pass

- Sloan accruals: -15.1%

- Receivables to sales index (DSRI): 1.12×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.10×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.4%

- FY2017: -2.5%

- FY2018: 0.8%

- FY2019: -6.7%

- FY2020: -10.3%

- FY2021: 9.6%

- FY2022: 1.5%

- FY2023: -7.9%

- FY2024: -2.8%

- FY2025: -15.1%

## Holders

## Price story

Down 56% since Jan 2022 · sales +1.9%

Story as of 2026-10-16T10:00:12.212Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +1.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: BRL 8.5B 

- FY2017: BRL 11B 

- FY2018: BRL 14B 

- FY2019: BRL 15B 

- FY2020: BRL 16B 

- FY2021: BRL 34B 

- FY2022: BRL 32B 

- FY2023: BRL 28B 

- FY2024: BRL 26B 

- FY2025: BRL 26B 

### Gross margin · FY2025

gross margin 8.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 5.8% 

- FY2017: 15.2% 

- FY2018: 16.5% 

- FY2019: 12.5% 

- FY2020: 20.2% 

- FY2021: 33.4% 

- FY2022: 17.5% 

- FY2023: 6.5% 

- FY2024: 6.4% 

- FY2025: 8.2% 

## Owner memo

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

### How it makes money

Operates in steel; annual sales are BRL 26.4 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:04.188Z); FY2025: revenue 26357503000; grossProfit 2165093000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); USIM3.SA: Usinas Siderúrgicas de Minas Gerais S.A. operates in the steel industry and related activities in Brazil and internationally. It operates in two segments, Steel Metallurgy and Mining, and Logistics. The company offers thick plates, hot strips, colled rolled, electrogalvanized, and hot dip galvanized products for the automotive, construction, distribution, energy, oil and gas, and machinery and equipment markets. It is also involved in the extraction and processing of iron ore as pellet feed, sinter feed, and granulated iron ore; steel transformation solutions; operating a distribution center; manufacture and installation of equipment for various industries; and transformation of cold-rolled coils into hot dip galvanized coils. In addition, the company engages in the operation of highway and railway cargo terminals, storage and handling of iron ore and steel products, and road cargo transportation; and rendering of services, rectification of cylinders, and rolling mill rolls. Usinas Siderúrgicas de Minas Gerais S.A. was incorporated in 1956 and is headquartered in Belo Horizonte, Brazil.

### Why customers stay

Margins ranged from 6.4% to 8.2% during 2023–25; it earns 4.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:04.188Z); FY2023: grossProfit / revenue = 6.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:04.188Z); FY2024: grossProfit / revenue = 6.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:04.188Z); FY2025: grossProfit / revenue = 8.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:04.188Z); 10-year return on capital observations [[2016,-0.007139499650492709],[2017,0.03972862108477143],[2018,0.04852501813734678],[2019,0.05495487145707743],[2020,0.10061019124820367],[2021,0.3812064796842972],[2022,0.11447393950097708],[2023,0.025942304111285813],[2024,0.018138764037025423],[2025,0.0223900090180096]]; median 0.044126819611059104. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:04.188Z); FY2016: growth capex 0; upkeep 222759000; owner earnings 301886000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:04.188Z); FY2017: growth capex 0; upkeep 216170000; owner earnings 1188696000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:04.188Z); FY2018: growth capex 0; upkeep 433523000; owner earnings 1322670000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:04.188Z); FY2019: growth capex 0; upkeep 681451000; owner earnings 501745000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:04.188Z); FY2020: growth capex 0; upkeep 798679000; owner earnings 861392600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:04.188Z); FY2021: growth capex 500548000; upkeep 982741000; owner earnings 9054019400. Growth capex / owner earnings = 0.05528461756996014.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:04.188Z); FY2022: growth capex 0; upkeep 2091876000; owner earnings 679177937.1022544. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:04.188Z); FY2024: growth capex 0; upkeep 995160000; owner earnings 59857800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:04.188Z); Dividend observations: [[2016,3000],[2017,25505000],[2018,125469000],[2019,255464000],[2020,68083000],[2021,1849264000],[2022,1233223000],[2023,726529000],[2024,383804000],[2025,42743000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 76% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); USIM3.SA SharesStats.PercentInsiders = 76.01 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.3 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:04.188Z); Closing price 6.47 BRL; reporting-to-trading FX 1; FY2025 annual sales per share 21.41245323604421; price multiple 0.30216061320376214. FY2025 cash earnings/share -2.335294079895027. Closing-price date 2026-10-15.

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

- 2016-10: BRL 8.82 per share

- 2016-11: BRL 8.83 per share

- 2016-12: BRL 8.26 per share

- 2017-01: BRL 8.27 per share

- 2017-02: BRL 9.00 per share

- 2017-03: BRL 8.38 per share

- 2017-04: BRL 8.78 per share

- 2017-05: BRL 8.54 per share

- 2017-06: BRL 8.83 per share

- 2017-07: BRL 10.39 per share

- 2017-08: BRL 10.26 per share

- 2017-09: BRL 10.05 per share

- 2017-10: BRL 12.03 per share

- 2017-11: BRL 10.90 per share

- 2017-12: BRL 10.83 per share

- 2018-01: BRL 14.11 per share

- 2018-02: BRL 13.09 per share

- 2018-03: BRL 12.31 per share

- 2018-04: BRL 12.85 per share

- 2018-05: BRL 12.19 per share

- 2018-06: BRL 11.23 per share

- 2018-07: BRL 12.18 per share

- 2018-08: BRL 11.39 per share

- 2018-09: BRL 11.37 per share

- 2018-10: BRL 12.80 per share

- 2018-11: BRL 11.90 per share

- 2018-12: BRL 11.44 per share

- 2019-01: BRL 11.56 per share

- 2019-02: BRL 11.21 per share

- 2019-03: BRL 11.65 per share

- 2019-04: BRL 10.56 per share

- 2019-05: BRL 9.84 per share

- 2019-06: BRL 10.50 per share

- 2019-07: BRL 10.01 per share

- 2019-08: BRL 9.60 per share

- 2019-09: BRL 9.35 per share

- 2019-10: BRL 8.84 per share

- 2019-11: BRL 9.29 per share

- 2019-12: BRL 9.87 per share

- 2020-01: BRL 10.26 per share

- 2020-02: BRL 8.87 per share

- 2020-03: BRL 5.65 per share

- 2020-04: BRL 5.30 per share

- 2020-05: BRL 6.59 per share

- 2020-06: BRL 8.09 per share

- 2020-07: BRL 8.55 per share

- 2020-08: BRL 10.46 per share

- 2020-09: BRL 10.24 per share

- 2020-10: BRL 11.79 per share

- 2020-11: BRL 14.57 per share

- 2020-12: BRL 15.69 per share

- 2021-01: BRL 14.17 per share

- 2021-02: BRL 16.89 per share

- 2021-03: BRL 17.89 per share

- 2021-04: BRL 23.19 per share

- 2021-05: BRL 20.35 per share

- 2021-06: BRL 19.75 per share

- 2021-07: BRL 20.99 per share

- 2021-08: BRL 18.30 per share

- 2021-09: BRL 15.72 per share

- 2021-10: BRL 12.88 per share

- 2021-11: BRL 13.00 per share

- 2021-12: BRL 14.51 per share

- 2022-01: BRL 14.62 per share

- 2022-02: BRL 13.65 per share

- 2022-03: BRL 13.04 per share

- 2022-04: BRL 10.52 per share

- 2022-05: BRL 10.40 per share

- 2022-06: BRL 8.21 per share

- 2022-07: BRL 8.33 per share

- 2022-08: BRL 8.12 per share

- 2022-09: BRL 8.20 per share

- 2022-10: BRL 7.39 per share

- 2022-11: BRL 7.72 per share

- 2022-12: BRL 7.41 per share

- 2023-01: BRL 8.75 per share

- 2023-02: BRL 7.29 per share

- 2023-03: BRL 7.97 per share

- 2023-04: BRL 7.05 per share

- 2023-05: BRL 7.05 per share

- 2023-06: BRL 7.29 per share

- 2023-07: BRL 7.34 per share

- 2023-08: BRL 6.96 per share

- 2023-09: BRL 6.94 per share

- 2023-10: BRL 6.64 per share

- 2023-11: BRL 7.81 per share

- 2023-12: BRL 9.20 per share

- 2024-01: BRL 8.70 per share

- 2024-02: BRL 10.80 per share

- 2024-03: BRL 9.37 per share

- 2024-04: BRL 7.48 per share

- 2024-05: BRL 6.98 per share

- 2024-06: BRL 7.63 per share

- 2024-07: BRL 6.04 per share

- 2024-08: BRL 6.09 per share

- 2024-09: BRL 6.01 per share

- 2024-10: BRL 6.37 per share

- 2024-11: BRL 6.11 per share

- 2024-12: BRL 5.32 per share

- 2025-01: BRL 5.44 per share

- 2025-02: BRL 5.66 per share

- 2025-03: BRL 5.61 per share

- 2025-04: BRL 5.51 per share

- 2025-05: BRL 5.10 per share

- 2025-06: BRL 4.14 per share

- 2025-07: BRL 4.61 per share

- 2025-08: BRL 4.48 per share

- 2025-09: BRL 4.21 per share

- 2025-10: BRL 5.63 per share

- 2025-11: BRL 5.28 per share

- 2025-12: BRL 5.96 per share

- 2026-01: BRL 6.25 per share

- 2026-02: BRL 7.06 per share

- 2026-03: BRL 6.66 per share

- 2026-04: BRL 8.05 per share

- 2026-05: BRL 10.07 per share

- 2026-06: BRL 7.64 per share

- 2026-07: BRL 6.50 per share

- 2026-08: BRL 6.86 per share

- 2026-09: BRL 6.50 per share

- 2026-10: BRL 6.89 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.