Gerdau (FRA:GDUB) Moat Score: 5/10 (As of Jun. 24, 2026)


FRA:GDUB Gerdau SA FRA:GDUB
75 GF Score
Price €3.60
GF Value €3.12
Valuation Modestly Overvalued
! 7 Warning Signs
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What is Gerdau Moat Score?

Gerdau FRA:GDUB 75 Moat Score is 5 as of Jun. 24, 2026. GuruFocus rates FRA:GDUB with a GF Score™ of 75/100 and a GF Value™ of €3.12 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 648 Steel companies, Gerdau ranks better than 98.61% on this metric.

Gerdau has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Gerdau has Narrow Moat: Gerdau SA benefits from economies of scale in steel production and a strong distribution network in Latin America. However, the industry is highly competitive with limited pricing power and moderate customer loyalty, which constrains its moat to a solid narrow level.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Gerdau might have Narrow Moat - Solid narrow moat.

Gerdau  (FRA:GDUB) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Gerdau Moat Score Related Terms

FRA:GDUB vs NUE, STLD, RS: Moat Score Comparison

For the Steel subindustry, Gerdau's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Gerdau Moat Score vs Steel Industry

For the Steel industry and Basic Materials sector, Gerdau's Moat Score distribution charts can be found below:

* The bar in red indicates where Gerdau's Moat Score falls into.


FRA:GDUB
75GF Score
Gerdau SA FRA:GDUB
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Gerdau (FRA:GDUB) has a Moat Score of 5 as of Jun. 24, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Gerdau ranks #9 out of 648 companies in the Steel industry, placing it in the top 1.4%.
Is Gerdau's Moat Score too high?
Gerdau's current Moat Score is 5. Based on the distribution chart, Gerdau ranks #9 out of 648 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Gerdau has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Gerdau's Moat Score compare to NUE and STLD?
According to the Steel industry distribution chart, Gerdau ranks #9 out of 648 companies for Moat Score. This places Gerdau in the top 1% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Steel company?
A good Moat Score depends on the Steel industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Gerdau's current Moat Score is 5. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gerdau stock overvalued right now?
Based on GuruFocus' analysis, Gerdau (FRA:GDUB) is currently considered Modestly Overvalued. The stock's GF Value™ is €3.12, compared to a current price of €3.60 — trading 15.4% above its estimated fair value. The current Moat Score is 5. Gerdau's overall GF Score™ is 75/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Gerdau (FRA:GDUB), the current Moat Score is 5 as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Gerdau (FRA:GDUB) Overvalued in 2026?

Based on GuruFocus' analysis, Gerdau stock appears to be overvalued. The current stock price of €3.60 is trading 15.4% above its estimated GF Value™ of €3.12. GuruFocus considers Gerdau to be Modestly Overvalued.

Key valuation signals for FRA:GDUB:

  • Moat Score: 5
  • GF Value™: €3.12 vs. price of €3.60 (15.4% above fair value)
  • GF Score™: 75/100 with 7 warning signs

No single metric tells the full story. See the FRA:GDUB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Gerdau Business Description

Address Avenida Dra. Ruth Cardoso, 8,501 - 8th Floor, Sao Paulo, SP, BRA, 05425-070
Gerdau SA produces steel and steel products. The company operates in civil construction, agriculture, automotive, iron ore, exports, research and development, and home steel products sectors. It offers products such as nails, rebar, columns, billets, slabs, tribar tutors, mechanical construction bars, and reinforced steel locks. The company's geographical segment includes Brazil Segment; North America Segment; South America Segment as well as Special Steel Operations. It derives the majority of its revenue from the Brazil Operations segment, which includes the long, flat and special steel operations and the iron ore operation located in Brazil and joint ventures and associated companies located in Brazil.
75GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€3.60
Price
€3.12
GF Value