GerdauFRA:GDUB +4.55%75 Pretax Margin % is 9.05% as of Mar. 2026, which is 43% above its 10-year median of 6.33. GuruFocus rates FRA:GDUB with a GF Score™ of 75/100 and a GF Value™ of €3.12 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 615 Steel companies, Gerdau ranks better than 60.98% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Gerdau's Pre-Tax Income for the
three
months ended in Mar. 2026 was €250 Mil. Gerdau's Revenue for the
three
months ended in Mar. 2026 was €2,765 Mil. Therefore, Gerdau's pretax margin for the quarter that ended in Mar. 2026 was 9.05%.
The historical rank and industry rank for Gerdau's Pretax Margin % or its related term are showing as below:
FRA:GDUB'
s Pretax Margin % Range Over the Past 10 Years
Min: -6.86 Med: 6.33 Max: 25.88
Current: 4.28
FRA:GDUB's Pretax Margin % is ranked better than 60.98% of 615
companies
in the Steel industry
Industry Median: 2.56
vs FRA:GDUB: 4.28
Gerdau (FRA:GDUB) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Gerdau Pretax Margin % Related Terms
Gerdau Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Gerdau's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:GDUB vs NUE, STLD, RS: Pretax Margin % Comparison
For the Steel subindustry, Gerdau's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Gerdau's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Gerdau's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Gerdau (FRA:GDUB) has a Pretax Margin % of 9.05% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Gerdau and its competitors. This is 43% above median its historical median of 6.33. According to the industry distribution chart, Gerdau ranks #240 out of 615 companies in the Steel industry, placing it in the top 39%.
Is Gerdau's Pretax Margin % too high?
Gerdau's current Pretax Margin % of 9.05% is 43% above median its 10-year median of 6.33. The Steel industry median Pretax Margin % is 2.56. Gerdau's value of 9.05% is 253.5% above this industry median. Based on the distribution chart, Gerdau ranks #240 out of 615 companies in the Steel industry, which is above the industry midpoint. 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 Pretax Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Gerdau ranks #240 out of 615 companies for Pretax Margin %. This puts Gerdau in the upper half of its industry. The industry median Pretax Margin % is 2.56. Gerdau's value of 9.05% is 253.5% above this benchmark. While the company's 10-year median is 6.33 vs. the industry median of 2.56, Gerdau has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Steel company?
The median Pretax Margin % among Steel companies is 2.56, based on 615 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gerdau's current Pretax Margin % of 9.05% is 253.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Gerdau and its competitors. For the Steel industry, the median Pretax Margin % is 2.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gerdau's current Pretax Margin % is 9.05%, which is 43% above median its own 10-year median of 6.33. 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 €3.68 — trading 17.9% above its estimated fair value. The current Pretax Margin % is 9.05%, which is 43% above median its 10-year median of 6.33 and 253.5% above the Steel industry median of 2.56. Gerdau's overall GF Score™ is 75/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Gerdau (FRA:GDUB), the current Pretax Margin % is 9.05% as of Mar. 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 €3.68 is trading 17.9% above its estimated GF Value™ of €3.12.
GuruFocus considers Gerdau to be Modestly Overvalued.
Key valuation signals for FRA:GDUB:
Pretax Margin %: 9.05% (43% above median its 10-year median of 6.33)
GF Value™: €3.12 vs. price of €3.68 (17.9% above fair value)
Industry Position: 253.5% above the Steel median (#240 of 615)
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 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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