GerdauFRA:GDUB 75 ROA % is 5.06% as of Mar. 2026, which is 18% above its 10-year median of 4.29. 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 638 Steel companies, Gerdau ranks better than 50% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Gerdau's annualizedNet Income for the quarter that ended in Mar. 2026 was €663 Mil.
Gerdau's average Total Assets over the quarter that ended in Mar. 2026 was €13,096 Mil. Therefore, Gerdau's annualized ROA % for the quarter that ended in Mar. 2026 was 5.06%.
The historical rank and industry rank for Gerdau's ROA % or its related term are showing as below:
FRA:GDUB'
s ROA % Range Over the Past 10 Years
Min: -4.64 Med: 4.29 Max: 22.63
Current: 1.94
During the past 13 years, Gerdau's highest ROA % was 22.63%. The lowest was -4.64%. And the median was 4.29%.
FRA:GDUB's ROA % is ranked better than 50% of 638
companies
in the Steel industry
Industry Median: 1.93
vs FRA:GDUB: 1.94
Gerdau (FRA:GDUB) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Gerdau ROA % Related Terms
Gerdau ROA % Historical Data
* Premium members only.
The historical data trend for Gerdau's ROA % 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.
For the Steel subindustry, Gerdau's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Steel Industry
For the Steel industry and Basic Materials sector, Gerdau's ROA % distribution charts can be found below:
* The bar in red indicates where Gerdau's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Gerdau (FRA:GDUB) has a ROA % of 5.06% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Gerdau and its competitors. This is 18% above median its historical median of 4.29. According to the industry distribution chart, Gerdau ranks #319 out of 638 companies in the Steel industry, placing it in the top 50%.
Is Gerdau's ROA % too high?
Gerdau's current ROA % of 5.06% is 18% above median its 10-year median of 4.29. The Steel industry median ROA % is 1.93. Gerdau's value of 5.06% is 162.2% above this industry median. Based on the distribution chart, Gerdau ranks #319 out of 638 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 ROA % compare to NUE and STLD?
According to the Steel industry distribution chart, Gerdau ranks #319 out of 638 companies for ROA %. This puts Gerdau in the upper half of its industry. The industry median ROA % is 1.93. Gerdau's value of 5.06% is 162.2% above this benchmark. While the company's 10-year median is 4.29 vs. the industry median of 1.93, 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 ROA % for a Steel company?
The median ROA % among Steel companies is 1.93, based on 638 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gerdau's current ROA % of 5.06% is 162.2% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Gerdau and its competitors. For the Steel industry, the median ROA % is 1.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gerdau's current ROA % is 5.06%, which is 18% above median its own 10-year median of 4.29. 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 ROA % is 5.06%, which is 18% above median its 10-year median of 4.29 and 162.2% above the Steel industry median of 1.93. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Gerdau (FRA:GDUB), the current ROA % is 5.06% 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 €3.60 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:
ROA %: 5.06% (18% above median its 10-year median of 4.29)
GF Value™: €3.12 vs. price of €3.60 (15.4% above fair value)
Industry Position: 162.2% above the Steel median (#319 of 638)
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
Get the complete analysis for FRA:GDUB
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:GDUB has been successfully added to your 
