GerdauFRA:GDUB 75 ROE % is 7.75% as of Mar. 2026, which is 7% below its 10-year median of 8.36. 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 623 Steel companies, Gerdau ranks worse than 53.13% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Gerdau's annualized net income for the quarter that ended in Mar. 2026 was €663 Mil. Gerdau's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €8,558 Mil. Therefore, Gerdau's annualized ROE % for the quarter that ended in Mar. 2026 was 7.75%.
The historical rank and industry rank for Gerdau's ROE % or its related term are showing as below:
FRA:GDUB'
s ROE % Range Over the Past 10 Years
Min: -10.38 Med: 8.36 Max: 42.18
Current: 3.02
During the past 13 years, Gerdau's highest ROE % was 42.18%. The lowest was -10.38%. And the median was 8.36%.
FRA:GDUB's ROE % is ranked worse than 53.13% of 623
companies
in the Steel industry
Industry Median: 3.7
vs FRA:GDUB: 3.02
Gerdau (FRA:GDUB) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Gerdau ROE % Related Terms
Gerdau ROE % Historical Data
* Premium members only.
The historical data trend for Gerdau's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Steel Industry
For the Steel industry and Basic Materials sector, Gerdau's ROE % distribution charts can be found below:
* The bar in red indicates where Gerdau's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Gerdau (FRA:GDUB) has a ROE % of 7.75% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Gerdau and its competitors. This is near median its historical median of 8.36. According to the industry distribution chart, Gerdau ranks #331 out of 623 companies in the Steel industry, placing it in the top 53.1%.
Is Gerdau's ROE % too high?
Gerdau's current ROE % of 7.75% is near median its 10-year median of 8.36. The Steel industry median ROE % is 3.70. Gerdau's value of 7.75% is 109.5% above this industry median. Based on the distribution chart, Gerdau ranks #331 out of 623 companies in the Steel industry, which is below 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 ROE % compare to NUE and STLD?
According to the Steel industry distribution chart, Gerdau ranks #331 out of 623 companies for ROE %. This places Gerdau in the lower half of its industry. The industry median ROE % is 3.70. Gerdau's value of 7.75% is 109.5% above this benchmark. While the company's 10-year median is 8.36 vs. the industry median of 3.70, 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 ROE % for a Steel company?
The median ROE % among Steel companies is 3.70, based on 623 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gerdau's current ROE % of 7.75% is 109.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Gerdau and its competitors. For the Steel industry, the median ROE % is 3.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gerdau's current ROE % is 7.75%, which is near median its own 10-year median of 8.36. 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 ROE % is 7.75%, which is near median its 10-year median of 8.36 and 109.5% above the Steel industry median of 3.70. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Gerdau (FRA:GDUB), the current ROE % is 7.75% 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:
ROE %: 7.75% (near median its 10-year median of 8.36)
GF Value™: €3.12 vs. price of €3.60 (15.4% above fair value)
Industry Position: 109.5% above the Steel median (#331 of 623)
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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