GerdauCMC

Gerdau vs CMC

This page compares Gerdau S.A. and CMC (Commercial Metals Company) across business models, financial performance, and market context, providing a neutral view of how each company operates, its positio...

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Brazil Investment Through Global Partners 2025

Brazil Investment Through Global Partners 2025

For Brazilians, investing in global companies with strong local operations may offer a way to manage domestic economic risks and currency fluctuations. This basket provides exposure to leading US and EU-listed blue-chip corporations that are deeply integrated into the Brazilian economy.

Published: October 8, 2025

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Brazilian Stocks

Brazilian Stocks

Ready to invest in Latin America's largest economy? These carefully selected Brazilian companies represent the backbone of a resource-rich nation that supplies essential commodities to the world. Each stock was chosen by professional analysts for its market leadership and growth potential.

Published: June 18, 2025

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Investment Analysis

Gerdau

Pros

  • Commercial Metals Company has a strong track record of dividend payments, with 244 consecutive quarterly dividends, reflecting financial stability.
  • The acquisition of Foley Products Company is expected to be accretive to earnings and free cash flow from year one, with significant synergy targets.
  • CMC maintains a healthy balance sheet with a current ratio of 2.82 and a quick ratio of 1.66, indicating solid short-term liquidity.

Considerations

  • Net earnings for Q3 FY2025 declined year-on-year, reflecting ongoing margin pressures in the steel sector.
  • The company's return on assets and return on equity are below industry averages, suggesting less efficient capital use.
  • CMC's stock price has declined over the past month, indicating near-term investor caution despite longer-term gains.
CMC

CMC

CMC

Pros

  • Gerdau S.A. trades at a low price-to-earnings ratio of 10.91, making it relatively inexpensive compared to peers.
  • The company has a low price-to-book ratio of 0.71, suggesting shares may be undervalued relative to asset base.
  • Gerdau's price-to-sales ratio of 0.58 is among the lowest in the sector, indicating potential for margin expansion.

Considerations

  • Gerdau's current return on equity is well below its historical average, indicating weaker profitability trends.
  • The company's most recent earnings per share are modest, and recent quarterly results show limited growth momentum.
  • Gerdau's beta of 1.42 suggests higher volatility and greater sensitivity to market swings compared to the broader market.

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