| Gerdau Set to Leverage Rising Steel Demand, Runs Risks - Analyst Blog | |
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On Mar 13, 2015, we issued an updated research report on Gerdau S.A. GGB. A leading Brazilian steel maker, the company’s operations span over South America, North America, Europe and Asia.
Gerdau stands well positioned to leverage benefits from the growing steel demand internationally as well as domestically. The World Steel Association has predicted a 2% increase in global steel demand in 2015, with strong demand coming in from China. Similarly, the Brazilian Steel Institute (IABr) expects sales to be approximately 20.8 million tons for 2015.
Over time, Gerdau has been working hard to improve its manufacturing techniques and capacity, as well as attain self-sufficiency in raw materials. Efforts are being made to increase production of flat steel and iron ore in Brazil, and enhance the quality of special bar in Brazil and the United States, and special steel in India. An investment worth R$8.5 billion has been planned for 2013−2017, including capital spending of R$1.9 billion for 2015.
Despite bright long-term prospects, near-term headwinds can restrict Gerdau’s growth. Risks emanating from higher cost of sales, increasing competition, disruptions in supply of raw materials and foreign currency fluctuations pose serious threats.
In the recently reported fourth-quarter 2014, Gerdau recorded 20% year-over-year decline in net income due primarily to weak steel demand in Brazil, higher costs of sales and rising operating expenses. Also, adverse exchange variations and higher expenses pulled down margins and profitability. Crude steel production declined 2.8%, while shipments were down 3.4%.
The Zacks Consensus Estimate for the stock is currently pegged at 31 cents and 34 cents per American Depository Receipt (“ADR”) for 2015 and 2016, respectively. Gerdau currently has a market capitalization of $5.7 billion and carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the steel industry include ThyssenKrupp AG TYEKF, Kobe Steel Ltd. KBSTY and Companhia Siderurgica Nacional SID. While both ThyssenKrupp and Kobe Steel sport a Zacks Rank #1 (Strong Buy), Companhia Siderurgica Nacional holds a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CIA SIDERUR-ADR (SID): Free Stock Analysis Report GERDAU SA ADR (GGB): Free Stock Analysis Report KOBE STEEL-ADR (KBSTY): Get Free Report THYSSEN A G (TYEKF): Get Free Report To read this article on Zacks.com click here. Zacks Investment Research
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Companhia Siderurgica Nacional
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CODE : SID |
ISIN : US20440W1053 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Companhia Siderurgica est une société développant des projet miniers basée au Bresil. Companhia Siderurgica est cotée aux Etats-Unis D'Amerique. Sa capitalisation boursière aujourd'hui est 3,0 milliards US$ (2,7 milliards €). La valeur de son action a atteint son plus bas niveau récent le 11 octobre 2002 à 0,70 US$, et son plus haut niveau récent le 01 décembre 2006 à 9,98 US$. Companhia Siderurgica possède 1 387 520 000 actions en circulation. |