Is GERDAU S.A. (GGB) Halal?

NYSE Basic Materials Brazil $6.8B
✗ NOT HALAL
Confidence: 90/100
GERDAU S.A. (GGB) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 221.4% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. GERDAU S.A. operates in the Basic Materials sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 221.4%
/ 30%
90.7%
/ 30%
96.5%
/ 30%
0.58%
/ 5%
✗ NOT HALAL
DJIM 221.4%
/ 33%
90.7%
/ 33%
96.5%
/ 33%
0.58%
/ 5%
✗ NOT HALAL
MSCI 19.1%
/ 33%
7.8%
/ 33%
8.3%
/ 33%
0.58%
/ 5%
✓ HALAL
S&P 221.4%
/ 33%
90.7%
/ 33%
96.5%
/ 33%
0.58%
/ 5%
✗ NOT HALAL
FTSE 19.1%
/ 33%
7.8%
/ 33%
8.3%
/ 50%
0.58%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
26.3
Forward: 6.4
EPS
$0.13
Dividend Yield
333.0%
Payout: 89.4%
P/B Ratio
0.7
EV/EBITDA
1.8
EV: $16.2B
Revenue
$69.9B
Growth: 0.9%
Beta
0.9
Average volatility
Current Ratio
2.9

Profitability

Gross Margin 11.4%
Operating Margin 7.0%
Net Margin 2.0%
Return on Equity (ROE) 2.5%
Return on Assets (ROA) 4.2%

Cash Flow & Balance Sheet

Operating Cash Flow$8.0B
Free Cash Flow$1.1B
Total Debt$15.6B
Debt-to-Equity28.9
Current Ratio2.9
Total Assets$81.7B

Price & Trading

Last Close$3.47
50-Day MA$3.94
200-Day MA$3.44
Avg Volume18.8M
Beta0.9
52-Week Range
$2.27
$4.66

About GERDAU S.A. (GGB)

CEO
Mr. Gustavo Werneck Da Cunha
Employees
30,000
Sector
Basic Materials
Industry
Steel
Country
Brazil
Exchange
NYSE
Market Cap
$6.8B
Currency
USD

Gerdau S.A., together with its subsidiaries, operates as a steel producer company. It operates through Brazil Business, North America Business, and South America Business segments. The company offers rebars, bars, wires, thick plates, hot rolled coils, billets, blooms, plates, wire rods, and structural profiles. It also provides special steel products for agricultural, automotive, construction, distribution, energy, industrial, and mining markets. In addition, it operates mines that produce iron ore located in Brazil. The company was founded in 1901 and is headquartered in São Paulo, Brazil.

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Frequently Asked Questions

Is GERDAU S.A. (GGB) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), GERDAU S.A. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is GERDAU S.A.'s debt ratio?

GERDAU S.A.'s debt ratio is 221.4% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 19.1%.

What are GERDAU S.A.'s key financial metrics?

GERDAU S.A. has a market capitalization of $6.8B, trailing P/E ratio of 26.3, and revenue of $69.9B. The company maintains a gross margin of 11.4% and a net margin of 2.0%. Return on equity stands at 2.5%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.