Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, South American steelmaker Gerdau (NYSE: GGB) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Gerdau's business and see what CAPS investors are saying about the stock right now.

Gerdau facts

Headquarters (Founded)

Porto Alegre, Brazil (1901)

Market Cap

$19.4 billion


Electric utilities

Trailing-12-Month Revenue

$16.63 billion


CEO Andre Johannpeter

CFO Osvaldo Schirmer

Return on Equity (Average, Past 3 Years)



$2.48 billion / $8.65 billion


ArcelorMittal (NYSE: MT)

Companhia Siderurgica Nacional (CSN) (NYSE: SID)

Nucor (NYSE: NUE)

Steel Dynamics (Nasdaq: STLD)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 98% of the 1,086 members who have rated Gerdau believe the stock will outperform the S&P 500 going forward. These bulls include stocky5 and Simbalion200.

This past summer, stocky5 touched on a few of the tailwinds Gerdau should benefit from: "Upcoming World Cup and Olympic infrastructure building boom, and expanding [Brazil] economy, all working in this stock's favor. Should be a rewarding long term holding."

Our community remains attracted to Gerdau's enviable position in the Brazilian long steel products market. Thanks in large part to low labor and energy costs, Gerdau's three-year average return on equity (16.8%) is higher than that of fellow steel giants ArcelorMittal (10.3%), Nucor (11.7%), and U.S. Steel (NYSE: X) (3.9%). Additionally, with its shares trading at a price-to-cash flow of just 7.1 -- representing a huge discount to other rivals including CSN (16.8) and Steel Dynamics (13.1) -- Gerdau seems like a relatively inexpensive opportunity, to boot.

CAPS member Simbalion expands on the solid opportunity:

Gerdau SA is a Brazil-based producer of long rolled steel. Gerdau operates steel mills that produce steel by direct iron-ore reduction in blast furnaces and in electric arc furnaces. In Brazil, it operates blast furnace steel mills, including its mill, Gerdau Acominas, an integrated steel mill located in Ouro Branco in the state of Minas Gerais. Its main customers are the industries and companies connected to the civil construction and the farming and livestock sectors. ...

One of the more profitable companies in the Iron and Steel industry. Revenue is increasing.

What do you think about Gerdau, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Nucor is a Motley Fool Stock Advisor selection. Try any of our Foolish newsletter services free for 30 days.

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