Brazilian integrated steelmaker Gerdau should continue paying big dividends, according to analysts at BTG Pactual.
Gerdau has successfully reduced its net debt at levels that BTG Pactual analysts consider “very healthy.”
“We expect working capital to normalize (at regular levels) to recover some of (Gerdau’s) investments, so perspectives for free cash flow should remain brilliant,” analysts Leonardo Correa and Caio Greiner said.
The analysts said Gerdau has been posting strong revenue growths, low financial leverage levels and a good cash flow.
Last week, Gerdau saw its net profit in Q3 this year surge 604 percent, year-over-year, to BRL 5.59 billion ($1 billion). The company’s net revenues in Q3 this year rose 74 percent, year-over-year, to BRL 21.31 billion ($3.8 billion).