VALE SA-SP ADR (VALE) Stock Fundamental Analysis
USA - NYSE:VALE - US91912E1055 - ADR
12.17 USD
-0.13 (-1.06%)
12.05 USD
-0.12 (-0.99%)
We assign a fundamental rating of 5 out of 10 to VALE. VALE was compared to 154 industry peers in the Metals & Mining industry. VALE has an excellent profitability rating, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on VALE.
1. Profitability
1.1 Basic Checks
VALE had positive earnings in the past year.
VALE had a positive operating cash flow in the past year.
In the past 5 years VALE has always been profitable.
In the past 5 years VALE always reported a positive cash flow from operatings.
1.2 Ratios
VALE's Return On Assets of 6.22% is fine compared to the rest of the industry. VALE outperforms 76.62% of its industry peers.
With an excellent Return On Equity value of 13.84%, VALE belongs to the best of the industry, outperforming 83.12% of the companies in the same industry.
VALE has a better Return On Invested Capital (11.53%) than 85.71% of its industry peers.
VALE had an Average Return On Invested Capital over the past 3 years of 15.63%. This is above the industry average of 12.85%.
The last Return On Invested Capital (11.53%) for VALE is well below the 3 year average (15.63%), which needs to be investigated, but indicates that VALE had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.22% | ||
| ROE | 13.84% | ||
| ROIC | 11.53% |
ROA(3y)12.09%
ROA(5y)13.23%
ROE(3y)29.15%
ROE(5y)32.97%
ROIC(3y)15.63%
ROIC(5y)19.92%
1.3 Margins
VALE has a Profit Margin of 14.15%. This is in the better half of the industry: VALE outperforms 77.92% of its industry peers.
VALE's Profit Margin has declined in the last couple of years.
VALE has a better Operating Margin (27.66%) than 79.87% of its industry peers.
In the last couple of years the Operating Margin of VALE has declined.
Looking at the Gross Margin, with a value of 34.81%, VALE is in the better half of the industry, outperforming 73.38% of the companies in the same industry.
In the last couple of years the Gross Margin of VALE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.66% | ||
| PM (TTM) | 14.15% | ||
| GM | 34.81% |
OM growth 3Y-20.55%
OM growth 5Y-6.5%
PM growth 3Y-28.12%
PM growth 5YN/A
GM growth 3Y-15.48%
GM growth 5Y-5.12%
2. Health
2.1 Basic Checks
VALE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
VALE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, VALE has less shares outstanding
Compared to 1 year ago, VALE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.89 indicates that VALE is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of VALE (1.89) is worse than 68.18% of its industry peers.
VALE has a debt to FCF ratio of 6.13. This is a slightly negative value and a sign of low solvency as VALE would need 6.13 years to pay back of all of its debts.
VALE has a better Debt to FCF ratio (6.13) than 67.53% of its industry peers.
VALE has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.44, VALE is not doing good in the industry: 76.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.13 | ||
| Altman-Z | 1.89 |
ROIC/WACC0.83
WACC13.89%
2.3 Liquidity
VALE has a Current Ratio of 1.24. This is a normal value and indicates that VALE is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.24, VALE is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
VALE has a Quick Ratio of 1.24. This is a bad value and indicates that VALE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of VALE (0.82) is worse than 81.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for VALE have decreased strongly by -21.31% in the last year.
Measured over the past 5 years, VALE shows a small growth in Earnings Per Share. The EPS has been growing by 5.15% on average per year.
VALE shows a small growth in Revenue. In the last year, the Revenue has grown by 1.05%.
Measured over the past years, VALE shows a small growth in Revenue. The Revenue has been growing by 7.33% on average per year.
EPS 1Y (TTM)-21.31%
EPS 3Y-31.35%
EPS 5Y5.15%
EPS Q2Q%9.05%
Revenue 1Y (TTM)1.05%
Revenue growth 3Y-11.13%
Revenue growth 5Y7.33%
Sales Q2Q%8.95%
3.2 Future
Based on estimates for the next years, VALE will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.95% on average per year.
VALE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.62% yearly.
EPS Next Y36.42%
EPS Next 2Y16.24%
EPS Next 3Y9.95%
EPS Next 5YN/A
Revenue Next Year-0.53%
Revenue Next 2Y2.16%
Revenue Next 3Y2.11%
Revenue Next 5Y0.62%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.45, the valuation of VALE can be described as reasonable.
VALE's Price/Earnings ratio is rather cheap when compared to the industry. VALE is cheaper than 98.05% of the companies in the same industry.
VALE is valuated cheaply when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.25, which indicates a rather cheap valuation of VALE.
Based on the Price/Forward Earnings ratio, VALE is valued cheaper than 94.81% of the companies in the same industry.
VALE is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.45 | ||
| Fwd PE | 6.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VALE indicates a rather cheap valuation: VALE is cheaper than 95.45% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, VALE is valued cheaper than 88.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.14 | ||
| EV/EBITDA | 4.46 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of VALE may justify a higher PE ratio.
PEG (NY)0.23
PEG (5Y)1.64
EPS Next 2Y16.24%
EPS Next 3Y9.95%
5. Dividend
5.1 Amount
VALE has a Yearly Dividend Yield of 1.81%.
Compared to an average industry Dividend Yield of 2.63, VALE pays a better dividend. On top of this VALE pays more dividend than 82.47% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.44, VALE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
The dividend of VALE is nicely growing with an annual growth rate of 104.30%!
VALE has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)104.3%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
64.46% of the earnings are spent on dividend by VALE. This is not a sustainable payout ratio.
The dividend of VALE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP64.46%
EPS Next 2Y16.24%
EPS Next 3Y9.95%
12.17
-0.13 (-1.06%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners40.01%
Inst Owner Change5%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap51.95B
Revenue(TTM)213.32B
Net Income(TTM)30.18B
Analysts78.26
Price Target12.78 (5.01%)
Short Float %2.06%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend0.91
Dividend Growth(5Y)104.3%
DP64.46%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-81.64%
Min Revenue beat(2)-81.73%
Max Revenue beat(2)-81.56%
Revenue beat(4)0
Avg Revenue beat(4)-81.6%
Min Revenue beat(4)-81.73%
Max Revenue beat(4)-81.46%
Revenue beat(8)0
Avg Revenue beat(8)-81.65%
Revenue beat(12)0
Avg Revenue beat(12)-75.18%
Revenue beat(16)0
Avg Revenue beat(16)-58.24%
PT rev (1m)-5.46%
PT rev (3m)-8.62%
EPS NQ rev (1m)3.4%
EPS NQ rev (3m)1.52%
EPS NY rev (1m)8.21%
EPS NY rev (3m)5.11%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)1.98%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.45 | ||
| Fwd PE | 6.25 | ||
| P/S | 1.29 | ||
| P/FCF | 17.14 | ||
| P/OCF | 5.39 | ||
| P/B | 1.26 | ||
| P/tB | 1.72 | ||
| EV/EBITDA | 4.46 |
EPS(TTM)1.44
EY11.83%
EPS(NY)1.95
Fwd EY15.99%
FCF(TTM)0.71
FCFY5.84%
OCF(TTM)2.26
OCFY18.55%
SpS9.42
BVpS9.63
TBVpS7.06
PEG (NY)0.23
PEG (5Y)1.64
Graham Number17.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.22% | ||
| ROE | 13.84% | ||
| ROCE | 14.25% | ||
| ROIC | 11.53% | ||
| ROICexc | 12.51% | ||
| ROICexgc | 14.76% | ||
| OM | 27.66% | ||
| PM (TTM) | 14.15% | ||
| GM | 34.81% | ||
| FCFM | 7.54% |
ROA(3y)12.09%
ROA(5y)13.23%
ROE(3y)29.15%
ROE(5y)32.97%
ROIC(3y)15.63%
ROIC(5y)19.92%
ROICexc(3y)16.65%
ROICexc(5y)22.69%
ROICexgc(3y)19.73%
ROICexgc(5y)26.7%
ROCE(3y)19.31%
ROCE(5y)24.6%
ROICexgc growth 3Y-31.02%
ROICexgc growth 5Y-4.69%
ROICexc growth 3Y-31.7%
ROICexc growth 5Y-5.74%
OM growth 3Y-20.55%
OM growth 5Y-6.5%
PM growth 3Y-28.12%
PM growth 5YN/A
GM growth 3Y-15.48%
GM growth 5Y-5.12%
F-Score5
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.13 | ||
| Debt/EBITDA | 1.25 | ||
| Cap/Depr | 201.91% | ||
| Cap/Sales | 16.43% | ||
| Interest Coverage | 9.01 | ||
| Cash Conversion | 66.96% | ||
| Profit Quality | 53.27% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 1.89 |
F-Score5
WACC13.89%
ROIC/WACC0.83
Cap/Depr(3y)192.28%
Cap/Depr(5y)174.88%
Cap/Sales(3y)14.54%
Cap/Sales(5y)12.69%
Profit Quality(3y)56.79%
Profit Quality(5y)92.18%
High Growth Momentum
Growth
EPS 1Y (TTM)-21.31%
EPS 3Y-31.35%
EPS 5Y5.15%
EPS Q2Q%9.05%
EPS Next Y36.42%
EPS Next 2Y16.24%
EPS Next 3Y9.95%
EPS Next 5YN/A
Revenue 1Y (TTM)1.05%
Revenue growth 3Y-11.13%
Revenue growth 5Y7.33%
Sales Q2Q%8.95%
Revenue Next Year-0.53%
Revenue Next 2Y2.16%
Revenue Next 3Y2.11%
Revenue Next 5Y0.62%
EBIT growth 1Y-14.96%
EBIT growth 3Y-29.39%
EBIT growth 5Y0.36%
EBIT Next Year17.78%
EBIT Next 3Y9.1%
EBIT Next 5Y3.62%
FCF growth 1Y-32.72%
FCF growth 3Y-48.33%
FCF growth 5Y-14.71%
OCF growth 1Y-2.21%
OCF growth 3Y-28.4%
OCF growth 5Y1.2%
VALE SA-SP ADR / VALE FAQ
What is the ChartMill fundamental rating of VALE SA-SP ADR (VALE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to VALE.
What is the valuation status for VALE stock?
ChartMill assigns a valuation rating of 9 / 10 to VALE SA-SP ADR (VALE). This can be considered as Undervalued.
Can you provide the profitability details for VALE SA-SP ADR?
VALE SA-SP ADR (VALE) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for VALE stock?
The Earnings per Share (EPS) of VALE SA-SP ADR (VALE) is expected to grow by 36.42% in the next year.
Can you provide the dividend sustainability for VALE stock?
The dividend rating of VALE SA-SP ADR (VALE) is 4 / 10 and the dividend payout ratio is 64.46%.