VALE SA-SP ADR (VALE) Stock Fundamental Analysis
NYSE:VALE - New York Stock Exchange, Inc. - US91912E1055 - ADR - Currency: USD
VALE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 157 industry peers in the Metals & Mining industry. VALE scores excellent on profitability, but there are concerns on its financial health. VALE is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year VALE was profitable.
In the past year VALE had a positive cash flow from operations.
VALE had positive earnings in each of the past 5 years.
In the past 5 years VALE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of VALE (6.57%) is better than 80.25% of its industry peers.
VALE's Return On Equity of 15.57% is amongst the best of the industry. VALE outperforms 86.62% of its industry peers.
VALE has a Return On Invested Capital of 11.71%. This is amongst the best in the industry. VALE outperforms 88.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VALE is above the industry average of 12.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.57% | ||
| ROE | 15.57% | ||
| ROIC | 11.71% |
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 14.88%. This is amongst the best in the industry. VALE outperforms 82.80% of its industry peers.
In the last couple of years the Profit Margin of VALE has declined.
VALE has a better Operating Margin (27.55%) than 81.53% of its industry peers.
VALE's Operating Margin has declined in the last couple of years.
The Gross Margin of VALE (35.45%) is better than 77.07% of its industry peers.
In the last couple of years the Gross Margin of VALE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.55% | ||
| PM (TTM) | 14.88% | ||
| GM | 35.45% |
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.
The number of shares outstanding for VALE has been reduced compared to 1 year ago.
VALE has less shares outstanding than it did 5 years ago.
VALE has a worse debt/assets ratio than last year.
2.2 Solvency
VALE has an Altman-Z score of 1.71. This is a bad value and indicates that VALE is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VALE (1.71) is worse than 64.97% of its industry peers.
The Debt to FCF ratio of VALE is 14.20, which is on the high side as it means it would take VALE, 14.20 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 14.20, VALE is doing good in the industry, outperforming 63.06% of the companies in the same industry.
VALE has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.44, VALE is doing worse than 74.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 14.2 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.91
WACC12.9%
2.3 Liquidity
VALE has a Current Ratio of 1.11. This is a normal value and indicates that VALE is financially healthy and should not expect problems in meeting its short term obligations.
VALE has a Current ratio of 1.11. This is amonst the worse of the industry: VALE underperforms 82.17% of its industry peers.
VALE has a Quick Ratio of 1.11. This is a bad value and indicates that VALE is not financially healthy enough and could expect problems in meeting its short term obligations.
VALE has a worse Quick ratio (0.74) than 80.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The earnings per share for VALE have decreased strongly by -45.58% in the last year.
The Earnings Per Share has been growing slightly by 5.15% on average over the past years.
The Revenue has decreased by -0.99% in the past year.
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)-45.58%
EPS 3Y-31.35%
EPS 5Y5.15%
EPS Q2Q%-23.08%
Revenue 1Y (TTM)-0.99%
Revenue growth 3Y-11.13%
Revenue growth 5Y7.33%
Sales Q2Q%-11.25%
3.2 Future
VALE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.38% yearly.
VALE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.48% yearly.
EPS Next Y29.79%
EPS Next 2Y13.8%
EPS Next 3Y8.38%
EPS Next 5YN/A
Revenue Next Year-2.31%
Revenue Next 2Y0.7%
Revenue Next 3Y1.4%
Revenue Next 5Y0.48%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.02, the valuation of VALE can be described as reasonable.
Based on the Price/Earnings ratio, VALE is valued cheaper than 98.09% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.03. VALE is valued rather cheaply when compared to this.
VALE is valuated cheaply with a Price/Forward Earnings ratio of 5.29.
Based on the Price/Forward Earnings ratio, VALE is valued cheaply inside the industry as 94.27% of the companies are valued more expensively.
VALE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.02 | ||
| Fwd PE | 5.29 |
4.2 Price Multiples
94.90% of the companies in the same industry are more expensive than VALE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, VALE is valued a bit cheaper than 73.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.49 | ||
| EV/EBITDA | 4.01 |
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)0.27
PEG (5Y)1.56
EPS Next 2Y13.8%
EPS Next 3Y8.38%
5. Dividend
5.1 Amount
VALE has a Yearly Dividend Yield of 1.47%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.93, VALE pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.40, VALE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
5.2 History
On average, the dividend of VALE grows each year by 104.30%, which is quite nice.
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
64.54% of the earnings are spent on dividend by VALE. This is not a sustainable payout ratio.
VALE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP64.54%
EPS Next 2Y13.8%
EPS Next 3Y8.38%
NYSE:VALE (8/6/2025, 3:57:08 PM)
9.865
0 (-0.05%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners42.73%
Inst Owner Change0.07%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap42.11B
Analysts76
Price Target13.98 (41.71%)
Short Float %2.47%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Yearly Dividend0.87
Dividend Growth(5Y)104.3%
DP64.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-73.63%
Min EPS beat(2)-135.22%
Max EPS beat(2)-12.03%
EPS beat(4)2
Avg EPS beat(4)-22.11%
Min EPS beat(4)-135.22%
Max EPS beat(4)43.12%
EPS beat(8)3
Avg EPS beat(8)-25.94%
EPS beat(12)6
Avg EPS beat(12)-5.12%
EPS beat(16)8
Avg EPS beat(16)-4.94%
Revenue beat(2)0
Avg Revenue beat(2)-82.29%
Min Revenue beat(2)-82.38%
Max Revenue beat(2)-82.19%
Revenue beat(4)0
Avg Revenue beat(4)-82.31%
Min Revenue beat(4)-82.49%
Max Revenue beat(4)-82.19%
Revenue beat(8)0
Avg Revenue beat(8)-82.53%
Revenue beat(12)0
Avg Revenue beat(12)-64.31%
Revenue beat(16)0
Avg Revenue beat(16)-51.47%
PT rev (1m)-2.96%
PT rev (3m)-1.94%
EPS NQ rev (1m)-13.53%
EPS NQ rev (3m)143.41%
EPS NY rev (1m)0%
EPS NY rev (3m)149.9%
Revenue NQ rev (1m)-7.03%
Revenue NQ rev (3m)-6.46%
Revenue NY rev (1m)-1.84%
Revenue NY rev (3m)-2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.02 | ||
| Fwd PE | 5.29 | ||
| P/S | 1.1 | ||
| P/FCF | 35.49 | ||
| P/OCF | 5.52 | ||
| P/B | 1.15 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 4.01 |
EPS(TTM)1.23
EY12.47%
EPS(NY)1.86
Fwd EY18.9%
FCF(TTM)0.28
FCFY2.82%
OCF(TTM)1.79
OCFY18.11%
SpS8.97
BVpS8.57
TBVpS6.09
PEG (NY)0.27
PEG (5Y)1.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.57% | ||
| ROE | 15.57% | ||
| ROCE | 14.46% | ||
| ROIC | 11.71% | ||
| ROICexc | 12.41% | ||
| ROICexgc | 14.67% | ||
| OM | 27.55% | ||
| PM (TTM) | 14.88% | ||
| GM | 35.45% | ||
| FCFM | 3.1% |
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%
ROICexcg growth 3Y-31.02%
ROICexcg 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-Score4
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 14.2 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 208.03% | ||
| Cap/Sales | 16.81% | ||
| Interest Coverage | 8.98 | ||
| Cash Conversion | 55.86% | ||
| Profit Quality | 20.82% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 1.71 |
F-Score4
WACC12.9%
ROIC/WACC0.91
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)-45.58%
EPS 3Y-31.35%
EPS 5Y5.15%
EPS Q2Q%-23.08%
EPS Next Y29.79%
EPS Next 2Y13.8%
EPS Next 3Y8.38%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.99%
Revenue growth 3Y-11.13%
Revenue growth 5Y7.33%
Sales Q2Q%-11.25%
Revenue Next Year-2.31%
Revenue Next 2Y0.7%
Revenue Next 3Y1.4%
Revenue Next 5Y0.48%
EBIT growth 1Y-21.4%
EBIT growth 3Y-29.39%
EBIT growth 5Y0.36%
EBIT Next Year21.93%
EBIT Next 3Y9.54%
EBIT Next 5Y4.23%
FCF growth 1Y-81.45%
FCF growth 3Y-48.33%
FCF growth 5Y-14.71%
OCF growth 1Y-33.59%
OCF growth 3Y-28.4%
OCF growth 5Y1.2%