VALE SA-SP ADR (VALE) Stock Fundamental Analysis
NYSE:VALE - US91912E1055 - ADR
10.415 USD
+0.01 (+0.14%)
VALE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 155 industry peers in the Metals & Mining industry. While VALE belongs to the best of the industry regarding profitability, there are concerns on its financial health. VALE is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year VALE was profitable.
VALE had a positive operating cash flow in the past year.
VALE had positive earnings in each of the past 5 years.
Each year in the past 5 years VALE had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.87%, VALE is doing good in the industry, outperforming 78.71% of the companies in the same industry.
VALE has a Return On Equity of 13.52%. This is amongst the best in the industry. VALE outperforms 85.16% of its industry peers.
VALE has a better Return On Invested Capital (10.88%) than 83.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VALE is above the industry average of 13.00%.
The last Return On Invested Capital (10.88%) 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 | 5.87% | ||
| ROE | 13.52% | ||
| ROIC | 10.88% |
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 better Profit Margin (13.81%) than 79.35% of its industry peers.
In the last couple of years the Profit Margin of VALE has declined.
VALE has a Operating Margin of 26.56%. This is in the better half of the industry: VALE outperforms 78.06% of its industry peers.
In the last couple of years the Operating Margin of VALE has declined.
VALE has a better Gross Margin (34.24%) than 74.84% of its industry peers.
In the last couple of years the Gross Margin of VALE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.56% | ||
| PM (TTM) | 13.81% | ||
| GM | 34.24% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VALE is still 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.
Compared to 1 year ago, VALE has a worse debt to assets ratio.
2.2 Solvency
VALE has an Altman-Z score of 1.72. This is a bad value and indicates that VALE is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.72, VALE is doing worse than 66.45% of the companies in the same industry.
VALE has a debt to FCF ratio of 8.67. This is a slightly negative value and a sign of low solvency as VALE would need 8.67 years to pay back of all of its debts.
The Debt to FCF ratio of VALE (8.67) is better than 65.16% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that VALE is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.43, VALE is doing worse than 72.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 8.67 | ||
| Altman-Z | 1.72 |
ROIC/WACC0.83
WACC13.15%
2.3 Liquidity
A Current Ratio of 1.22 indicates that VALE should not have too much problems paying its short term obligations.
VALE has a Current ratio of 1.22. This is in the lower half of the industry: VALE underperforms 78.06% of its industry peers.
A Quick Ratio of 0.85 indicates that VALE may have some problems paying its short term obligations.
With a Quick ratio value of 0.85, VALE is not doing good in the industry: 75.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The earnings per share for VALE have decreased strongly by -45.58% in the last year.
VALE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.15% yearly.
The Revenue has decreased by -0.24% in the past year.
VALE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.33% yearly.
EPS 1Y (TTM)-45.58%
EPS 3Y-31.35%
EPS 5Y5.15%
EPS Q2Q%-23.08%
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y-11.13%
Revenue growth 5Y7.33%
Sales Q2Q%-11.25%
3.2 Future
The Earnings Per Share is expected to grow by 9.94% on average over the next years. This is quite good.
VALE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.22% yearly.
EPS Next Y11.39%
EPS Next 2Y12.03%
EPS Next 3Y9.94%
EPS Next 5YN/A
Revenue Next Year-2.59%
Revenue Next 2Y1.72%
Revenue Next 3Y2.3%
Revenue Next 5Y0.22%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 8.47, the valuation of VALE can be described as very reasonable.
Based on the Price/Earnings ratio, VALE is valued cheaply inside the industry as 98.71% of the companies are valued more expensively.
VALE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.02.
The Price/Forward Earnings ratio is 5.76, which indicates a rather cheap valuation of VALE.
Based on the Price/Forward Earnings ratio, VALE is valued cheaply inside the industry as 97.42% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.66. VALE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 5.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VALE is valued cheaper than 96.13% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VALE is valued cheaper than 81.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.47 | ||
| EV/EBITDA | 4.19 |
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)0.74
PEG (5Y)1.64
EPS Next 2Y12.03%
EPS Next 3Y9.94%
5. Dividend
5.1 Amount
VALE has a Yearly Dividend Yield of 1.42%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.74, VALE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, VALE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
The dividend of VALE is nicely growing with an annual growth rate of 104.30%!
VALE has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)104.3%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VALE pays out 70.13% of its income as dividend. 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.
DP70.13%
EPS Next 2Y12.03%
EPS Next 3Y9.94%
NYSE:VALE (9/8/2025, 12:21:13 PM)
10.415
+0.01 (+0.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners42.73%
Inst Owner Change-1.08%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap44.46B
Analysts76.67
Price Target14.1 (35.38%)
Short Float %1.86%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Yearly Dividend0.89
Dividend Growth(5Y)104.3%
DP70.13%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.47%
Min EPS beat(2)-12.03%
Max EPS beat(2)38.96%
EPS beat(4)2
Avg EPS beat(4)-23.15%
Min EPS beat(4)-135.22%
Max EPS beat(4)38.96%
EPS beat(8)4
Avg EPS beat(8)-12.86%
EPS beat(12)6
Avg EPS beat(12)-7.78%
EPS beat(16)9
Avg EPS beat(16)-1.9%
Revenue beat(2)0
Avg Revenue beat(2)-82.01%
Min Revenue beat(2)-82.14%
Max Revenue beat(2)-81.88%
Revenue beat(4)0
Avg Revenue beat(4)-81.99%
Min Revenue beat(4)-82.14%
Max Revenue beat(4)-81.88%
Revenue beat(8)0
Avg Revenue beat(8)-82.15%
Revenue beat(12)0
Avg Revenue beat(12)-69.56%
Revenue beat(16)0
Avg Revenue beat(16)-55.26%
PT rev (1m)0.88%
PT rev (3m)1.86%
EPS NQ rev (1m)-3.54%
EPS NQ rev (3m)8.69%
EPS NY rev (1m)-14.17%
EPS NY rev (3m)-14.17%
Revenue NQ rev (1m)2.92%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 5.76 | ||
| P/S | 1.15 | ||
| P/FCF | 21.47 | ||
| P/OCF | 5.18 | ||
| P/B | 1.13 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 4.19 |
EPS(TTM)1.23
EY11.81%
EPS(NY)1.81
Fwd EY17.35%
FCF(TTM)0.49
FCFY4.66%
OCF(TTM)2.01
OCFY19.3%
SpS9.05
BVpS9.25
TBVpS6.72
PEG (NY)0.74
PEG (5Y)1.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 13.52% | ||
| ROCE | 13.44% | ||
| ROIC | 10.88% | ||
| ROICexc | 11.76% | ||
| ROICexgc | 13.88% | ||
| OM | 26.56% | ||
| PM (TTM) | 13.81% | ||
| GM | 34.24% | ||
| FCFM | 5.36% |
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 Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 8.67 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 203.29% | ||
| Cap/Sales | 16.85% | ||
| Interest Coverage | 8.07 | ||
| Cash Conversion | 63.72% | ||
| Profit Quality | 38.8% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 1.72 |
F-Score4
WACC13.15%
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)-45.58%
EPS 3Y-31.35%
EPS 5Y5.15%
EPS Q2Q%-23.08%
EPS Next Y11.39%
EPS Next 2Y12.03%
EPS Next 3Y9.94%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y-11.13%
Revenue growth 5Y7.33%
Sales Q2Q%-11.25%
Revenue Next Year-2.59%
Revenue Next 2Y1.72%
Revenue Next 3Y2.3%
Revenue Next 5Y0.22%
EBIT growth 1Y-23.99%
EBIT growth 3Y-29.39%
EBIT growth 5Y0.36%
EBIT Next Year21.93%
EBIT Next 3Y9.54%
EBIT Next 5Y4.01%
FCF growth 1Y-58.9%
FCF growth 3Y-48.33%
FCF growth 5Y-14.71%
OCF growth 1Y-15.41%
OCF growth 3Y-28.4%
OCF growth 5Y1.2%