VALE SA-SP ADR (VALE)
US91912E1055 - ADR
We assign a fundamental rating of 7 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 some minor concerns on its financial health. VALE has a bad growth rate and is valued cheaply. This makes VALE very considerable for value investing!
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.
VALE had positive earnings in 4 of the past 5 years.
VALE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VALE's Return On Assets of 8.76% is amongst the best of the industry. VALE outperforms 86.36% of its industry peers.
The Return On Equity of VALE (20.91%) is better than 89.61% of its industry peers.
With an excellent Return On Invested Capital value of 15.88%, VALE belongs to the best of the industry, outperforming 94.16% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VALE is significantly above the industry average of 8.93%.
The last Return On Invested Capital (15.88%) for VALE is well below the 3 year average (22.06%), which needs to be investigated, but indicates that VALE had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.76% | ||
| ROE | 20.91% | ||
| ROIC | 15.88% |
ROA(3y)18.07%
ROA(5y)11.6%
ROE(3y)45.06%
ROE(5y)29.09%
ROIC(3y)22.06%
ROIC(5y)20.11%
1.3 Margins
The Profit Margin of VALE (19.20%) is better than 91.56% of its industry peers.
In the last couple of years the Profit Margin of VALE has remained more or less at the same level.
VALE has a Operating Margin of 37.19%. This is amongst the best in the industry. VALE outperforms 93.51% of its industry peers.
VALE's Operating Margin has been stable in the last couple of years.
VALE's Gross Margin of 42.32% is amongst the best of the industry. VALE outperforms 83.12% of its industry peers.
VALE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.19% | ||
| PM (TTM) | 19.2% | ||
| GM | 42.32% |
OM growth 3Y-9.01%
OM growth 5Y1.08%
PM growth 3Y13.99%
PM growth 5Y0.12%
GM growth 3Y-8.85%
GM growth 5Y1.33%
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.
The number of shares outstanding for VALE has been reduced compared to 5 years ago.
The debt/assets ratio for VALE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.99 indicates that VALE is not a great score, but indicates only limited risk for bankruptcy at the moment.
VALE has a Altman-Z score of 1.99. This is comparable to the rest of the industry: VALE outperforms 42.21% of its industry peers.
The Debt to FCF ratio of VALE is 1.85, which is an excellent value as it means it would take VALE, only 1.85 years of fcf income to pay off all of its debts.
VALE has a better Debt to FCF ratio (1.85) than 81.82% of its industry peers.
VALE has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
VALE has a worse Debt to Equity ratio (0.33) than 63.64% of its industry peers.
Even though the debt/equity ratio score it not favorable for VALE, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.22
WACC13.04%
2.3 Liquidity
VALE has a Current Ratio of 1.28. This is a normal value and indicates that VALE is financially healthy and should not expect problems in meeting its short term obligations.
VALE's Current ratio of 1.28 is on the low side compared to the rest of the industry. VALE is outperformed by 80.52% of its industry peers.
VALE has a Quick Ratio of 1.28. 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's Quick ratio of 0.96 is on the low side compared to the rest of the industry. VALE is outperformed by 72.08% of its industry peers.
The current and quick ratio evaluation for VALE is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for VALE have decreased strongly by -54.81% in the last year.
The Earnings Per Share has been growing by 13.07% on average over the past years. This is quite good.
VALE shows a decrease in Revenue. In the last year, the revenue decreased by -8.14%.
VALE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.12% yearly.
EPS 1Y (TTM)-54.81%
EPS 3Y19.96%
EPS 5Y13.07%
EPS growth Q2Q-31.71%
Revenue 1Y (TTM)-8.14%
Revenue growth 3Y0.32%
Revenue growth 5Y9.12%
Revenue growth Q2Q2.82%
3.2 Future
The Earnings Per Share is expected to grow by 7.98% on average over the next years.
VALE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.24% yearly.
EPS Next Y28.01%
EPS Next 2Y13%
EPS Next 3Y7.98%
EPS Next 5YN/A
Revenue Next Year-0.03%
Revenue Next 2Y-0.37%
Revenue Next 3Y-0.24%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
VALE is valuated cheaply with a Price/Earnings ratio of 6.62.
Compared to the rest of the industry, the Price/Earnings ratio of VALE indicates a rather cheap valuation: VALE is cheaper than 95.45% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of VALE to the average of the S&P500 Index (24.67), we can say VALE is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.17, the valuation of VALE can be described as very cheap.
Based on the Price/Forward Earnings ratio, VALE is valued cheaper than 98.70% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.02, VALE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.62 | ||
| Fwd PE | 5.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VALE is valued cheaply inside the industry as 96.10% of the companies are valued more expensively.
91.56% of the companies in the same industry are more expensive than VALE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.33 | ||
| EV/EBITDA | 3.41 |
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 excellent profitability rating of VALE may justify a higher PE ratio.
PEG (NY)0.24
PEG (5Y)0.51
EPS Next 2Y13%
EPS Next 3Y7.98%
5. Dividend
5.1 Amount
VALE has a Yearly Dividend Yield of 2.27%.
VALE's Dividend Yield is rather good when compared to the industry average which is at 2.88. VALE pays more dividend than 81.17% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, VALE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
5.2 History
On average, the dividend of VALE grows each year by 20.29%, which is quite nice.
VALE has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)20.29%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VALE pays out 70.02% of its income as dividend. This is not a sustainable payout ratio.
VALE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP70.02%
EPS Next 2Y13%
EPS Next 3Y7.98%
VALE SA-SP ADR
NYSE:VALE (5/1/2024, 8:42:09 AM)
12.18
+0.01 (+0.08%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap52.13B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.62 | ||
| Fwd PE | 5.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.24
PEG (5Y)0.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.76% | ||
| ROE | 20.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 37.19% | ||
| PM (TTM) | 19.2% | ||
| GM | 42.32% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-54.81%
EPS 3Y19.96%
EPS 5Y
EPS growth Q2Q
EPS Next Y28.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.14%
Revenue growth 3Y0.32%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y