VALE SA-SP ADR (VALE) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:VALE • US91912E1055
16.07 USD
-0.87 (-5.14%)
At close: Jan 30, 2026
16.08 USD
+0.01 (+0.06%)
After Hours: 1/30/2026, 6:42:19 PM
Overall VALE gets a fundamental rating of 5 out of 10. We evaluated VALE against 154 industry peers in the Metals & Mining industry. VALE scores excellent on profitability, but there are concerns on its financial health. VALE may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- In the past year VALE was profitable.
- VALE had a positive operating cash flow in the past year.
- Each year in the past 5 years VALE has been profitable.
- In the past 5 years VALE always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of VALE (6.22%) is better than 77.27% of its industry peers.
- VALE has a Return On Equity of 13.84%. This is amongst the best in the industry. VALE outperforms 84.42% of its industry peers.
- The Return On Invested Capital of VALE (11.53%) is better than 83.12% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for VALE is significantly above the industry average of 10.33%.
- The 3 year average ROIC (15.63%) for VALE is well above the current ROIC(11.53%). The reason for the recent decline needs to be investigated.
| 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 better Profit Margin (14.15%) than 77.27% of its industry peers.
- VALE's Profit Margin has declined in the last couple of years.
- VALE has a Operating Margin of 27.66%. This is in the better half of the industry: VALE outperforms 77.92% of its industry peers.
- VALE's Operating Margin has declined in the last couple of years.
- VALE has a Gross Margin of 34.81%. This is in the better half of the industry: VALE outperforms 72.73% of its industry peers.
- VALE's Gross Margin has declined in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VALE is creating some value.
- Compared to 1 year ago, VALE has less shares outstanding
- 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 2.12. This is not the best score and indicates that VALE is in the grey zone with still only limited risk for bankruptcy at the moment.
- VALE's Altman-Z score of 2.12 is on the low side compared to the rest of the industry. VALE is outperformed by 71.43% 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.
- The Debt to FCF ratio of VALE (6.13) is better than 66.88% 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.
- Looking at the Debt to Equity ratio, with a value of 0.44, VALE is doing worse than 72.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.13 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.79
WACC14.67%
2.3 Liquidity
- A Current Ratio of 1.24 indicates that VALE should not have too much problems paying its short term obligations.
- VALE has a Current ratio of 1.24. This is in the lower half of the industry: VALE underperforms 77.27% of its industry peers.
- 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.
- VALE's Quick ratio of 0.82 is on the low side compared to the rest of the industry. VALE is outperformed by 77.27% 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 -39.81% 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 been growing slightly by 1.05% 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)-39.81%
EPS 3Y-31.35%
EPS 5Y5.15%
EPS Q2Q%12.5%
Revenue 1Y (TTM)1.05%
Revenue growth 3Y-11.13%
Revenue growth 5Y7.33%
Sales Q2Q%9.07%
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 11.73% on average per year.
- VALE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.43% yearly.
EPS Next Y44.36%
EPS Next 2Y19.68%
EPS Next 3Y11.73%
EPS Next 5YN/A
Revenue Next Year0.25%
Revenue Next 2Y2.63%
Revenue Next 3Y2.47%
Revenue Next 5Y0.43%
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
- VALE is valuated correctly with a Price/Earnings ratio of 12.36.
- 98.70% of the companies in the same industry are more expensive than VALE, based on the Price/Earnings ratio.
- VALE is valuated cheaply when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 7.79, the valuation of VALE can be described as very cheap.
- VALE's Price/Forward Earnings ratio is rather cheap when compared to the industry. VALE is cheaper than 94.16% of the companies in the same industry.
- VALE is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.36 | ||
| Fwd PE | 7.79 |
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.
- VALE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VALE is cheaper than 88.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.1 | ||
| EV/EBITDA | 5.76 |
4.3 Compensation for Growth
- VALE's 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)0.28
PEG (5Y)2.4
EPS Next 2Y19.68%
EPS Next 3Y11.73%
5. Dividend
5.1 Amount
- VALE has a Yearly Dividend Yield of 2.06%. Purely for dividend investing, there may be better candidates out there.
- VALE's Dividend Yield is rather good when compared to the industry average which is at 1.02. VALE pays more dividend than 87.01% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, VALE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
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
- 64.46% 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.
DP64.46%
EPS Next 2Y19.68%
EPS Next 3Y11.73%
VALE SA-SP ADR / VALE FAQ
What is the fundamental rating for VALE stock?
ChartMill assigns a fundamental rating of 5 / 10 to VALE.
Can you provide the valuation status for VALE SA-SP ADR?
ChartMill assigns a valuation rating of 8 / 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.
What are the PE and PB ratios of VALE SA-SP ADR (VALE) stock?
The Price/Earnings (PE) ratio for VALE SA-SP ADR (VALE) is 12.36 and the Price/Book (PB) ratio is 1.63.
What is the earnings growth outlook for VALE SA-SP ADR?
The Earnings per Share (EPS) of VALE SA-SP ADR (VALE) is expected to grow by 44.36% in the next year.