VALE SA-SP ADR (VALE) Stock Fundamental Analysis
USA - NYSE:VALE - US91912E1055 - ADR
11.41 USD
-0.05 (-0.44%)
11.4005 USD
-0.01 (-0.08%)
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. 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.
VALE had a positive operating cash flow in the past year.
Each year in the past 5 years VALE has been profitable.
Each year in the past 5 years VALE had a positive operating cash flow.
1.2 Ratios
VALE has a Return On Assets of 5.87%. This is in the better half of the industry: VALE outperforms 79.35% of its industry peers.
VALE has a better Return On Equity (13.52%) than 86.45% of its industry peers.
VALE has a Return On Invested Capital of 10.88%. This is amongst the best in the industry. VALE outperforms 85.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VALE is above the industry average of 12.38%.
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 Profit Margin of 13.81%. This is in the better half of the industry: VALE outperforms 79.35% of its industry peers.
VALE's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 26.56%, VALE is in the better half of the industry, outperforming 79.35% of the companies in the same industry.
VALE's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 34.24%, VALE is doing good in the industry, outperforming 74.19% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VALE 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
VALE has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.77, we must say that VALE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VALE (1.77) is worse than 72.90% of its industry peers.
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.
VALE's Debt to Equity ratio of 0.43 is on the low side compared to the rest of the industry. VALE is outperformed by 74.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 8.67 | ||
| Altman-Z | 1.77 |
ROIC/WACC0.8
WACC13.58%
2.3 Liquidity
VALE has a Current Ratio of 1.22. 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 1.22 is on the low side compared to the rest of the industry. VALE is outperformed by 80.65% of its industry peers.
VALE has a Quick Ratio of 1.22. This is a bad value and indicates that VALE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.85, VALE is doing worse than 77.42% of the companies in the same industry.
| 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.
Looking at the last year, VALE shows a decrease in Revenue. The Revenue has decreased by -0.24% in the last 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)-0.24%
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 9.53% yearly.
Based on estimates for the next years, VALE will show a small growth in Revenue. The Revenue will grow by 0.45% on average per year.
EPS Next Y26.07%
EPS Next 2Y11.9%
EPS Next 3Y9.53%
EPS Next 5YN/A
Revenue Next Year-2.46%
Revenue Next 2Y1.05%
Revenue Next 3Y1.58%
Revenue Next 5Y0.45%
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.
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
The Price/Earnings ratio is 9.28, which indicates a very decent valuation of VALE.
Based on the Price/Earnings ratio, VALE is valued cheaply inside the industry as 98.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.89, VALE is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.33, the valuation of VALE can be described as very cheap.
Based on the Price/Forward Earnings ratio, VALE is valued cheaper than 96.77% of the companies in the same industry.
VALE is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 6.33 |
4.2 Price Multiples
96.77% of the companies in the same industry are more expensive than VALE, based on the Enterprise Value to EBITDA ratio.
VALE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VALE is cheaper than 83.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.36 | ||
| EV/EBITDA | 4.49 |
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)0.36
PEG (5Y)1.8
EPS Next 2Y11.9%
EPS Next 3Y9.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.30%, VALE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.48, VALE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, VALE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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
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 2Y11.9%
EPS Next 3Y9.53%
11.41
-0.05 (-0.44%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners40.01%
Inst Owner Change0.7%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap48.71B
Revenue(TTM)209.60B
Net Income(TTM)28.95B
Analysts77.5
Price Target13.51 (18.4%)
Short Float %1.5%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend0.9
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)-81.88%
Min Revenue beat(2)-82.01%
Max Revenue beat(2)-81.75%
Revenue beat(4)0
Avg Revenue beat(4)-81.87%
Min Revenue beat(4)-82.01%
Max Revenue beat(4)-81.75%
Revenue beat(8)0
Avg Revenue beat(8)-82.03%
Revenue beat(12)0
Avg Revenue beat(12)-69.35%
Revenue beat(16)0
Avg Revenue beat(16)-54.95%
PT rev (1m)-0.27%
PT rev (3m)-2.9%
EPS NQ rev (1m)25.04%
EPS NQ rev (3m)18.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.87%
Revenue NQ rev (1m)4.06%
Revenue NQ rev (3m)10.63%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 6.33 | ||
| P/S | 1.25 | ||
| P/FCF | 23.36 | ||
| P/OCF | 5.64 | ||
| P/B | 1.23 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 4.49 |
EPS(TTM)1.23
EY10.78%
EPS(NY)1.8
Fwd EY15.8%
FCF(TTM)0.49
FCFY4.28%
OCF(TTM)2.02
OCFY17.73%
SpS9.11
BVpS9.31
TBVpS6.77
PEG (NY)0.36
PEG (5Y)1.8
Graham Number16.05
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%
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-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 | 1.77 |
F-Score4
WACC13.58%
ROIC/WACC0.8
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 Y26.07%
EPS Next 2Y11.9%
EPS Next 3Y9.53%
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-2.46%
Revenue Next 2Y1.05%
Revenue Next 3Y1.58%
Revenue Next 5Y0.45%
EBIT growth 1Y-23.99%
EBIT growth 3Y-29.39%
EBIT growth 5Y0.36%
EBIT Next Year17.78%
EBIT Next 3Y9.1%
EBIT Next 5Y3.91%
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%
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 26.07% 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 70.13%.