VALE SA-SP ADR (VALE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VALE - US91912E1055 - ADR
12.99 USD
+0.19 (+1.48%)
13.07 USD
+0.08 (+0.62%)
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 has a great profitability rating, there are quite some concerns on its financial health. VALE is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
Each year in the past 5 years VALE has been profitable.
VALE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.22%, VALE is in the better half of the industry, outperforming 76.13% of the companies in the same industry.
VALE has a Return On Equity of 13.84%. This is amongst the best in the industry. VALE outperforms 83.23% of its industry peers.
VALE has a Return On Invested Capital of 11.53%. This is amongst the best in the industry. VALE outperforms 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 13.15%.
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
With a decent Profit Margin value of 14.15%, VALE is doing good in the industry, outperforming 76.77% of the companies in the same industry.
In the last couple of years the Profit Margin of VALE has declined.
Looking at the Operating Margin, with a value of 27.66%, VALE is in the better half of the industry, outperforming 78.06% of the companies in the same industry.
In the last couple of years the Operating Margin of VALE has declined.
The Gross Margin of VALE (34.81%) is better than 72.26% of its industry peers.
In the last couple of years the Gross Margin of VALE has declined.
| 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.
VALE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for VALE has been reduced compared to 5 years ago.
Compared to 1 year ago, VALE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.96 indicates that VALE is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.96, VALE is not doing good in the industry: 70.32% of the companies in the same industry are doing better.
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.
VALE has a Debt to FCF ratio of 6.13. This is in the better half of the industry: VALE outperforms 64.52% 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.
VALE has a worse Debt to Equity ratio (0.44) than 75.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.13 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.81
WACC14.21%
2.3 Liquidity
A Current Ratio of 1.24 indicates that VALE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.24, VALE is doing worse than 78.71% of the companies in the same industry.
A Quick Ratio of 0.82 indicates that VALE may have some problems paying 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 79.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
VALE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -39.81%.
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 small growth in Revenue. The Revenue has grown by 1.05% 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)-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
The Earnings Per Share is expected to grow by 10.83% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.62% on average over the next years.
EPS Next Y40.62%
EPS Next 2Y17.63%
EPS Next 3Y10.83%
EPS Next 5YN/A
Revenue Next Year-0.17%
Revenue Next 2Y2.5%
Revenue Next 3Y2.17%
Revenue Next 5Y0.62%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 9.99, which indicates a very decent valuation of VALE.
98.06% of the companies in the same industry are more expensive than VALE, based on the Price/Earnings ratio.
VALE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.59.
VALE is valuated cheaply with a Price/Forward Earnings ratio of 6.52.
95.48% of the companies in the same industry are more expensive than VALE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of VALE to the average of the S&P500 Index (23.80), we can say VALE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 6.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VALE is valued cheaply inside the industry as 95.48% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VALE is valued cheaper than 89.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.82 | ||
| EV/EBITDA | 4.82 |
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)0.25
PEG (5Y)1.94
EPS Next 2Y17.63%
EPS Next 3Y10.83%
5. Dividend
5.1 Amount
VALE has a Yearly Dividend Yield of 1.73%.
VALE's Dividend Yield is rather good when compared to the industry average which is at 2.54. VALE pays more dividend than 82.58% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.31, VALE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
5.2 History
On average, the dividend of VALE grows each year by 104.30%, 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)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.
The dividend of VALE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP64.46%
EPS Next 2Y17.63%
EPS Next 3Y10.83%
12.99
+0.19 (+1.48%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners42.18%
Inst Owner Change5%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap55.45B
Revenue(TTM)213.32B
Net Income(TTM)30.18B
Analysts78.26
Price Target13.77 (6%)
Short Float %1.91%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
Yearly Dividend0.91
Dividend Growth(5Y)104.3%
DP64.46%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.31%
Min EPS beat(2)21.66%
Max EPS beat(2)38.96%
EPS beat(4)2
Avg EPS beat(4)-21.66%
Min EPS beat(4)-135.22%
Max EPS beat(4)38.96%
EPS beat(8)4
Avg EPS beat(8)-10.97%
EPS beat(12)6
Avg EPS beat(12)-11.55%
EPS beat(16)10
Avg EPS beat(16)1.89%
Revenue beat(2)0
Avg Revenue beat(2)-82.15%
Min Revenue beat(2)-82.24%
Max Revenue beat(2)-82.05%
Revenue beat(4)0
Avg Revenue beat(4)-82.11%
Min Revenue beat(4)-82.24%
Max Revenue beat(4)-81.98%
Revenue beat(8)0
Avg Revenue beat(8)-82.16%
Revenue beat(12)0
Avg Revenue beat(12)-75.87%
Revenue beat(16)0
Avg Revenue beat(16)-59.41%
PT rev (1m)7.31%
PT rev (3m)-2.34%
EPS NQ rev (1m)7.72%
EPS NQ rev (3m)18.19%
EPS NY rev (1m)3.08%
EPS NY rev (3m)26.24%
Revenue NQ rev (1m)3.84%
Revenue NQ rev (3m)5.13%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)2.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.99 | ||
| Fwd PE | 6.52 | ||
| P/S | 1.42 | ||
| P/FCF | 18.82 | ||
| P/OCF | 5.92 | ||
| P/B | 1.39 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 4.82 |
EPS(TTM)1.3
EY10.01%
EPS(NY)1.99
Fwd EY15.34%
FCF(TTM)0.69
FCFY5.31%
OCF(TTM)2.19
OCFY16.9%
SpS9.16
BVpS9.36
TBVpS6.87
PEG (NY)0.25
PEG (5Y)1.94
Graham Number16.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.22% | ||
| ROE | 13.84% | ||
| ROCE | 14.25% | ||
| ROIC | 11.53% | ||
| ROICexc | 12.51% | ||
| ROICexgc | 14.76% | ||
| OM | 27.66% | ||
| PM (TTM) | 14.15% | ||
| GM | 34.81% | ||
| FCFM | 7.54% |
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-Score5
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.13 | ||
| Debt/EBITDA | 1.25 | ||
| Cap/Depr | 201.91% | ||
| Cap/Sales | 16.43% | ||
| Interest Coverage | 9.01 | ||
| Cash Conversion | 66.96% | ||
| Profit Quality | 53.27% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 1.96 |
F-Score5
WACC14.21%
ROIC/WACC0.81
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)-39.81%
EPS 3Y-31.35%
EPS 5Y5.15%
EPS Q2Q%12.5%
EPS Next Y40.62%
EPS Next 2Y17.63%
EPS Next 3Y10.83%
EPS Next 5YN/A
Revenue 1Y (TTM)1.05%
Revenue growth 3Y-11.13%
Revenue growth 5Y7.33%
Sales Q2Q%9.07%
Revenue Next Year-0.17%
Revenue Next 2Y2.5%
Revenue Next 3Y2.17%
Revenue Next 5Y0.62%
EBIT growth 1Y-14.96%
EBIT growth 3Y-29.39%
EBIT growth 5Y0.36%
EBIT Next Year25.23%
EBIT Next 3Y10.57%
EBIT Next 5Y3.62%
FCF growth 1Y-32.72%
FCF growth 3Y-48.33%
FCF growth 5Y-14.71%
OCF growth 1Y-2.21%
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 40.62% 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 64.46%.