VALE SA-SP ADR (VALE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VALE - US91912E1055 - ADR
12.81 USD
-0.09 (-0.7%)
12.68 USD
-0.13 (-1.01%)
Taking everything into account, VALE scores 5 out of 10 in our fundamental rating. VALE was compared to 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, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year VALE was profitable.
VALE had a positive operating cash flow in the past year.
In the past 5 years VALE has always been profitable.
VALE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VALE has a Return On Assets of 6.22%. This is in the better half of the industry: VALE outperforms 76.13% of its industry peers.
With an excellent Return On Equity value of 13.84%, VALE belongs to the best of the industry, outperforming 83.23% of the companies in the same industry.
The Return On Invested Capital of VALE (11.53%) is better 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 13.15%.
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
Looking at the Profit Margin, with a value of 14.15%, VALE is in the better half of 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.
VALE's Operating Margin has declined in the last couple of years.
VALE has a better Gross Margin (34.81%) than 72.26% 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
VALE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, VALE has less shares outstanding
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
VALE has an Altman-Z score of 1.94. 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.
Looking at the Altman-Z score, with a value of 1.94, VALE is doing worse than 67.74% of the companies in the same industry.
The Debt to FCF ratio of VALE is 6.13, which is on the high side as it means it would take VALE, 6.13 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.13, VALE is doing good in the industry, outperforming 64.52% of the companies in the same industry.
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 | 1.94 |
ROIC/WACC0.82
WACC14.14%
2.3 Liquidity
VALE has a Current Ratio of 1.24. This is a normal value and indicates that VALE is financially healthy and should not expect problems in meeting 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.
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 has a worse Quick ratio (0.82) than 79.35% 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
The Earnings Per Share is expected to grow by 10.83% 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 0.62% yearly.
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
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
The Price/Earnings ratio is 9.85, which indicates a very decent valuation of VALE.
VALE's Price/Earnings ratio is rather cheap when compared to the industry. VALE is cheaper than 98.06% of the companies in the same industry.
When comparing the Price/Earnings ratio of VALE to the average of the S&P500 Index (26.34), we can say VALE is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.43, the valuation of VALE can be described as very cheap.
Based on the Price/Forward Earnings ratio, VALE is valued cheaper than 94.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.56. VALE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.85 | ||
| Fwd PE | 6.43 |
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 95.48% 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 89.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.42 | ||
| EV/EBITDA | 4.73 |
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.
VALE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.24
PEG (5Y)1.91
EPS Next 2Y17.63%
EPS Next 3Y10.83%
5. Dividend
5.1 Amount
VALE has a Yearly Dividend Yield of 1.73%.
Compared to an average industry Dividend Yield of 2.54, VALE pays a better dividend. On top of this VALE pays more dividend than 82.58% of the companies listed 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
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
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 2Y17.63%
EPS Next 3Y10.83%
12.81
-0.09 (-0.7%)
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 Cap54.68B
Revenue(TTM)213.32B
Net Income(TTM)30.18B
Analysts78.26
Price Target13.77 (7.49%)
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)-82.01%
Min Revenue beat(2)-82.11%
Max Revenue beat(2)-81.92%
Revenue beat(4)0
Avg Revenue beat(4)-81.98%
Min Revenue beat(4)-82.11%
Max Revenue beat(4)-81.85%
Revenue beat(8)0
Avg Revenue beat(8)-82.03%
Revenue beat(12)0
Avg Revenue beat(12)-75.69%
Revenue beat(16)0
Avg Revenue beat(16)-59.11%
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 | 9.85 | ||
| Fwd PE | 6.43 | ||
| P/S | 1.39 | ||
| P/FCF | 18.42 | ||
| P/OCF | 5.79 | ||
| P/B | 1.36 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | 4.73 |
EPS(TTM)1.3
EY10.15%
EPS(NY)1.99
Fwd EY15.55%
FCF(TTM)0.7
FCFY5.43%
OCF(TTM)2.21
OCFY17.26%
SpS9.22
BVpS9.43
TBVpS6.92
PEG (NY)0.24
PEG (5Y)1.91
Graham Number16.61
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 | 1.94 |
F-Score5
WACC14.14%
ROIC/WACC0.82
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%.