VALE SA-SP ADR (VALE)
US91912E1055 - ADR
We assign a fundamental rating of 6 out of 10 to VALE. VALE was compared to 157 industry peers in the Metals & Mining industry. While VALE belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. VALE is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
VALE had positive earnings in the past year.
In the past year VALE had a positive cash flow from operations.
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
The Return On Assets of VALE (10.12%) is better than 87.90% of its industry peers.
VALE's Return On Equity of 23.72% is amongst the best of the industry. VALE outperforms 94.90% of its industry peers.
VALE's Return On Invested Capital of 14.29% is amongst the best of the industry. VALE outperforms 93.63% of its industry peers.
VALE had an Average Return On Invested Capital over the past 3 years of 22.06%. This is significantly above the industry average of 8.31%.
The 3 year average ROIC (22.06%) for VALE is well above the current ROIC(14.29%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.12% | ||
| ROE | 23.72% | ||
| ROIC | 14.29% |
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
Looking at the Profit Margin, with a value of 23.19%, VALE belongs to the top of the industry, outperforming 93.63% of the companies in the same industry.
VALE's Profit Margin has been stable in the last couple of years.
VALE has a Operating Margin of 34.86%. This is amongst the best in the industry. VALE outperforms 92.99% of its industry peers.
VALE's Operating Margin has been stable in the last couple of years.
VALE has a Gross Margin of 40.66%. This is amongst the best in the industry. VALE outperforms 82.80% of its industry peers.
In the last couple of years the Gross Margin of VALE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.86% | ||
| PM (TTM) | 23.19% | ||
| GM | 40.66% |
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.
VALE has less shares outstanding than it did 1 year ago.
VALE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, VALE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.84 indicates that VALE is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.84, VALE is doing worse than 64.97% of the companies in the same industry.
VALE has a debt to FCF ratio of 2.79. This is a good value and a sign of high solvency as VALE would need 2.79 years to pay back of all of its debts.
VALE has a Debt to FCF ratio of 2.79. This is in the better half of the industry: VALE outperforms 78.34% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that VALE is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.38, VALE is not doing good in the industry: 69.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.79 | ||
| Altman-Z | 1.84 |
ROIC/WACC0.84
WACC17.04%
2.3 Liquidity
A Current Ratio of 1.08 indicates that VALE should not have too much problems paying its short term obligations.
VALE's Current ratio of 1.08 is on the low side compared to the rest of the industry. VALE is outperformed by 84.71% of its industry peers.
VALE has a Quick Ratio of 1.08. This is a bad value and indicates that VALE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of VALE (0.73) is worse than 82.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
VALE shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.35%.
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)3.35%
EPS 3Y19.96%
EPS 5Y13.07%
EPS Q2Q%-15.15%
Revenue 1Y (TTM)-8.14%
Revenue growth 3Y0.32%
Revenue growth 5Y9.12%
Sales Q2Q%-10.07%
3.2 Future
VALE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.35% yearly.
VALE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.09% yearly.
EPS Next Y20.32%
EPS Next 2Y8.32%
EPS Next 3Y4.35%
EPS Next 5YN/A
Revenue Next Year-6.78%
Revenue Next 2Y-2.85%
Revenue Next 3Y-1.06%
Revenue Next 5Y-0.09%
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
A Price/Earnings ratio of 4.64 indicates a rather cheap valuation of VALE.
Compared to the rest of the industry, the Price/Earnings ratio of VALE indicates a rather cheap valuation: VALE is cheaper than 99.36% of the companies listed in the same industry.
VALE is valuated cheaply when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 4.67, the valuation of VALE can be described as very cheap.
Based on the Price/Forward Earnings ratio, VALE is valued cheaply inside the industry as 98.73% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VALE to the average of the S&P500 Index (23.56), we can say VALE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.64 | ||
| Fwd PE | 4.67 |
4.2 Price Multiples
96.18% of the companies in the same industry are more expensive than VALE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, VALE is valued cheaply inside the industry as 92.99% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.19 | ||
| EV/EBITDA | 3.31 |
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 excellent profitability rating of VALE may justify a higher PE ratio.
PEG (NY)0.23
PEG (5Y)0.36
EPS Next 2Y8.32%
EPS Next 3Y4.35%
5. Dividend
5.1 Amount
VALE has a Yearly Dividend Yield of 2.45%.
VALE's Dividend Yield is rather good when compared to the industry average which is at 2.98. VALE pays more dividend than 83.44% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, VALE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
5.2 History
The dividend of VALE is nicely growing with an annual growth rate of 20.29%!
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 62.06% 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.
DP62.06%
EPS Next 2Y8.32%
EPS Next 3Y4.35%
VALE SA-SP ADR
NYSE:VALE (11/20/2024, 8:04:00 PM)
Premarket: 9.98 -0.05 (-0.5%)10.03
+0.01 (+0.1%)
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 Cap42.82B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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(16)
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Revenue beat(2)
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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 | 4.64 | ||
| Fwd PE | 4.67 | ||
| 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)0.23
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.12% | ||
| ROE | 23.72% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 34.86% | ||
| PM (TTM) | 23.19% | ||
| GM | 40.66% | ||
| 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 Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.73 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)3.35%
EPS 3Y19.96%
EPS 5Y
EPS Q2Q%
EPS Next Y20.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.14%
Revenue growth 3Y0.32%
Revenue growth 5Y
Sales 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