VALE SA-SP ADR (VALE)
US91912E1055 - ADR
Overall VALE gets a fundamental rating of 6 out of 10. We evaluated VALE 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.
VALE had positive earnings in 4 of the past 5 years.
Each year in the past 5 years VALE had a positive operating cash flow.
1.2 Ratios
VALE has a better Return On Assets (9.96%) than 87.74% of its industry peers.
The Return On Equity of VALE (23.14%) is better than 94.84% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.65%, VALE belongs to the top of the industry, outperforming 92.90% of the companies in the same industry.
VALE had an Average Return On Invested Capital over the past 3 years of 22.06%. This is significantly above the industry average of 8.82%.
The last Return On Invested Capital (13.65%) for VALE is well below the 3 year average (22.06%), which needs to be investigated, but indicates that VALE had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.96% | ||
| ROE | 23.14% | ||
| ROIC | 13.65% |
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 22.86%, VALE belongs to the top of the industry, outperforming 92.90% of the companies in the same industry.
In the last couple of years the Profit Margin of VALE has remained more or less at the same level.
VALE has a better Operating Margin (32.87%) than 90.97% of its industry peers.
In the last couple of years the Operating Margin of VALE has remained more or less at the same level.
Looking at the Gross Margin, with a value of 39.06%, VALE belongs to the top of the industry, outperforming 82.58% of the companies in the same industry.
VALE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.87% | ||
| PM (TTM) | 22.86% | ||
| GM | 39.06% |
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.
The number of shares outstanding for VALE has been reduced compared to 1 year ago.
Compared to 5 years ago, VALE has less shares outstanding
Compared to 1 year ago, VALE has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.75, we must say that VALE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.75, VALE is not doing good in the industry: 61.29% of the companies in the same industry are doing better.
The Debt to FCF ratio of VALE is 3.14, which is a good value as it means it would take VALE, 3.14 years of fcf income to pay off all of its debts.
VALE has a better Debt to FCF ratio (3.14) than 74.19% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that VALE is not too dependend on debt financing.
VALE has a Debt to Equity ratio of 0.34. This is in the lower half of the industry: VALE underperforms 67.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 1.75 |
ROIC/WACC0.82
WACC16.63%
2.3 Liquidity
VALE has a Current Ratio of 0.91. 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 Current ratio (0.91) than 86.45% of its industry peers.
VALE has a Quick Ratio of 0.91. This is a bad value and indicates that VALE is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.58, VALE is not doing good in the industry: 87.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.23% over the past year.
Measured over the past years, VALE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.07% on average per year.
VALE shows a small growth in Revenue. In the last year, the Revenue has grown by 2.33%.
Measured over the past years, VALE shows a quite strong growth in Revenue. The Revenue has been growing by 9.12% on average per year.
EPS 1Y (TTM)3.23%
EPS 3Y19.96%
EPS 5Y13.07%
EPS Q2Q%-15.25%
Revenue 1Y (TTM)2.33%
Revenue growth 3Y0.32%
Revenue growth 5Y9.12%
Sales Q2Q%-10.07%
3.2 Future
Based on estimates for the next years, VALE will show a small growth in Earnings Per Share. The EPS will grow by 4.31% 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 Y20.18%
EPS Next 2Y8.26%
EPS Next 3Y4.31%
EPS Next 5YN/A
Revenue Next Year-6.78%
Revenue Next 2Y-2.85%
Revenue Next 3Y-1.06%
Revenue Next 5Y0.43%
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 decreasing.
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 cheaply with a Price/Earnings ratio of 4.11.
VALE's Price/Earnings ratio is rather cheap when compared to the industry. VALE is cheaper than 98.71% of the companies in the same industry.
VALE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
A Price/Forward Earnings ratio of 4.14 indicates a rather cheap valuation of VALE.
Based on the Price/Forward Earnings ratio, VALE is valued cheaply inside the industry as 98.06% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, VALE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.11 | ||
| Fwd PE | 4.14 |
4.2 Price Multiples
VALE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VALE is cheaper than 96.13% of the companies in the same industry.
90.32% of the companies in the same industry are more expensive than VALE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.36 | ||
| 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.
VALE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.2
PEG (5Y)0.31
EPS Next 2Y8.26%
EPS Next 3Y4.31%
5. Dividend
5.1 Amount
VALE has a Yearly Dividend Yield of 1.85%.
VALE's Dividend Yield is a higher than the industry average which is at 3.21.
Compared to the average S&P500 Dividend Yield of 2.36, VALE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
5.2 History
The dividend of VALE is nicely growing with an annual growth rate of 20.29%!
VALE has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)20.29%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VALE pays out 64.05% 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.
DP64.05%
EPS Next 2Y8.26%
EPS Next 3Y4.31%
VALE SA-SP ADR
NYSE:VALE (12/23/2024, 9:44:09 AM)
8.8837
-0.02 (-0.18%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners44.08%
Inst Owner Change-0.53%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap37.92B
Analysts75.2
Price Target14.14 (59.17%)
Short Float %1.69%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
Dividend Growth(5Y)20.29%
DP64.05%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.4%
Min EPS beat(2)15.68%
Max EPS beat(2)43.12%
EPS beat(4)2
Avg EPS beat(4)-0.28%
Min EPS beat(4)-40.51%
Max EPS beat(4)43.12%
EPS beat(8)4
Avg EPS beat(8)-6.5%
EPS beat(12)8
Avg EPS beat(12)9.74%
EPS beat(16)8
Avg EPS beat(16)-1.3%
Revenue beat(2)0
Avg Revenue beat(2)-83.96%
Min Revenue beat(2)-84.09%
Max Revenue beat(2)-83.83%
Revenue beat(4)0
Avg Revenue beat(4)-84.04%
Min Revenue beat(4)-84.37%
Max Revenue beat(4)-83.83%
Revenue beat(8)0
Avg Revenue beat(8)-75.54%
Revenue beat(12)0
Avg Revenue beat(12)-56.78%
Revenue beat(16)0
Avg Revenue beat(16)-47.14%
PT rev (1m)-7.8%
PT rev (3m)-10.16%
EPS NQ rev (1m)1.13%
EPS NQ rev (3m)-6.48%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-3.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.11 | ||
| Fwd PE | 4.14 | ||
| P/S | 1.09 | ||
| P/FCF | 9.36 | ||
| P/OCF | 4.07 | ||
| P/B | 1.11 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | 3.31 |
EPS(TTM)2.16
EY24.31%
EPS(NY)2.15
Fwd EY24.17%
FCF(TTM)0.95
FCFY10.68%
OCF(TTM)2.18
OCFY24.59%
SpS8.13
BVpS8.04
TBVpS5.61
PEG (NY)0.2
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.96% | ||
| ROE | 23.14% | ||
| ROCE | 17.28% | ||
| ROIC | 13.65% | ||
| ROICexc | 14.57% | ||
| ROICexgc | 17.5% | ||
| OM | 32.87% | ||
| PM (TTM) | 22.86% | ||
| GM | 39.06% | ||
| FCFM | 11.67% |
ROA(3y)18.07%
ROA(5y)11.6%
ROE(3y)45.06%
ROE(5y)29.09%
ROIC(3y)22.06%
ROIC(5y)20.11%
ROICexc(3y)24.76%
ROICexc(5y)22.97%
ROICexgc(3y)29.07%
ROICexgc(5y)26.84%
ROCE(3y)27.92%
ROCE(5y)25.44%
ROICexcg growth 3Y-11.88%
ROICexcg growth 5Y5.83%
ROICexc growth 3Y-12.09%
ROICexc growth 5Y4.75%
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%
F-Score4
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.14 | ||
| Debt/EBITDA | 0.84 | ||
| Cap/Depr | 199.76% | ||
| Cap/Sales | 15.19% | ||
| Interest Coverage | 12.25 | ||
| Cash Conversion | 66.37% | ||
| Profit Quality | 51.06% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.75 |
F-Score4
WACC16.63%
ROIC/WACC0.82
Cap/Depr(3y)177.05%
Cap/Depr(5y)152.41%
Cap/Sales(3y)11.97%
Cap/Sales(5y)11.2%
Profit Quality(3y)70.96%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.23%
EPS 3Y19.96%
EPS 5Y13.07%
EPS Q2Q%-15.25%
EPS Next Y20.18%
EPS Next 2Y8.26%
EPS Next 3Y4.31%
EPS Next 5YN/A
Revenue 1Y (TTM)2.33%
Revenue growth 3Y0.32%
Revenue growth 5Y9.12%
Sales Q2Q%-10.07%
Revenue Next Year-6.78%
Revenue Next 2Y-2.85%
Revenue Next 3Y-1.06%
Revenue Next 5Y0.43%
EBIT growth 1Y-1.66%
EBIT growth 3Y-8.73%
EBIT growth 5Y10.3%
EBIT Next Year6.83%
EBIT Next 3Y4.9%
EBIT Next 5Y2.84%
FCF growth 1Y-27.2%
FCF growth 3Y-11.99%
FCF growth 5Y1.43%
OCF growth 1Y-3.4%
OCF growth 3Y-4.31%
OCF growth 5Y6.58%