VALE SA-SP ADR (VALE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VALE - US91912E1055 - ADR
13.23 USD
+0.08 (+0.61%)
13.2232 USD
-0.01 (-0.05%)
We assign a fundamental rating of 5 out of 10 to VALE. VALE was compared to 156 industry peers in the Metals & Mining industry. While VALE has a great profitability rating, there are quite some concerns on its financial health. VALE scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year VALE was profitable.
In the past year VALE had a positive cash flow from operations.
VALE had positive earnings in each of the past 5 years.
In the past 5 years VALE always reported a positive cash flow from operatings.
1.2 Ratios
VALE has a Return On Assets of 6.22%. This is in the better half of the industry: VALE outperforms 75.64% of its industry peers.
VALE's Return On Equity of 13.84% is amongst the best of the industry. VALE outperforms 82.69% of its industry peers.
With an excellent Return On Invested Capital value of 11.53%, VALE belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VALE is above the industry average of 13.25%.
The last Return On Invested Capital (11.53%) 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 | 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 76.92% of the companies in the same industry.
VALE's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 27.66%, VALE is doing good in the industry, outperforming 78.21% of the companies in the same industry.
In the last couple of years the Operating Margin of VALE has declined.
VALE's Gross Margin of 34.81% is fine compared to the rest of the industry. VALE outperforms 72.44% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VALE 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.
The debt/assets ratio for VALE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.97 indicates that VALE is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of VALE (1.97) is worse than 73.08% of its industry peers.
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.
With a decent Debt to FCF ratio value of 6.13, VALE is doing good in the industry, outperforming 64.10% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that VALE is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.44, VALE is not doing good in the industry: 75.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.13 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.81
WACC14.3%
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.
VALE has a worse Current ratio (1.24) than 78.85% of its industry peers.
A Quick Ratio of 0.82 indicates that VALE may have some problems paying its short term obligations.
VALE has a worse Quick ratio (0.82) than 79.49% 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.
Measured over the past 5 years, VALE shows a small growth in Earnings Per Share. The EPS has been growing by 5.15% on average per year.
VALE shows a small growth in Revenue. In the last year, the Revenue has grown by 1.05%.
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
VALE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.83% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 10.18, which indicates a very decent valuation of VALE.
Based on the Price/Earnings ratio, VALE is valued cheaply inside the industry as 98.72% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VALE to the average of the S&P500 Index (26.57), we can say VALE is valued rather cheaply.
VALE is valuated cheaply with a Price/Forward Earnings ratio of 6.64.
VALE's Price/Forward Earnings ratio is rather cheap when compared to the industry. VALE is cheaper than 96.79% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, VALE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.18 | ||
| Fwd PE | 6.64 |
4.2 Price Multiples
VALE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VALE is cheaper than 96.79% of the companies in the same industry.
89.10% 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 | 19.39 | ||
| EV/EBITDA | 4.91 |
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)0.25
PEG (5Y)1.97
EPS Next 2Y17.63%
EPS Next 3Y10.83%
5. Dividend
5.1 Amount
VALE has a Yearly Dividend Yield of 2.51%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.02, VALE pays a better dividend. On top of this VALE pays more dividend than 88.46% of the companies listed in the same industry.
VALE's Dividend Yield is a higher than the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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
VALE pays out 64.46% 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.
DP64.46%
EPS Next 2Y17.63%
EPS Next 3Y10.83%
13.23
+0.08 (+0.61%)
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 Cap56.48B
Revenue(TTM)213.32B
Net Income(TTM)30.18B
Analysts78.26
Price TargetN/A
Short Float %1.78%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
Yearly Dividend0.87
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)-82.35%
Min Revenue beat(2)-82.45%
Max Revenue beat(2)-82.26%
Revenue beat(4)0
Avg Revenue beat(4)-82.32%
Min Revenue beat(4)-82.45%
Max Revenue beat(4)-82.19%
Revenue beat(8)0
Avg Revenue beat(8)-82.37%
Revenue beat(12)0
Avg Revenue beat(12)-76.15%
Revenue beat(16)0
Avg Revenue beat(16)-59.88%
PT rev (1m)7.82%
PT rev (3m)1.65%
EPS NQ rev (1m)5.88%
EPS NQ rev (3m)26.86%
EPS NY rev (1m)3.08%
EPS NY rev (3m)26.24%
Revenue NQ rev (1m)3.84%
Revenue NQ rev (3m)6.99%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.18 | ||
| Fwd PE | 6.64 | ||
| P/S | 1.46 | ||
| P/FCF | 19.39 | ||
| P/OCF | 6.1 | ||
| P/B | 1.43 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | 4.91 |
EPS(TTM)1.3
EY9.83%
EPS(NY)1.99
Fwd EY15.06%
FCF(TTM)0.68
FCFY5.16%
OCF(TTM)2.17
OCFY16.4%
SpS9.05
BVpS9.26
TBVpS6.79
PEG (NY)0.25
PEG (5Y)1.97
Graham Number16.45
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 | 1.97 |
F-Score5
WACC14.3%
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 5 / 10 and the dividend payout ratio is 64.46%.