VALE SA-SP ADR (VALE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VALE - US91912E1055 - ADR
12.9 USD
-0.66 (-4.87%)
12.9001 USD
0 (0%)
Taking everything into account, VALE scores 5 out of 10 in our fundamental rating. VALE was compared to 154 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
In the past 5 years VALE has always been profitable.
In the past 5 years VALE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of VALE (6.22%) is better than 75.97% of its industry peers.
VALE's Return On Equity of 13.84% is amongst the best of the industry. VALE outperforms 83.12% of its industry peers.
VALE has a better Return On Invested Capital (11.53%) than 84.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VALE is above the industry average of 13.20%.
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
The Profit Margin of VALE (14.15%) is better than 77.92% of its industry peers.
VALE's Profit Margin has declined in the last couple of years.
VALE has a better Operating Margin (27.66%) than 79.87% of its industry peers.
VALE's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 34.81%, VALE is doing good in the industry, outperforming 73.38% of the companies in the same industry.
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.
The number of shares outstanding for VALE has been reduced compared to 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 1.97 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 1.97, VALE is doing worse than 68.83% of the companies in the same industry.
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 better Debt to FCF ratio (6.13) than 66.23% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that VALE is not too dependend on debt financing.
VALE's Debt to Equity ratio of 0.44 is on the low side compared to the rest of the industry. VALE is outperformed by 75.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.13 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.81
WACC14.18%
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 78.57% 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.
The Quick ratio of VALE (0.82) is worse than 79.22% 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%.
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.
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
Based on estimates for the next years, VALE will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.95% on average per year.
The Revenue is expected to grow by 0.62% on average over the next years.
EPS Next Y36.42%
EPS Next 2Y16.24%
EPS Next 3Y9.95%
EPS Next 5YN/A
Revenue Next Year-0.53%
Revenue Next 2Y2.16%
Revenue Next 3Y2.11%
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
VALE is valuated reasonably with a Price/Earnings ratio of 9.92.
Based on the Price/Earnings ratio, VALE is valued cheaply inside the industry as 97.40% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VALE to the average of the S&P500 Index (26.46), we can say VALE is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.63, the valuation of VALE can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VALE indicates a rather cheap valuation: VALE is cheaper than 95.45% of the companies listed in the same industry.
VALE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 6.63 |
4.2 Price Multiples
94.81% of the companies in the same industry are more expensive than VALE, based on the Enterprise Value to EBITDA ratio.
VALE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VALE is cheaper than 89.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.17 | ||
| EV/EBITDA | 4.88 |
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)0.27
PEG (5Y)1.93
EPS Next 2Y16.24%
EPS Next 3Y9.95%
5. Dividend
5.1 Amount
VALE has a Yearly Dividend Yield of 1.76%.
VALE's Dividend Yield is rather good when compared to the industry average which is at 2.60. VALE pays more dividend than 83.77% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, VALE is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
5.2 History
The dividend of VALE is nicely growing with an annual growth rate of 104.30%!
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.
VALE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP64.46%
EPS Next 2Y16.24%
EPS Next 3Y9.95%
12.9
-0.66 (-4.87%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners40.01%
Inst Owner Change5.02%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap55.07B
Revenue(TTM)213.32B
Net Income(TTM)30.18B
Analysts78.26
Price Target12.94 (0.31%)
Short Float %1.91%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Yearly Dividend0.9
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)-81.64%
Min Revenue beat(2)-81.73%
Max Revenue beat(2)-81.54%
Revenue beat(4)0
Avg Revenue beat(4)-81.6%
Min Revenue beat(4)-81.73%
Max Revenue beat(4)-81.47%
Revenue beat(8)0
Avg Revenue beat(8)-81.65%
Revenue beat(12)0
Avg Revenue beat(12)-75.18%
Revenue beat(16)0
Avg Revenue beat(16)-58.25%
PT rev (1m)-4.24%
PT rev (3m)-8.25%
EPS NQ rev (1m)5.1%
EPS NQ rev (3m)15.32%
EPS NY rev (1m)8.21%
EPS NY rev (3m)22.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)1.98%
Revenue NY rev (3m)2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 6.63 | ||
| P/S | 1.37 | ||
| P/FCF | 18.17 | ||
| P/OCF | 5.71 | ||
| P/B | 1.34 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 4.88 |
EPS(TTM)1.3
EY10.08%
EPS(NY)1.95
Fwd EY15.08%
FCF(TTM)0.71
FCFY5.5%
OCF(TTM)2.26
OCFY17.5%
SpS9.42
BVpS9.63
TBVpS7.06
PEG (NY)0.27
PEG (5Y)1.93
Graham Number16.78
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
WACC14.18%
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 Y36.42%
EPS Next 2Y16.24%
EPS Next 3Y9.95%
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-0.53%
Revenue Next 2Y2.16%
Revenue Next 3Y2.11%
Revenue Next 5Y0.62%
EBIT growth 1Y-14.96%
EBIT growth 3Y-29.39%
EBIT growth 5Y0.36%
EBIT Next Year17.78%
EBIT Next 3Y9.1%
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 36.42% 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%.