VALE SA-SP ADR (VALE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VALE - US91912E1055 - ADR
12.8 USD
-0.01 (-0.08%)
12.95 USD
+0.15 (+1.17%)
We assign a fundamental rating of 5 out of 10 to VALE. VALE was compared to 155 industry peers in the Metals & Mining industry. VALE scores excellent on profitability, but there are concerns on its financial health. VALE may be a bit undervalued, certainly considering the very reasonable score 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.
Each year in the past 5 years VALE has been profitable.
In the past 5 years VALE always reported a positive cash flow from operatings.
1.2 Ratios
VALE has a better Return On Assets (6.22%) than 76.13% of its industry peers.
VALE's Return On Equity of 13.84% is amongst the best of the industry. VALE outperforms 83.23% of its industry peers.
With an excellent Return On Invested Capital value of 11.53%, VALE belongs to the best of the industry, outperforming 83.87% 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 13.15%.
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
The Profit Margin of VALE (14.15%) is better than 76.77% of its industry peers.
In the last couple of years the Profit Margin of VALE has declined.
The Operating Margin of VALE (27.66%) is better than 78.06% of its industry peers.
VALE's Operating Margin has declined in the last couple of years.
The Gross Margin of VALE (34.81%) is better than 72.26% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VALE is still creating some value.
The number of shares outstanding for VALE has been reduced compared to 1 year ago.
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 1.95. 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.
VALE's Altman-Z score of 1.95 is on the low side compared to the rest of the industry. VALE is outperformed by 69.03% 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.
The Debt to FCF ratio of VALE (6.13) is better than 64.52% of its industry peers.
VALE has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.44, VALE is doing worse than 75.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.13 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.82
WACC14.14%
2.3 Liquidity
A Current Ratio of 1.24 indicates that VALE should not have too much problems paying its short term obligations.
With a Current ratio value of 1.24, VALE is not doing good in the industry: 78.71% of the companies in the same industry are doing better.
A Quick Ratio of 0.82 indicates that VALE may have some problems paying its short term obligations.
VALE has a Quick ratio of 0.82. This is in the lower half of the industry: VALE underperforms 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.
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.
Looking at the last year, VALE shows a small growth in Revenue. The Revenue has grown by 1.05% in the last 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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.85 indicates a reasonable valuation of VALE.
98.06% of the companies in the same industry are more expensive than VALE, based on the Price/Earnings ratio.
VALE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.28.
The Price/Forward Earnings ratio is 6.42, which indicates a rather cheap valuation of VALE.
96.13% of the companies in the same industry are more expensive than VALE, based on the Price/Forward Earnings ratio.
VALE is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.85 | ||
| Fwd PE | 6.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VALE is valued cheaper than 95.48% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VALE is valued cheaply inside the industry as 89.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.57 | ||
| EV/EBITDA | 4.76 |
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.
The decent profitability rating of VALE 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%. Purely for dividend investing, there may be better candidates out there.
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.
VALE's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
| 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 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.
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%
12.8
-0.01 (-0.08%)
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 Cap54.64B
Revenue(TTM)213.32B
Net Income(TTM)30.18B
Analysts78.26
Price Target13.77 (7.58%)
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)-82.17%
Min Revenue beat(2)-82.26%
Max Revenue beat(2)-82.08%
Revenue beat(4)0
Avg Revenue beat(4)-82.14%
Min Revenue beat(4)-82.26%
Max Revenue beat(4)-82.01%
Revenue beat(8)0
Avg Revenue beat(8)-82.19%
Revenue beat(12)0
Avg Revenue beat(12)-75.9%
Revenue beat(16)0
Avg Revenue beat(16)-59.46%
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 | 6.42 | ||
| P/S | 1.4 | ||
| P/FCF | 18.57 | ||
| P/OCF | 5.84 | ||
| P/B | 1.37 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 4.76 |
EPS(TTM)1.3
EY10.16%
EPS(NY)1.99
Fwd EY15.57%
FCF(TTM)0.69
FCFY5.39%
OCF(TTM)2.19
OCFY17.12%
SpS9.15
BVpS9.35
TBVpS6.86
PEG (NY)0.24
PEG (5Y)1.91
Graham Number16.54
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 | 1.95 |
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%.