VALE SA-SP ADR (VALE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VALE - US91912E1055 - ADR
12.61 USD
+0.1 (+0.8%)
12.64 USD
+0.03 (+0.24%)
Overall VALE gets a fundamental rating of 5 out of 10. We evaluated VALE against 153 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.
Each year in the past 5 years VALE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.22%, VALE is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
VALE has a Return On Equity of 13.84%. This is amongst the best in the industry. VALE outperforms 83.66% of its industry peers.
The Return On Invested Capital of VALE (11.53%) is better than 85.62% of its industry peers.
VALE had an Average Return On Invested Capital over the past 3 years of 15.63%. This is above the industry average of 13.09%.
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
VALE has a better Profit Margin (14.15%) than 78.43% 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 79.74% of its industry peers.
In the last couple of years the Operating Margin of VALE has declined.
The Gross Margin of VALE (34.81%) is better than 73.20% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VALE is still 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 1.92 indicates that VALE is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.92, VALE is not doing good in the industry: 67.32% of the companies in the same industry are doing better.
The Debt to FCF ratio of VALE is 6.13, which is on the high side as it means it would take VALE, 6.13 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VALE (6.13) is better than 66.01% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that VALE is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.44, VALE is doing worse than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.13 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.82
WACC14.06%
2.3 Liquidity
A Current Ratio of 1.24 indicates that VALE should not have too much problems paying its short term obligations.
VALE has a worse Current ratio (1.24) than 78.43% of its industry peers.
VALE has a Quick Ratio of 1.24. 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 Quick ratio of 0.82. This is amonst the worse of the industry: VALE underperforms 80.39% 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%.
VALE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.15% yearly.
The Revenue has been growing slightly by 1.05% in the past year.
The Revenue has been growing slightly by 7.33% on average over the past years.
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.
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
The Price/Earnings ratio is 9.70, which indicates a very decent valuation of VALE.
Based on the Price/Earnings ratio, VALE is valued cheaply inside the industry as 98.04% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.31, VALE is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.48, the valuation of VALE can be described as very cheap.
VALE's Price/Forward Earnings ratio is rather cheap when compared to the industry. VALE is cheaper than 96.73% of the companies in the same industry.
VALE is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 6.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VALE is valued cheaper than 96.73% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VALE is valued cheaper than 90.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.9 | ||
| EV/EBITDA | 4.59 |
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)0.27
PEG (5Y)1.88
EPS Next 2Y16.24%
EPS Next 3Y9.95%
5. Dividend
5.1 Amount
VALE has a Yearly Dividend Yield of 1.82%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.72, VALE pays a better dividend. On top of this VALE pays more dividend than 81.70% of the companies listed in the same industry.
VALE's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
On average, the dividend of VALE grows each year by 104.30%, which is quite nice.
VALE has paid a dividend for at least 10 years, which is 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.
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%
12.61
+0.1 (+0.8%)
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 Cap53.83B
Revenue(TTM)213.32B
Net Income(TTM)30.18B
Analysts78.26
Price Target12.94 (2.62%)
Short Float %1.97%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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)-81.78%
Min Revenue beat(2)-81.88%
Max Revenue beat(2)-81.69%
Revenue beat(4)0
Avg Revenue beat(4)-81.75%
Min Revenue beat(4)-81.88%
Max Revenue beat(4)-81.61%
Revenue beat(8)0
Avg Revenue beat(8)-81.8%
Revenue beat(12)0
Avg Revenue beat(12)-75.38%
Revenue beat(16)0
Avg Revenue beat(16)-58.58%
PT rev (1m)-4.24%
PT rev (3m)-8.25%
EPS NQ rev (1m)8.68%
EPS NQ rev (3m)15.32%
EPS NY rev (1m)8.21%
EPS NY rev (3m)22.47%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)1.98%
Revenue NY rev (3m)2.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 6.48 | ||
| P/S | 1.35 | ||
| P/FCF | 17.9 | ||
| P/OCF | 5.63 | ||
| P/B | 1.32 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 4.59 |
EPS(TTM)1.3
EY10.31%
EPS(NY)1.95
Fwd EY15.43%
FCF(TTM)0.7
FCFY5.59%
OCF(TTM)2.24
OCFY17.76%
SpS9.34
BVpS9.56
TBVpS7.01
PEG (NY)0.27
PEG (5Y)1.88
Graham Number16.72
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 | 1.92 |
F-Score5
WACC14.06%
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 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%.