VALE SA-SP ADR (VALE) Stock Fundamental Analysis
USA - NYSE:VALE - US91912E1055 - ADR
12.3 USD
-0.08 (-0.65%)
12.3399 USD
+0.04 (+0.32%)
VALE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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.
VALE had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 6.22%, VALE is in the better half of the industry, outperforming 76.62% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.84%, VALE belongs to the top of the industry, outperforming 83.12% of the companies in the same industry.
VALE's Return On Invested Capital of 11.53% is amongst the best of the industry. VALE outperforms 85.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VALE is above the industry average of 12.75%.
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
Looking at the Profit Margin, with a value of 14.15%, VALE is in the better half of the industry, outperforming 77.92% of the companies in the same industry.
In the last couple of years the Profit Margin of VALE has declined.
VALE has a better Operating Margin (27.66%) than 79.87% of its industry peers.
In the last couple of years the Operating Margin of VALE has declined.
VALE has a Gross Margin of 34.81%. This is in the better half of the industry: VALE outperforms 73.38% 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.
VALE has less shares outstanding than it did 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
VALE has an Altman-Z score of 1.90. 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 has a Altman-Z score of 1.90. This is in the lower half of the industry: VALE underperforms 68.18% of its industry peers.
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.
VALE has a Debt to FCF ratio of 6.13. This is in the better half of the industry: VALE outperforms 67.53% 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.
The Debt to Equity ratio of VALE (0.44) is worse than 76.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 6.13 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.84
WACC13.76%
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 Current ratio of 1.24. This is in the lower half of the industry: VALE underperforms 79.22% of its industry peers.
A Quick Ratio of 0.82 indicates that VALE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.82, VALE is doing worse than 81.17% of the companies in the same industry.
| 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 -21.31%.
The Earnings Per Share has been growing slightly by 5.15% on average over the past years.
Looking at the last year, VALE shows a small growth in Revenue. The Revenue has grown by 1.05% in the last year.
The Revenue has been growing slightly by 7.33% on average over the past years.
EPS 1Y (TTM)-21.31%
EPS 3Y-31.35%
EPS 5Y5.15%
EPS Q2Q%9.05%
Revenue 1Y (TTM)1.05%
Revenue growth 3Y-11.13%
Revenue growth 5Y7.33%
Sales Q2Q%8.95%
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 8.54.
Compared to the rest of the industry, the Price/Earnings ratio of VALE indicates a rather cheap valuation: VALE is cheaper than 98.70% of the companies listed in the same industry.
VALE is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.32, the valuation of VALE can be described as very cheap.
Based on the Price/Forward Earnings ratio, VALE is valued cheaply inside the industry as 94.81% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.59. VALE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.54 | ||
| Fwd PE | 6.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VALE is valued cheaper than 95.45% of the companies in the same industry.
88.31% 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 | 17.31 | ||
| EV/EBITDA | 4.5 |
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)0.23
PEG (5Y)1.66
EPS Next 2Y16.24%
EPS Next 3Y9.95%
5. Dividend
5.1 Amount
VALE has a Yearly Dividend Yield of 1.81%.
Compared to an average industry Dividend Yield of 2.60, VALE pays a better dividend. On top of this VALE pays more dividend than 82.47% of the companies listed in the same industry.
VALE's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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.
The dividend of VALE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP64.46%
EPS Next 2Y16.24%
EPS Next 3Y9.95%
12.3
-0.08 (-0.65%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners40.01%
Inst Owner Change1.42%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap52.51B
Revenue(TTM)213.32B
Net Income(TTM)30.18B
Analysts78.26
Price Target12.78 (3.9%)
Short Float %2.06%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend0.91
Dividend Growth(5Y)104.3%
DP64.46%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-81.64%
Min Revenue beat(2)-81.72%
Max Revenue beat(2)-81.55%
Revenue beat(4)0
Avg Revenue beat(4)-81.6%
Min Revenue beat(4)-81.72%
Max Revenue beat(4)-81.46%
Revenue beat(8)0
Avg Revenue beat(8)-81.65%
Revenue beat(12)0
Avg Revenue beat(12)-75.17%
Revenue beat(16)0
Avg Revenue beat(16)-58.23%
PT rev (1m)-5.46%
PT rev (3m)-8.62%
EPS NQ rev (1m)3.4%
EPS NQ rev (3m)1.52%
EPS NY rev (1m)8.21%
EPS NY rev (3m)5.11%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)1.98%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.54 | ||
| Fwd PE | 6.32 | ||
| P/S | 1.31 | ||
| P/FCF | 17.31 | ||
| P/OCF | 5.45 | ||
| P/B | 1.28 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 4.5 |
EPS(TTM)1.44
EY11.71%
EPS(NY)1.95
Fwd EY15.82%
FCF(TTM)0.71
FCFY5.78%
OCF(TTM)2.26
OCFY18.36%
SpS9.42
BVpS9.64
TBVpS7.07
PEG (NY)0.23
PEG (5Y)1.66
Graham Number17.67
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 | 1.9 |
F-Score5
WACC13.76%
ROIC/WACC0.84
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)-21.31%
EPS 3Y-31.35%
EPS 5Y5.15%
EPS Q2Q%9.05%
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%8.95%
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%.