VALE SA-SP ADR (VALE) Stock Fundamental Analysis
NYSE:VALE - US91912E1055 - ADR
10.12 USD
+0.31 (+3.16%)
10.15 USD
+0.03 (+0.3%)
Overall VALE gets a fundamental rating of 5 out of 10. We evaluated VALE against 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 is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year VALE was profitable.
VALE had a positive operating cash flow in the past year.
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's Return On Assets of 5.87% is fine compared to the rest of the industry. VALE outperforms 76.92% of its industry peers.
VALE has a better Return On Equity (13.52%) than 83.97% of its industry peers.
VALE has a better Return On Invested Capital (10.88%) than 82.69% 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 12.76%.
The last Return On Invested Capital (10.88%) 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 | 5.87% | ||
| ROE | 13.52% | ||
| ROIC | 10.88% |
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 13.81%, VALE is in the better half of the industry, outperforming 79.49% of the companies in the same industry.
In the last couple of years the Profit Margin of VALE has declined.
With a decent Operating Margin value of 26.56%, VALE is doing good in the industry, outperforming 78.21% of the companies in the same industry.
VALE's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 34.24%, VALE is in the better half of the industry, outperforming 75.00% 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 | 26.56% | ||
| PM (TTM) | 13.81% | ||
| GM | 34.24% |
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.
VALE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, VALE has less shares outstanding
VALE has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that VALE is in the distress zone and has some risk of bankruptcy.
VALE has a worse Altman-Z score (1.70) than 68.59% of its industry peers.
The Debt to FCF ratio of VALE is 8.67, which is on the high side as it means it would take VALE, 8.67 years of fcf income to pay off all of its debts.
VALE has a Debt to FCF ratio of 8.67. This is in the better half of the industry: VALE outperforms 64.74% of its industry peers.
VALE has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.43, VALE is doing worse than 73.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 8.67 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.84
WACC13.02%
2.3 Liquidity
A Current Ratio of 1.22 indicates that VALE should not have too much problems paying its short term obligations.
With a Current ratio value of 1.22, VALE is not doing good in the industry: 79.49% of the companies in the same industry are doing better.
A Quick Ratio of 0.85 indicates that VALE may have some problems paying its short term obligations.
VALE has a worse Quick ratio (0.85) than 75.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
VALE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.58%.
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 decrease in Revenue. The Revenue has decreased by -0.24% in the last year.
The Revenue has been growing slightly by 7.33% on average over the past years.
EPS 1Y (TTM)-45.58%
EPS 3Y-31.35%
EPS 5Y5.15%
EPS Q2Q%-23.08%
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y-11.13%
Revenue growth 5Y7.33%
Sales Q2Q%-11.25%
3.2 Future
The Earnings Per Share is expected to grow by 8.38% 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 0.35% yearly.
EPS Next Y29.79%
EPS Next 2Y13.8%
EPS Next 3Y8.38%
EPS Next 5YN/A
Revenue Next Year-2.31%
Revenue Next 2Y0.7%
Revenue Next 3Y1.4%
Revenue Next 5Y0.35%
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
The Price/Earnings ratio is 8.23, which indicates a very decent valuation of VALE.
VALE's Price/Earnings ratio is rather cheap when compared to the industry. VALE is cheaper than 98.08% of the companies in the same industry.
When comparing the Price/Earnings ratio of VALE to the average of the S&P500 Index (27.24), we can say VALE is valued rather cheaply.
VALE is valuated cheaply with a Price/Forward Earnings ratio of 5.43.
Based on the Price/Forward Earnings ratio, VALE is valued cheaply inside the industry as 96.15% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VALE to the average of the S&P500 Index (35.82), we can say VALE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.23 | ||
| Fwd PE | 5.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VALE is valued cheaply inside the industry as 94.87% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VALE is valued cheaper than 81.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.1 | ||
| EV/EBITDA | 4.04 |
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)0.28
PEG (5Y)1.6
EPS Next 2Y13.8%
EPS Next 3Y8.38%
5. Dividend
5.1 Amount
VALE has a Yearly Dividend Yield of 1.45%. Purely for dividend investing, there may be better candidates out there.
VALE's Dividend Yield is a higher than the industry average which is at 2.57.
VALE's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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 70.13% 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.
DP70.13%
EPS Next 2Y13.8%
EPS Next 3Y8.38%
10.12
+0.31 (+3.16%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners42.73%
Inst Owner Change-1.08%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap43.20B
Analysts76
Price Target14.1 (39.33%)
Short Float %1.76%
Short Ratio1.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Yearly Dividend0.88
Dividend Growth(5Y)104.3%
DP70.13%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.47%
Min EPS beat(2)-12.03%
Max EPS beat(2)38.96%
EPS beat(4)2
Avg EPS beat(4)-23.15%
Min EPS beat(4)-135.22%
Max EPS beat(4)38.96%
EPS beat(8)4
Avg EPS beat(8)-12.86%
EPS beat(12)6
Avg EPS beat(12)-7.78%
EPS beat(16)9
Avg EPS beat(16)-1.9%
Revenue beat(2)0
Avg Revenue beat(2)-82.2%
Min Revenue beat(2)-82.33%
Max Revenue beat(2)-82.08%
Revenue beat(4)0
Avg Revenue beat(4)-82.19%
Min Revenue beat(4)-82.33%
Max Revenue beat(4)-82.08%
Revenue beat(8)0
Avg Revenue beat(8)-82.35%
Revenue beat(12)0
Avg Revenue beat(12)-69.89%
Revenue beat(16)0
Avg Revenue beat(16)-55.75%
PT rev (1m)-2.51%
PT rev (3m)-0.06%
EPS NQ rev (1m)1.5%
EPS NQ rev (3m)14.8%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)-1.84%
Revenue NY rev (3m)-1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.23 | ||
| Fwd PE | 5.43 | ||
| P/S | 1.13 | ||
| P/FCF | 21.1 | ||
| P/OCF | 5.09 | ||
| P/B | 1.11 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 4.04 |
EPS(TTM)1.23
EY12.15%
EPS(NY)1.86
Fwd EY18.43%
FCF(TTM)0.48
FCFY4.74%
OCF(TTM)1.99
OCFY19.64%
SpS8.95
BVpS9.15
TBVpS6.65
PEG (NY)0.28
PEG (5Y)1.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 13.52% | ||
| ROCE | 13.44% | ||
| ROIC | 10.88% | ||
| ROICexc | 11.76% | ||
| ROICexgc | 13.88% | ||
| OM | 26.56% | ||
| PM (TTM) | 13.81% | ||
| GM | 34.24% | ||
| FCFM | 5.36% |
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%
ROICexcg growth 3Y-31.02%
ROICexcg 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-Score4
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 8.67 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 203.29% | ||
| Cap/Sales | 16.85% | ||
| Interest Coverage | 8.07 | ||
| Cash Conversion | 63.72% | ||
| Profit Quality | 38.8% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 1.7 |
F-Score4
WACC13.02%
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)-45.58%
EPS 3Y-31.35%
EPS 5Y5.15%
EPS Q2Q%-23.08%
EPS Next Y29.79%
EPS Next 2Y13.8%
EPS Next 3Y8.38%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y-11.13%
Revenue growth 5Y7.33%
Sales Q2Q%-11.25%
Revenue Next Year-2.31%
Revenue Next 2Y0.7%
Revenue Next 3Y1.4%
Revenue Next 5Y0.35%
EBIT growth 1Y-23.99%
EBIT growth 3Y-29.39%
EBIT growth 5Y0.36%
EBIT Next Year21.93%
EBIT Next 3Y9.54%
EBIT Next 5Y3.92%
FCF growth 1Y-58.9%
FCF growth 3Y-48.33%
FCF growth 5Y-14.71%
OCF growth 1Y-15.41%
OCF growth 3Y-28.4%
OCF growth 5Y1.2%