Market Cap
R$205.6b
Last Updated
2020/03/30 18:03 UTC
Data Sources
Company Financials +
Executive Summary
Vale S.A., together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Mediocre balance sheet with moderate growth potential.
Similar Companies
Share Price & News
How has Vale's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: VALE3's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
17.6%
VALE3
13.2%
BR Metals and Mining
8.0%
BR Market
1 Year Return
-23.8%
VALE3
-25.8%
BR Metals and Mining
-18.8%
BR Market
Return vs Industry: VALE3 exceeded the BR Metals and Mining industry which returned -25.8% over the past year.
Return vs Market: VALE3 underperformed the BR Market which returned -18.8% over the past year.
Shareholder returns
| VALE3 | Industry | Market | |
|---|---|---|---|
| 7 Day | 17.6% | 13.2% | 8.0% |
| 30 Day | -9.5% | -16.4% | -26.2% |
| 90 Day | -24.8% | -30.2% | -33.4% |
| 1 Year | -21.7%-23.8% | -23.7%-25.8% | -15.8%-18.8% |
| 3 Year | 51.6%35.9% | 37.7%24.7% | 21.9%8.2% |
| 5 Year | 161.6%121.2% | 106.2%79.6% | 48.5%22.7% |
Price Volatility Vs. Market
How volatile is Vale's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Vale undervalued compared to its fair value and its price relative to the market?
38.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VALE3 (R$40.1) is trading below our estimate of fair value (R$65.11)
Significantly Below Fair Value: VALE3 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: VALE3 is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.
PE vs Market: VALE3 is unprofitable, so we can't compare its PE Ratio to the BR market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate VALE3's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: VALE3 is overvalued based on its PB Ratio (1.3x) compared to the BR Metals and Mining industry average (0.6x).
Next Steps
Future Growth
How is Vale forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
49.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VALE3 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (7%).
Earnings vs Market: VALE3 is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: VALE3's is expected to become profitable in the next 3 years.
Revenue vs Market: VALE3's revenue (7.6% per year) is forecast to grow slower than the BR market (8.8% per year).
High Growth Revenue: VALE3's revenue (7.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: VALE3's Return on Equity is forecast to be low in 3 years time (15.5%).
Next Steps
Past Performance
How has Vale performed over the past 5 years?
42.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VALE3 is currently unprofitable.
Growing Profit Margin: VALE3 is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: VALE3 is unprofitable, but has reduced losses over the past 5 years at a rate of 42.9% per year.
Accelerating Growth: Unable to compare VALE3's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: VALE3 is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-49.9%).
Return on Equity
High ROE: VALE3 has a negative Return on Equity (-5.53%), as it is currently unprofitable.
Next Steps
Financial Health
How is Vale's financial position?
Financial Position Analysis
Short Term Liabilities: VALE3's short term assets (R$68.7B) exceed its short term liabilities (R$55.8B).
Long Term Liabilities: VALE3's short term assets (R$68.7B) do not cover its long term liabilities (R$156.7B).
Debt to Equity History and Analysis
Debt Level: VALE3's debt to equity ratio (45.6%) is considered high.
Reducing Debt: VALE3's debt to equity ratio has reduced from 57.5% to 45.6% over the past 5 years.
Balance Sheet
Inventory Level: VALE3 has a high level of physical assets or inventory.
Debt Coverage by Assets: VALE3's debt is not covered by short term assets (assets are 1x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: VALE3 has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: VALE3 has been profitable on average in the past, therefore cash runway is not a concern.
Next Steps
Dividend
What is Vale's current dividend yield, its reliability and sustainability?
3.53%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: VALE3's dividend (3.53%) is higher than the bottom 25% of dividend payers in the BR market (1.99%).
High Dividend: VALE3's dividend (3.53%) is low compared to the top 25% of dividend payers in the BR market (6.48%).
Stability and Growth of Payments
Stable Dividend: VALE3's dividend payments have been volatile in the past 10 years.
Growing Dividend: VALE3's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: VALE3 is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: VALE3's dividends in 3 years are forecast to be well covered by earnings (36.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average management tenure
CEO
Eduardo de Salles Bartolomeo (55yo)
1
Tenure
Mr. Eduardo de Salles Bartolomeo served as President Commissioner of PT Vale Indonesia Tbk since April 04, 2018 and had been its Interim Chief Executive Officer from March 2, 2019 to April 2019. Mr. de Sal ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 1yr | no data | no data | |
| CFO and Executive Director of Finance & Investor Relations | 7.58yrs | no data | no data | |
| Executive Director of Safety & Operational Excellence | 0.75yr | no data | no data | |
| Controllership Director & Chief Accountant | no data | no data | no data | |
| Corporate Finance Director | no data | no data | no data | |
| Director of Investor Relations | no data | no data | no data | |
| General Counsel | 2yrs | no data | no data | |
| Executive Director of Sustainability | 1.17yrs | no data | no data | |
| People Director | 2.33yrs | no data | no data | |
| Executive VP & Executive Director of Global Business Support | 2.58yrs | no data | no data |
2.0yrs
Average Tenure
49yo
Average Age
Experienced Management: VALE3's management team is considered experienced (2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| General Manager of Treasury for CVRD and Director of Vale Overseas | no data | no data | no data | |
| Former Member of Fiscal Council | no data | no data | no data | |
| Director | 16.42yrs | no data | no data | |
| Director | 0.25yr | no data | no data | |
| Director | 1.17yrs | no data | no data | |
| Director | 7.42yrs | no data | no data | |
| Vice Chairman of the Board | 3.17yrs | no data | no data | |
| Director | 4.92yrs | no data | no data | |
| Independent Director | 2.42yrs | no data | no data | |
| Chairman of the Board | 1.17yrs | no data | no data |
2.8yrs
Average Tenure
58.5yo
Average Age
Experienced Board: VALE3's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Vale S.A.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Vale S.A.
- Ticker: VALE3
- Exchange: BOVESPA
- Founded: 1942
- Industry: Steel
- Sector: Materials
- Market Cap: R$205.644b
- Shares outstanding: 5.13b
- Website: https://www.vale.com
Location
- Vale S.A.
- Praia de Botafogo 186
- Praia de Botafogo 186
- Rio de Janeiro
- Rio de Janeiro
- 22250-145
- Brazil
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| VALE3 | BOVESPA (Bolsa de Valores de Sao Paulo) | Yes | Common Shares | BR | BRL | Nov 1993 |
| XVALO | BME (Bolsas y Mercados Espanoles) | Yes | Common Shares | ES | EUR | Nov 1993 |
| CVLC | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Nov 1993 |
| VALE | NYSE (New York Stock Exchange) | SPONS ADR REPR 1 COM NPV | US | USD | Mar 2002 | |
| VALE N | BMV (Bolsa Mexicana de Valores) | SPONS ADR REPR 1 COM NPV | MX | MXN | Mar 2002 | |
| VALE | SWX (SIX Swiss Exchange) | SPONS ADR REPR 1 COM NPV | CH | CHF | Mar 2002 | |
| CVLB | DB (Deutsche Boerse AG) | SPONS ADR REPR 1 COM NPV | DE | EUR | Mar 2002 | |
| 0LBF | LSE (London Stock Exchange) | SPONS ADR REPR 1 COM NPV | GB | USD | Mar 2002 | |
| VALE | BASE (Buenos Aires Stock Exchange) | EACH CEDEAR REP 0.5 ADR | AR | ARS | Jul 2007 |
Biography
Vale S.A., together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. It operates through Ferrous Minerals, Coal, and Base Metals segments. The Ferrous Minerals segment produces and extracts iron ore and pellets, manganese, ferroalloys, and others ferrous products and services; and provides related logistic services. The Coal segment is involved in the extraction of metallurgical and thermal coal; and provides related logistic services. The Base Metals segment produces and extracts non-ferrous minerals, including nickel; and its by-products, such as copper, gold, silver, cobalt, precious metals, and others. The company was formerly known as Companhia Vale do Rio Doce and changed its name to Vale S.A. in May 2009. Vale S.A. was founded in 1942 and is headquartered in Rio de Janeiro, Brazil.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 18:03 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.