Market Cap
R$547.9b
Last Updated
2021/08/01 00:42 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. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 28.5% per year for the next 3 years
Snowflake Analysis
Solid track record with excellent balance sheet and pays a dividend.
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 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: VALE3's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-4.7%
VALE3
-3.0%
BR Metals and Mining
-2.2%
BR Market
1 Year Return
79.1%
VALE3
89.8%
BR Metals and Mining
12.4%
BR Market
Return vs Industry: VALE3 underperformed the BR Metals and Mining industry which returned 97.6% over the past year.
Return vs Market: VALE3 exceeded the BR Market which returned 13.7% over the past year.
Shareholder returns
| VALE3 | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.7% | -3.0% | -2.2% |
| 30 Day | -2.3% | -0.3% | -2.9% |
| 90 Day | -0.2% | -2.1% | 2.6% |
| 1 Year | 98.9%79.1% | 107.7%89.8% | 16.7%12.4% |
| 3 Year | 135.9%107.0% | 144.7%117.0% | 67.3%49.3% |
| 5 Year | 614.2%473.3% | 539.1%433.1% | 128.2%88.9% |
Long-Term 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?
6.11x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: VALE3 (R$108.76) is trading above our estimate of fair value (R$62.07)
Significantly Below Fair Value: VALE3 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: VALE3 is good value based on its PE Ratio (6.1x) compared to the BR Metals and Mining industry average (9.7x).
PE vs Market: VALE3 is good value based on its PE Ratio (6.1x) compared to the BR market (15.3x).
Price to Earnings Growth Ratio
PEG Ratio: VALE3's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: VALE3 is overvalued based on its PB Ratio (2.7x) compared to the BR Metals and Mining industry average (2x).
Future Growth
How is Vale forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
-28.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VALE3's earnings are forecast to decline over the next 3 years (-28.5% per year).
Earnings vs Market: VALE3's earnings are forecast to decline over the next 3 years (-28.5% per year).
High Growth Earnings: VALE3's earnings are forecast to decline over the next 3 years.
Revenue vs Market: VALE3's revenue is expected to decline over the next 3 years (-13.7% per year).
High Growth Revenue: VALE3's revenue is forecast to decline over the next 3 years (-13.7% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: VALE3's Return on Equity is forecast to be high in 3 years time (30.1%)
Past Performance
How has Vale performed over the past 5 years?
38.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VALE3 has a large one-off loss of R$41.0B impacting its June 30 2021 financial results.
Growing Profit Margin: VALE3's current net profit margins (31%) are higher than last year (4.2%).
Past Earnings Growth Analysis
Earnings Trend: VALE3 has become profitable over the past 5 years, growing earnings by 38.7% per year.
Accelerating Growth: VALE3's earnings growth over the past year (1321.9%) exceeds its 5-year average (38.7% per year).
Earnings vs Industry: VALE3 earnings growth over the past year (1321.9%) exceeded the Metals and Mining industry 70.3%.
Return on Equity
High ROE: VALE3's Return on Equity (42.2%) is considered outstanding.
Financial Health
How is Vale's financial position?
Financial Position Analysis
Short Term Liabilities: VALE3's short term assets (R$127.1B) exceed its short term liabilities (R$71.7B).
Long Term Liabilities: VALE3's short term assets (R$127.1B) do not cover its long term liabilities (R$200.2B).
Debt to Equity History and Analysis
Debt Level: VALE3's debt to equity ratio (39.4%) is considered satisfactory.
Reducing Debt: VALE3's debt to equity ratio has reduced from 81.9% to 39.4% over the past 5 years.
Debt Coverage: VALE3's debt is well covered by operating cash flow (167%).
Interest Coverage: VALE3's interest payments on its debt are well covered by EBIT (11.2x coverage).
Balance Sheet
Dividend
What is Vale current dividend yield, its reliability and sustainability?
5.92%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: VALE3's dividend (5.92%) is higher than the bottom 25% of dividend payers in the BR market (1.11%).
High Dividend: VALE3's dividend (5.92%) is in the top 25% of dividend payers in the BR market (4.15%)
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: With its low payout ratio (23.9%), VALE3's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Eduardo de Salles Bartolomeo (57 yo)
2.33yrs
Tenure
Mr. Eduardo de Salles Bartolomeo serves as the Chief Executive Officer at Vale S.A. since April 2019. He served as President Commissioner of PT Vale Indonesia Tbk since April 04, 2018 and had been its Inte...
Leadership Team
Experienced Management: VALE3's management team is considered experienced (2.5 years average tenure).
Board Members
Experienced Board: VALE3's board of directors are considered experienced (3.8 years average tenure).
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$547.902b
- Shares outstanding: 5.04b
- Website: https://www.vale.com
Number of Employees
Location
- Vale S.A.
- Praia de Botafogo 186
- Salas 501 a 1901
- Rio De Janeiro
- Rio de Janeiro
- 22250-145
- Brazil
Listings
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. The company operates through Ferrous Miner...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/08/01 00:42 |
| End of Day Share Price | 2021/07/30 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.