BOVESPA:VALE3

Stock Analysis Report

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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


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

VALE3IndustryMarket
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 Year98.9%79.1%107.7%89.8%16.7%12.4%
3 Year135.9%107.0%144.7%117.0%67.3%49.3%
5 Year614.2%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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 00:42
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.