BOVESPA:VALE3

Stock Analysis Report

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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

Adequate balance sheet second-rate dividend payer.


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 +/- 5% a week.

Volatility Over Time: VALE3's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-5.7%

VALE3

-7.3%

BR Metals and Mining

-0.2%

BR Market


1 Year Return

66.9%

VALE3

61.4%

BR Metals and Mining

0.9%

BR Market

Return vs Industry: VALE3 exceeded the BR Metals and Mining industry which returned 61.4% over the past year.

Return vs Market: VALE3 exceeded the BR Market which returned 0.9% over the past year.


Shareholder returns

VALE3IndustryMarket
7 Day-5.7%-7.3%-0.2%
30 Day6.5%7.9%4.0%
90 Day48.8%48.4%19.4%
1 Year73.9%66.9%67.0%61.4%3.6%0.9%
3 Year154.6%128.8%138.3%116.2%59.1%42.1%
5 Year1,121.6%945.0%1,086.3%931.6%223.9%168.2%

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?

30.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VALE3 (R$93.53) is trading above our estimate of fair value (R$49.56)

Significantly Below Fair Value: VALE3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VALE3 is poor value based on its PE Ratio (30.8x) compared to the BR Metals and Mining industry average (29.7x).

PE vs Market: VALE3 is poor value based on its PE Ratio (30.8x) compared to the BR market (17.5x).


Price to Earnings Growth Ratio

PEG Ratio: VALE3 is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: VALE3 is overvalued based on its PB Ratio (2.5x) compared to the BR Metals and Mining industry average (1.4x).


Next Steps

Future Growth

How is Vale forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VALE3's forecast earnings growth (11.7% per year) is above the savings rate (9.9%).

Earnings vs Market: VALE3's earnings (11.7% per year) are forecast to grow slower than the BR market (26.7% per year).

High Growth Earnings: VALE3's earnings are forecast to grow, but not significantly.

Revenue vs Market: VALE3's revenue (3.2% per year) is forecast to grow slower than the BR market (9.9% per year).

High Growth Revenue: VALE3's revenue (3.2% 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 high in 3 years time (20.9%)


Next Steps

Past Performance

How has Vale performed over the past 5 years?

38.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VALE3 has a large one-off loss of R$13.5B impacting its September 30 2020 financial results.

Growing Profit Margin: VALE3's current net profit margins (9.1%) are lower than last year (9.6%).


Past Earnings Growth Analysis

Earnings Trend: VALE3 has become profitable over the past 5 years, growing earnings by 38.3% per year.

Accelerating Growth: VALE3's earnings growth over the past year (10.6%) is below its 5-year average (38.3% per year).

Earnings vs Industry: VALE3 earnings growth over the past year (10.6%) exceeded the Metals and Mining industry -44.6%.


Return on Equity

High ROE: VALE3's Return on Equity (6.6%) is considered low.


Next Steps

Financial Health

How is Vale's financial position?


Financial Position Analysis

Short Term Liabilities: VALE3's short term assets (R$99.0B) exceed its short term liabilities (R$60.3B).

Long Term Liabilities: VALE3's short term assets (R$99.0B) do not cover its long term liabilities (R$203.5B).


Debt to Equity History and Analysis

Debt Level: VALE3's debt to equity ratio (56.3%) is considered high.

Reducing Debt: VALE3's debt to equity ratio has reduced from 72.4% to 56.3% over the past 5 years.

Debt Coverage: VALE3's debt is well covered by operating cash flow (48.9%).

Interest Coverage: VALE3's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Vale current dividend yield, its reliability and sustainability?

1.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VALE3's dividend (1.51%) is higher than the bottom 25% of dividend payers in the BR market (0.92%).

High Dividend: VALE3's dividend (1.51%) is low compared to the top 25% of dividend payers in the BR market (4.9%).


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 reasonably low payout ratio (46.5%), 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?

2.4yrs

Average management tenure


CEO

Eduardo de Salles Bartolomeo (56 yo)

1.83yrs

Tenure

Mr. Eduardo de Salles Bartolomeo serves as a 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 Interi...


Leadership Team

NamePositionTenureCompensationOwnership
Eduardo de Salles Bartolomeo
Chief Executive Officer1.83yrsno datano data
Luciano Pires
CFO and Executive Director of Finance & Investor Relations8.42yrsno datano data
Carlos Henrique Medeiros
Executive Director of Safety & Operational Excellence1.58yrsno datano data
Murilo Muller
Controllership Director & Chief Accountantno datano datano data
Sonia Zagury
Corporate Finance Directorno datano datano data
Alexandre D'Ambrosio
General Counsel2.83yrsno datano data
Denis Cuenca
Chief Compliance Officer0.50yrno datano data
Luiz Eduardo do Amaral Osorio
Executive Director of Sustainability2yrsno datano data
Marina Quental
People Director3.17yrsno datano data
Alexandre Pereira
Executive VP & Executive Director of Global Business Support3.42yrsno datano data
Afzal Jessa
Chief Digital Officerno datano datano data
Luiz Gouvêa
Secretaryno datano datano data

2.4yrs

Average Tenure

51yo

Average Age

Experienced Management: VALE3's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bernardeth Vieira de Souza
General Manager of Treasury for CVRD and Director of Vale Overseasno datano datano data
Marcelo Moraes
Chairman of Fiscal Councilno datano datano data
Oscar de Camargo Filho
Director17.25yrsno datano data
Roger Downey
Director1.08yrsno datano data
Marcelo Gasparino da Silva
Director1yrno datano data
Eduardo de Oliveira Rodrigues Filho
Director2yrsno datano data
Marcel Barros
Director8.25yrsno datano data
Fernando Buso Gomes
Vice Chairman of the Board4yrsno datano data
Lucio Azevedo
Employee Director5.75yrsno datano data
Isabella de Albuquerque
Independent Director3.25yrsno datano data
Toshiya Asahi
Director3.25yrsno datano data
José Maurício Coelho
Chairman of the Board2yrsno datano data

3.3yrs

Average Tenure

55.5yo

Average Age

Experienced Board: VALE3's board of directors are considered experienced (3.3 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$483.802b
  • Shares outstanding: 5.13b
  • Website: https://www.vale.com

Location

  • Vale S.A.
  • Praia de Botafogo 186
  • Salas 501 a 1901
  • Rio de Janeiro
  • Rio de Janeiro
  • 22250-145
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VALE3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon SharesBRBRLNov 1993
XVALOBME (Bolsas y Mercados Espanoles)YesCommon SharesESEURNov 1993
CVLCDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1993
VALENYSE (New York Stock Exchange)SPONSORED ADSUSUSDMar 2002
VALE NBMV (Bolsa Mexicana de Valores)SPONSORED ADSMXMXNMar 2002
VALESWX (SIX Swiss Exchange)SPONSORED ADSCHCHFMar 2002
CVLBDB (Deutsche Boerse AG)SPONSORED ADSDEEURMar 2002
0LBFLSE (London Stock Exchange)SPONSORED ADSGBUSDMar 2002
VALEBASE (Buenos Aires Stock Exchange)EACH CEDEAR REP 0.5 ADRARARSJul 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. 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 Analysis2021/01/19 21:57
End of Day Share Price2021/01/19 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.