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VALE

Vale BOVESPA:VALE3 Stock Report

Last Price

R$69.80

Market Cap

R$320.5b

7D

2.6%

1Y

-35.5%

Updated

12 Aug, 2022

Data

Company Financials +
VALE3 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance4/6
Financial Health5/6
Dividends5/6

VALE3 Stock Overview

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.

Vale Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Vale
Historical stock prices
Current Share PriceR$69.80
52 Week HighR$109.90
52 Week LowR$61.85
Beta0.76
1 Month Change-4.12%
3 Month Change-10.29%
1 Year Change-35.55%
3 Year Change59.76%
5 Year Change121.24%
Change since IPO131,523.61%

Recent News & Updates

Aug 04
Vale's (BVMF:VALE3) Conservative Accounting Might Explain Soft Earnings

Vale's (BVMF:VALE3) Conservative Accounting Might Explain Soft Earnings

Soft earnings didn't appear to concern Vale S.A.'s ( BVMF:VALE3 ) shareholders over the last week. We did some digging...

Shareholder Returns

VALE3BR Metals and MiningBR Market
7D2.6%7.5%3.3%
1Y-35.5%-37.0%-18.9%

Return vs Industry: VALE3 exceeded the BR Metals and Mining industry which returned -37% over the past year.

Return vs Market: VALE3 underperformed the BR Market which returned -18.9% over the past year.

Price Volatility

Is VALE3's price volatile compared to industry and market?
VALE3 volatility
VALE3 Average Weekly Movement5.0%
Metals and Mining Industry Average Movement6.2%
Market Average Movement6.0%
10% most volatile stocks in BR Market9.7%
10% least volatile stocks in BR Market2.3%

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.

About the Company

FoundedEmployeesCEOWebsite
194274,316Eduardo de Salles Bartolomeohttps://www.vale.com

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 Minerals and Base Metals segments. The Ferrous Minerals segment produces and extracts iron ore and pellets, manganese, ferroalloys, and other ferrous products; and provides related logistic services.

Vale Fundamentals Summary

How do Vale's earnings and revenue compare to its market cap?
VALE3 fundamental statistics
Market CapR$320.47b
Earnings (TTM)R$101.49b
Revenue (TTM)R$249.43b

3.2x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VALE3 income statement (TTM)
RevenueR$249.43b
Cost of RevenueR$118.47b
Gross ProfitR$130.96b
Other ExpensesR$29.47b
EarningsR$101.49b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 27, 2022

Earnings per share (EPS)22.10
Gross Margin52.50%
Net Profit Margin40.69%
Debt/Equity Ratio39.6%

How did VALE3 perform over the long term?

See historical performance and comparison

Dividends

10.4%

Current Dividend Yield

35%

Payout Ratio

Does VALE3 pay a reliable dividends?

See VALE3 dividend history and benchmarks
When do you need to buy VALE3 by to receive an upcoming dividend?
Vale dividend dates
Ex Dividend DateAug 12 2022
Dividend Pay DateSep 01 2022
Days until Ex dividend1 day
Days until Dividend pay date19 days

Does VALE3 pay a reliable dividends?

See VALE3 dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is VALE3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VALE3?

Other financial metrics that can be useful for relative valuation.

VALE3 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.5x
Enterprise Value/EBITDA2.7x
PEG Ratio-0.1x

Price to Earnings Ratio vs Peers

How does VALE3's PE Ratio compare to its peers?

VALE3 PE Ratio vs Peers
The above table shows the PE ratio for VALE3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average3x
GGBR4 Gerdau
2.7x-32.4%R$40.8b
CSNA3 Companhia Siderúrgica Nacional
2.6x-9.9%R$21.5b
CMIN3 CSN Mineração
4.5x0.8%R$21.3b
GOAU4 Metalurgica Gerdau
2.2xn/aR$11.3b
VALE3 Vale
3.3x-21.5%R$332.8b

Price-To-Earnings vs Peers: VALE3 is expensive based on its Price-To-Earnings Ratio (3.2x) compared to the peer average (3x).


Price to Earnings Ratio vs Industry

How does VALE3's PE Ratio compare vs other companies in the South American Metals and Mining Industry?

Price-To-Earnings vs Industry: VALE3 is expensive based on its Price-To-Earnings Ratio (3.2x) compared to the BR Metals and Mining industry average (3.1x)


Price to Earnings Ratio vs Fair Ratio

What is VALE3's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VALE3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.2x
Fair PE Ratio6.2x

Price-To-Earnings vs Fair Ratio: VALE3 is good value based on its Price-To-Earnings Ratio (3.2x) compared to the estimated Fair Price-To-Earnings Ratio (6.2x).


Share Price vs Fair Value

What is the Fair Price of VALE3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VALE3 (R$69.8) is trading below our estimate of fair value (R$109.12)

Significantly Below Fair Value: VALE3 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Vale forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-21.5%

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 (-21.5% per year).

Earnings vs Market: VALE3's earnings are forecast to decline over the next 3 years (-21.5% 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 (-4.1% per year).

High Growth Revenue: VALE3's revenue is forecast to decline over the next 3 years (-4.1% 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 (23.2%)


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Past Performance

How has Vale performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


51.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VALE3 has high quality earnings.

Growing Profit Margin: VALE3's current net profit margins (40.7%) are higher than last year (36.1%).


Past Earnings Growth Analysis

Earnings Trend: VALE3's earnings have grown significantly by 51.2% per year over the past 5 years.

Accelerating Growth: VALE3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VALE3 had negative earnings growth (-3.2%) over the past year, making it difficult to compare to the Metals and Mining industry average (73.6%).


Return on Equity

High ROE: VALE3's Return on Equity (53%) is considered outstanding.


Discover strong past performing companies

Financial Health

How is Vale's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: VALE3's short term assets (R$83.9B) exceed its short term liabilities (R$63.5B).

Long Term Liabilities: VALE3's short term assets (R$83.9B) do not cover its long term liabilities (R$184.7B).


Debt to Equity History and Analysis

Debt Level: VALE3's net debt to equity ratio (19.7%) is considered satisfactory.

Reducing Debt: VALE3's debt to equity ratio has reduced from 71.2% to 39.6% over the past 5 years.

Debt Coverage: VALE3's debt is well covered by operating cash flow (116.3%).

Interest Coverage: VALE3's interest payments on its debt are well covered by EBIT (22.5x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


10.45%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: VALE3's dividend (10.45%) is higher than the bottom 25% of dividend payers in the BR market (1.57%).

High Dividend: VALE3's dividend (10.45%) is in the top 25% of dividend payers in the BR market (7.46%)


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (34.7%), VALE3's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (55.1%), VALE3's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Eduardo de Salles Bartolomeo (58 yo)

3.42yrs

Tenure

Mr. Eduardo de Salles Bartolomeo serves as the President (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 b...


Leadership Team

Experienced Management: VALE3's management team is considered experienced (2.1 years average tenure).


Board Members

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 employee growth, exchange listings and data sources


Key Information

  • Name: Vale S.A.
  • Ticker: VALE3
  • Exchange: BOVESPA
  • Founded: 1942
  • Industry: Steel
  • Sector: Materials
  • Implied Market Cap: R$320.470b
  • Shares outstanding: 4.59b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/12 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.