BOVESPA:VALE3

Stock Analysis Report

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.

Snowflake

Fundamentals

Adequate balance sheet and fair value.


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

Information is not available.


Market Performance


7 Day Return

-3.5%

VALE3

-2.4%

BR Metals and Mining

0.2%

BR Market


1 Year Return

-14.5%

VALE3

-11.2%

BR Metals and Mining

25.4%

BR Market

Information is not available.

Information is not available.


Shareholder returns

VALE3IndustryMarket
7 Day-3.5%-2.4%0.2%
30 Day-1.0%0.07%3.6%
90 Day7.2%6.4%6.2%
1 Year-14.5%-14.5%-10.6%-11.2%30.8%25.4%
3 Year98.8%81.9%82.5%68.2%84.5%64.4%
5 Year151.7%118.5%118.8%92.3%102.5%68.3%

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?

30.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VALE3 (R$48.13) is trading below our estimate of fair value (R$68.78)

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


Price To Earnings Ratio

PE vs Industry: VALE3 is poor value based on its PE Ratio (17.5x) compared to the Metals and Mining industry average (14x).

PE vs Market: VALE3 is poor value based on its PE Ratio (17.5x) compared to the BR market (14.5x).


Price to Earnings Growth Ratio

PEG Ratio: VALE3 is poor value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: VALE3 is overvalued based on its PB Ratio (1.4x) compared to the BR Metals and Mining industry average (1x).


Next Steps

Future Growth

How is Vale forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

25.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VALE3's forecast earnings growth (25.7% per year) is above the savings rate (2.7%).

Earnings vs Market: VALE3's earnings (25.7% per year) are forecast to grow faster than the BR market (15.4% per year).

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

Revenue vs Market: VALE3's revenue is expected to decline over the next 3 years (0.4% per year).

High Growth Revenue: VALE3's revenue is forecast to decline over the next 3 years (0.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


Next Steps

Past Performance

How has Vale performed over the past 5 years?

48.5%

Historical annual earnings growth


Earnings and Revenue History

Information is not available.

Information is not available.


Past Earnings Growth Analysis

Earnings Trend: VALE3's earnings have grown significantly by 48.5% 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 (-8.9%) over the past year, making it difficult to compare to the Metals and Mining industry average (-7.2%).


Return on Equity

High ROE: VALE3's Return on Equity (8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vale's financial position?


Financial Position Analysis

Short Term Liabilities: VALE3's short term assets (R$77.0B) exceeds its short term liabilities (R$55.9B)

Long Term Liabilities: VALE3's short term assets (77.0B) do not cover its long term liabilities (157.4B)


Debt to Equity History and Analysis

Debt Level: VALE3's debt to equity ratio (44.8%) is considered high

Reducing Debt: VALE3's debt to equity ratio has reduced from 52% to 44.8% over the past 5 years.

Debt Coverage: VALE3's debt is well covered by operating cash flow (60.8%).

Interest Coverage: VALE3's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet

Information is not available.

Information is not available.


Next Steps

Dividend

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

3.08%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.3%markettop25%4.9%industryaverage3.2%forecastin3Years3.5%

Current dividend yield vs market & industry

Notable Dividend: VALE3's dividend (3.08%) is higher than the bottom 25% of dividend payers in the BR market (1.3%).

High Dividend: VALE3's dividend (3.08%) is low compared to the top 25% of dividend payers in the BR market (4.88%).


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.9%), VALE3's dividend payments are 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

What is the CEO of Vale's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Eduardo de Salles Bartolomeo (55yo)

0.7yrs

Tenure

0

Mr. Eduardo de Salles Bartolomeo has been 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. Bartolo ...


Management Age and Tenure

1.7yrs

Average Tenure

49yo

Average Age

Experienced Management: VALE3's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

2.5yrs

Average Tenure

61yo

Average Age

Experienced Board: VALE3's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Information is not available.


Management Team

  • Luciano Pires (49yo)

    CFO and Executive Director of Finance & Investor Relations

    • Tenure: 7.3yrs
  • Eduardo de Salles Bartolomeo (55yo)

    Chief Executive Officer

    • Tenure: 0.7yrs
  • Sonia Zagury

    Corporate Finance Director

    • Tenure: 0yrs
  • Carlos Medeiros

    Executive Director of Safety & Operational Excellence

    • Tenure: 0.4yrs
  • Luiz Eduardo do Amaral Osorio (45yo)

    Executive Director of Sustainability

    • Tenure: 0.8yrs
  • Murilo Muller

    Controllership Director & Chief Accountant

    • Tenure: 0yrs
  • André Figueiredo

    Director of Investor Relations

    • Tenure: 0yrs
  • Alexandre Pereira (49yo)

    Executive VP & Executive Director of Global Business Support

    • Tenure: 2.3yrs
  • Alexandre D’Ambrosio

    General Counsel

    • Tenure: 1.7yrs
  • Marina Quental

    People Director

    • Tenure: 2yrs

Board Members

  • Marcelo Amaral Moraes (51yo)

    Chairman of Fiscal Council

    • Tenure: 0yrs
  • Bernardeth Vieira de Souza (67yo)

    General Manager of Treasury for CVRD and Director of Vale Overseas

    • Tenure: 0yrs
  • Oscar de Camargo Filho (81yo)

    Director

    • Tenure: 16.1yrs
  • Eduardo de Oliveira Rodrigues Filho

    Director

    • Tenure: 0.8yrs
  • Marcel Barros (56yo)

    Director

    • Tenure: 7.1yrs
  • Fernando Buso Gomes (63yo)

    Vice Chairman of the Board

    • Tenure: 2.8yrs
  • Lucio Azevedo (61yo)

    Director

    • Tenure: 4.6yrs
  • Toshiya Asahi (52yo)

    Director

    • Tenure: 2.1yrs
  • Marcio Ferreira

    Director

    • Tenure: 0.8yrs
  • José Maurício Coelho

    Chairman of the Board

    • Tenure: 0.8yrs

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$246.824b
  • 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

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)SPONS ADR REPR 1 COM NPVUSUSDMar 2002
VALE NBMV (Bolsa Mexicana de Valores)SPONS ADR REPR 1 COM NPVMXMXNMar 2002
VALE3ENXTPA (Euronext Paris)SPONS ADR REPR 1 COM NPVFREURMar 2002
VALESWX (SIX Swiss Exchange)SPONS ADR REPR 1 COM NPVCHCHFMar 2002
CVLBDB (Deutsche Boerse AG)SPONS ADR REPR 1 COM NPVDEEURMar 2002
0LBFLSE (London Stock Exchange)SPONS ADR REPR 1 COM NPVGBUSDMar 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. It operates through Ferrous Minerals, Coal ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 18:04
End of Day Share Price2019/11/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.