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 Analysis

Mediocre balance sheet with moderate growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

17.6%

VALE3

13.2%

BR Metals and Mining

8.0%

BR Market


1 Year Return

-23.8%

VALE3

-25.8%

BR Metals and Mining

-18.8%

BR Market

Return vs Industry: VALE3 exceeded the BR Metals and Mining industry which returned -25.8% over the past year.

Return vs Market: VALE3 underperformed the BR Market which returned -18.8% over the past year.


Shareholder returns

VALE3IndustryMarket
7 Day17.6%13.2%8.0%
30 Day-9.5%-16.4%-26.2%
90 Day-24.8%-30.2%-33.4%
1 Year-21.7%-23.8%-23.7%-25.8%-15.8%-18.8%
3 Year51.6%35.9%37.7%24.7%21.9%8.2%
5 Year161.6%121.2%106.2%79.6%48.5%22.7%

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?

38.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VALE3 (R$40.1) is trading below our estimate of fair value (R$65.11)

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


Price To Earnings Ratio

PE vs Industry: VALE3 is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: VALE3 is unprofitable, so we can't compare its PE Ratio to the BR market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VALE3's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VALE3 is overvalued based on its PB Ratio (1.3x) compared to the BR Metals and Mining industry average (0.6x).


Next Steps

Future Growth

How is Vale forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

49.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VALE3 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (7%).

Earnings vs Market: VALE3 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VALE3's is expected to become profitable in the next 3 years.

Revenue vs Market: VALE3's revenue (7.6% per year) is forecast to grow slower than the BR market (8.8% per year).

High Growth Revenue: VALE3's revenue (7.6% 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 low in 3 years time (15.5%).


Next Steps

Past Performance

How has Vale performed over the past 5 years?

42.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VALE3 is currently unprofitable.

Growing Profit Margin: VALE3 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VALE3 is unprofitable, but has reduced losses over the past 5 years at a rate of 42.9% per year.

Accelerating Growth: Unable to compare VALE3's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VALE3 is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-49.9%).


Return on Equity

High ROE: VALE3 has a negative Return on Equity (-5.53%), as it is currently unprofitable.


Next Steps

Financial Health

How is Vale's financial position?


Financial Position Analysis

Short Term Liabilities: VALE3's short term assets (R$68.7B) exceed its short term liabilities (R$55.8B).

Long Term Liabilities: VALE3's short term assets (R$68.7B) do not cover its long term liabilities (R$156.7B).


Debt to Equity History and Analysis

Debt Level: VALE3's debt to equity ratio (45.6%) is considered high.

Reducing Debt: VALE3's debt to equity ratio has reduced from 57.5% to 45.6% over the past 5 years.


Balance Sheet

Inventory Level: VALE3 has a high level of physical assets or inventory.

Debt Coverage by Assets: VALE3's debt is not covered by short term assets (assets are 1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: VALE3 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: VALE3 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

3.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VALE3's dividend (3.53%) is higher than the bottom 25% of dividend payers in the BR market (1.99%).

High Dividend: VALE3's dividend (3.53%) is low compared to the top 25% of dividend payers in the BR market (6.48%).


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: VALE3 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: VALE3's dividends in 3 years are forecast to be well covered by earnings (36.6% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Eduardo de Salles Bartolomeo (55yo)

1

Tenure

Mr. Eduardo de Salles Bartolomeo served as 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. de Sal ...


Leadership Team

NamePositionTenureCompensationOwnership
Eduardo de Salles Bartolomeo
Chief Executive Officer1yrno datano data
Luciano Pires
CFO and Executive Director of Finance & Investor Relations7.58yrsno datano data
Carlos Medeiros
Executive Director of Safety & Operational Excellence0.75yrno datano data
Murilo Muller
Controllership Director & Chief Accountantno datano datano data
Sonia Zagury
Corporate Finance Directorno datano datano data
André Figueiredo
Director of Investor Relationsno datano datano data
Alexandre D'Ambrosio
General Counsel2yrsno datano data
Luiz Eduardo do Amaral Osorio
Executive Director of Sustainability1.17yrsno datano data
Marina Quental
People Director2.33yrsno datano data
Alexandre Pereira
Executive VP & Executive Director of Global Business Support2.58yrsno datano data

2.0yrs

Average Tenure

49yo

Average Age

Experienced Management: VALE3's management team is considered experienced (2 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 Amaral Moraes
Former Member of Fiscal Councilno datano datano data
Oscar de Camargo Filho
Director16.42yrsno datano data
Roger Downey
Director0.25yrno datano data
Eduardo de Oliveira Rodrigues Filho
Director1.17yrsno datano data
Marcel Barros
Director7.42yrsno datano data
Fernando Buso Gomes
Vice Chairman of the Board3.17yrsno datano data
Lucio Azevedo
Director4.92yrsno datano data
Isabella Saboya Albuquerque
Independent Director2.42yrsno datano data
José Maurício Coelho
Chairman of the Board1.17yrsno datano data

2.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: VALE3's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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$205.644b
  • 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
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, and Base Metals segments. The Ferrous Minerals segment produces and extracts iron ore and pellets, manganese, ferroalloys, and others ferrous products and services; and provides related logistic services. The Coal segment is involved in the extraction of metallurgical and thermal coal; and provides related logistic services. The Base Metals segment produces and extracts non-ferrous minerals, including nickel; and its by-products, such as copper, gold, silver, cobalt, precious metals, and others. The company was formerly known as Companhia Vale do Rio Doce and changed its name to Vale S.A. in May 2009. Vale S.A. was founded in 1942 and is headquartered in Rio de Janeiro, Brazil. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 18:03
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.