Market Cap
R$317.2b
Last Updated
2020/10/21 18:00 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
Risk Analysis
Earnings are forecast to decline by an average of 3.2% per year for the next 3 years
+ 1 more risk
Snowflake Analysis
Adequate balance sheet unattractive 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.8%
VALE3
0.9%
BR Metals and Mining
-0.2%
BR Market
1 Year Return
31.3%
VALE3
36.2%
BR Metals and Mining
-6.1%
BR Market
Return vs Industry: VALE3 underperformed the BR Metals and Mining industry which returned 36.2% over the past year.
Return vs Market: VALE3 exceeded the BR Market which returned -6.1% over the past year.
Shareholder returns
| VALE3 | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.8% | 0.9% | -0.2% |
| 30 Day | 3.1% | 2.6% | 0.9% |
| 90 Day | 5.1% | 11.4% | -6.4% |
| 1 Year | 40.4%31.3% | 43.7%36.2% | -3.1%-6.1% |
| 3 Year | 107.3%84.3% | 99.7%80.1% | 38.3%23.4% |
| 5 Year | 336.3%273.2% | 328.9%273.2% | 119.1%82.4% |
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?
49.24x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: VALE3 (R$61.84) is trading above our estimate of fair value (R$33.65)
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 (49.2x) compared to the BR Metals and Mining industry average (24.5x).
PE vs Market: VALE3 is poor value based on its PE Ratio (49.2x) compared to the BR market (16.2x).
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 (1.7x) compared to the BR Metals and Mining industry average (1.1x).
Next Steps
Future Growth
How is Vale forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
-3.2%
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 (-3.2% per year).
Earnings vs Market: VALE3's earnings are forecast to decline over the next 3 years (-3.2% per year).
High Growth Earnings: VALE3's earnings are forecast to decline over the next 3 years.
Revenue vs Market: VALE3's revenue (0.2% per year) is forecast to grow slower than the BR market (10% per year).
High Growth Revenue: VALE3's revenue (0.2% 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 low in 3 years time (14.9%).
Next Steps
Past Performance
How has Vale performed over the past 5 years?
39.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VALE3 has a large one-off loss of R$13.6B impacting its June 30 2020 financial results.
Growing Profit Margin: VALE3's current net profit margins (4.2%) are lower than last year (9.4%).
Past Earnings Growth Analysis
Earnings Trend: VALE3 has become profitable over the past 5 years, growing earnings by 39.9% per year.
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 (-52.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (-52.3%).
Return on Equity
High ROE: VALE3's Return on Equity (2.1%) 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$111.2B) exceed its short term liabilities (R$61.1B).
Long Term Liabilities: VALE3's short term assets (R$111.2B) do not cover its long term liabilities (R$213.9B).
Debt to Equity History and Analysis
Debt Level: VALE3's debt to equity ratio (65.9%) is considered high.
Reducing Debt: VALE3's debt to equity ratio has reduced from 66.2% to 65.9% over the past 5 years.
Debt Coverage: VALE3's debt is well covered by operating cash flow (35.5%).
Interest Coverage: VALE3's interest payments on its debt are well covered by EBIT (4.7x coverage).
Balance Sheet
Next Steps
Dividend
What is Vale current dividend yield, its reliability and sustainability?
2.29%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: VALE3's dividend (2.29%) is higher than the bottom 25% of dividend payers in the BR market (1.24%).
High Dividend: VALE3's dividend (2.29%) is low compared to the top 25% of dividend payers in the BR market (5.78%).
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 high payout ratio (112.6%), VALE3's dividend payments are not 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?
2.2yrs
Average management tenure
CEO
Eduardo de Salles Bartolomeo (56 yo)
1.58yrs
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 1.58yrs | no data | no data | |
| CFO and Executive Director of Finance & Investor Relations | 8.17yrs | no data | no data | |
| Executive Director of Safety & Operational Excellence | 1.33yrs | no data | no data | |
| Controllership Director & Chief Accountant | no data | no data | no data | |
| Corporate Finance Director | no data | no data | no data | |
| General Counsel | 2.58yrs | no data | no data | |
| Chief Compliance Officer | 0.25yr | no data | no data | |
| Executive Director of Sustainability | 1.75yrs | no data | no data | |
| People Director | 2.92yrs | no data | no data | |
| Executive VP & Executive Director of Global Business Support | 3.17yrs | no data | no data | |
| Chief Digital Officer | no data | no data | no data | |
| Secretary | no data | no data | no data |
2.2yrs
Average Tenure
51yo
Average Age
Experienced Management: VALE3's management team is considered experienced (2.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| General Manager of Treasury for CVRD and Director of Vale Overseas | no data | no data | no data | |
| Chairman of Fiscal Council | no data | no data | no data | |
| Director | 17yrs | no data | no data | |
| Director | 0.83yr | no data | no data | |
| Director | 0.75yr | no data | no data | |
| Director | 1.75yrs | no data | no data | |
| Director | 8yrs | no data | no data | |
| Vice Chairman of the Board | 3.75yrs | no data | no data | |
| Employee Director | 5.5yrs | no data | no data | |
| Independent Director | 3yrs | no data | no data | |
| Director | 3yrs | no data | no data | |
| Chairman of the Board | 1.75yrs | no data | no data |
3.0yrs
Average Tenure
55.5yo
Average Age
Experienced Board: VALE3's board of directors are considered experienced (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$317.234b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| VALE3 | BOVESPA (Bolsa de Valores de Sao Paulo) | Yes | Common Shares | BR | BRL | Nov 1993 |
| XVALO | BME (Bolsas y Mercados Espanoles) | Yes | Common Shares | ES | EUR | Nov 1993 |
| CVLC | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Nov 1993 |
| VALE | NYSE (New York Stock Exchange) | SPONS ADR REPR 1 COM NPV | US | USD | Mar 2002 | |
| VALE N | BMV (Bolsa Mexicana de Valores) | SPONS ADR REPR 1 COM NPV | MX | MXN | Mar 2002 | |
| VALE | SWX (SIX Swiss Exchange) | SPONS ADR REPR 1 COM NPV | CH | CHF | Mar 2002 | |
| CVLB | DB (Deutsche Boerse AG) | SPONS ADR REPR 1 COM NPV | DE | EUR | Mar 2002 | |
| 0LBF | LSE (London Stock Exchange) | SPONS ADR REPR 1 COM NPV | GB | USD | Mar 2002 | |
| VALE | BASE (Buenos Aires Stock Exchange) | EACH CEDEAR REP 0.5 ADR | AR | ARS | Jul 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/21 18:00 |
| End of Day Share Price | 2020/10/20 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.