Vale S.A.
Vale S.A. Fundamental Analysis
Vale S.A. (VALE) shows weak financial fundamentals with a PE ratio of 31.05, profit margin of 5.97%, and ROE of 6.15%. The company generates $38.4B in annual revenue with weak year-over-year growth of -8.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VALE's fundamental strength across five key dimensions:
Efficiency Score
WeakVALE struggles to generate sufficient returns from assets.
Valuation Score
ModerateVALE shows balanced valuation metrics.
Growth Score
WeakVALE faces weak or negative growth trends.
Financial Health Score
ExcellentVALE maintains a strong and stable balance sheet.
Profitability Score
WeakVALE struggles to sustain strong margins.
Key Financial Metrics
Is VALE Expensive or Cheap?
P/E Ratio
VALE trades at 31.05 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, VALE's PEG of -0.54 indicates potential undervaluation.
Price to Book
The market values Vale S.A. at 2.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.26 times EBITDA. This is generally considered low.
How Well Does VALE Make Money?
Net Profit Margin
For every $100 in sales, Vale S.A. keeps $5.97 as profit after all expenses.
Operating Margin
Core operations generate 26.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.15 in profit for every $100 of shareholder equity.
ROA
Vale S.A. generates $2.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Vale S.A. produces operating cash flow of $9.08B, showing steady but balanced cash generation.
Free Cash Flow
Vale S.A. produces free cash flow of $3.08B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.72 in free cash annually.
FCF Yield
VALE converts 4.33% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.05
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.85
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.58
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How VALE Stacks Against Its Sector Peers
| Metric | VALE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.05 | 27.41 | Worse (Expensive) |
| ROE | 6.15% | 859.00% | Weak |
| Net Margin | 5.97% | -120873.00% (disorted) | Weak |
| Debt/Equity | 0.58 | 0.51 | Neutral |
| Current Ratio | 1.15 | 4.80 | Neutral |
| ROA | 2.64% | -3590.00% (disorted) | Weak |
VALE outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Vale S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
26.19%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
544.02%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-18.25%
Industry Style: Cyclical, Commodity, Value
Declining