Now trading at a price of $16.97, VALE has moved 0.5% so far today on a volume of 16,455,861, compared to its average of 39,169,553. In contrast, the S&P 500 index moved -0.3%.
VALE shares moved 22.9% over the last 52 weeks, with a high of $21.29 and a low of $11.72. During this time, the stock underperformed the S&P 500 index by 42.8%. As of January 2022, the company's 50-day average price is $15.0. 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 large-cap Basic Materials company is based in Rio De Janeiro, Brazil. VALE has returned a 43.2% dividend yield over the last 12 months.
An Exceptional EPS Growth with Low Leverage Levels:
|Gross Margins Growth||n/a||20.18%||14.69%|
|Operating Margins Growth||n/a||23.4%||21.98%|
|Earnings Per Share||-$0.33||$0.95||$4.47|
|Free Cash Flow (MM)||$8,406||$9,892||$20,646|
|Capital Expenditures (MM)||-$3,704||-$4,430||-$5,033|
|Net Debt / EBITDA||0.66||0.33||0.17|
The Market Is Undervaluing VALE:
Compared to the Basic Materials sector's average of 8.57, VALE has a trailing twelve month price to earnings (P/E) ratio of 4.4 and, based on its EPS guidance of 2.39, an expected P/E ratio of 7.1.
The firm's price to earnings growth (PEG) is -0.51, which tells us that the company is expected to have negative growth in the future.
VALE is undervalued in terms of its assets because its price to book (P/B) ratio is 0.4 compared to its sector average of 1.86. As of the date of publication, the company's shares are trading -56.4% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:
√(22.5 * TTM earnings per share * book value per share) = √(22.5 * 3.88 * 39.523) = $38.88
VALE Is the Subject of Mixed Market Indicators:
22 analysts are following VALE and have set target prices ranging from $12 to $22 per share. On average, they have given the company a rating of buy. At the current price of $16.97, VALE is trading -4.29% away from its average analyst target price of $17.73 per share, implying an analyst consensus of some upside potential for the stock.