VALE Stock in Brief

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:

2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $37,570 $40,018 $54,502
Revenue Growth n/a 6.52% 36.19%
Gross Margins 43.6% 52.4% 60.1%
Gross Margins Growth n/a 20.18% 14.69%
Operating Margins 37.6% 46.4% 56.6%
Operating Margins Growth n/a 23.4% 21.98%
Earnings Per Share -$0.33 $0.95 $4.47
EPS Growth n/a 387.88% 370.53%
Free Cash Flow (MM) $8,406 $9,892 $20,646
FCF Growth n/a 17.68% 108.71%
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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.