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.
