Fact based stock research
Vale (BOVESPA:VALE3)

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Vale stock research in summary

vale.combrasilptpaginasdefault.aspx

ANALYSIS: With an Obermatt Combined Rank of 72 (better than 72% compared with investment alternatives), Vale (Steel, Brazil) shares have above-average financial characteristics compared with similar stocks. Shares of Vale are a good value (attractively priced) with a consolidated Value Rank of 74 (better than 74% of alternatives), are safely financed (Safety Rank of 63, which means low debt burdens), but show below-average growth (Growth Rank of 37). ...read more

RECOMMENDATION: A Combined Rank of 72, is a buy recommendation based on Vale's financial characteristics. As the company Vale's key financial metrics exhibit good value (Obermatt Value Rank of 74) but low growth (Obermatt Growth Rank of 37) while being safely financed (Obermatt Safety Rank of 63), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 74% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	74
Growth Rank	37
Safety Rank	63
Combined Rank	72

Country	Brazil
Industry	Steel
Index	BOVESPA, Low Emissions, Energy Efficient, Good Governace Growth Markets, Human Rights
Size class	XX-Large

This stock has achievements: Top 10 Stock.

2-May-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Vale

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	44	45	50	74
GROWTH
GROWTH	67	65	39	37
SAFETY
SAFETY	27	65	61	63
SENTIMENT
SENTIMENT	n/a	56	92	^new
360° VIEW
360° VIEW	n/a	75	76	^new

Most recent update of the stock research: 2-May-2024. Financial reporting date used for calculating ranks: 31-Dec-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Vale is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	44	45	50	74
GROWTH
GROWTH	67	65	39	37
SAFETY
SAFETY	27	65	61	63
COMBINED
COMBINED	44	73	48	72

Last update of combined financial performance: 2-May-2024. Stock analysis on combined financial performance: The higher the rank of Vale the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 74 (better than 74% compared with alternatives), Vale shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Vale. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 93 which means that the stock price compared with what market professionals expect for future profits is lower than for 93% of comparable companies, indicating a good value concerning Vale's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 63, and for Dividend Yield with a Dividend Yield Rank of 82. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 55% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 45). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 74, is a buy recommendation based on Vale's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Vale has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Vale shares. 9. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	44	38	40	45
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	62	81	84	93
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	42	46	53	63
DIVIDEND YIELD
DIVIDEND YIELD	90	80	79	82
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	44	45	50	74

Last update of Value Rank: 2-May-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Vale; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 37 (better than 37% compared with alternatives), Vale shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Vale. Only Capital Growth has a good rank of 55, which means that currently professionals expect the company to grow its invested capital more than 46% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 23 which means that currently professionals expect the company to grow less than 77% of its competitors. Profit Growth with a rank of 46 and Stock Returns with a rank of 39 are also low (below 61% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 37, is a hold recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Vale is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	44	4	35	23
PROFIT GROWTH
PROFIT GROWTH	74	97	22	46
CAPITAL GROWTH
CAPITAL GROWTH	n/a	75	80	55
STOCK RETURNS
STOCK RETURNS	62	39	35	39
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	67	65	39	37

Last update of Growth Rank: 2-May-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Vale.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 63 (better than 63% compared with alternatives), the company Vale has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Vale is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Vale. Leverage is at a rank of 57, meaning the company has a below-average debt-to-equity ratio. It has less debt than 57% of its competitors. Liquidity is also good at a rank of 70, meaning the company generates more profit to service its debt than 70% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 31, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 69% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 63 (better than 63% compared with alternatives), Vale has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Vale. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Vale and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	22	58	54	57
REFINANCING
REFINANCING	1	27	25	31
LIQUIDITY
LIQUIDITY	73	81	76	70
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	27	65	61	63

Last update of Safety Rank: 2-May-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Vale and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	37	54	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	87	69	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	27	78	^new
MARKET PULSE
MARKET PULSE	n/a	39	79	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	56	92	^new

Last update of Sentiment Rank: 2-May-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Vale.
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