NYSE:VALE
$26.44
(2/9 2:02PM)
+5.0%
| Open | $26.28 |
Mkt Cap | $131.3 Billion |
| High | $26.76 |
52Wk High | $31.96 |
| Low | $25.7 |
52Wk Low | $11.82 |
| Volume | 22.3 Million |
Avg Vol 10D | 30.6 Million |
Ockham's Rating/Recommendation Summary
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VALE Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at VALE through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 9 years are 4.19x and 1.56x respectively.
Utilizing this range we can see that VALE’s current Price to Sales per share ratio of 5.16x is well above its historical average. This means that VALE looks relatively expensive compared to its historical Price to Sales average, and thus it is more difficult to believe that there is significant price appreciation potential. In order for the stock to become more attractive, we would like to see a decline in the Price to Sales ratio of 79% just to return VALE to its historical average.
VALE Cash Earnings
As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company's value, and currently VALE is significantly above their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for VALE, the current level of Cash Earnings compared to its historical levels helps identify where VALE is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 12.60 and a historical low Cash Earnings per share ratio of 4.83, an investor can relate where value becomes optimal.
Therefore, at the current price of $25.74 and a Price to Cash Earnings ratio of 14.14, VALE is significantly overvalued. This diminishes the attractiveness of VALE until we see either a significant increase in cash earnings or a decline in price. A decline of the Price to Cash Earnings ratio of 62% is needed just to return to the historical cash earnings multiple.
VALE Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
When reviewing dividend yields for VALE, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. VALE’s estimated annual dividend is $0.45 resulting in a current dividend yield of 1.75%. The highest dividend yield from VALE over recent history was 6.54% while the lowest dividend yield was 0.84%. With that range in mind, VALE’s current dividend yield is a full 52.57% below its median dividend yield historically. This is a negative from our perspective.
Emerging Markets and VALE Covered on Seeking Alpha Wall St Breakfast
For growth, there is nowhere growing more rapidly than emerging markets. Recently, Seeking Alpha Wall St Breakfast talked about emerging markets and their impact on Vale SA - Shs Sponsored American Deposit Receipt Repr 1 Sh.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Ranking all stocks in terms of news coverage offers some interesting data. In the case of VALE, it is getting significantly more attention in recent news coverage than we are used to seeing. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… Bunge sells Brazil assets to VALE. Major sugar producer Bunge (BG) will sell its Brazilian fertilizer assets to VALE (VALE) for $3. 8B in cash. …”
VALE in Developing Markets on Mad Money
There is no doubt that the emerging markets are where the growth is right now. The latest news mention of VALE on Mad Money was in relation to emerging markets.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; VALE has received less coverage from the financial media in business television and blogs.
“… The cyclicals that like VALE have all had gigantic rebounds from the bottom. Why? Because everyone believed in china's ability to grow to the sky, to grow its way out of ... …”
The Latest News for VALE Was Just on Mad Money
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on VALE from Mad Money.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Vale SA - Shs Sponsored American Deposit Receipt Repr 1 Sh has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. As of this week's report, we have an Overvalued valuation on VALE because the price has gotten too high to be justified by the fundamentals.
“… Against the dictatorship of the buy stocks friendly to capitalism, not hostile to it that do business like VALE or bank yoe santander. …”
Interested in VALE? See What the Pundits Said on Mad Money
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Vale SA - Shs Sponsored American Deposit Receipt Repr 1 Sh.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; VALE has received less coverage from the financial media in business television and blogs.
“… This is why you have keep building blocks for infrastructure or construction and has great nickel and copper give that VALE should grow earnings by 40% this year thanks. …”
Power Lunch: What is Happening with Vale SA - Shs Sponsored American Deposit Receipt Repr 1 Sh Now?
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on VALE from Power Lunch.
The Motley Fool CAPS data suggests that investors believe Vale SA - Shs Sponsored American Deposit Receipt Repr 1 Sh will beat the market in the foreseeable future. At Ockham, we are not advising buying Vale SA - Shs Sponsored American Deposit Receipt Repr 1 Sh at the current price level because according to our methodology it is not supported by the fundamentals. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, VALE has been less covered in the news compared to the rest of our universe of stocks.
“… We look for companies with high book-to-market VALE use. Companies that have big market cap but have small price market cap out there now. …”
Street Signs: Topics Include Emerging Markets and VALE
There is no doubt that the emerging markets are where the growth is right now. The latest news mention of VALE on Street Signs was in relation to emerging markets.
As of this week's report, we have an Overvalued valuation on VALE because the price has gotten too high to be justified by the fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Vale SA - Shs Sponsored American Deposit Receipt Repr 1 Sh has actually sunk a bit in comparison to the others.
“… From my trust I own VALE. To be put in. The minerals are needed. Don't forget that's also a china play. You are talking about a country that is going to vie multiyear growth ... …”
Delevoping Economies and Where VALE Fits In on Power Lunch
Vale SA - Shs Sponsored American Deposit Receipt Repr 1 Sh and an emerging market growth strategy were discussed recently on VALE.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, VALE has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on VALE. The improving valuation of Vale SA - Shs Sponsored American Deposit Receipt Repr 1 Sh has prompted us to upgrade this stock as of Saturday, November 14, 2009. The Motley Fool CAPS data suggests that investors believe Vale SA - Shs Sponsored American Deposit Receipt Repr 1 Sh will beat the market in the foreseeable future.
“… Petrobras and VALE in brazil. What about china? You like indonesia. You don't have india on the > > the sector chart looks a lot like the u. S. …”
Vale SA - Shs Sponsored American Deposit Receipt Repr 1 Sh (VALE) Discussed on CNBC's Mad Money
Vale SA - Shs Sponsored American Deposit Receipt Repr 1 Sh is in the news. Find out how this impacts VALE trading on Ockham Research.
>> oh, cramer, I love it. Let's go. We've got -- we've got apple. You know, i'm looking for a $300 price target. VALE, 52-week high. It's an iron producer, minerals. Visa, that's just been a smoke got a nice dividend boost today. Allscripts you know that is one of our absolute favorites. The only real play out of the obama care we know, computerized medical records. Deep water drilling company. Deep water driller, mineral,
“… is one of our absolute favorites. The only real play out of the obama care we know, computerized medical records. Deep water drilling company. Deep water driller, mineral, …”
Vale SA - Shs Sponsored American Deposit Receipt Repr 1 Sh (VALE) Discussed on CNBC's Fast Money
Vale SA - Shs Sponsored American Deposit Receipt Repr 1 Sh is in the news. Find out how this impacts VALE trading on Ockham Research.
Retail investors, this is a big >> just quick bottom line, this is a buying opportunity, then? >> I actually think it's a buying opportunity. But I think the market's going to be soft over the next couple days. So stocks like petrobras and VALE came under big pressure I would not be jumping into them tomorrow but this is no reason to jump out. >> and as tim mentioned the premiere of "trading the globe" this friday at 8:00 p.M. Eastern time only on cnbc. Coming up next, final trade.
“… big pressure I would not be jumping into them tomorrow but this is no reason to jump out. >> and as tim mentioned the premiere of "trading the globe" this friday at 8:00 p.M. Eastern time only on cnbc. Coming up next, final trade. …”
Vale SA - Shs Sponsored American Deposit Receipt Repr 1 Sh (VALE) Discussed on CNBC's Fast Money
Vale SA - Shs Sponsored American Deposit Receipt Repr 1 Sh is in the news. Find out how this impacts VALE trading on Ockham Research.
You know, some of these things we know. And tim's been all over this for a long time. Play. Part of which is a raw material play that is key to china. That's not just a shameless plug for the book. And has been there for the book. You've got VALE, which is the largest iron ore producer in the world and has been on a roll, although I don't think has actually gone up if you look at the commodity trade since march. I don't think it's up as much as some of these others. It's up about 80%. >> we're six years away from so just be careful about getting too excited about this rally right here and now. Actually going to be there before that people weren't even talking about this. What I will say, zach zach's totalry right, there's no question the infrastructure buildout, literally brazil needs to build out their infrastructure. They are not ready from a transportation, communications perspective, from the stadiums, do. >> you say 2016's a long time away and it is a long time away but at the same time they've got to start putting the shovels in the ground today if they want to have a light rail or whatever it >> the reason to look at this is to remind you of where brazil is already make a real contribution in its companies which has to do with its supplying of raw materials to the industrial economies of the world, even when brazil and rio build out for these stadiums, that
“… s the largest iron ore producer in the world and has been on a roll, although I don't think has actually gone up if you look at the commodity trade since march. I don't think it's up as much as some of these others. It's up about 80%. >> we're six years away from so just be careful about getting too excited about this rally right here and now. Actually going to be there before that people weren't even talking about this. What I will say, zach zach's totalry right, there's no question the infrastructure buildout, literally brazil needs to build out their infrastructure. They are not ready from a transportation, communications perspective, from the stadiums, do. >> you say 2016's a long time away and it is a long time away but at the same time they've got to start putting the shovels in the ground today if they want to have a light rail or whatever it >> the reason to look at this is to remind you of where brazil is already make a real contribution in its companies which has to do with its supplying of raw materials to the industrial economies of the world, even when brazil and rio build out for these stadiums, that …”