Vale VALE
Vale S.A. is a diversified Brazilian mining company, one of the world's largest producers of iron ore and nickel, with a growing copper division and integrated logistics operations. Vale has solid financial health (ND/EBITDA 1.04) and an attractive valuation (forward P/E 7.0), but earnings growth is very negative (-43.5%) and the 159% payout puts the dividend at risk. The main risk is governance in Brazil and dependence on China.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Vale S.A. is a diversified Brazilian mining company, one of the world's largest producers of iron ore and nickel, with a growing copper division and integrated logistics operations. Vale has solid financial health (ND/EBITDA 1.04) and an attractive valuation (forward P/E 7.0), but earnings growth is very negative (-43.5%) and the 159% payout puts the dividend at risk. The main risk is governance in Brazil and dependence on China.
Score by category
| Category | Score |
|---|---|
| Financial health | 7.2 |
| Quality / Moat | 5.5 |
| Valuation | 7.0 |
| Growth | 2.8 |
| Dividend | 5.0 |
| Momentum | 7.9 |
| Risk & Context | 3.9 |
OVERALL SCORE: 5.7/10
Context and risks
Elevated governance risk in Brazil: history of political interference in state-owned or state-influenced companies, which can affect capital allocation and returns to minority shareholders. Additionally, exposure to China (main buyer of iron ore) introduces geopolitical and demand risk.
News considered in the analysis
- Investors Heavily Search VALE S.A. (VALE): Here is What You Need to Know — Artículo genérico de Zacks sin información nueva sobre la empresa.
- VALE S.A. (VALE) Suffers a Larger Drop Than the General Market: Key Insights — Titular de movimiento de mercado sin catalizador específico identificable.
- VALE S.A. (VALE) Declines More Than Market: Some Information for Investors — Comentario de rendimiento diario, sin sustancia.
- Vale S.A. (VALE) Deepens China Ties with Potential Yuan Bond Debut — Potencial emisión de deuda en yuanes para estrechar lazos con China, su principal mercado; diversifica financiación y refuerza relación comercial.
- Copper Prices Looked Unstoppable. Why They’re Suddenly Tumbling. — Caída del precio del cobre, un negocio en crecimiento para Vale; afecta a las expectativas de ingresos de su división de cobre.
Verdict: Hold; the cheap valuation and high dividend provide support, but deteriorating earnings and governance risk limit upside potential.
Main risk: Governance risk in Brazil (political interference) and high dependence on China for its iron ore revenue, which can affect demand and prices.
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