About Vale S.A.
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 company operates through Ferrous Minerals and Base Metals segments. The Ferrous Minerals segment produces and extracts iron ore and pellets, manganese, ferroalloys, and other ferrous products; and provides related logistic services. The Base Metals segment produces and extracts nickel and its by-products, such as gold, silver, cobalt, precious metals, and others, as well as copper.
The company was formerly known as Companhia Vale do Rio Doce and changed its name to Vale S.A. in May 2009. Vale S.A. was founded in 1942 and is headquartered in Rio de Janeiro, Brazil.
VALE operates in the Mining | Non-Metallic And Industrial Metal Mining | approximately 64,500 employees | led by CEO Eduardo De Salles Bartolomeo.
$38.7 billion 6.3x P/E 1.2x P/B 5.1x EV/EBITDA 15.8% ROE -8.9% rev. growth
Vale S.A. earns a Buy rating from our quantitative model with a composite score of 75/100, ranking #10 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is value at 93/100, which places VALE in the top 7 percent of all stocks on this measure. quality at 88/100 provides secondary support. No single factor falls below the average threshold, which is a constructive sign.
Within the Mining sector, VALE ranks 1st out of 50 peers, placing it in the 98th percentile. At $38.7 billion, the company is a well-established large cap.
Quality Analysis
Vale S.A.'s quality score of 88/100 places it among the top profitability performers in the market. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 15.8% exceeds the sector median of 4.0%. Gross margins of 36.6% are competitive for the sector. Operating margins of 22.8% sit above the 7.0% sector average.
Net margins of 15.9% demonstrate that the company efficiently converts revenue into bottom-line profit.
Valuation Assessment
A value score of 93/100 puts VALE in the top 7 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 6.3x, an EV/EBITDA of 5.1x, a price-to-book of 1.2x, a price-to-sales of 1.0x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
A momentum score of 65/100 shows VALE is trending above average, with its stock price outperforming the majority of the market. This is not explosive, meme-stock-style momentum — it is the gradual, fundamental-driven kind that tends to persist.
Revenue growth of -8.9% is declining, which makes the momentum signal more precarious. A beta of 0.83 means Vale S.A. moves roughly in line with the broader market.
Our entry timing model currently signals Favorable, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support Vale S.A.'s rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
Vale S.A. earns a Buy rating with a composite score of 75/100 and 4 out of 5 stars, ranking #10 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position VALE above the majority of the market.
Explore the full VALE analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
