Analysts rate Vale S.A. (VALE:NYE) Hold, $16.5 Target

STA Research
by: STA Research

Analysts rate Vale S.A. with a consensus Hold rating and  a 12-month average Target Price of $16.58 per share.

HSBC upgrades  Vale S.A. from Hold to Buy, Target increased from $17.25 to $21.5

Based on the Vale S.A. stock forecasts from 9 analysts, the average analyst target price for Vale S.A. is USD 16.58 over the next 12 months. Vale S.A.’s average analyst rating is. Stock Target Advisor’s own stock analysis of Vale S.A. is Bullish, which is based on 13 positive signals and 2 negative signals. At the last closing, Vale S.A.’s stock price was USD 19.47. Vale S.A.’s stock price has changed by +2.20% over the past week, +3.12% over the past month and +8.89% over the last year.

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, Base Metals, and Coal segments. 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.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on a total return basis, for investors seeking high income yields.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered a better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered a better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered a better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

Compared to its sector, this stock has shown top quartile earnings growth in the previous 5 years.

Superior Revenue Growth

Compared to its sector, this stock has shown top quartile revenue growth in the previous 5 years.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What we don’t like:

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

 

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