Company Profile:

Vale S.A., together with its subsidiaries, engages in the production and sale of iron ore and iron ore pallets for steelmaking in Brazil and internationally. Its Ferrous Minerals segment produces and extracts iron ore and pellets, manganese, ferroalloys, and others ferrous products and services, as well as engages in the provision of railroad, port, and terminal logistics services. The companys Coal segment is involved in the extraction of metallurgical and thermal coal; and provision of logistic services. Its Base Metals segment produces and extracts non-ferrous minerals, including nickel and its by-products, such as ferro-nickel, cobalt, gold, silver, copper, precious metals, and others. 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.

Recent News:

Analysts expect Vale SA to report $0.25 EPS on October, 26 before the open.They anticipate $0.06 EPS change or 31.58% from last quarter’s $0.19 EPS. VALE’s profit would be $1.31 billion giving it 10.45 P/E if the $0.25 EPS is correct. After having $0.18 EPS previously, Vale SA ’s analysts see 38.89% EPS growth.

On Sep. 05, 2017, Moody’s Investors Service has upgraded to Ba1 from Ba2 Vale S.A. ‘s senior unsecured ratings and the ratings on the debt issues of Vale Overseas Limited. Moody’s also upgraded to Ba3 from B1 the rating for the senior unsecured ratings of Vale Canada Ltd. The outlook was changed to stable from positive.

For the quarter ended June 30, 2017, the company reported revenues of USD 7,186.46 million, Net Earnings of USD 140.88 million. Gross margins widened from 26.70% to 28.40% compared to the same period last year, operating (EBITDA) margins now 37.36% from 36.62%.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

VALE’s strengths can be seen in its strong profitability compared with its peers. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator, RSI (14) stands at 55 with positive bias. We rate Vale S.A. (VALE) a STRONG BUY.