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Is this Large Market Cap Stock target price reasonable for Vale S.A. (NYSE:VALE)?

The company in question is, Vale S.A. (NYSE:VALE) currently with a stock price of 5.16 (-2.82% today). The market cap for Vale S.A. is 25452.32, and is in the sector Basic Materials, and Industrial Metals & Minerals industry. The target price for Vale S.A. is 4.6. Currently Vale S.A. is trading with a P/E of *TBA, and a forward P/E of 17.47. Average volume for Vale S.A. is 29464.43 and so far today it is 9042880.

Performance in the last year for Vale S.A. has been 0.46%. For EPS growth, Vale S.A. has seen a growth of 117.90%, and is looking to grow in the next year to -27.79%. More long term stats show that EPS growth has been -35.70% over the last five years and could be 53.37% for the next five years. Vale S.A. has seen sales growth quarter over quarter at 253.60%, with EPS growth quarter over quarter at 302.40%. The 20-day simple moving average is 11.59%, with the 200-day simple moving average coming to 28.54%.

Since the IPO date for Vale S.A. on the 3/21/2002, Vale S.A. has seen performance year to date to be 61.40%. With Vale S.A. trading at 5.16, the dividend yield is *TBA, and the EPS is -1.69.

So could Vale S.A., be undervalued? Well as said before P/E is *TBA. The PEG is *TBA, P/S is 0.92 and the P/B is at 0.68. The P/cash is 6.1, with P/free cash flow at *TBA.

Vale S.A. ability to deal with debt shows that the current ratio is 1.5, and the quick ratio is 1.2. This is with long term debt/equity at 0.78, and total debt/equity at 0.87.

In terms of margins, Vale S.A. has a gross margin of 21.70%, an operating margin of -30.10% and a profit margin of -35.60%.Payout ratio for Vale S.A. is *TBA. Return on assets come to -10.70% with return on investment coming to -3.40%.

Insider ownership for Vale S.A., is at 38.50% and institutional ownership comes to 15.70%. Outstanding shares are at 4793.28. While shares float is 3021.89. The float short is currently 5.59%, and short ratio is 5.73.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Mark Hines

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