Vale S.A. (VALE) AI Stock Analysis

Vale S.A., together with its subsidiaries, extracts and produces minerals through its Ferrous Minerals and Base Metals segments. The company is a supplier of iron ore and iron ore pellets used in steelmaking worldwide. It also produces manganese, ferroalloys, and operates logistics services to support mining operations. Within Base Metals, Vale focuses on nickel mining and extraction along with by-products such as gold, silver, cobalt, and copper. Founded in 1942 and headquartered in Rio de Janeiro, Brazil, the company caters to industrial sectors including automotive, construction, and infrastructure development.

Vale's annual revenue moved from $54.50B in FY2021 down to $38.23B in FY2025, representing a 5-year revenue CAGR of -0.7%. Net income fell from $22.45B in FY2021 to $2.47B in FY2025, with net margins dropping from 41.2% to 6.5%. Operating margins contracted from 50.8% in FY2021 to 29.0% in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue grew 6.4% year-over-year, while quarterly earnings declined 43.5%. For the trailing twelve months, revenue was $218.07B with a profit margin of 4.8% and EPS of $0.50.

As of June 30, 2026, Vale held $5.77B in cash and short-term investments against $18.94B in total debt, leaving net debt at $13.17B. Shareholders' equity was $37.99B out of $89.29B in total assets. Its current ratio stood at 1.19 and its debt-to-equity ratio was 0.50. In FY2025, the company generated $9.04B in operating cash flow and $3.06B in free cash flow. Capital expenditures totaled $5.98B, and dividends paid reached $3.57B, while its 5-year share count change was -11.3%.

Vale trades at a trailing P/E of 26.1x compared to the 19.7x median of its US-listed Basic Materials peers. However, its forward P/E of 7.2x is lower than the peer median of 13.4x. Its EV/EBITDA multiple of 7.5x and price-to-sales ratio of 0.3x also sit below peer medians of 10.5x and 1.8x, respectively. The stock's 1-year return of 27.4% outperformed the S&P 500 (SPY) return of 16.8%, but its 5-year return of 34.0% lagged the S&P 500 return of 83.0%.

Vale pays an annual forward dividend of $0.84 per share, resulting in a dividend yield of 6.46% as of October 16, 2026. The stock has paid dividends for 25 consecutive years and recorded a 5-year annualized dividend growth rate of 25.1%. Its payout ratio is 2.0%, and its last ex-dividend date was August 13, 2026.

Wall Street analysts hold 7 Strong Buy, 3 Buy, 14 Hold, 0 Sell, and 1 Strong Sell ratings on Vale. The mean price target is $16.30, representing 24.8% upside from the last close of $13.06. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $41.12B and EPS of $1.76. Over the last four quarters, Vale has beaten EPS estimates 1 time. The next earnings date is October 29, 2026.

This page is an AI-written research summary of Vale S.A. (VALE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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