-0.30 | -1.85%
VALE SA's gross profit margin for the fourth quarter of its fiscal year 2012 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. VALE SA has average liquidity. Currently, the Quick Ratio is 1.22 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.37% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
| Income Statement | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Net Sales ($mil) | 13733.03 | 15430.36 |
| EBITDA ($mil) | 4045.84 | 6818.2 |
| EBIT ($mil) | 2868.67 | 5743.85 |
| Net Income ($mil) | -2822.29 | 4363.78 |
| Balance Sheet | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 6067.59 | 4065.6 |
| Total Assets ($mil) | 130358.96 | 129801.9 |
| Total Debt ($mil) | 31859.25 | 26370.86 |
| Equity ($mil) | 74422.74 | 77025.82 |
| Profitability | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Gross Profit Margin | 45.58 | 58.53 |
| EBITDA Margin | 29.46 | 44.18 |
| Operating Margin | 20.89 | 37.22 |
| Sales Turnover | 0.35 | 0.42 |
| Return on Assets | 3.64 | 15.63 |
| Return on Equity | 6.38 | 26.35 |
| Debt | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Current Ratio | 1.78 | 1.89 |
| Debt/Capital | 0.3 | 0.26 |
| Interest Expense | 307.73 | 354.32 |
| Interest Coverage | 9.32 | 16.21 |
| Share Data | Q4 FY12 | Q4 FY11 |
|---|---|---|
| Shares outstanding (mil) | 5153.38 | 5097.29 |
| Div / share | 0.58 | 0.6 |
| EPS | -0.55 | 0.85 |
| Book value / share | 14.44 | 15.11 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1.8755198E7 | 1.4955834E7 |
HOLD. The current P/E ratio indicates a premium compared to an average of 17.81 for the Metals & Mining industry and a value on par with the S&P 500 average of 18.32. For additional comparison, its price-to-book ratio of 1.18 indicates a discount versus the S&P 500 average of 2.34 and a discount versus the industry average of 1.89. The price-to-sales ratio is above the S&P 500 average, but well below the industry average.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| VALE 18.33 | Peers 17.81 | VALE 5.44 | Peers 9.02 | |||||||||||||||||||||
|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation. VALE is trading at a valuation on par with its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. VALE is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| VALE 7.84 | Peers 13.83 | VALE 0.14 | Peers 0.91 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. VALE is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. VALE trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| VALE 1.18 | Peers 1.89 | VALE -75.97 | Peers -66.50 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. VALE is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, VALE is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| VALE 1.92 | Peers 3.27 | VALE -16.62 | Peers -4.42 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. VALE is trading at a significant discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. VALE significantly trails its peers on the basis of sales growth |
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