Vale sold its 44.25% stake in Fosbrasil for about $52 million. The Brazilian metals and mining corporation also recently sold its 28.7 million shares of Log-in Logistica Intermodal for about R$233 million.
According to Zacks Equity Research the sales are part of Vale's strategy to cut costs and increase margins.
- Net operating cash flow has slightly increased to $4,162.84 million or 2.92% when compared to the same quarter last year. In addition, VALE SA has also modestly surpassed the industry average cash flow growth rate of -2.04%.
- The gross profit margin for VALE SA is rather high; currently it is at 52.79%. Regardless of VALE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VALE's net profit margin of 1.24% is significantly lower than the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 94.9% when compared to the same quarter one year ago, falling from $2,302.44 million to $117.72 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 26.94%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 93.47% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
- You can view the full analysis from the report here: VALE Ratings Report