Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Vale as such a stock due to the following factors:
- VALE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $198.9 million.
- VALE traded 219,200 shares today in the pre-market hours as of 9:04 AM.
- VALE is down 2.3% today from yesterday's close.
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More details on VALE:
Vale S.A. is engaged in the research, production, and sale of iron ore and pellets, nickel, fertilizer, copper, coal, manganese, ferroalloys, cobalt, platinum group metals, and precious metals. The stock currently has a dividend yield of 3%. VALE has a PE ratio of 12.2. Currently there are 5 analysts that rate Vale a buy, 2 analysts rate it a sell, and 7 rate it a hold.
The average volume for Vale has been 20.2 million shares per day over the past 30 days. Vale has a market cap of $67.4 billion and is part of the basic materials sector and metals & mining industry. Shares are down 14.4% year-to-date as of the close of trading on Wednesday.
rates Vale as a
. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- Net operating cash flow has slightly increased to $4,082.00 million or 3.60% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -24.04%.
- Despite currently having a low debt-to-equity ratio of 0.59, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that VALE's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.57 is high and demonstrates strong liquidity.
- The gross profit margin for VALE SA is rather high; currently it is at 51.08%. 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 26.46% compares favorably to 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 decreased by 18.0% when compared to the same quarter one year ago, dropping from $3,068.10 million to $2,515.00 million.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, VALE SA underperformed against that of the industry average and is significantly less than that of the S&P 500.
- You can view the full Vale Ratings Report.