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 $240.8 million.
- VALE traded 80,457 shares today in the pre-market hours as of 9:23 AM.
- VALE is down 2.1% 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 1%. VALE has a PE ratio of 11.9. Currently there are 6 analysts that rate Vale a buy, 1 analyst rates it a sell, and 5 rate it a hold.
The average volume for Vale has been 21.9 million shares per day over the past 30 days. Vale has a market cap of $72.9 billion and is part of the basic materials sector and metals & mining industry. Shares are down 9.1% year-to-date as of the close of trading on Thursday.
rates Vale as a
. The company's strengths can be seen in multiple areas, such as its expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- The gross profit margin for VALE SA is rather high; currently it is at 56.41%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -62.28% is in-line with the industry average.
- VALE, with its decline in revenue, underperformed when compared the industry average of 7.9%. Since the same quarter one year prior, revenues slightly dropped by 7.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Net operating cash flow has significantly decreased to $917.62 million or 70.16% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The share price of VALE SA has not done very well: it is down 17.26% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- You can view the full Vale Ratings Report.