Vale SA Shares Owned By Institutions vs. Profit Margin

VALE Stock  USD 9.47  0.27  2.77%   
Based on the key profitability measurements obtained from Vale SA's financial statements, Vale SA ADR is yielding more profit at the present time then in previous quarter. It has a moderate likelihood of reporting better profitability numbers in January. Profitability indicators assess Vale SA's ability to earn profits and add value for shareholders. The current year's Price To Sales Ratio is expected to grow to 1.71. The current year's Days Sales Outstanding is expected to grow to 59.09. At present, Vale SA's Net Income Per E B T is projected to slightly decrease based on the last few years of reporting.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.50.4235
Fairly Up
Pretty Stable
For Vale SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Vale SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Vale SA ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Vale SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Vale SA ADR over time as well as its relative position and ranking within its peers.
  
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Is Metals & Mining space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Vale SA. If investors know Vale will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Vale SA listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.02)
Dividend Share
1.48
Earnings Share
2.16
Revenue Per Share
49.29
Quarterly Revenue Growth
0.02
The market value of Vale SA ADR is measured differently than its book value, which is the value of Vale that is recorded on the company's balance sheet. Investors also form their own opinion of Vale SA's value that differs from its market value or its book value, called intrinsic value, which is Vale SA's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Vale SA's market value can be influenced by many factors that don't directly affect Vale SA's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Vale SA's value and its price as these two are different measures arrived at by different means. Investors typically determine if Vale SA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vale SA's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Vale SA ADR Profit Margin vs. Shares Owned By Institutions Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Vale SA's current stock value. Our valuation model uses many indicators to compare Vale SA value to that of its competitors to determine the firm's financial worth.
Vale SA ADR is rated below average in shares owned by institutions category among its peers. It is rated first in profit margin category among its peers fabricating about  0.01  of Profit Margin per Shares Owned By Institutions. The ratio of Shares Owned By Institutions to Profit Margin for Vale SA ADR is roughly  70.78 . At present, Vale SA's Net Profit Margin is projected to increase slightly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Vale SA by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Vale Profit Margin vs. Shares Owned By Institutions

Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.

Vale SA

Shares Held by Institutions

 = 

Funds and Banks

+

Firms

 = 
16.18 %
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Vale SA

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.23 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Vale Profit Margin Comparison

Vale SA is currently under evaluation in profit margin category among its peers.

Vale SA Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Vale SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Vale SA will eventually generate negative long term returns. The profitability progress is the general direction of Vale SA's change in net profit over the period of time. It can combine multiple indicators of Vale SA, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-18.6 B-17.7 B
Operating Income14.2 B10.9 B
Income Before Tax12.2 B7.7 B
Total Other Income Expense Net-2 B-2.1 B
Net Income Applicable To Common Shares110.3 B115.8 B
Net Income11.2 B7.7 B
Income Tax ExpenseB1.6 B
Net Income From Continuing Ops9.4 B7.3 B
Interest Income205 M194.8 M
Net Interest Income-1.6 B-1.7 B
Change To Netincome-41.4 B-39.3 B
Net Income Per Share 1.83  1.02 
Income Quality 1.18  1.12 
Net Income Per E B T 0.72  0.87 

Vale Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Vale SA. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Vale SA position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Vale SA's important profitability drivers and their relationship over time.

Use Vale SA in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Vale SA position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Vale SA will appreciate offsetting losses from the drop in the long position's value.

Vale SA Pair Trading

Vale SA ADR Pair Trading Analysis

The ability to find closely correlated positions to Vale SA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Vale SA when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Vale SA - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Vale SA ADR to buy it.
The correlation of Vale SA is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Vale SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Vale SA ADR moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Vale SA can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Vale SA position

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When determining whether Vale SA ADR is a strong investment it is important to analyze Vale SA's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Vale SA's future performance. For an informed investment choice regarding Vale Stock, refer to the following important reports:
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You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
To fully project Vale SA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Vale SA ADR at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Vale SA's income statement, its balance sheet, and the statement of cash flows.
Potential Vale SA investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Vale SA investors may work on each financial statement separately, they are all related. The changes in Vale SA's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Vale SA's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.