VALE S.A. trades at a forward price-to-earnings ratio of 7.9 with attractive commodity-weighted valuation metrics and positive analyst and news sentiment, but the price is essentially at the analyst target, materials cycle peak flags have triggered, and 2 consecutive earnings misses signal near-term earnings uncertainty.
Thesis pillars
- Commodity Cycle Valuation Risk↑Improving
- Earnings Miss Near Analyst Target↓Deteriorating
- Positive News Analyst Sentiment→Stable
- +1 more pillar — see the Why tab for full reasoning
VALE S.A. (VALE) Stock Analysis
Basic Materials · Other Industrial Metals & Mining
Sell if holding. Momentum 2.5/10 is below the 5.0 floor at $13.68 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Consecutive earnings misses (3); Commodity cycle peak: fwd P/E 6.8× (below 12) + fwd/trail 0.25× (below 0.55). EPS just expanded off a commodity-price surge — forward estimate may be built on stale spot, mean-reversion risk unpriced..
Vale S.A., together with its subsidiaries, produces iron ore and nickel in Brazil, Asia, the Middle East, North Africa, Europe, the Americas, and Oceania. The company operates in two segments, Iron Ore Solutions and Vale Base Metals. It extracts, produces, and distributes iron... Read more
Sell if holding. Momentum 2.5/10 is below the 5.0 floor at $13.68 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Consecutive earnings misses (3); Commodity cycle peak: fwd P/E 6.8× (below 12) + fwd/trail 0.25× (below 0.55). EPS just expanded off a commodity-price surge — forward estimate may be built on stale spot, mean-reversion risk unpriced.. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.0/10, moderate confidence.
Passes 6/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 74d clear, semi cycle peak clear). Fails on weak momentum and materials cycle peak fwd=6.8x,ratio=0.25x. Suitability: moderate.
Recent developments
updated 2026-08-16Recent Developments — VALE S.A.
Latest news
- NEWS Vale's Disappointing Q1 Performance Affects Stock (VALE) - GuruFocus — GuruFocus negative
- NEWS VALE S.A. (VALE) Stock Falls on Q1 2026 Earnings - Quiver Quantitative — Quiver Quantitative negative
- NEWS A Look at Vale SA (VALE) After 4.2% Gain -- GF Value $12.89 vs P - GuruFocus — GuruFocus positive
- NEWS Vale shareholders elect Oliveira chairman; Q2 iron ore output best since 2018 (VALE:NYSE) - Seeking Alpha — Seeking Alpha positive
- NEWS VALE S.A. Stock 12‑Month Price Target Cut to $17.1, Implies 20% Upside - TradingView — TradingView positive
Generated 2026-08-16T19:22:07Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
3 floor-breakers
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 2.5/10 is below the 5.0 floor at $13.68 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Consecutive earnings misses (3); Commodity cycle peak: fwd P/E 6.8× (below 12) + fwd/trail 0.25× (below 0.55). EPS just expanded off a commodity-price surge — forward estimate may be built on stale spot, mean-reversion risk unpriced.. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $13.15. Score 5.0/10, moderate confidence.
Take-profit target: $15.13 (+11.0% upside). Prior stop was $13.15. Stop-loss: $13.15.
Commodity cycle peak: fwd P/E 6.8× (below 12) + fwd/trail 0.25× (below 0.55). EPS just expanded off a commodity-price surge — forward estimate may be built on stale spot, mean-reversion risk unpriced.; Consecutive earnings misses (3); Weak growth.
VALE S.A. trades at a P/E of 27.3 (forward 6.8). TrendMatrix value score: 8.4/10. Verdict: Sell.
23 analysts cover VALE with a consensus score of 3.9/5. Average price target: $17.
What does VALE S.A. do?Vale S.A., together with its subsidiaries, produces iron ore and nickel in Brazil, Asia, the Middle East, North Africa,...
Vale S.A., together with its subsidiaries, produces iron ore and nickel in Brazil, Asia, the Middle East, North Africa, Europe, the Americas, and Oceania. The company operates in two segments, Iron Ore Solutions and Vale Base Metals. It extracts, produces, and distributes iron ore, iron ore pellets, briquettes, nickel, copper, other ferrous products, and by-products, including gold, silver, cobalt, platinum-group metals, and other base metals, as well as low-carbon critical minerals. The company also operates logistics systems and distribution centers, such as mining complexes, railways, and maritime terminals, ports, and ships; generates energy from hydroelectric, solar, and wind sources; and engages in greenfield mineral exploration. In addition, it is involved in research; and trading activities. The company was formerly known as Companhia Vale do Rio Doce and changed its name to Vale S.A. in May 2009. Vale S.A. was founded in 1942 and is headquartered in Rio De Janeiro, Brazil.