Vale S.A. (VALE) - Stock Analysis

Last updated: Jan 15, 2026

Basic MaterialsActive

Research Idea

Research content for general circulation. Not individualized advice. Methodology & Disclosures

Vale is a strong short-term buy supported by record production increases, lower costs, favorable commodity price drivers (especially nickel), a 15% price gain over 21 days breaking resistance levels, robust free cash flow, and attractive dividends amid infrastructure-driven demand.

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Idea window: 1/16/2026 – 1/23/2026Sector: Basic Materials

AI Analyst Overview

Last Price
$14.61
Market Cap
$62366.88
1D Return
-0.41%
YTD Return
+12.13%

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Valuation Metrics

P/E
11.4
P/B
1.5
P/S
1.7
EV/EBITDA
8.6
Div Yield
9.66%

Fundamental Analysis

8.0

Key Financial Insights: • High profitability • Tight liquidity • Heavy capex Vale combines strong profitability and free cash flow with cheap valuation but faces tight near-term liquidity and heavy capex that could strain cash generation.

RobustMargins
LiquidityRisk

Price Behavior

7.0

Key Price Behavior Insights: • Moderate uptrend • Low-$12 support • Resistance testing Support Level: $12.00–$12.30 Resistance Level: $14.26 (tested) / $13.50–$14.00 VALE has shown a moderate uptrend over the last month, finding support around the low $12 area, testing resistance near $14.26 while exhibiting short-term pullbacks and balanced volatility.

Bullish
WatchResistance

Sentiment & News

7.0

Key News Insights: • Institutional accumulation • Nickel/copper tailwinds • Deep valuation discount Vale's shares surged into early 2026 on strong 2025 execution, institutional buying and bullish nickel/copper dynamics that leave the stock trading at a deep EV/EBITDA discount with upside potential.

ValeBuy
Commodities
AI

AI Summary

7.0
Positive

VALE is transitioning from a cyclical iron-ore play to a diversified, cash-generative base-metals producer whose low multiples and strong FCF/dividend capacity could re-rate materially if management sustains disciplined capex and delivers copper/nickel project execution, but investors must monitor commodity-price sensitivity, tight short-term liquidity, and legal/remediation exposure that could force dividend or leverage adjustments in a protracted downturn.

ValuePlay
CommodityRisk
Execution
AI summary updated 4 days ago

Description

Vale S.A. is a Brazil-based mining company that produces and sells bulk ferrous products and transition metals — including iron ore and pellets, nickel and copper — to domestic and international markets. The firm reports through Iron Solutions, which handles extraction, processing and related logistics for iron products, and Energy Transition Materials, which covers nickel production and associated by-products; it was founded in 1942 and is headquartered in Rio de Janeiro.

Idea History

DateCloseTickerCompanySummaryStatusP/L
Jan 16Jan 23VALEVale S.A.
Vale is a strong short-term buy supported by record production increases, lower costs, favorable commodity price drivers (especially nickel), a 15% price gain over 21 days breaking resistance levels, robust free cash flow, and attractive dividends amid infrastructure-driven demand.
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Research content for educational purposes only. Not investment advice. All decisions are your responsibility.