Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Brazilian mining giant Vale
With that in mind, let's take a closer look at Vale's business and see what CAPS investors are saying about the stock right now.
Vale facts
Headquarters (Founded) |
Rio de Janeiro, Brazil (1942) |
Market Cap |
$166.6 billion |
Industry |
Industrials metals and minerals |
Trailing-12-Month Revenue |
$50.60 billion |
Management |
President/CEO Roger Agnelli CFO Guilherme Cavalcanti |
Return on Equity (Average, Past 3 Years) |
21.6% |
Cash/Debt |
$10.02 billion / $27.95 billion |
Dividend Yield |
2.4% |
Competitors |
BHP Billiton
Freeport-McMoRan
Rio Tinto |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 6,519 members who have rated Vale believe the stock will outperform the S&P 500 going forward. These bulls include Max0Nix and All-Star BudandMolly, who is ranked in the top 1% of our community.
Late last year, Max0Nix listed several of Vale's positives:
Low-cost producer, diversifying away from iron ore, and appreciation of real/depreciation of US dollar. Could also have dividend increases. Came through "great recession" in very good shape. Management seems to know how to profitably cooperate with Brazilian government.
Currently, Vale even sports a cheapish price-to-cash flow of 8.1. That represents a discount to gorilla mining foes BHP (10.5), Freeport (14.7), and Rio Tinto (9.8).
CAPS All-Star BudandMolly elaborates on the bull case:
The need for iron ore will continue to grow with China, India, Asia and other third world countries increasing their demand for steel. [Vale] is in a strong position to expand production and increase profits as commodity prices continue to rise, especially iron ore, where demand will outstrip production both near and long term. Buy on major dips and hold for the longer term.
What do you think about Vale, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!