Is VALE a high-quality business?

AlphaMadera's AlphaQuality grade scores Vale S.A. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how VALE compares to a Buffett-style quality bar.

What is Vale S.A.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to VALE based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes VALE a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

VALE - Vale S.A.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $17.02 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C+ 61.1 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

B- 62.5

5yr Avg ROIC 18.8% 89/100
Operating Margin Trend -5.46 pp/yr 0/100

Capital Efficiency

Weight: 15%

A+ 99.0

5yr Avg ROE 34.4% 100/100
5yr Share-Count CAGR -3.9% 97/100

Growth Quality

Weight: 15%

F 9.4

5yr Revenue CAGR -8.5% 3/100
5yr EPS CAGR -40.0% 0/100
Revenue-Growth Years (5) 2/5 40/100

Cash Generation

Weight: 15%

A- 81.4

5yr FCF Margin 17.0% 85/100
5yr FCF/NI Conversion 0.77x 77/100

Balance Sheet

Weight: 20%

B 69.8

Net Debt / EBITDA 0.84x 87/100
Interest Coverage (EBIT/Int) 7.12x 73/100
Altman Z-Score 1.81 35/100

Stability

Weight: 15%

D+ 40.6

EPS Volatility (σ/μ) 0.78 9/100
Piotroski F-Score 8 89/100
Negative-Revenue Years (5) 3/5 40/100

3 of 3 gurus held; 1 added; 2 trimmed.

Holders: 3
Avg Δ position: +0.2%
New buys: 0
Full exits: 0

Cooperman increased +53%
Dalio decreased -34%
Wood decreased -18%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.