VALENEUTRAL

Return on Equity (ROE)

6.8%

Higher than 29% of Basic Materials sector peers

Updated 152h ago

Sector Performance

29th percentile

VALE

6.8%

Sector Median

12.5%

Sector Avg

12.6%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' equity — a 6.8% ROE means VALE earns $6.80 for every $100 of equity.

This sits well below the Basic Materials sector median of 12.5%, placing VALE in the 29th percentile among peers. Year-over-year data is not available, but the metric declined 8.1% quarter-over-quarter, falling from 7.4% to 6.8%. A below-median ROE that is also shrinking points to weaker profitability relative to competitors and may signal higher risk for investors seeking returns. However, the overall NEUTRAL verdict on VALE reflects a balanced picture, and this weak ROE is a negative factor that does not contradict a neutral stance — it suggests the stock has offsetting strengths elsewhere.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about VALE?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does VALE's Return on Equity (ROE) compare to its sector?

VALE's Return on Equity (ROE) of 6.8% compares to a Basic Materials sector median of 12.5%, placing it in the 29th percentile.

Who are VALE's closest peers by Return on Equity (ROE)?

The closest Basic Materials peers by Return on Equity (ROE) include: MAG (12.5%), CDE (12.1%), RGLD (12.0%), RIO (16.4%), AEM (18.0%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.