Commodity prices diverged in the quarter. Despite solid China steel production, iron ore and metallurgical coal prices are down, while copper rose on supply issues and hopes of faster global growth. However, prices are elevated compared with history and cost-curve support.
Vale's lower unit costs relative to producers in India and China, as well as high-cost producers such as Anglo American, allow it to remain profitable even in depressed price environments.
We believe China's real estate- and infrastructure-driven economic growth has likely peaked and prices for materials such as iron ore will decline in future.
|
Metric
|
VALE
|
BHP
|
RIO
|
|---|---|---|---|
Price/Earnings (Normalized) | 6.39 | 11.00 | 11.95 |
Price/Book Value | 1.33 | 3.58 | 2.63 |
Price/Sales | 1.27 | 2.68 | 2.60 |
Price/Cash Flow | 3.78 | 6.95 | 8.49 |
|
Metric
|
VALE
|
BHP
|
RIO
|
|---|---|---|---|
Quick Ratio | 0.60 | 1.08 | 1.04 |
Current Ratio | 1.28 | 1.57 | 1.69 |
Interest Coverage | 9.33 | 7.59 | 8.04 |
|
Metric
|
VALE
|
BHP
|
RIO
|
|---|---|---|---|
Return on Assets (Normalized) | 10.92% | 13.90% | 11.84% |
Return on Equity (Normalized) | 25.89% | 31.67% | 22.48% |
Return on Invested Capital (Normalized) | 19.40% | 21.70% | 19.38% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
BHPLF
| BHP Group Ltd | PJ | Sqwdc | $147.8 Bil | |
BHP
| BHP Group Ltd ADR | Jgsrcgqqm | Glz | $147.0 Bil | |
RTNTF
| Rio Tinto Ltd | — | Dsdfp | $135.1 Bil | |
RIO
| Rio Tinto PLC ADR | Knkzpxcvz | Vxccv | $108.6 Bil | |
NGLOY
| Anglo American PLC ADR | Lbkdffwyg | Grw | $36.2 Bil | |
TECK
| Teck Resources Ltd Class B (Sub Voting) | Tkylgcxj | Gbdcj | $23.7 Bil | |
LAC
| Lithium Americas Corp | Bhpgfhnt | Dwlt | $1.0 Bil | |
LAAC
| Lithium Americas (Argentina) Corp | Xfddhllgn | Zlkjtp | $780.6 Mil | |
CMP
| Compass Minerals International Inc | Snszqbdwb | Zwxkq | $547.0 Mil |
