Operating Margin

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Price: 16.27 USD 3.63% Market Closed

Market Cap: $69.5B

27.7%

Declining

by 5.2%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

27.7%

Operating Income

R$59B

Revenue

R$213.3B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

27.7%

Operating Income

$59B

Revenue

R$213.3B

Peer Comparison

Country		Company	Market Cap	Operating Margin
BR		Vale SA BOVESPA:VALE3	361.7B BRL	Loading...
AU		BHP Group Ltd ASX:BHP	251.8B AUD	Loading...
AU		Rio Tinto Ltd ASX:RIO	249.1B AUD	Loading...
UK		Rio Tinto PLC LSE:RIO	109.4B GBP	Loading...
ZA	K	Kumba Iron Ore Ltd JSE:KIO	1.2B ZAR	Loading...
AU	F	Fortescue Ltd XMUN:FVJ	39.1B EUR	Loading...
AU		Fortescue Metals Group Ltd ASX:FMG	67B AUD	Loading...
LU		ArcelorMittal SA AEX:MT	35.4B EUR	Loading...
US		Nucor Corp NYSE:NUE	39.8B USD	Loading...
IN		JSW Steel Ltd NSE:JSWSTEEL	3T INR	Loading...
IN		Tata Steel Ltd NSE:TATASTEEL	2.4T INR	Loading...

Market Distribution

Min	-3 343.7%
30th Percentile	7.7%
Median	14.9%
70th Percentile	25.1%
Max	1 269.1%

Other Profitability Ratios

Vale SA
Glance View

Economic Moat

None

Market Cap

69.5B USD

Industry

Metals & Mining

Vale S.A., a titan in the world of mining and metals, has carved its place as one of the foremost global leaders through its expansive operations and strategic ventures. Originating from Brazil, Vale's journey began in the mid-20th century, growing from a state-controlled enterprise into a privatized powerhouse by the late 1990s. Today, the company is synonymous with the extraction and production of iron ore, a fundamental material driving the steel industry. Through its extensive mining operations, primarily situated in the mineral-rich terrains of Brazil, Vale feeds the ever-growing global demand for raw materials, particularly from rapidly industrializing countries like China. Yet, while iron ore is the linchpin of its operations, Vale has adeptly diversified its portfolio, venturing robustly into nickel, manganese, copper, and coal, thus fortifying its presence across multiple segments of the mining sector. Vale's financial success is largely attributed to its comprehensive supply chain and economies of scale. The company not only mines these essential minerals but also manages the logistics of transporting them through its strategically located railways, ships, and ports, specifically designed to streamline the path from ore extraction to delivery. This vertical integration ensures cost efficiency and allows Vale to exercise more control over quality and timing, thereby strengthening its market competitiveness. Furthermore, Vale's investments in sustainable practices and renewable energy, while addressing environmental concerns, also stand to cater to a growing market of eco-conscious consumers and investors. On the revenue front, Vale benefits from long-term contracts and partnerships with steelmakers and industrial entities worldwide, ensuring a steady demand for its products. Through its strategic infrastructure and a diversified product suite, Vale continues to steer its path through the intricacies of the global commodities market.

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Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Vale SA
NYSE:VALE

Peer Comparison

Market Distribution

Other Profitability Ratios

Vale SA
Glance View

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52 Week Range	8.26 16.27
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Vale SA NYSE:VALE