Vale SA Shares Owned By Institutions vs. Cash And Equivalents
| VALEN Stock | MXN 180.79 1.21 0.66% |
For Vale SA profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Vale SA to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Vale SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Vale SA's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Vale SA over time as well as its relative position and ranking within its peers.
Vale |
Vale SA Cash And Equivalents vs. Shares Owned By Institutions Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Vale SA's current stock value. Our valuation model uses many indicators to compare Vale SA value to that of its competitors to determine the firm's financial worth. Vale SA is rated fifth in shares owned by institutions category among its peers. It is rated fifth in cash and equivalents category among its peers creating about 287,811,388 of Cash And Equivalents per Shares Owned By Institutions. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Vale SA's earnings, one of the primary drivers of an investment's value.Vale Cash And Equivalents vs. Shares Owned By Institutions
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
Vale SA |
| = | 22.48 % |
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Vale SA |
| = | 6.47 B |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Vale Cash And Equivalents Comparison
Vale SA is rated fourth in cash and equivalents category among its peers.
Vale SA Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Vale SA, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Vale SA will eventually generate negative long term returns. The profitability progress is the general direction of Vale SA's change in net profit over the period of time. It can combine multiple indicators of Vale SA, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Vale S.A., together with its subsidiaries, produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. Vale S.A. was founded in 1942 and is headquartered in Rio de Janeiro, Brazil. VALE S operates under Industrial Metals Minerals classification in Mexico and is traded on Mexico Stock Exchange.
Vale Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Vale SA. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Vale SA position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Vale SA's important profitability drivers and their relationship over time.
Use Vale SA in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Vale SA position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Vale SA will appreciate offsetting losses from the drop in the long position's value.Vale SA Pair Trading
Vale SA Pair Trading Analysis
The ability to find closely correlated positions to Vale SA could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Vale SA when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Vale SA - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Vale SA to buy it.
The correlation of Vale SA is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Vale SA moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Vale SA moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Vale SA can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Vale SA position
In addition to having Vale SA in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Macroaxis Index
An experimental equal-weighted index theme of selected equities generated based on Macroaxis rating and scoring system. The Macroaxis Index theme has 52 constituents at this time.
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Other Information on Investing in Vale Stock
To fully project Vale SA's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Vale SA at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Vale SA's income statement, its balance sheet, and the statement of cash flows.