Vale (VALEPR.PFD) Moat Score : 6/10 (As of Jun. 26, 2025)

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What is Vale Moat Score?

Vale has the Moat Score of 6, which implies that the company might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Vale has Narrow Moat: Vale benefits from significant cost advantages due to its large-scale operations and control over high-quality iron ore reserves. While it has strong market share and distribution networks, the cyclical nature of commodities limits its moat to a strong narrow category.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Vale might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Competitive Comparison of Vale's Moat Score

For the Other Industrial Metals & Mining subindustry, Vale's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Vale's Moat Score Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Vale's Moat Score distribution charts can be found below:

* The bar in red indicates where Vale's Moat Score falls into.

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Vale (NYSE:VALEPR.PFD) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score	Moat Level
10	Wide Moat - Exceptionally dominant and durable wide moat
8 - 9	Wide Moat - Clear and robust wide moat
7	Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6	Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5	Narrow Moat - Solid narrow moat
4	Narrow Moat - Discernible but modest moat
1 - 3	No Moat - Very weak/transient advantages
0	No Moat - No discernible moat

Vale Moat Score Related Terms

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Vale Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Vale SA (NYSE:VALEPR.PFD) » Definitions » Moat Score

Comparable Companies

Traded in Other Exchanges

VALE:USA VALE:Mexico 0LBF:UK XVALO:Spain CVLC:Germany VALE3:Brazil VALE:Argentina

Address

Praia de Botafogo, 186, offices 1101, 1701 and 1801, Botafogo, Rio de Janeiro, RJ, BRA, 22250-145

Website

https://www.vale.com

Vale is a large global miner and the world's largest producer of iron ore and pellets. In recent years the company has sold noncore assets such as its fertilizer, coal, and steel operations to concentrate on iron ore, nickel, and copper. Earnings are dominated by the bulk materials division, primarily iron ore and iron ore pellets. The base metals division is much smaller, consisting of nickel mines and smelters along with copper mines producing copper in concentrate. In 2024, Vale sold a minority 10% stake in energy transition metals, its base metals business, likely the first step in separating base metals and iron ore.