OTCPK:KIRO.Y

Stock Analysis Report

Executive Summary

Kumba Iron Ore Limited, together with its subsidiaries, engages in the exploration, extraction, beneficiation, marketing, sale, and shipping of iron ore primarily in South Africa.

Rewards

PE ratio (8x) is below the US market (18.6x)

Earnings grew by 55.8% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -19.5% per year for the next 3 years

Dividend of 11.18% is not well covered by earnings



Snowflake Analysis

Outstanding track record with flawless balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Kumba Iron Ore's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KIRO.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

KIRO.Y

3.1%

US Metals and Mining

0.7%

US Market


1 Year Return

n/a

KIRO.Y

18.0%

US Metals and Mining

21.1%

US Market

Return vs Industry: Insufficient data to determine how KIRO.Y performed against the US Metals and Mining industry.

Return vs Market: Insufficient data to determine how KIRO.Y performed against the US Market.


Shareholder returns

KIRO.YIndustryMarket
7 Day0.5%3.1%0.7%
30 Day13.2%7.6%2.3%
90 Day-0.4%8.5%5.0%
1 Yearn/a21.6%18.0%23.7%21.1%
3 Year187.0%129.0%11.6%5.7%47.0%37.4%
5 Year70.8%32.2%30.1%19.7%65.7%47.5%

Price Volatility Vs. Market

How volatile is Kumba Iron Ore's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Kumba Iron Ore undervalued compared to its fair value and its price relative to the market?

7.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KIRO.Y ($9.41) is trading above our estimate of fair value ($9.25)

Significantly Below Fair Value: KIRO.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KIRO.Y is good value based on its PE Ratio (8x) compared to the Metals and Mining industry average (11.7x).

PE vs Market: KIRO.Y is good value based on its PE Ratio (8x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: KIRO.Y's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: KIRO.Y is overvalued based on its PB Ratio (3.3x) compared to the US Metals and Mining industry average (1.6x).


Next Steps

Future Growth

How is Kumba Iron Ore forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-19.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KIRO.Y's earnings are forecast to decline over the next 3 years (-19.5% per year).

Earnings vs Market: KIRO.Y's earnings are forecast to decline over the next 3 years (-19.5% per year).

High Growth Earnings: KIRO.Y's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KIRO.Y's revenue is expected to decline over the next 3 years (-6.2% per year).

High Growth Revenue: KIRO.Y's revenue is forecast to decline over the next 3 years (-6.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KIRO.Y's Return on Equity is forecast to be high in 3 years time (27.8%)


Next Steps

Past Performance

How has Kumba Iron Ore performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KIRO.Y has high quality earnings.

Growing Profit Margin: KIRO.Y's current net profit margins (27.6%) are higher than last year (24.2%).


Past Earnings Growth Analysis

Earnings Trend: KIRO.Y's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: KIRO.Y's earnings growth over the past year (55.8%) exceeds its 5-year average (11.7% per year).

Earnings vs Industry: KIRO.Y earnings growth over the past year (55.8%) exceeded the Metals and Mining industry -9%.


Return on Equity

High ROE: KIRO.Y's Return on Equity (41.8%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kumba Iron Ore's financial position?


Financial Position Analysis

Short Term Liabilities: KIRO.Y's short term assets (ZAR30.2B) exceed its short term liabilities (ZAR7.8B).

Long Term Liabilities: KIRO.Y's short term assets (ZAR30.2B) exceed its long term liabilities (ZAR11.8B).


Debt to Equity History and Analysis

Debt Level: KIRO.Y is debt free.

Reducing Debt: KIRO.Y has no debt compared to 5 years ago when its debt to equity ratio was 13.8%.

Debt Coverage: KIRO.Y has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: KIRO.Y has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: KIRO.Y has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if KIRO.Y's debt is covered by short term assets.


Next Steps

Dividend

What is Kumba Iron Ore's current dividend yield, its reliability and sustainability?

11.18%

Current Dividend Yield


Dividend Yield vs Market

company11.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years10.0%

Current dividend yield vs market & industry

Notable Dividend: KIRO.Y's dividend (11.18%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: KIRO.Y's dividend (11.18%) is in the top 25% of dividend payers in the US market (3.71%)


Stability and Growth of Payments

Stable Dividend: KIRO.Y's dividend payments have been volatile in the past 10 years.

Growing Dividend: KIRO.Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88.9%), KIRO.Y's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KIRO.Y's dividends in 3 years are not forecast to be well covered by earnings (98.1% payout ratio).


Next Steps

Management

What is the CEO of Kumba Iron Ore's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Themba Mkhwanazi (49yo)

3.3yrs

Tenure

SAR21,157,000

Compensation

Mr. Themba M. Mkhwanazi serves as Independent Non Executive Director of Aspen Pharmacare Holdings Limited since April 1, 2019. He has been Chief Executive Officer of Coal South Africa at Anglo American Sou ...


CEO Compensation Analysis

Compensation vs Market: Themba's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD6.64M).

Compensation vs Earnings: Themba's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.6yrs

Average Tenure

50yo

Average Age

Experienced Management: KIRO.Y's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

57yo

Average Age

Experienced Board: KIRO.Y's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Virginia Tyobeka (53yo)

    Executive Head of Human Resources

    • Tenure: 9.9yrs
    • Compensation: SAR5.75m
  • Timo Smit (50yo)

    Executive Head of Marketing & Seaborne Logistics

    • Tenure: 0yrs
    • Compensation: SAR20.16m
  • Yvonne Mfolo (51yo)

    Executive Head of Public Affairs

    • Tenure: 0yrs
    • Compensation: SAR4.65m
  • Themba Mkhwanazi (49yo)

    CEO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: SAR21.16m
  • Darrin Strange (51yo)

    Chief Operating Officer

    • Tenure: 1.6yrs
  • Glen Mc Gavigan (42yo)

    Executive Head of Technical & Projects

    • Tenure: 3.3yrs
    • Compensation: SAR6.16m
  • Bothwell Mazarura (46yo)

    CFO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: SAR4.54m
  • Philip Fourie (56yo)

    Head of Safety

    • Tenure: 2.6yrs
    • Compensation: SAR5.02m
  • Sam Martin (48yo)

    Executive Head of Strategy & Business Development

    • Tenure: 1.4yrs
  • Penny Himlok

    Investor Relations Manager

    • Tenure: 0yrs

Board Members

  • Terence Goodlace (59yo)

    Lead Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: SAR581.00k
  • Mandla Sizwe Gantsho (57yo)

    Independent Chairman of the Board

    • Tenure: 2.2yrs
    • Compensation: SAR551.00k
  • Seamus French (57yo)

    Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: SAR241.00k
  • Sango Ntsaluba (59yo)

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: SAR476.00k
  • Ntombi Langa-Royds (57yo)

    Independent Non-Executive Director

    • Tenure: 2yrs
  • Mary Bomela (46yo)

    Independent Non-Executive Director

    • Tenure: 2yrs
    • Compensation: SAR44.00k
  • Buyelwa Sonjica (69yo)

    Independent Non-Executive Director

    • Tenure: 7.5yrs
    • Compensation: SAR510.00k
  • Themba Mkhwanazi (49yo)

    CEO & Executive Director

    • Tenure: 3.3yrs
    • Compensation: SAR21.16m
  • Bothwell Mazarura (46yo)

    CFO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: SAR4.54m
  • nee Veleti Dlamini (46yo)

    Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: SAR293.00k

Company Information

Kumba Iron Ore Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kumba Iron Ore Limited
  • Ticker: KIRO.Y
  • Exchange: OTCPK
  • Founded: 2006
  • Industry: Steel
  • Sector: Materials
  • Market Cap: SAR133.535b
  • Listing Market Cap: SAR9.185b
  • Shares outstanding: 320.85m
  • Website: https://www.angloamericankumba.com

Number of Employees


Location

  • Kumba Iron Ore Limited
  • Building 2B
  • Centurion Gate
  • Centurion
  • Gauteng
  • 157
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KIOJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARNov 2006
KUMB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2006
KIRO.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDDec 2006

Biography

Kumba Iron Ore Limited, together with its subsidiaries, engages in the exploration, extraction, beneficiation, marketing, sale, and shipping of iron ore primarily in South Africa. The company produces iron ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 00:07
End of Day Share Price2019/12/12 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.