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Kumba Iron Ore

OTCPK:KIRO.Y
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KIRO.Y
OTCPK
ZAR137B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

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 last earnings update was 40 days ago. More info.


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KIRO.Y Share Price and Events
7 Day Returns
-4.2%
OTCPK:KIRO.Y
-1.1%
US Metals and Mining
-0.7%
US Market
1 Year Returns
26.9%
OTCPK:KIRO.Y
-28.1%
US Metals and Mining
3%
US Market
KIRO.Y Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Kumba Iron Ore (KIRO.Y) -4.2% -12.6% 10.5% 26.9% 376.2% -16.5%
US Metals and Mining -1.1% -10.7% -6.8% -28.1% 8.5% -18.9%
US Market -0.7% -2% 2.4% 3% 39.2% 42%
1 Year Return vs Industry and Market
  • KIRO.Y outperformed the Metals and Mining industry which returned -28.1% over the past year.
  • KIRO.Y outperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
KIRO.Y
Industry
5yr Volatility vs Market

KIRO.Y Value

 Is Kumba Iron Ore undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Kumba Iron Ore to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Kumba Iron Ore.

OTCPK:KIRO.Y Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:KIRO.Y
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 0.97
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.97 (1 + (1- 28%) (0%))
0.98
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.98 * 5.96%)
8.57%

Discounted Cash Flow Calculation for OTCPK:KIRO.Y using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Kumba Iron Ore is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OTCPK:KIRO.Y DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (ZAR, Millions) Source Present Value
Discounted (@ 8.57%)
2019 23,617.00 Analyst x2 21,752.54
2020 16,086.50 Analyst x2 13,646.84
2021 13,784.50 Analyst x2 10,770.77
2022 10,686.00 Analyst x1 7,690.53
2023 13,342.00 Analyst x1 8,843.97
2024 12,665.32 Est @ -5.07% 7,732.64
2025 12,319.40 Est @ -2.73% 6,927.66
2026 12,184.77 Est @ -1.09% 6,311.02
2027 12,191.35 Est @ 0.05% 5,815.93
2028 12,295.80 Est @ 0.86% 5,402.68
Present value of next 10 years cash flows ZAR94,894.56
OTCPK:KIRO.Y DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ZAR12,295.80 × (1 + 2.73%) ÷ (8.57% – 2.73%)
ZAR216,246.89
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ZAR216,246.89 ÷ (1 + 8.57%)10
ZAR95,017.21
OTCPK:KIRO.Y Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ZAR94,894.56 + ZAR95,017.21
ZAR189,911.78
Equity Value per Share
(ZAR)
= Total value / Shares Outstanding
= ZAR189,911.78 / 319.52
ZAR594.36
OTCPK:KIRO.Y Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in OTCPK:KIRO.Y represents 0.02263x of JSE:KIO
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.02263x
Value per Share
(Listing Adjusted, USD)
= Value per Share (ZAR) x Listing Adjustment Factor
= ZAR 594.36 x 0.02263
$13.45
Value per share (USD) From above. $13.45
Current discount Discount to share price of $9.67
= -1 x ($9.67 - $13.45) / $13.45
28.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Kumba Iron Ore is available for.
Intrinsic value
28%
Share price is $9.67 vs Future cash flow value of $13.45
Current Discount Checks
For Kumba Iron Ore to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Kumba Iron Ore's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Kumba Iron Ore's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Kumba Iron Ore's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Kumba Iron Ore's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:KIRO.Y PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in ZAR ZAR30.27
JSE:KIO Share Price ** JSE (2019-05-16) in ZAR ZAR427.34
United States of America Metals and Mining Industry PE Ratio Median Figure of 46 Publicly-Listed Metals and Mining Companies 9.72x
United States of America Market PE Ratio Median Figure of 3,088 Publicly-Listed Companies 17.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Kumba Iron Ore.

OTCPK:KIRO.Y PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= JSE:KIO Share Price ÷ EPS (both in ZAR)

= 427.34 ÷ 30.27

14.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kumba Iron Ore is overvalued based on earnings compared to the US Metals and Mining industry average.
  • Kumba Iron Ore is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Kumba Iron Ore's expected growth come at a high price?
Raw Data
OTCPK:KIRO.Y PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.12x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
-0.3%per year
United States of America Metals and Mining Industry PEG Ratio Median Figure of 25 Publicly-Listed Metals and Mining Companies 0.62x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

OTCPK:KIRO.Y PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.12x ÷ -0.3%

-42.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kumba Iron Ore earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Kumba Iron Ore's assets?
Raw Data
OTCPK:KIRO.Y PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in ZAR ZAR110.35
JSE:KIO Share Price * JSE (2019-05-16) in ZAR ZAR427.34
United States of America Metals and Mining Industry PB Ratio Median Figure of 103 Publicly-Listed Metals and Mining Companies 1.46x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
OTCPK:KIRO.Y PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= JSE:KIO Share Price ÷ Book Value per Share (both in ZAR)

= 427.34 ÷ 110.35

3.87x

* Primary Listing of Kumba Iron Ore.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kumba Iron Ore is overvalued based on assets compared to the US Metals and Mining industry average.
X
Value checks
We assess Kumba Iron Ore's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Kumba Iron Ore has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

KIRO.Y Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-0.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Kumba Iron Ore expected to grow at an attractive rate?
  • Kumba Iron Ore's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Kumba Iron Ore's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Kumba Iron Ore's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:KIRO.Y Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:KIRO.Y Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts -0.3%
OTCPK:KIRO.Y Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 1.4%
United States of America Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 20.2%
United States of America Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 5.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:KIRO.Y Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:KIRO.Y Future Estimates Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 53,360 10,899 1
2022-12-31 53,850 11,262 1
2021-12-31 51,214 19,080 11,845 7
2020-12-31 53,823 21,308 11,613 8
2019-12-31 59,441 28,457 15,460 8
OTCPK:KIRO.Y Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2018-12-31 45,725 15,234 9,674
2018-09-30 45,039 14,747 10,208
2018-06-30 44,353 14,259 10,742
2018-03-31 45,366 15,635 11,576
2017-12-31 46,379 17,010 12,409
2017-09-30 45,234 16,171 11,376
2017-06-30 44,089 15,332 10,343
2017-03-31 42,122 14,435 9,481
2016-12-31 40,155 13,538 8,618
2016-09-30 36,515 12,332 4,859
2016-06-30 32,875 11,125 1,100
2016-03-31 34,068 11,897 830

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Kumba Iron Ore's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Kumba Iron Ore's revenue is expected to grow by 1.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OTCPK:KIRO.Y Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Kumba Iron Ore Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:KIRO.Y Future Estimates Data
Date (Data in ZAR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 33.86 33.86 33.86 1.00
2022-12-31 34.99 34.99 34.99 1.00
2021-12-31 36.79 39.24 32.64 4.00
2020-12-31 36.10 47.89 17.30 6.00
2019-12-31 46.29 55.59 42.18 5.00
OTCPK:KIRO.Y Past Financials Data
Date (Data in ZAR Millions) EPS *
2018-12-31 30.27
2018-09-30 31.94
2018-06-30 33.62
2018-03-31 36.24
2017-12-31 38.86
2017-09-30 35.63
2017-06-30 32.40
2017-03-31 29.69
2016-12-31 26.97
2016-09-30 15.19
2016-06-30 3.43
2016-03-31 2.59

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Kumba Iron Ore is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Kumba Iron Ore's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Kumba Iron Ore has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

KIRO.Y Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Kumba Iron Ore's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Kumba Iron Ore's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Kumba Iron Ore's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Kumba Iron Ore's 1-year earnings growth is negative, it can't be compared to the US Metals and Mining industry average.
Earnings and Revenue History
Kumba Iron Ore's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Kumba Iron Ore Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:KIRO.Y Past Revenue, Cash Flow and Net Income Data
Date (Data in ZAR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 45,725.00 9,674.00 6,157.00
2018-09-30 45,039.00 10,208.00 6,141.50
2018-06-30 44,353.00 10,742.00 6,126.00
2018-03-31 45,366.00 11,575.50 5,952.00
2017-12-31 46,379.00 12,409.00 5,778.00
2017-09-30 45,234.00 11,376.00 5,560.00
2017-06-30 44,089.00 10,343.00 5,342.00
2017-03-31 42,122.00 9,480.50 5,347.00
2016-12-31 40,155.00 8,618.00 5,352.00
2016-09-30 36,515.00 4,859.00 5,301.00
2016-06-30 32,875.00 1,100.00 5,250.00
2016-03-31 34,067.50 829.50 5,362.50
2015-12-31 35,260.00 559.00 5,475.00
2015-09-30 38,189.50 3,582.00 5,334.50
2015-06-30 41,119.00 6,605.00 5,194.00
2015-03-31 44,358.00 8,664.50 4,853.00
2014-12-31 47,597.00 10,724.00 4,512.00
2014-09-30 51,094.00 12,461.00 4,450.00
2014-06-30 54,591.00 14,198.00 4,388.00
2014-03-31 54,526.00 14,822.00 4,446.00
2013-12-31 54,461.00 15,446.00 4,504.00
2013-09-30 50,485.00 14,015.00 4,416.50
2013-06-30 46,509.00 12,584.00 4,329.00
2013-03-31 45,977.50 12,535.00 4,191.00
2012-12-31 45,446.00 12,486.00 4,053.00
2012-09-30 47,584.50 14,061.50 4,048.50
2012-06-30 49,723.00 15,651.00 4,044.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Kumba Iron Ore has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Kumba Iron Ore used its assets more efficiently than the US Metals and Mining industry average last year based on Return on Assets.
  • Kumba Iron Ore has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Kumba Iron Ore's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Kumba Iron Ore has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

KIRO.Y Health

 How is Kumba Iron Ore's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Kumba Iron Ore's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Kumba Iron Ore is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Kumba Iron Ore's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Kumba Iron Ore's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Kumba Iron Ore has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Kumba Iron Ore Company Filings, last reported 4 months ago.

OTCPK:KIRO.Y Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 46,187.00 0.00 11,670.00
2018-09-30 46,187.00 0.00 11,670.00
2018-06-30 43,532.00 0.00 11,664.00
2018-03-31 43,532.00 0.00 11,664.00
2017-12-31 45,546.00 0.00 13,874.00
2017-09-30 45,546.00 0.00 13,874.00
2017-06-30 42,455.00 0.00 13,486.00
2017-03-31 42,455.00 0.00 13,486.00
2016-12-31 36,536.00 4,500.00 10,665.00
2016-09-30 36,536.00 4,500.00 10,665.00
2016-06-30 29,114.00 4,500.00 5,048.00
2016-03-31 29,114.00 4,500.00 5,048.00
2015-12-31 25,167.00 8,205.00 3,639.00
2015-09-30 25,167.00 8,205.00 3,639.00
2015-06-30 27,453.00 13,000.00 6,938.00
2015-03-31 27,453.00 13,000.00 6,938.00
2014-12-31 27,001.00 9,593.00 1,665.00
2014-09-30 27,001.00 9,593.00 1,664.00
2014-06-30 27,565.00 3,726.00 3,039.00
2014-03-31 27,565.00 3,726.00 3,039.00
2013-12-31 27,184.00 2,849.00 1,053.00
2013-09-30 27,184.00 2,849.00 1,053.00
2013-06-30 25,338.00 358.00 2,685.00
2013-03-31 25,338.00 358.00 2,685.00
2012-12-31 19,664.00 5,869.00 1,527.00
2012-09-30 19,309.00 5,869.00 1,527.00
2012-06-30 21,093.00 3,194.00 2,526.00
  • Kumba Iron Ore has no debt.
  • Kumba Iron Ore has no debt compared to 5 years ago when it was 10.5%.
  • Kumba Iron Ore has no debt, it does not need to be covered by operating cash flow.
  • Kumba Iron Ore has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Kumba Iron Ore's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Kumba Iron Ore has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

KIRO.Y Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.08%
Current annual income from Kumba Iron Ore dividends. Estimated to be 8.17% next year.
If you bought $2,000 of Kumba Iron Ore shares you are expected to receive $142 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Kumba Iron Ore's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Kumba Iron Ore's dividend is above the markets top 25% of dividend payers in United States of America (3.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:KIRO.Y Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United States of America Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 31 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:KIRO.Y Future Dividends Estimate Data
Date (Data in ZAR) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 39.65 1.00
2022-12-31 42.94 1.00
2021-12-31 27.59 8.00
2020-12-31 32.28 9.00
2019-12-31 42.61 9.00
OTCPK:KIRO.Y Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2019-04-10 30.240 6.880
2019-02-22 30.240 7.568
2019-02-19 30.240 7.933
2018-05-08 30.000 10.326
2018-02-13 30.000 9.962
2017-07-25 31.940 11.940
2016-07-26 0.000 0.000
2016-04-12 0.000 0.000
2016-02-09 0.000 0.000
2015-07-21 0.000 0.000
2015-02-17 23.340 14.805
2015-02-10 15.460 6.735
2015-02-06 15.460 6.655
2014-07-22 35.550 13.006
2014-02-11 40.040 10.788
2013-07-23 32.600 7.436
2013-02-12 31.700 6.455
2012-07-19 38.400 7.119
2012-03-30 45.000 8.362
2012-02-09 45.000 8.252
2011-07-21 43.400 8.937
2011-07-15 43.400 8.433
2011-04-14 42.000 9.006
2011-02-10 42.000 9.086
2011-01-17 42.000 9.105
2010-07-23 20.900 5.435
2010-02-18 14.600 4.293
2010-01-15 14.600 4.561

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kumba Iron Ore has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Kumba Iron Ore only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Kumba Iron Ore's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess Kumba Iron Ore's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Kumba Iron Ore afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Kumba Iron Ore has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

KIRO.Y Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Themba Mkhwanazi
COMPENSATION ZAR21,157,000
AGE 48
TENURE AS CEO 2.7 years
CEO Bio

Mr. Themba M. Mkhwanazi serves as Independent Non Executive Director of Aspen Pharmacare Holdings Limited since April 01, 2019. He has been Chief Executive Officer of Coal South Africa at Anglo American South Africa Limited since May 2014. Mr. Mkhwanazi has been the Chief Executive Officer of Kumba Iron Ore Ltd. since September 1, 2016. He serves as the Chief Executive Officer of Coal South Africa at Anglo American Metallurgical Coal Pty Ltd. and Anglo American Australia Limited. He served as Regional General Manager for the Americas at Rio Tinto since 2012, was responsible for delivering technical and operational improvements across Rio Tinto’s businesses in the region. His full list of positions have included Process Engineer at Sasol; Shift Plant Manager, Business Improvement Senior Coach, Plant Manager, Area Manager and Managing Director of Huntsman Tioxide; and General Manager expansion support and Regional General Manager technology and innovation at Rio Tinto. He served as the Chief Executive Officer of Coal Business - South Africa at Anglo American plc from April 2014 to September 1, 2016. In 2011, he was seconded to Rio Tinto’s coal business. He has extensive international operating experience and has two decades experience in the resources industry, including 16 years in South Africa and in the USA. He held numerous senior roles within the resources industry, such as the position of Chief Operating Officer at Richards Bay Minerals where he was responsible for mining, smelting and processing operations. Mr. Mkhwanazi served as the Managing Director at Huntsman Corporation in South Africa until 2007. He has been Executive director at Kumba Iron Ore Ltd. since September 01, 2016. He holds a B.Eng (Hons) in Chemical Engineering from the University of Teesside, Middlesbrough (UK).

CEO Compensation
  • Themba's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Themba's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Kumba Iron Ore management team in years:

2
Average Tenure
49
Average Age
  • The tenure for the Kumba Iron Ore management team is about average.
Management Team

Themba Mkhwanazi

TITLE
CEO & Executive Director
COMPENSATION
ZAR21M
AGE
48
TENURE
2.7 yrs

Bothwell Mazarura

TITLE
CFO & Executive Director
COMPENSATION
ZAR5M
AGE
45
TENURE
1.7 yrs

Glen Mc Gavigan

TITLE
Executive Head of Technical & Projects
COMPENSATION
ZAR6M
AGE
41
TENURE
2.8 yrs

Timo Smit

TITLE
Executive Head of Marketing & Seaborne Logistics
COMPENSATION
ZAR20M
AGE
49

Virginia Tyobeka

TITLE
Executive Head of Human Resources
COMPENSATION
ZAR6M
AGE
52
TENURE
9.3 yrs

Yvonne Mfolo

TITLE
Executive Head of Public Affairs
COMPENSATION
ZAR5M
AGE
50

Celeste Appollis

TITLE
Company Secretary
COMPENSATION
ZAR2M
AGE
46
TENURE
1.4 yrs

Philip Fourie

TITLE
Head of Safety
COMPENSATION
ZAR5M
AGE
55
TENURE
2 yrs

Darrin Strange

TITLE
Chief Operating Officer
AGE
50
TENURE
1 yrs

Penny Himlok

TITLE
Investor Relations Manager
Board of Directors Tenure

Average tenure and age of the Kumba Iron Ore board of directors in years:

2
Average Tenure
56
Average Age
  • The average tenure for the Kumba Iron Ore board of directors is less than 3 years, this suggests a new board.
Board of Directors

Mandla Sizwe Gantsho

TITLE
Chairman of the Board
COMPENSATION
ZAR551K
AGE
56
TENURE
1.6 yrs

Themba Mkhwanazi

TITLE
CEO & Executive Director
COMPENSATION
ZAR21M
AGE
48
TENURE
2.7 yrs

Bothwell Mazarura

TITLE
CFO & Executive Director
COMPENSATION
ZAR5M
AGE
45
TENURE
1.7 yrs

Buyelwa Sonjica

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR510K
AGE
68
TENURE
6.9 yrs

Sango Ntsaluba

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR476K
AGE
58
TENURE
1.9 yrs

Ntombi Langa-Royds

TITLE
Independent Non-Executive Director
AGE
56
TENURE
1.4 yrs

Terence Goodlace

TITLE
Lead Independent Non-Executive Director
COMPENSATION
ZAR581K
AGE
58
TENURE
1 yrs

nee Veleti Dlamini

TITLE
Non-Executive Director
COMPENSATION
ZAR293K
AGE
45
TENURE
2.5 yrs

Seamus French

TITLE
Non-Executive Director
COMPENSATION
ZAR241K
AGE
56
TENURE
2.2 yrs

Stephen Pearce

TITLE
Non-Executive Director
COMPENSATION
ZAR241K
AGE
54
TENURE
2.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Kumba Iron Ore's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Kumba Iron Ore has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

KIRO.Y News

Simply Wall St News

KIRO.Y Company Info

Description

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 ore at Sishen and Kolomela mines in the Northern Cape Province. It also operates a port in Saldanha Bay. The company supplies its iron ore to the steel industry; and exports to China, rest of Asia, Europe, the Middle East, and North Africa. The company was founded in 2006 and is headquartered in Centurion, South Africa.

Details
Name: Kumba Iron Ore Limited
KIRO.Y
Exchange: OTCPK
Founded: 2006
ZAR9,469,400,669
319,520,810
Website: http://www.angloamericankumba.com
Address: Kumba Iron Ore Limited
Building 2B,
Centurion Gate,
Centurion,
Gauteng, 0157,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE KIO Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 20. Nov 2006
OTCPK KIRO.Y SPONSORED ADR Pink Sheets LLC US USD 21. Dec 2006
Number of employees
Current staff
Staff numbers
0
Kumba Iron Ore employees.
Industry
Steel
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 02:06
End of day share price update: 2019/05/16 00:00
Last estimates confirmation: 2019/05/03
Last earnings filing: 2019/04/10
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.