Kumba Iron Ore
Market Cap
US$9.2b
Last Updated
2019/12/15 00:07 UTC
Data Sources
Company Financials +
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
Risk Analysis
Earnings are forecast to decline by an average of -19.5% per year for the next 3 years
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.Y | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.5% | 3.1% | 0.7% |
| 30 Day | 13.2% | 7.6% | 2.3% |
| 90 Day | -0.4% | 8.5% | 5.0% |
| 1 Year | n/a | 21.6%18.0% | 23.7%21.1% |
| 3 Year | 187.0%129.0% | 11.6%5.7% | 47.0%37.4% |
| 5 Year | 70.8%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
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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| KIO | JSE (The Johannesburg Securities Exchange) | Yes | Ordinary Shares | ZA | ZAR | Nov 2006 |
| KUMB.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Nov 2006 |
| KIRO.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Dec 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/15 00:07 |
| End of Day Share Price | 2019/12/12 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.