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

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Last updated 2019/05/20 02:06

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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

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

Related Companies

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.

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.

Value checks

We assess Kumba Iron Ore's value by looking at:

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. )
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)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)

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!

-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.

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%).

Future performance checks

We assess Kumba Iron Ore's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
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
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).

Past performance checks

We assess Kumba Iron Ore's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.

Show me more healthy companies in the Metals and Mining industry

Financial health checks

We assess Kumba Iron Ore's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
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

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).

Income/ dividend checks

We assess Kumba Iron Ore's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
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)

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:

Average Tenure

Average Age

The tenure for the Kumba Iron Ore management team is about average.

52

TENURE

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:

Average Tenure

Average Age

The average tenure for the Kumba Iron Ore board of directors is less than 3 years, this suggests a new board.

Recent Insider Trading

No 3 month insider trading information.

Recent Insider Transactions

Announced	Type	Name	Entity	Role		Start	End	Shares	Max Price ($)	Value ($)

Management checks

We assess Kumba Iron Ore's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

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
Ticker:	KIRO.Y
Exchange:	OTCPK
Founded:	2006
Market Cap:	ZAR9,469,400,669
Shares outstanding:	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

Kumba Iron Ore employees.

Industry

Industry:	Steel
Sector:	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.

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Copyright © 2019, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2019)

Kumba Iron Ore

KIRO.Y Share Price and Events

7 Day Returns

1 Year Returns

KIRO.Y Shareholder Return

1 Year Return vs Industry and Market

Price Volatility

Related Companies

Rio Tinto Group

Glencore

Anglo American

KIRO.Y Value

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Current Discount

Current Discount Checks

PRICE RELATIVE TO MARKET

Price based on past earnings

Price based on expected Growth

Price based on value of assets

Value checks

KIRO.Y Future Performance

Earnings growth vs Low Risk Savings

Growth vs Market Checks

Annual Growth Rates Comparison

Analysts growth expectations

High Growth Checks

Past and Future Earnings per Share

Performance in 3 years

Future performance checks

KIRO.Y Past Performance

Past earnings growth

Past Earnings growth analysis

Earnings and Revenue History

Performance last year

Past performance checks

KIRO.Y Health

Net Worth

Balance sheet

Assets

Liabilities and shares

Historical Debt

Financial health checks

KIRO.Y Dividends

Annual Dividend Income

Dividend Amount

Annualized Historical and Future Dividends

Current Payout to shareholders

Future Payout to shareholders

Income/ dividend checks

KIRO.Y Management

CEO

CEO Bio

CEO Compensation

Management Team Tenure

Management Team

Themba Mkhwanazi

CEO & Executive Director

ZAR21M

48

2.7 yrs

Bothwell Mazarura

CFO & Executive Director

ZAR5M

45

1.7 yrs

Glen Mc Gavigan

Executive Head of Technical & Projects

ZAR6M

41

2.8 yrs

Timo Smit

Executive Head of Marketing & Seaborne Logistics

ZAR20M

49

Virginia Tyobeka

Executive Head of Human Resources

ZAR6M

52

9.3 yrs

Yvonne Mfolo