ARI Stock Overview
African Rainbow Minerals Limited, through its subsidiaries, operates as a diversified mining and minerals company in South Africa and Malaysia.
African Rainbow Minerals Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||R241.82|
|52 Week High||R306.41|
|52 Week Low||R178.95|
|1 Month Change||6.48%|
|3 Month Change||11.70%|
|1 Year Change||-16.15%|
|3 Year Change||69.16%|
|5 Year Change||102.94%|
|Change since IPO||210.03%|
Recent News & Updates
African Rainbow Minerals (JSE:ARI) Seems To Use Debt Rather Sparingly
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
We Take A Look At Why African Rainbow Minerals Limited's (JSE:ARI) CEO Has Earned Their Pay Packet
It would be hard to discount the role that CEO Mike Schmidt has played in delivering the impressive results at African...
If You Like EPS Growth Then Check Out African Rainbow Minerals (JSE:ARI) Before It's Too Late
It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...
Why We Like The Returns At African Rainbow Minerals (JSE:ARI)
There are a few key trends to look for if we want to identify the next multi-bagger. Ideally, a business will show two...
|ARI||ZA Metals and Mining||ZA Market|
Return vs Industry: ARI underperformed the ZA Metals and Mining industry which returned 3.4% over the past year.
Return vs Market: ARI underperformed the ZA Market which returned 13.9% over the past year.
|ARI Average Weekly Movement||5.5%|
|Metals and Mining Industry Average Movement||7.0%|
|Market Average Movement||5.7%|
|10% most volatile stocks in ZA Market||12.1%|
|10% least volatile stocks in ZA Market||3.3%|
Stable Share Price: ARI is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: ARI's weekly volatility (5%) has been stable over the past year.
About the Company
African Rainbow Minerals Limited, through its subsidiaries, operates as a diversified mining and minerals company in South Africa and Malaysia. It explores for platinum group metals, nickel, copper, coal, iron ore, manganese ore, chrome ore, and ferro manganese, as well as gold. The company was founded in 1933 and is based in Sandton, South Africa.
African Rainbow Minerals Fundamentals Summary
|ARI fundamental statistics|
Is ARI overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ARI income statement (TTM)|
|Cost of Revenue||R7.90b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||64.47|
|Net Profit Margin||64.23%|
How did ARI perform over the long term?See historical performance and comparison
16.5%Current Dividend Yield
Is African Rainbow Minerals undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ARI (ZAR241.82) is trading below our estimate of fair value (ZAR658.99)
Significantly Below Fair Value: ARI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ARI is good value based on its PE Ratio (3.8x) compared to the ZA Metals and Mining industry average (6x).
PE vs Market: ARI is good value based on its PE Ratio (3.8x) compared to the ZA market (10.9x).
Price to Earnings Growth Ratio
PEG Ratio: ARI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: ARI's PB Ratio (1.2x) is in line with the ZA Metals and Mining industry average.
How is African Rainbow Minerals forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARI's earnings are forecast to decline over the next 3 years (-29.3% per year).
Earnings vs Market: ARI's earnings are forecast to decline over the next 3 years (-29.3% per year).
High Growth Earnings: ARI's earnings are forecast to decline over the next 3 years.
Revenue vs Market: ARI's revenue (0.8% per year) is forecast to grow slower than the ZA market (6.3% per year).
High Growth Revenue: ARI's revenue (0.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ARI's Return on Equity is forecast to be low in 3 years time (13.3%).
How has African Rainbow Minerals performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARI has high quality earnings.
Growing Profit Margin: ARI's current net profit margins (64.2%) are higher than last year (34%).
Past Earnings Growth Analysis
Earnings Trend: ARI's earnings have grown significantly by 32.5% per year over the past 5 years.
Accelerating Growth: ARI's earnings growth over the past year (218.4%) exceeds its 5-year average (32.5% per year).
Earnings vs Industry: ARI earnings growth over the past year (218.4%) underperformed the Metals and Mining industry 218.4%.
Return on Equity
High ROE: ARI's Return on Equity (35.3%) is considered high.
How is African Rainbow Minerals's financial position?
Financial Position Analysis
Short Term Liabilities: ARI's short term assets (ZAR18.6B) exceed its short term liabilities (ZAR3.4B).
Long Term Liabilities: ARI's short term assets (ZAR18.6B) exceed its long term liabilities (ZAR6.0B).
Debt to Equity History and Analysis
Debt Level: ARI has more cash than its total debt.
Reducing Debt: ARI's debt to equity ratio has reduced from 22.1% to 2.8% over the past 5 years.
Debt Coverage: ARI's debt is well covered by operating cash flow (696.6%).
Interest Coverage: ARI earns more interest than it pays, so coverage of interest payments is not a concern.
What is African Rainbow Minerals's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ARI's dividend (16.54%) is higher than the bottom 25% of dividend payers in the ZA market (2.87%).
High Dividend: ARI's dividend (16.54%) is in the top 25% of dividend payers in the ZA market (7.34%)
Stability and Growth of Payments
Stable Dividend: ARI's dividend payments have been volatile in the past 10 years.
Growing Dividend: ARI's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (46.4%), ARI's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ARI's dividends in 3 years are forecast to be covered by earnings (54.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mike Schmidt (63 yo)
Mr. Mike P. Schmidt, also known as Mike, has served as Chief Executive Officer of African Rainbow Minerals Limited (“ARM”) since March 2012. Mr. Schmidt joined ARM as Executive, Platinum Operations in July...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD1.24M) is about average for companies of similar size in the ZA market ($USD1.19M).
Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.
Experienced Management: ARI's management team is considered experienced (4.8 years average tenure).
Experienced Board: ARI's board of directors are seasoned and experienced ( 10.6 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
African Rainbow Minerals Limited's employee growth, exchange listings and data sources
- Name: African Rainbow Minerals Limited
- Ticker: ARI
- Exchange: JSE
- Founded: 1933
- Industry: Diversified Metals and Mining
- Sector: Materials
- Implied Market Cap: R47.359b
- Shares outstanding: 195.84m
- Website: https://arm.co.za
Number of Employees
- African Rainbow Minerals Limited
- ARM House
- 29 Impala Road
- South Africa
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/23 17:00|
|End of Day Share Price||2022/01/21 00:00|
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.