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HAR

Harmony Gold MiningJSE:HAR Stock Report

Last Price

R64.19

Market Cap

R39.6b

7D

10.4%

1Y

-1.6%

Updated

23 Jan, 2022

Data

Company Financials +
HAR fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance3/6
Financial Health4/6
Dividends3/6

HAR Stock Overview

Harmony Gold Mining Company Limited engages in the exploration, extraction, and processing of gold.

Rewards

PE ratio (7.8x) is below the ZA market (10.9x)

Became profitable this year

Risk Analysis

No risks detected for HAR from our risk checks.

Harmony Gold Mining Competitors

Gold Fields

JSE:GFI

R150.5b

AngloGold Ashanti

JSE:ANG

R132.3b

Vale

BOVESPA:VALE3

R$415.4b

Glencore

LSE:GLEN

UK£53.7b

Price History & Performance

Summary of all time highs, changes and price drops for Harmony Gold Mining
Historical stock prices
Current Share PriceR64.19
52 Week HighR80.40
52 Week LowR42.55
Beta0.60
1 Month Change2.90%
3 Month Change9.97%
1 Year Change-1.56%
3 Year Change158.62%
5 Year Change100.97%
Change since IPO229.18%

Recent News & Updates

Shareholder Returns

HARZA Metals and MiningZA Market
7D10.4%2.6%-0.3%
1Y-1.6%3.4%13.9%

Return vs Industry: HAR underperformed the ZA Metals and Mining industry which returned 3.4% over the past year.

Return vs Market: HAR underperformed the ZA Market which returned 13.9% over the past year.

Price Volatility

Is HAR's price volatile compared to industry and market?
HAR volatility
HAR Average Weekly Movement7.7%
Metals and Mining Industry Average Movement7.0%
Market Average Movement5.7%
10% most volatile stocks in ZA Market12.1%
10% least volatile stocks in ZA Market3.3%

Stable Share Price: HAR is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: HAR's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
195038,459Peter Steenkamphttps://www.harmony.co.za

Harmony Gold Mining Company Limited engages in the exploration, extraction, and processing of gold. It also explores for uranium, silver, copper, and molybdenum deposits. The company has nine underground operations in the Witwatersrand Basin; an open-pit mine on the Kraaipan Greenstone Belt; and various surface treatment operations in South Africa.

Harmony Gold Mining Fundamentals Summary

How do Harmony Gold Mining's earnings and revenue compare to its market cap?
HAR fundamental statistics
Market CapR39.57b
Earnings (TTM)R5.09b
Revenue (TTM)R41.73b

7.8x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HAR income statement (TTM)
RevenueR41.73b
Cost of RevenueR30.16b
Gross ProfitR11.58b
ExpensesR6.49b
EarningsR5.09b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 28, 2022

Earnings per share (EPS)8.25
Gross Margin27.74%
Net Profit Margin12.19%
Debt/Equity Ratio10.8%

How did HAR perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

16%

Payout Ratio

Valuation

Is Harmony Gold Mining undervalued compared to its fair value and its price relative to the market?

7.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HAR (ZAR64.19) is trading above our estimate of fair value (ZAR37.67)

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


Price To Earnings Ratio

PE vs Industry: HAR is poor value based on its PE Ratio (7.8x) compared to the ZA Metals and Mining industry average (6x).

PE vs Market: HAR is good value based on its PE Ratio (7.8x) compared to the ZA market (10.9x).


Price to Earnings Growth Ratio

PEG Ratio: HAR is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: HAR's PB Ratio (1.3x) is in line with the ZA Metals and Mining industry average.


Future Growth

How is Harmony Gold Mining forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HAR's forecast earnings growth (5.4% per year) is below the savings rate (8.8%).

Earnings vs Market: HAR's earnings (5.4% per year) are forecast to grow faster than the ZA market (-0.2% per year).

High Growth Earnings: HAR's earnings are forecast to grow, but not significantly.

Revenue vs Market: HAR's revenue (4.1% per year) is forecast to grow slower than the ZA market (6.3% per year).

High Growth Revenue: HAR's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HAR's Return on Equity is forecast to be low in 3 years time (15%).


Past Performance

How has Harmony Gold Mining performed over the past 5 years?

11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HAR has high quality earnings.

Growing Profit Margin: HAR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HAR has become profitable over the past 5 years, growing earnings by 11.1% per year.

Accelerating Growth: HAR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HAR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (218.4%).


Return on Equity

High ROE: HAR's Return on Equity (16.4%) is considered low.


Financial Health

How is Harmony Gold Mining's financial position?


Financial Position Analysis

Short Term Liabilities: HAR's short term assets (ZAR8.6B) exceed its short term liabilities (ZAR5.6B).

Long Term Liabilities: HAR's short term assets (ZAR8.6B) do not cover its long term liabilities (ZAR12.0B).


Debt to Equity History and Analysis

Debt Level: HAR's net debt to equity ratio (1.7%) is considered satisfactory.

Reducing Debt: HAR's debt to equity ratio has increased from 8.3% to 10.8% over the past 5 years.

Debt Coverage: HAR's debt is well covered by operating cash flow (273.1%).

Interest Coverage: HAR earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Harmony Gold Mining current dividend yield, its reliability and sustainability?

2.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HAR's dividend (2.13%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (2.87%).

High Dividend: HAR's dividend (2.13%) is low compared to the top 25% of dividend payers in the ZA market (7.34%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.3%), HAR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HAR's dividends in 3 years are forecast to be thoroughly covered by earnings (13.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure


CEO

Peter Steenkamp (61 yo)

6yrs

Tenure

R16,403,000

Compensation

Mr. Peter William Steenkamp, BEng (Mining), Mine Manager’s Certificate Metal Mines, Mine Manager’s Certificate Fiery Mines, CPIR, MDP, BLDP has been the Chief Executive Officer and Executive Director of Ha...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD1.09M) is about average for companies of similar size in the ZA market ($USD1.19M).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HAR's management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: HAR's board of directors are seasoned and experienced ( 10.7 years average tenure).


Ownership

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.


Ownership Breakdown

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


Top Shareholders

Company Information

Harmony Gold Mining Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Harmony Gold Mining Company Limited
  • Ticker: HAR
  • Exchange: JSE
  • Founded: 1950
  • Industry: Gold
  • Sector: Materials
  • Implied Market Cap: R39.573b
  • Shares outstanding: 616.50m
  • Website: https://www.harmony.co.za

Number of Employees


Location

  • Harmony Gold Mining Company Limited
  • Randfontein Office park
  • Corner of Main Reef Road and Ward Avenue
  • Randfontein
  • Gauteng
  • 1759
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 17:01
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.