| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 1/6 |
| Past Performance | 5/6 |
| Financial Health | 6/6 |
| Dividends | 4/6 |
KIO Stock Overview
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.
Kumba Iron Ore Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | R545.46 |
| 52 Week High | R803.38 |
| 52 Week Low | R385.49 |
| Beta | 0.90 |
| 1 Month Change | 19.82% |
| 3 Month Change | 10.19% |
| 1 Year Change | -19.39% |
| 3 Year Change | 87.25% |
| 5 Year Change | 177.01% |
| Change since IPO | 395.87% |
Recent News & Updates
An Intrinsic Calculation For Kumba Iron Ore Limited (JSE:KIO) Suggests It's 39% Undervalued
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Kumba Iron Ore Limited...
If You Like EPS Growth Then Check Out Kumba Iron Ore (JSE:KIO) Before It's Too Late
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...
A Look At The Fair Value Of Kumba Iron Ore Limited (JSE:KIO)
In this article we are going to estimate the intrinsic value of Kumba Iron Ore Limited ( JSE:KIO ) by taking the...
Shareholder Returns
| KIO | ZA Metals and Mining | ZA Market | |
|---|---|---|---|
| 7D | 9.9% | 2.6% | -0.3% |
| 1Y | -19.4% | 3.4% | 13.9% |
Return vs Industry: KIO underperformed the ZA Metals and Mining industry which returned 3.4% over the past year.
Return vs Market: KIO underperformed the ZA Market which returned 13.9% over the past year.
Price Volatility
| KIO volatility | |
|---|---|
| KIO Average Weekly Movement | 6.9% |
| 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: KIO is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: KIO's weekly volatility (7%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2005 | n/a | Mpumi Zikalala | https://www.angloamericankumba.com |
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.
Kumba Iron Ore Fundamentals Summary
| KIO fundamental statistics | |
|---|---|
| Market Cap | R174.94b |
| Earnings (TTM) | R37.72b |
| Revenue (TTM) | R112.14b |
4.6x
P/E Ratio1.6x
P/S RatioIs KIO overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| KIO income statement (TTM) | |
|---|---|
| Revenue | R112.14b |
| Cost of Revenue | R43.42b |
| Gross Profit | R68.72b |
| Expenses | R31.00b |
| Earnings | R37.72b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Feb 22, 2022
| Earnings per share (EPS) | 117.62 |
| Gross Margin | 61.28% |
| Net Profit Margin | 33.64% |
| Debt/Equity Ratio | 0% |
How did KIO perform over the long term?
See historical performance and comparisonDividends
26.7%
Current Dividend Yield97%
Payout RatioValuation
Is Kumba Iron Ore undervalued compared to its fair value and its price relative to the market?
39.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: KIO (ZAR545.46) is trading below our estimate of fair value (ZAR908.09)
Significantly Below Fair Value: KIO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: KIO is good value based on its PE Ratio (4.6x) compared to the ZA Metals and Mining industry average (6x).
PE vs Market: KIO is good value based on its PE Ratio (4.6x) compared to the ZA market (10.9x).
Price to Earnings Growth Ratio
PEG Ratio: KIO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: KIO is overvalued based on its PB Ratio (3x) compared to the ZA Metals and Mining industry average (1.3x).
Future Growth
How is Kumba Iron Ore forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
-36.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KIO's earnings are forecast to decline over the next 3 years (-36.6% per year).
Earnings vs Market: KIO's earnings are forecast to decline over the next 3 years (-36.6% per year).
High Growth Earnings: KIO's earnings are forecast to decline over the next 3 years.
Revenue vs Market: KIO's revenue is expected to decline over the next 3 years (-21.4% per year).
High Growth Revenue: KIO's revenue is forecast to decline over the next 3 years (-21.4% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: KIO's Return on Equity is forecast to be high in 3 years time (30.2%)
Past Performance
How has Kumba Iron Ore performed over the past 5 years?
31.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KIO has high quality earnings.
Growing Profit Margin: KIO's current net profit margins (33.6%) are higher than last year (23.8%).
Past Earnings Growth Analysis
Earnings Trend: KIO's earnings have grown significantly by 31.1% per year over the past 5 years.
Accelerating Growth: KIO's earnings growth over the past year (158.2%) exceeds its 5-year average (31.1% per year).
Earnings vs Industry: KIO earnings growth over the past year (158.2%) underperformed the Metals and Mining industry 218.4%.
Return on Equity
High ROE: KIO's Return on Equity (65.7%) is considered outstanding.
Financial Health
How is Kumba Iron Ore's financial position?
Financial Position Analysis
Short Term Liabilities: KIO's short term assets (ZAR55.0B) exceed its short term liabilities (ZAR12.3B).
Long Term Liabilities: KIO's short term assets (ZAR55.0B) exceed its long term liabilities (ZAR12.9B).
Debt to Equity History and Analysis
Debt Level: KIO is debt free.
Reducing Debt: KIO has no debt compared to 5 years ago when its debt to equity ratio was 15.4%.
Debt Coverage: KIO has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: KIO has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is Kumba Iron Ore current dividend yield, its reliability and sustainability?
26.66%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: KIO's dividend (26.66%) is higher than the bottom 25% of dividend payers in the ZA market (2.87%).
High Dividend: KIO's dividend (26.66%) is in the top 25% of dividend payers in the ZA market (7.34%)
Stability and Growth of Payments
Stable Dividend: KIO's dividend payments have been volatile in the past 10 years.
Growing Dividend: KIO's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (96.9%), KIO's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: KIO's dividends in 3 years are forecast to be covered by earnings (87.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.9yrs
Average management tenure
CEO
Mpumi Zikalala (42 yo)
no data
Tenure
Ms. Nompumelelo Zikalala, also known as Mpumi, served as Managing Director of Group Managed Operations at De Beers SA since April 2019 until January 01, 2022. She serves as Chief Executive Officer and Dire...
Leadership Team
Experienced Management: KIO's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
Experienced Board: KIO's board of directors are considered experienced (4.2 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Kumba Iron Ore Limited's employee growth, exchange listings and data sources
Key Information
- Name: Kumba Iron Ore Limited
- Ticker: KIO
- Exchange: JSE
- Founded: 2005
- Industry: Steel
- Sector: Materials
- Implied Market Cap: R174.943b
- Shares outstanding: 320.73m
- Website: https://www.angloamericankumba.com
Number of Employees
Location
- Kumba Iron Ore Limited
- Building 2B
- Centurion Gate
- Centurion
- Gauteng
- 157
- South Africa
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/23 17:01 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.