Kumba Iron Ore
Market Cap
R158.8b
Last Updated
2020/06/06 20:22 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
PE ratio (9.8x) is below the Metals and Mining industry average (17.4x)
Risk Analysis
Earnings are forecast to decline by an average of -15.4% per year for the next 3 years
Snowflake Analysis
Outstanding track record with flawless balance sheet.
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: KIO's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
4.4%
KIO
0.5%
ZA Metals and Mining
6.1%
ZA Market
1 Year Return
8.1%
KIO
45.9%
ZA Metals and Mining
-20.8%
ZA Market
Return vs Industry: KIO underperformed the ZA Metals and Mining industry which returned 45.9% over the past year.
Return vs Market: KIO exceeded the ZA Market which returned -20.8% over the past year.
Shareholder returns
| KIO | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.4% | 0.5% | 6.1% |
| 30 Day | 36.8% | 5.7% | 6.9% |
| 90 Day | 70.5% | 15.1% | -3.0% |
| 1 Year | 23.1%8.1% | 53.7%45.9% | -9.3%-20.8% |
| 3 Year | 345.4%213.5% | 193.6%168.9% | 8.2%-12.5% |
| 5 Year | 308.8%187.7% | 205.2%163.7% | 15.2%-13.9% |
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
2 weeks ago | Simply Wall St
What Is Kumba Iron Ore's (JSE:KIO) P/E Ratio After Its Share Price Rocketed?2 weeks ago | Simply Wall St
The CFO & Executive Director of Kumba Iron Ore Limited (JSE:KIO), Bothwell Mazarura, Just Sold 100% Of Their Holding4 weeks ago | Simply Wall St
Kumba Iron Ore (JSE:KIO) Is Growing Earnings But Are They A Good Guide?Valuation
Is Kumba Iron Ore undervalued compared to its fair value and its price relative to the market?
9.77x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: KIO (ZAR495.3) is trading above our estimate of fair value (ZAR326.52)
Significantly Below Fair Value: KIO is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: KIO is good value based on its PE Ratio (9.8x) compared to the Metals and Mining industry average (17.4x).
PE vs Market: KIO is poor value based on its PE Ratio (9.8x) compared to the ZA market (8.4x).
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 (4.4x) compared to the ZA Metals and Mining industry average (1x).
Next Steps
Future Growth
How is Kumba Iron Ore forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
-15.4%
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 (-15.4% per year).
Earnings vs Market: KIO's earnings are forecast to decline over the next 3 years (-15.4% 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 (-4.4% per year).
High Growth Revenue: KIO's revenue is forecast to decline over the next 3 years (-4.4% 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 (26.6%)
Next Steps
Past Performance
How has Kumba Iron Ore performed over the past 5 years?
25.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KIO has high quality earnings.
Growing Profit Margin: KIO's current net profit margins (25.3%) are higher than last year (21.2%).
Past Earnings Growth Analysis
Earnings Trend: KIO's earnings have grown significantly by 25% per year over the past 5 years.
Accelerating Growth: KIO's earnings growth over the past year (68.1%) exceeds its 5-year average (25% per year).
Earnings vs Industry: KIO earnings growth over the past year (68.1%) exceeded the Metals and Mining industry 6.4%.
Return on Equity
High ROE: KIO's Return on Equity (44.9%) is considered outstanding.
Next Steps
Financial Health
How is Kumba Iron Ore's financial position?
Financial Position Analysis
Short Term Liabilities: KIO's short term assets (ZAR23.0B) exceed its short term liabilities (ZAR7.1B).
Long Term Liabilities: KIO's short term assets (ZAR23.0B) exceed its long term liabilities (ZAR12.3B).
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 35.7%.
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
Next Steps
Dividend
What is Kumba Iron Ore's current dividend yield, its reliability and sustainability?
9.44%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: KIO's dividend (9.44%) is higher than the bottom 25% of dividend payers in the ZA market (4.19%).
High Dividend: KIO's dividend (9.44%) is low compared to the top 25% of dividend payers in the ZA market (11.59%).
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 (92.2%), 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 (86.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.9yrs
Average management tenure
CEO
Themba Mkhwanazi (49yo)
3.75yrs
Tenure
R42,248,000
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 ($USD2.51M) is about average for companies of similar size in the ZA market ($USD2.23M).
Compensation vs Earnings: Themba's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 3.75yrs | R42.25m | no data | |
| CFO & Executive Director | 2.75yrs | R15.21m | no data | |
| Executive Head of Technical & Projects | 3.83yrs | R6.50m | 0.0066% ZAR10.4m | |
| Executive Head of Marketing & Seaborne Logistics | no data | R28.40m | no data | |
| Executive Head of Human Resources | 10.42yrs | R6.38m | 0.014% ZAR21.9m | |
| Executive Head of Strategy & Business Development and Acting Executive Head of Corporate Affairs | 1.92yrs | R7.13m | 0.00064% ZAR1.0m | |
| Executive Head of Safety | 3.08yrs | R5.77m | 0.0046% ZAR7.2m | |
| Chief Operating Officer | 0.17yr | no data | no data | |
| Investor Relations Manager | no data | no data | no data | |
| Company Secretary | 0.42yr | no data | no data |
2.9yrs
Average Tenure
49.5yo
Average Age
Experienced Management: KIO's management team is considered experienced (2.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 3.75yrs | R42.25m | no data | |
| CFO & Executive Director | 2.75yrs | R15.21m | no data | |
| Lead Independent Non-Executive Director | 2.08yrs | R1.14m | no data | |
| Independent Chairman of the Board | 2.67yrs | R1.48m | no data | |
| Non-Executive Director | 3.25yrs | R409.00k | no data | |
| Independent Non-Executive Director | 3yrs | R890.00k | 0.00016% ZAR254.1k | |
| Independent Non-Executive Director | 2.5yrs | R834.00k | no data | |
| Independent Non-Executive Director | 2.5yrs | R513.00k | no data | |
| Independent Non-Executive Director | 8yrs | R738.00k | no data | |
| Non-Executive Director | 3.58yrs | R490.00k | no data |
2.9yrs
Average Tenure
57yo
Average Age
Experienced Board: KIO's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: KIO insiders have only sold shares 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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Kumba Iron Ore Limited
- Ticker: KIO
- Exchange: JSE
- Founded: 2006
- Industry: Steel
- Sector: Materials
- Market Cap: R158.830b
- Shares outstanding: 320.67m
- 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 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, North Africa, and Americas. The company was founded in 2006 and is based in Centurion, South Africa. Kumba Iron Ore Limited operates as a subsidiary of Anglo South Africa Capital (Proprietary) Limited.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/06 20:22 |
| End of Day Share Price | 2020/06/05 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.