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KIO

Kumba Iron OreJSE:KIO Stock Report

Last Price

R545.46

Market Cap

R174.9b

7D

9.9%

1Y

-19.4%

Updated

23 Jan, 2022

Data

Company Financials +
KIO fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends4/6

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

Merafe Resources

JSE:MRF

R3.1b

BHP Group

ASX:BHP

AU$231.1b

Rio Tinto Group

LSE:RIO

UK£89.5b

Vale

BOVESPA:VALE3

R$415.4b

Price History & Performance

Summary of all time highs, changes and price drops for Kumba Iron Ore
Historical stock prices
Current Share PriceR545.46
52 Week HighR803.38
52 Week LowR385.49
Beta0.90
1 Month Change19.82%
3 Month Change10.19%
1 Year Change-19.39%
3 Year Change87.25%
5 Year Change177.01%
Change since IPO395.87%

Recent News & Updates

Jan 19
An Intrinsic Calculation For Kumba Iron Ore Limited (JSE:KIO) Suggests It's 39% Undervalued

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...

Oct 30
If You Like EPS Growth Then Check Out Kumba Iron Ore (JSE:KIO) Before It's Too Late

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...

Oct 10
A Look At The Fair Value Of Kumba Iron Ore Limited (JSE:KIO)

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

KIOZA Metals and MiningZA Market
7D9.9%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

Is KIO's price volatile compared to industry and market?
KIO volatility
KIO Average Weekly Movement6.9%
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: 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

FoundedEmployeesCEOWebsite
2005n/aMpumi Zikalalahttps://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

How do Kumba Iron Ore's earnings and revenue compare to its market cap?
KIO fundamental statistics
Market CapR174.94b
Earnings (TTM)R37.72b
Revenue (TTM)R112.14b

4.6x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KIO income statement (TTM)
RevenueR112.14b
Cost of RevenueR43.42b
Gross ProfitR68.72b
ExpensesR31.00b
EarningsR37.72b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 22, 2022

Earnings per share (EPS)117.62
Gross Margin61.28%
Net Profit Margin33.64%
Debt/Equity Ratio0%

How did KIO perform over the long term?

See historical performance and comparison

Dividends

26.7%

Current Dividend Yield

97%

Payout Ratio

Valuation

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

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 Earnings2020/12/31


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.