Merafe Resources
Market Cap
R1.2b
Last Updated
2021/01/21 17:02 UTC
Data Sources
Company Financials +
Executive Summary
Merafe Resources Limited engages in the mining and beneficiation of chrome ore into ferrochrome. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet with moderate growth potential.
Similar Companies
Share Price & News
How has Merafe Resources's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MRF is more volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 10% a week.
Volatility Over Time: MRF's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of ZA stocks.
Market Performance
7 Day Return
22.7%
MRF
-1.3%
ZA Metals and Mining
2.0%
ZA Market
1 Year Return
-22.9%
MRF
38.9%
ZA Metals and Mining
1.2%
ZA Market
Return vs Industry: MRF underperformed the ZA Metals and Mining industry which returned 38.9% over the past year.
Return vs Market: MRF underperformed the ZA Market which returned 1.2% over the past year.
Shareholder returns
| MRF | Industry | Market | |
|---|---|---|---|
| 7 Day | 22.7% | -1.3% | 2.0% |
| 30 Day | 28.6% | 8.0% | 7.2% |
| 90 Day | 8.0% | 6.3% | 12.9% |
| 1 Year | -11.0%-22.9% | 44.2%38.9% | 6.5%1.2% |
| 3 Year | -51.5%-64.0% | 242.6%206.5% | 2.9%-17.9% |
| 5 Year | 14.4%-20.6% | 376.2%301.0% | 51.0%8.9% |
Long-Term Price Volatility Vs. Market
How volatile is Merafe Resources's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
Should You Buy Merafe Resources Limited (JSE:MRF) For Its Dividend?1 month ago | Simply Wall St
Read This Before Selling Merafe Resources Limited (JSE:MRF) Shares2 months ago | Simply Wall St
How Much Did Merafe Resources'(JSE:MRF) Shareholders Earn From Share Price Movements Over The Last Three Years?Valuation
Is Merafe Resources undervalued compared to its fair value and its price relative to the market?
0.58x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: MRF (ZAR0.54) is trading above our estimate of fair value (ZAR0.22)
Significantly Below Fair Value: MRF is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MRF is unprofitable, so we can't compare its PE Ratio to the ZA Metals and Mining industry average.
PE vs Market: MRF is unprofitable, so we can't compare its PE Ratio to the ZA market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate MRF's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: MRF is good value based on its PB Ratio (0.6x) compared to the ZA Metals and Mining industry average (1.2x).
Next Steps
Future Growth
How is Merafe Resources forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
65.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MRF is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (9.3%).
Earnings vs Market: MRF is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: MRF's is expected to become profitable in the next 3 years.
Revenue vs Market: MRF's revenue (9.5% per year) is forecast to grow slower than the ZA market (10.7% per year).
High Growth Revenue: MRF's revenue (9.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MRF's Return on Equity is forecast to be low in 3 years time (9.1%).
Next Steps
Past Performance
How has Merafe Resources performed over the past 5 years?
-42.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MRF is currently unprofitable.
Growing Profit Margin: MRF is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: MRF is unprofitable, and losses have increased over the past 5 years at a rate of 42.1% per year.
Accelerating Growth: Unable to compare MRF's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: MRF is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (136.9%).
Return on Equity
High ROE: MRF has a negative Return on Equity (-107.3%), as it is currently unprofitable.
Next Steps
Financial Health
How is Merafe Resources's financial position?
Financial Position Analysis
Short Term Liabilities: MRF's short term assets (ZAR2.9B) exceed its short term liabilities (ZAR544.8M).
Long Term Liabilities: MRF's short term assets (ZAR2.9B) exceed its long term liabilities (ZAR361.9M).
Debt to Equity History and Analysis
Debt Level: MRF's debt to equity ratio (0.07%) is considered satisfactory.
Reducing Debt: MRF's debt to equity ratio has reduced from 24.1% to 0.07% over the past 5 years.
Debt Coverage: MRF's debt is well covered by operating cash flow (43277.2%).
Interest Coverage: Insufficient data to determine if MRF's interest payments on its debt are well covered by EBIT.
Balance Sheet
Next Steps
Dividend
What is Merafe Resources's current dividend yield, its reliability and sustainability?
7.41%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MRF's dividend (7.41%) is higher than the bottom 25% of dividend payers in the ZA market (2.98%).
High Dividend: MRF's dividend (7.41%) is low compared to the top 25% of dividend payers in the ZA market (8.8%).
Stability and Growth of Payments
Stable Dividend: MRF's dividend payments have been volatile in the past 10 years.
Growing Dividend: MRF's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: MRF is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: MRF's dividends in 3 years are forecast to be well covered by earnings (16.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.3yrs
Average management tenure
CEO
Zanele Matlala (57 yo)
8.58yrs
Tenure
R9,020,000
Compensation
Ms. Zanele Joyce Matlala, BCom, BCompt (Hons), CA (SA), has been Independent Non-Executive Director of Royal Bafokeng Platinum Limited since September 25, 2018. She has been the Chief Executive Officer at ...
CEO Compensation Analysis
Compensation vs Market: Zanele's total compensation ($USD605.86K) is above average for companies of similar size in the ZA market ($USD311.59K).
Compensation vs Earnings: Zanele's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 8.58yrs | R9.02m | 0.20% ZAR 2.3m | |
| Financial Director & Executive Director | 2.42yrs | R3.24m | 0.024% ZAR 286.0k | |
| Company Secretary | 6.25yrs | no data | no data |
6.3yrs
Average Tenure
57yo
Average Age
Experienced Management: MRF's management team is seasoned and experienced (6.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 8.58yrs | R9.02m | 0.20% ZAR 2.3m | |
| Financial Director & Executive Director | 2.42yrs | R3.24m | 0.024% ZAR 286.0k | |
| Independent Non Executive Chairperson | 1.67yrs | R681.00k | no data | |
| Non-Independent Non Executive Director | 9.83yrs | R357.00k | no data | |
| Independent Non-Executive Director | 2.5yrs | R516.00k | no data | |
| Independent Non-Executive Director | 12yrs | R541.00k | 0.0025% ZAR 29.4k | |
| Independent Director | 5.67yrs | R364.00k | no data | |
| Independent Non-Executive Director | 1.67yrs | R274.00k | no data | |
| Independent Non-Executive Director | 0.083yr | no data | no data |
2.5yrs
Average Tenure
48yo
Average Age
Experienced Board: MRF's board of directors are not considered experienced ( 2.5 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: 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
Merafe Resources Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Merafe Resources Limited
- Ticker: MRF
- Exchange: JSE
- Founded: 1987
- Industry: Steel
- Sector: Materials
- Market Cap: R1.180b
- Shares outstanding: 2.51b
- Website: https://www.meraferesources.co.za
Number of Employees
Location
- Merafe Resources Limited
- Building B
- Second Floor
- Bryanston
- Gauteng
- 2191
- South Africa
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MRF | JSE (The Johannesburg Securities Exchange) | Yes | Ordinary Shares | ZA | ZAR | Mar 1994 |
| RZT | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Mar 1994 |
Biography
Merafe Resources Limited engages in the mining and beneficiation of chrome ore into ferrochrome. It primarily serves stainless steel mills in Africa, the Middle East, the United States, other Asia countrie...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 17:02 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/06/30 |
| 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.