| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 1/6 |
| Past Performance | 1/6 |
| Financial Health | 6/6 |
| Dividends | 5/6 |
MRF Stock Overview
Merafe Resources Limited, together with its subsidiaries, engages in the mining and beneficiation of chrome ore into ferrochrome.
Merafe Resources Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | R1.25 |
| 52 Week High | R1.38 |
| 52 Week Low | R0.47 |
| Beta | 0.68 |
| 1 Month Change | 12.61% |
| 3 Month Change | 10.62% |
| 1 Year Change | 115.52% |
| 3 Year Change | -10.71% |
| 5 Year Change | -34.21% |
| Change since IPO | 1,685.77% |
Recent News & Updates
We Think That There Are Issues Underlying Merafe Resources' (JSE:MRF) Earnings
Unsurprisingly, Merafe Resources Limited's ( JSE:MRF ) stock price was strong on the back of its healthy earnings...
Shareholder Returns
| MRF | ZA Metals and Mining | ZA Market | |
|---|---|---|---|
| 7D | -3.8% | 2.6% | -0.3% |
| 1Y | 115.5% | 3.4% | 13.9% |
Return vs Industry: MRF exceeded the ZA Metals and Mining industry which returned 3.4% over the past year.
Return vs Market: MRF exceeded the ZA Market which returned 13.9% over the past year.
Price Volatility
| MRF volatility | |
|---|---|
| MRF Average Weekly Movement | 5.3% |
| 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: MRF is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: MRF's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1987 | n/a | Zanele Matlala | https://www.meraferesources.co.za |
Merafe Resources Limited, together with its subsidiaries, engages in the mining and beneficiation of chrome ore into ferrochrome. The company operates five ferrochrome smelters, twenty-two ferrochrome furnaces, six chrome ore mines, and five UG2 plants. It primarily serves stainless and specialty steel mills in Africa, the United States, China, Japan, Western Europe, and internationally.
Merafe Resources Fundamentals Summary
| MRF fundamental statistics | |
|---|---|
| Market Cap | R3.12b |
| Earnings (TTM) | R534.43m |
| Revenue (TTM) | R6.19b |
5.8x
P/E Ratio0.5x
P/S RatioIs MRF overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| MRF income statement (TTM) | |
|---|---|
| Revenue | R6.19b |
| Cost of Revenue | R5.16b |
| Gross Profit | R1.03b |
| Expenses | R493.91m |
| Earnings | R534.43m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Mar 22, 2022
| Earnings per share (EPS) | 0.21 |
| Gross Margin | 16.62% |
| Net Profit Margin | 8.64% |
| Debt/Equity Ratio | 0% |
How did MRF perform over the long term?
See historical performance and comparisonDividends
11.2%
Current Dividend Yield33%
Payout RatioValuation
Is Merafe Resources undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MRF (ZAR1.25) is trading below our estimate of fair value (ZAR5.9)
Significantly Below Fair Value: MRF is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MRF is good value based on its PE Ratio (5.8x) compared to the ZA Metals and Mining industry average (6x).
PE vs Market: MRF is good value based on its PE Ratio (5.8x) compared to the ZA market (10.9x).
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 (1.1x) compared to the ZA Metals and Mining industry average (1.3x).
Future Growth
How is Merafe Resources forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
6.3%
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if MRF's forecast earnings growth is above the savings rate (8.8%).
Earnings vs Market: Insufficient data to determine if MRF's earnings are forecast to grow faster than the ZA market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MRF's revenue (6.3% per year) is forecast to grow faster than the ZA market (6.3% per year).
High Growth Revenue: MRF's revenue (6.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if MRF's Return on Equity is forecast to be high in 3 years time
Past Performance
How has Merafe Resources performed over the past 5 years?
-47.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MRF has a large one-off gain of ZAR289.0M impacting its June 30 2021 financial results.
Growing Profit Margin: MRF became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: MRF's earnings have declined by 47.9% per year over the past 5 years.
Accelerating Growth: MRF has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: MRF 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: MRF's Return on Equity (18.8%) is considered low.
Financial Health
How is Merafe Resources's financial position?
Financial Position Analysis
Short Term Liabilities: MRF's short term assets (ZAR3.5B) exceed its short term liabilities (ZAR957.1M).
Long Term Liabilities: MRF's short term assets (ZAR3.5B) exceed its long term liabilities (ZAR217.2M).
Debt to Equity History and Analysis
Debt Level: MRF is debt free.
Reducing Debt: MRF has no debt compared to 5 years ago when its debt to equity ratio was 14%.
Debt Coverage: MRF has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: MRF has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is Merafe Resources's current dividend yield, its reliability and sustainability?
11.20%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MRF's dividend (11.2%) is higher than the bottom 25% of dividend payers in the ZA market (2.87%).
High Dividend: MRF's dividend (11.2%) is in the top 25% of dividend payers in the ZA market (7.34%)
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: With its reasonably low payout ratio (32.8%), MRF's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MRF's dividends in 3 years are forecast to be covered by earnings (54.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.3yrs
Average management tenure
CEO
Zanele Matlala (58 yo)
9.58yrs
Tenure
R6,459,000
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 ($USD428.52K) is about average for companies of similar size in the ZA market ($USD530.76K).
Compensation vs Earnings: Zanele's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: MRF's management team is seasoned and experienced (7.3 years average tenure).
Board Members
Experienced Board: MRF's board of directors are not considered experienced ( 2.7 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Merafe Resources Limited's employee growth, exchange listings and data sources
Key Information
- Name: Merafe Resources Limited
- Ticker: MRF
- Exchange: JSE
- Founded: 1987
- Industry: Steel
- Sector: Materials
- Implied Market Cap: R3.124b
- Shares outstanding: 2.50b
- Website: https://www.meraferesources.co.za
Number of Employees
Location
- Merafe Resources Limited
- Building B
- Second Floor
- Bryanston
- Gauteng
- 2191
- 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.