Fact based stock research
African Rainbow Minerals (JSE:ARI)
ZAE000054045
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
African Rainbow Minerals stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 93 (better than 93% compared with investment alternatives), African Rainbow Minerals (Diversified Metals & Mining, South Africa) shares have much better financial characteristics than comparable stocks. Shares of African Rainbow Minerals are a good value (attractively priced) with a consolidated Value Rank of 79 (better than 79% of alternatives), show above-average growth (Growth Rank of 51), and are safely financed (Safety Rank of 83), which means low debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 93, is a strong buy recommendation based on African Rainbow Minerals's financial characteristics. As the company African Rainbow Minerals's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 79), above-average growth (Obermatt Growth Rank of 51), and indicate that the company is safely financed (Obermatt Safety Rank of 83), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of African Rainbow Minerals. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | South Africa |
| Industry | Diversified Metals & Mining |
| Index | Iron, JSE All Shares |
| Size class | Medium |
This stock has achievements: Top 10 Stock.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: African Rainbow Minerals
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 93 |
|
65 |
|
80 |
|
79 |
|
| GROWTH | ||||||||
| GROWTH | 16 |
|
11 |
|
47 |
|
51 |
|
| SAFETY | ||||||||
| SAFETY | 100 |
|
93 |
|
93 |
|
83 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
47 |
|
56 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
67 |
|
92 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 93 (better than 93% compared with investment alternatives), African Rainbow Minerals (Diversified Metals & Mining, South Africa) shares have much better financial characteristics than comparable stocks. Shares of African Rainbow Minerals are a good value (attractively priced) with a consolidated Value Rank of 79 (better than 79% of alternatives), show above-average growth (Growth Rank of 51), and are safely financed (Safety Rank of 83), which means low debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 93, is a strong buy recommendation based on African Rainbow Minerals's financial characteristics. As the company African Rainbow Minerals's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 79), above-average growth (Obermatt Growth Rank of 51), and indicate that the company is safely financed (Obermatt Safety Rank of 83), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of African Rainbow Minerals. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 93 |
|
65 |
|
80 |
|
79 |
|
| GROWTH | ||||||||
| GROWTH | 16 |
|
11 |
|
47 |
|
51 |
|
| SAFETY | ||||||||
| SAFETY | 100 |
|
93 |
|
93 |
|
83 |
|
| COMBINED | ||||||||
| COMBINED | 100 |
|
63 |
|
94 |
|
93 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 79 (better than 79% compared with alternatives) for 2024, African Rainbow Minerals shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for African Rainbow Minerals. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 84 which means that the stock price compared with what market professionals expect for future profits is lower than for 84% of comparable companies, indicating a good value concerning African Rainbow Minerals's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 86, and for Dividend Yield with a Dividend Yield Rank of 88. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 76% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 24). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 79, is a buy recommendation based on African Rainbow Minerals's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that African Rainbow Minerals has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing African Rainbow Minerals shares. 9. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 60 |
|
21 |
|
22 |
|
24 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 100 |
|
85 |
|
93 |
|
84 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 76 |
|
72 |
|
84 |
|
86 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 98 |
|
92 |
|
94 |
|
88 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 93 |
|
65 |
|
80 |
|
79 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 51 (better than 51% compared with alternatives), African Rainbow Minerals shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for African Rainbow Minerals. While Sales Growth ranks at 81, professionals currently expect the company to grow more than 81% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 42, which means that, currently, professionals expect the company to grow its profits less than 58% of its competitors, and Capital Growth has a low rank of 35. Historic stock returns were also below average with a current Stock Returns rank of 35 which means that the stock returns have recently been below 65% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 51, is a buy recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance isn't stellar here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 21 |
|
39 |
|
94 |
|
81 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 37 |
|
11 |
|
51 |
|
42 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
47 |
|
34 |
|
35 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 12 |
|
23 |
|
17 |
|
35 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 16 |
|
11 |
|
47 |
|
51 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 83 (better than 83% compared with alternatives) for 2024, the company African Rainbow Minerals has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of African Rainbow Minerals is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for African Rainbow Minerals. Leverage is at 90, meaning the company has a below-average debt-to-equity ratio. It has less debt than 90% of its competitors. Refinancing is at a rank of 73, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 73% of its competitors. Finally, Liquidity is also good at a rank of 53, which means that the company generates more profit to service its debt than 53% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 83 (better than 83% compared with alternatives), African Rainbow Minerals has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with African Rainbow Minerals but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 96 |
|
82 |
|
96 |
|
90 |
|
| REFINANCING | ||||||||
| REFINANCING | 94 |
|
77 |
|
77 |
|
73 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 89 |
|
84 |
|
70 |
|
53 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 100 |
|
93 |
|
93 |
|
83 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
13 |
|
80 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
18 |
|
29 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
96 |
|
59 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
51 |
|
23 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
47 |
|
56 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for African Rainbow Minerals from December 19, 2024.
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