Fact based stock research
Kumba Iron Ore (JSE:KIO)
ZAE000085346
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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.
Kumba Iron Ore stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 65 (better than 65% compared with investment alternatives), Kumba Iron Ore (Steel, South Africa) shares have above-average financial characteristics compared with similar stocks. Shares of Kumba Iron Ore are a good value (attractively priced) with a consolidated Value Rank of 50 (better than 50% of alternatives), are safely financed (Safety Rank of 96, which means low debt burdens), but show below-average growth (Growth Rank of 25). ...read more
RECOMMENDATION: A Combined Rank of 65, is a buy recommendation based on Kumba Iron Ore's financial characteristics. As the company Kumba Iron Ore's key financial metrics exhibit good value (Obermatt Value Rank of 50) but low growth (Obermatt Growth Rank of 25) while being safely financed (Obermatt Safety Rank of 96), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 50% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. 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 | Steel |
| Index | Energy Efficient, Good Governace Growth Markets, Human Rights, Independent Boards Growth Markets, Water Efficiency, JSE All Shares |
| Size class | X-Large |
This stock has achievements: Top 10 Stock.
27-Mar-2025. 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: Kumba Iron Ore
| RESEARCH HISTORY | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 27 |
|
28 |
|
43 |
|
50 |
|
| GROWTH | ||||||||
| GROWTH | 3 |
|
71 |
|
21 |
|
25 |
|
| SAFETY | ||||||||
| SAFETY | 99 |
|
71 |
|
96 |
|
96 |
|
| SENTIMENT | ||||||||
| SENTIMENT | 52 |
|
82 |
|
70 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | 41 |
|
80 |
|
70 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 65 (better than 65% compared with investment alternatives), Kumba Iron Ore (Steel, South Africa) shares have above-average financial characteristics compared with similar stocks. Shares of Kumba Iron Ore are a good value (attractively priced) with a consolidated Value Rank of 50 (better than 50% of alternatives), are safely financed (Safety Rank of 96, which means low debt burdens), but show below-average growth (Growth Rank of 25). ...read more
RECOMMENDATION: A Combined Rank of 65, is a buy recommendation based on Kumba Iron Ore's financial characteristics. As the company Kumba Iron Ore's key financial metrics exhibit good value (Obermatt Value Rank of 50) but low growth (Obermatt Growth Rank of 25) while being safely financed (Obermatt Safety Rank of 96), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 50% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. 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 | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 27 |
|
28 |
|
43 |
|
50 |
|
| GROWTH | ||||||||
| GROWTH | 3 |
|
71 |
|
21 |
|
25 |
|
| SAFETY | ||||||||
| SAFETY | 99 |
|
71 |
|
96 |
|
96 |
|
| COMBINED | ||||||||
| COMBINED | 29 |
|
64 |
|
56 |
|
65 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 50 (better than 50% compared with alternatives), Kumba Iron Ore shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Kumba Iron Ore. Price-to-Profit (also referred to as price-earnings, P/E) is 76 which means that the stock price compared with what market professionals expect for future profits is lower than for 76% of comparable companies, indicating a good value concerning Kumba Iron Ore's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 40, which means that the stock price is lower as regards to invested capital than for 40% of comparable investments. On the other hand, Price-to-Sales is less favorable than 68% of alternatives (only 32% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than 8% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 50, is a buy recommendation based on Kumba Iron Ore's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high in respect to expected revenues, it means that the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than pay it out to shareholders, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 33 |
|
26 |
|
35 |
|
32 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 47 |
|
57 |
|
64 |
|
76 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 20 |
|
16 |
|
33 |
|
40 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 90 |
|
90 |
|
92 |
|
92 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 27 |
|
28 |
|
43 |
|
50 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 25 (better than 25% compared with alternatives), Kumba Iron Ore shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, where half of the indicators are below and half above average for Kumba Iron Ore. Profit Growth, with a rank of 56 (better than 56% of its competitors), and Capital Growth, with a rank of 57, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 4, which means that, currently, professionals expect the company to grow less than 96% of its competitors, and Stock Returns are at a rank of 35. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 25, is a hold recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. 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 is mixed here. ...read more
| GROWTH METRICS | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 1 |
|
29 |
|
4 |
|
4 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 48 |
|
77 |
|
57 |
|
56 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | 32 |
|
47 |
|
67 |
|
57 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 17 |
|
77 |
|
31 |
|
35 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 3 |
|
71 |
|
21 |
|
25 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 96 (better than 96% compared with alternatives) for 2025, the company Kumba Iron Ore has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Kumba Iron Ore 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 Kumba Iron Ore. Leverage is at 91, meaning the company has a below-average debt-to-equity ratio. It has less debt than 91% of its competitors. Refinancing is at a rank of 60, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 60% of its competitors. Finally, Liquidity is also good at a rank of 81, which means that the company generates more profit to service its debt than 81% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 96 (better than 96% compared with alternatives), Kumba Iron Ore 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 Kumba Iron Ore but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 100 |
|
74 |
|
92 |
|
91 |
|
| REFINANCING | ||||||||
| REFINANCING | 75 |
|
49 |
|
57 |
|
60 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 96 |
|
78 |
|
86 |
|
81 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 99 |
|
71 |
|
96 |
|
96 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2022 | 2023 | 2024 | 2025 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
9 |
|
32 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | 50 |
|
88 |
|
83 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | 71 |
|
96 |
|
76 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | 59 |
|
57 |
|
18 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | 52 |
|
82 |
|
70 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Kumba Iron Ore from March 27, 2025.
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