Kumba Iron Ore Limited
Kumba Iron Ore Limited Fundamental Analysis
Kumba Iron Ore Limited (KIROY) shows strong financial fundamentals with a PE ratio of 7.85, profit margin of 20.38%, and ROE of 26.36%. The company generates $69.9B in annual revenue with weak year-over-year growth of -20.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze KIROY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentKIROY demonstrates superior asset utilization.
Valuation Score
ExcellentKIROY trades at attractive valuation levels.
Growth Score
WeakKIROY faces weak or negative growth trends.
Financial Health Score
ExcellentKIROY maintains a strong and stable balance sheet.
Profitability Score
ExcellentKIROY achieves industry-leading margins.
Key Financial Metrics
Is KIROY Expensive or Cheap?
P/E Ratio
KIROY trades at 7.85 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KIROY's PEG of -0.17 indicates potential undervaluation.
Price to Book
The market values Kumba Iron Ore Limited at 2.04 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.93 times EBITDA. This is generally considered low.
How Well Does KIROY Make Money?
Net Profit Margin
For every $100 in sales, Kumba Iron Ore Limited keeps $20.38 as profit after all expenses.
Operating Margin
Core operations generate 38.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.36 in profit for every $100 of shareholder equity.
ROA
Kumba Iron Ore Limited generates $13.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kumba Iron Ore Limited generates strong operating cash flow of $27.29B, reflecting robust business health.
Free Cash Flow
Kumba Iron Ore Limited generates strong free cash flow of $17.29B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $17.99 in free cash annually.
FCF Yield
KIROY converts 15.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.006
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.30
vs 25 benchmark
How KIROY Stacks Against Its Sector Peers
| Metric | KIROY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.85 | 24.91 | Better (Cheaper) |
| ROE | 26.36% | 840.00% | Weak |
| Net Margin | 20.38% | -105381.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.55 | Strong (Low Leverage) |
| Current Ratio | 2.46 | 4.94 | Strong Liquidity |
| ROA | 13.76% | -4176.00% (disorted) | Strong |
KIROY outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kumba Iron Ore Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
6.49%
Industry Style: Cyclical, Commodity, Value
GrowingEPS CAGR
-9.69%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
6.71%
Industry Style: Cyclical, Commodity, Value
Growing