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African Rainbow Minerals Limited (ARI) Fair Value & Analysis

Basic Materials · ZA · Market cap 37.1B ZAC

AR African Rainbow Minerals Limited ARI · JSE
PriceR179.09
Fair ValueR27.94
Upside-84.4%
Quality87/100
Evidence: Medium Range R20.96 – R34.93

Fair value as of: Jun 26, 2026

From 11 valuation models · updated 3 days ago

Share price −15.7% over the past month.

Price vs Fair Value (12 months)

R269.56 R166.89 Fair Value R27.94 Jun 2025 Jun 2026

12‑month range R166.89 – R269.56 · fair‑value band R20.96 – R34.93 · the R179.09 price screens above the R27.94 fair value. As of Jun 26, 2026.

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Analysis

African Rainbow Minerals Limited (ARI) currently trades at R179.09, while our model-based Fair Value estimate is R27.94 — implying the stock looks roughly 84.4% overvalued today. We read business quality at 87/100 (high quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium — the entry price still matters most (evidence: medium).

Over the trailing twelve months, African Rainbow Minerals Limited generated revenue of 13.8B ZAR at a net margin of 9.3%. Revenue grew 2.3% year over year. It earns a return on equity of 3.4%. The balance sheet holds a net cash position of 6.6B ZAR. Fundamentals as of Jun 26, 2026

Key figures & financial health

Revenue (TTM) 13.8B ZAC
Revenue growth (YoY) +2.3%
Net margin 9.3%
Return on equity 3.4%
Free cash flow −210M ZAC FY2025
P/E ratio 27.5
More key figures
Operating margin 12.7%
EPS (TTM) R6.73
Dividend yield 0.1%
EPS growth (YoY) +231%
Net cash 6.6B ZAC FY2025

Figures from reported company fundamentals (EODHD) · as of Jun 26, 2026. TTM = trailing twelve months.

About the company

African Rainbow Minerals Limited, through its subsidiaries, operates as a diversified mining and minerals company in South Africa, Malaysia, and Switzerland. It explores for platinum group metals, nickel, coal, iron ore, copper, manganese ore, and chrome, as well as gold deposits. African Rainbow Minerals Limited was incorporated in 1933 and is based in Sandton, South Africa.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

African Rainbow Minerals Limited reported revenue of R11.7B in FY2025 versus R19.7B in FY2021, a compound −12.2%/yr. Reported net income was R330M in FY2025, compounding −59.8%/yr from FY2021.

Revenue −12.2%/yr
FY21 R19.7B
FY22 R16.9B
FY23 R14.7B
FY24 R11.4B
FY25 R11.7B
Net income −59.8%/yr
FY21 R12.6B
FY22 R12.4B
FY23 R8.1B
FY24 R3.1B
FY25 R330M

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Frequently asked questions

Is African Rainbow Minerals Limited (ARI) undervalued?
As of Jun 26, 2026, our model estimates a fair value of R27.94 versus a price of R179.09 — about −84% (overvalued). Model-based estimate, not financial advice.
What is the fair value of ARI?
Our 21-model fair value for African Rainbow Minerals Limited is R27.94 (as of Jun 26, 2026), built from audited fundamentals. The current price is R179.09.
What is the quality score of ARI?
African Rainbow Minerals Limited has a Quality Score of 87/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of African Rainbow Minerals Limited (ARI)?
African Rainbow Minerals Limited reported trailing-twelve-month revenue of about 13.8B ZAR (latest available figure, as of Jun 26, 2026).
What is the net profit margin of ARI?
The net profit margin of African Rainbow Minerals Limited is about 9.3%, meaning it keeps roughly 9.3% of revenue as net income. Based on the latest reported figures.
Does African Rainbow Minerals Limited pay a dividend?
African Rainbow Minerals Limited currently shows a dividend yield of about 0.06% relative to its recent price (as of Jun 26, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.