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Kumba Iron Ore Limited (KIO) Fair Value & Analysis

Basic Materials · ZA · Market cap 91.4B ZAC

KI Kumba Iron Ore Limited KIO · JSE
PriceR291.54
Fair ValueR775.47
Upside+166.0%
Quality80/100
Evidence: Medium Range R581.60 – R969.34

Fair value as of: Jun 26, 2026

From 26 valuation models · updated 4 days ago

Share price −10.3% over the past month.

Price vs Fair Value (12 months)

R389.34 R280.98 Fair Value R775.47 Jun 2025 Jun 2026

12‑month range R280.98 – R389.34 · fair‑value band R581.60 – R969.34 · the R291.54 price screens below the R775.47 fair value. As of Jun 26, 2026.

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Analysis

Kumba Iron Ore Limited (KIO) currently trades at R291.54, while our model-based Fair Value estimate is R775.47 — implying the stock looks roughly 166.0% undervalued today. We read business quality at 80/100 (high quality), in the Basic Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium) — always confirm before acting.

Over the trailing twelve months, Kumba Iron Ore Limited generated revenue of 70.1B ZAR at a net margin of 20.9%. Revenue grew 8.6% year over year. It earns a return on equity of 27.1%. The balance sheet holds a net cash position of 14.8B ZAR. Fundamentals as of Jun 26, 2026

Key figures & financial health

Revenue (TTM) 70.1B ZAC
Revenue growth (YoY) +8.6%
Net margin 20.9%
Return on equity 27.1%
Free cash flow 17.1B ZAC FY2025
P/E ratio 6.3
More key figures
Operating margin 36.5%
EPS (TTM) R45.43
Dividend yield 0.1%
EPS growth (YoY) -0.7%
Net cash 14.8B ZAC FY2025

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

About the company

Kumba Iron Ore Limited, together with its subsidiaries, engages in the exploration, extraction, beneficiation, marketing, sale, and shipping of iron ore for the steel industry in South Africa. It operates through Products " Sishen Mine, Products " Kolomela Mine, Services " Logistics, and Services " Shipping Operations segments. The company produces iron ore at its flagship Sishen mine located near the town of Kathu in the Northern Cape province; and its Kolomela mine located near Postmasburg in the Northern Cape province. It is also involved in the operation of a port in Saldanha Bay in the Western Cape province; and provision of iron ore logistics services through rail, as well as shipping services. The company exports its products to China, Japan, India, South Korea, rest of Asia, Europe, the Middle East, North Africa, rest of Africa, and rest of the Americas. The company was incorporated in 2005 and is headquartered in Johannesburg, South Africa. Kumba Iron Ore Limited is a subsi…

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Kumba Iron Ore Limited reported revenue of R72.1B in FY2025 versus R102B in FY2021, a compound −8.3%/yr. Reported net income was R14.6B in FY2025, compounding −18.6%/yr from FY2021.

Revenue −8.3%/yr
FY21 R102B
FY22 R74.0B
FY23 R86.2B
FY24 R68.5B
FY25 R72.1B
Net income −18.6%/yr
FY21 R33.3B
FY22 R15.0B
FY23 R22.7B
FY24 R14.7B
FY25 R14.6B

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Similar stocks

6 more Steel stocks, each showing price versus our Fair Value estimate (as of Jun 26, 2026).

Stock Price Fair Value vs Fair Value
Tata Steel Limited TTST $0.2140 $0.2500 +17%
Nucor Corporation NUE $250.49 $79.02 -68%
ArcelorMittal S.A ARMT34 R$163.20 R$15.38 -91%
JSW Steel Limited JSWSTEEL ₹1,284 ₹901.55 -30%
China Steel Corporation 2002A 38.25 TWD 9.37 TWD -76%
Baoshan Iron & Steel Co 600019 ¥5.74 ¥7.78 +36%

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Frequently asked questions

Is Kumba Iron Ore Limited (KIO) undervalued?
As of Jun 26, 2026, our model estimates a fair value of R775.47 versus a price of R291.54 — about +166% (undervalued). Model-based estimate, not financial advice.
What is the fair value of KIO?
Our 21-model fair value for Kumba Iron Ore Limited is R775.47 (as of Jun 26, 2026), built from audited fundamentals. The current price is R291.54.
What is the quality score of KIO?
Kumba Iron Ore Limited has a Quality Score of 80/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Kumba Iron Ore Limited (KIO)?
Kumba Iron Ore Limited reported trailing-twelve-month revenue of about 70.1B ZAR (latest available figure, as of Jun 26, 2026).
What is the net profit margin of KIO?
The net profit margin of Kumba Iron Ore Limited is about 20.9%, meaning it keeps roughly 20.9% of revenue as net income. Based on the latest reported figures.
Does Kumba Iron Ore Limited pay a dividend?
Kumba Iron Ore Limited currently shows a dividend yield of about 0.11% 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.