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Merafe Resources Limited (MRF) Fair Value & Analysis

Basic Materials · ZA · Market cap 3.3B ZAC

MR Merafe Resources Limited MRF · JSE
PriceR1.28
Fair ValueR1.36
Upside+6.3%
Quality95/100
Evidence: High Range R0.9000 – R1.36

Fair value as of: Jun 26, 2026

From 25 valuation models · updated 3 days ago

Fair value updated Jun 26, 2026 — revised from R3.22 to R1.36 (−57.8%) since Jun 24, 2026. Share price +2.4% over the past month.

Price vs Fair Value (12 months)

R1.35 R1.01 Fair Value R1.36 Jun 2025 Jun 2026

12‑month range R1.01 – R1.35 · fair‑value band R0.9000 – R1.36 · the R1.28 price screens below the R1.36 fair value. As of Jun 26, 2026.

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Analysis

Merafe Resources Limited (MRF) currently trades at R1.28, while our model-based Fair Value estimate is R1.36 — implying the stock looks roughly 6.3% undervalued today. We read business quality at 95/100 (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: high) — always confirm before acting.

Over the trailing twelve months, Merafe Resources Limited generated revenue of 5.8B ZAR at a net margin of 2.4%. Revenue declined 10.4% year over year. It earns a return on equity of 3.0%. The balance sheet holds a net cash position of 1.2B ZAR. Fundamentals as of Jun 26, 2026

Key figures & financial health

Revenue (TTM) 5.8B ZAC
Revenue growth (YoY) -10.4%
Net margin 2.4%
Return on equity 3.0%
Free cash flow 163M ZAC FY2025
P/E ratio 22.0
More key figures
Operating margin 0.7%
EPS (TTM) R0.0600
Dividend yield 0.1%
EPS growth (YoY) -67.0%
Net cash 1.2B ZAC FY2025

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

About the company

Merafe Resources Limited, together with its subsidiaries, engages in the mining and beneficiation of chrome ore into ferrochrome and associated minerals. The company operates ferrochrome smelters, ferrochrome furnaces, and platinum group metals processing plants in the Western and Eastern limbs of the Bushveld Complex; and chrome ore mines and UG2 plants located in the northwest, Limpopo, and Mpumalanga provinces of South Africa. It has operations in South Africa, Egypt, Turkey, Brazil, the United States, Indonesia, China, India, Japan, South Korea, Taiwan, Australia, Belgium, England, Canada, Mexico, Italy, France, the Netherlands, Slovenia, and Spain. Merafe Resources Limited was incorporated in 1987 and is headquartered in Bryanston, South Africa.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Merafe Resources Limited reported revenue of R5.8B in FY2025 versus R8.1B in FY2021, a compound −7.8%/yr. Reported net income was R143M in FY2025, compounding −46.0%/yr from FY2021.

Revenue −7.8%/yr
FY21 R8.1B
FY22 R7.9B
FY23 R9.2B
FY24 R8.4B
FY25 R5.8B
Net income −46.0%/yr
FY21 R1.7B
FY22 R1.4B
FY23 R1.8B
FY24 R667M
FY25 R143M

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Frequently asked questions

Is Merafe Resources Limited (MRF) undervalued?
As of Jun 26, 2026, our model estimates a fair value of R1.36 versus a price of R1.28 — about +6% (undervalued). Model-based estimate, not financial advice.
What is the fair value of MRF?
Our 21-model fair value for Merafe Resources Limited is R1.36 (as of Jun 26, 2026), built from audited fundamentals. The current price is R1.28.
What is the quality score of MRF?
Merafe Resources Limited has a Quality Score of 95/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Merafe Resources Limited (MRF)?
Merafe Resources Limited reported trailing-twelve-month revenue of about 5.8B ZAR (latest available figure, as of Jun 26, 2026).
What is the net profit margin of MRF?
The net profit margin of Merafe Resources Limited is about 2.4%, meaning it keeps roughly 2.4% of revenue as net income. Based on the latest reported figures.
Does Merafe Resources Limited pay a dividend?
Merafe Resources Limited currently shows a dividend yield of about 0.09% 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.