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Thungela Resources Limited (TGA) Fair Value & Analysis

Energy · ZA · Market cap 12.3B ZAC

TR Thungela Resources Limited TGA · JSE
PriceR98.41
Fair ValueR157.46
Upside+60.0%
Quality43/100
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Weak Growth
Loss-making · -23.9% net margin
Low debt · negative free cash flow
Trails peers (4/11)
Narrow moat 9/100
Evidence: Low Range R133.65 – R181.27 Share as image

Fair value as of: Jul 16, 2026

From 4 valuation models · updated 26 days ago

Fair value updated Jul 16, 2026, revised from R119.00 to R157.46 (+32.3%) since Jun 26, 2026. Share price +6.9% over the past month.

Below-average quality, screening 60% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (43/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (R133.65). The market is more pessimistic than our downside scenario.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
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Price vs Fair Value (5 years)

R192.06 R9.76 Fair Value R157.46 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range R9.76 – R192.06 · fair‑value band R133.65 – R181.27 · the R98.41 price screens below the R157.46 fair value. Dashed = 300-day average. As of Jul 16, 2026.

Full chart & analysis →

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Analysis

Thungela Resources Limited (TGA) currently trades at R98.41, while our model-based Fair Value estimate is R157.46, implying the stock looks roughly 60.0% undervalued today. The Quality Score stands at 43/100 (below-average quality), in the Energy 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: low), always confirm before acting.

Over the trailing twelve months, Thungela Resources Limited generated revenue of 29.6B ZAR at a net margin of -23.9%. Revenue declined 21.4% year over year. It earns a return on equity of -33.6%. The balance sheet holds a net cash position of 6.0B ZAR. Fundamentals as of Jul 16, 2026

Our scenario range runs from R133.65 (bear case) to R181.27 (bull case); at R98.41, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Energy peers we cover trades at -12% fair-value upside, at 60%, TGA screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Gordon GGM R120.47 R250.48 R397.36 70
DDM Multi-Stage R120.47 R211.21 R262.88 61
EV/EBITDA R101.68 R119.68 R137.67 54
All 4 models by family
Dividend Discount
Gordon GGM R120.47 R250.48 R397.36 70
DDM Multi-Stage R120.47 R211.21 R262.88 61
Multiples
EV/EBITDA R101.68 R119.68 R137.67 54
Asset-Based
NCAV (Graham) R62.90 R84.28 R125.80 50

Widest divergence: Dividend Discount (R211.21) versus Asset-Based (R84.28). Highest evidence: Gordon GGM (70).

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Key figures & financial health

Revenue (TTM) 29.6B ZAC
Revenue growth (YoY) -21.4%
Net margin -23.9%
Return on equity -33.6%
Free cash flow −337M ZAC FY2025
Operating margin -6.9%
More key figures
EPS (TTM) R-54.64
Dividend yield 0.0%
EPS growth (YoY) -79.5%
Net cash 6.0B ZAC FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 43/100

Of which business quality 43 · Market factors (momentum, volatility) 38

Profitability 16
Margins and returns on capital today
Quality Growth 14
Are margins and returns improving?
Cashflow 18
Earnings quality: real cash, not paper profit
Fin. Strength 56
Balance sheet, leverage, solvency risk
Investment 84
Disciplined investing over empire-building
Low Volatility 51
Calm price path (market factor)
Momentum 30
Price trend over the last 3–12 months (market factor)
52W Momentum 37
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Thungela Resources Limited engages in the mining and production of thermal coal in South Africa and Australia. It owns interests in and produces its thermal coal from mining operations, consisting of underground and open cast mines in the Mpumalanga province of South Africa, including Greenside colliery, Khwezela colliery, Zibulo colliery, Mafube colliery, …

Full company description

Thungela Resources Limited engages in the mining and production of thermal coal in South Africa and Australia. It owns interests in and produces its thermal coal from mining operations, consisting of underground and open cast mines in the Mpumalanga province of South Africa, including Greenside colliery, Khwezela colliery, Zibulo colliery, Mafube colliery, and Annea colliery. The company also holds 100% of the Ensham Mine located in Queensland, Australia. It also exports its products to Southeast Asian, the Middle East, and African markets. Thungela Resources Limited was founded in 1945 and is based in Johannesburg, South Africa.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Thungela Resources Limited reported revenue of R29.6B in FY2025 versus R26.3B in FY2021, a compound +3.0%/yr. Reported net income was −R7.1B in FY2025.

Growth Quality 0/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
29.6B ZAR
Latest YoY
−16.7%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−16.5%
Avg. growth/yr (7Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.7%
Revenue +3.0%/yr
FY21 R26.3B
FY22 R50.8B
FY23 R30.6B
FY24 R35.6B
FY25 R29.6B
Net income
FY21 R6.4B
FY22 R17.0B
FY23 R5.2B
FY24 R3.6B
FY25 −R7.1B

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Cite: Fair Value Calculator (2026). "Thungela Resources Limited Fair Value". https://www.fairvalue-calculator.com/stock/TGA

Peer Group

Thermal Coal · 101 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 43 · Below median
Fair Value upside +60% · Top 25%
Return on assets -2% · Bottom 25%
Net margin (TTM) -24% · Bottom 25%
Operating margin (TTM) -7% · Bottom 25%
Revenue growth -21% · Bottom 25%
Dividend yield (TTM) 0.0% · Below median

Valuation Multiples vs Thermal Coal median · lower = cheaper

P/B 0.05× · Cheaper than 75% of peers
P/S (TTM) 0.03× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 23
FUTURE 0 · sector 0
PAST 0 · sector 21
HEALTH 100 · sector 92
DIVIDEND 1 · sector 31

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Coal Oil & gas

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Thermal Coal stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

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Frequently asked questions

Is Thungela Resources Limited (TGA) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of R157.46 versus a price of R98.41, about +60% (undervalued).
What is the fair value of TGA?
Our model-based fair value for Thungela Resources Limited is R157.46 (as of Jul 16, 2026), built from audited fundamentals. The current price is R98.41.
What is the quality score of TGA?
Thungela Resources Limited has a Quality Score of 43/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Thungela Resources Limited (TGA)?
Thungela Resources Limited reported trailing-twelve-month revenue of about 29.6B ZAR (latest available figure, as of Jul 16, 2026).
What is the net profit margin of TGA?
The net profit margin of Thungela Resources Limited is about -23.9%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Thungela Resources Limited pay a dividend?
Thungela Resources Limited currently shows a dividend yield of about 0.03% relative to its recent price (as of Jul 16, 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.

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