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African Rainbow Minerals Ltd ARI

Morningstar Rating
ZAC 18,995.00 +448.00 (2.42%)
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About Quantitative Ratings

Morningstar Quantitative Ratings for Stocks are generated using an algorithm that compares companies that are not under analyst coverage to peer companies that do receive analyst-driven ratings. Companies with quantitative ratings are not formally covered by a Morningstar analyst, but are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative moat, fair value, and uncertainty rating.

Price vs Fair Value

ARI is trading at a 24% discount.
Price
ZAR 185.81
Fair Value
ZAR 452.64
Uncertainty
Very High
1-Star Price
ZAR 248.50
5-Star Price
ZAR 885.66
Economic Moat
Wyzy
Capital Allocation
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Trading Information

Previous Close Price
ZAC 18,547.00
Day Range
ZAC 18,452.0019,150.00
52-Week Range
ZAC 14,662.0024,500.00
Bid/Ask
ZAC 18,001.00 / ZAC 20,500.00
Market Cap
ZAC 3.72 Tril
Volume/Avg
779,825 / 584,453

Key Statistics

Price/Earnings (Normalized)
5.36
Price/Sales
3.10
Dividend Yield (Trailing)
9.71%
Dividend Yield (Forward)
6.47%
Total Yield
9.93%

Company Profile

African Rainbow Minerals Ltd is a South African diversified mining and minerals company. The group has various operating divisions: platinum, ferrous, coal, copper, and corporate. In addition, African Rainbow Minerals has an investment in gold through its shareholding in Harmony. Ferrous is the group's largest division, contributing roughly half of group revenue, closely trailed by the platinum division. The platinum division includes the Two Rivers Platinum Mine as a 51% subsidiary and an interest in the Modikwa Platinum Mine. The ferrous division comprises Assmang as a 50% joint venture, which includes iron ore, manganese, and chrome operations.
Sector
Basic Materials
Industry
Other Industrial Metals & Mining
Stock Style Box
Small Value
Total Number of Employees
22,931

Comparables

Valuation

Metric
ARI
NPH
KIO
Price/Earnings (Normalized)
5.3613.466.68
Price/Book Value
0.721.702.86
Price/Sales
3.101.511.72
Price/Cash Flow
3.917.754.04
Price/Earnings
ARI
NPH
KIO

Financial Strength

Metric
ARI
NPH
KIO
Quick Ratio
3.811.511.69
Current Ratio
4.422.422.68
Interest Coverage
12.360.2165.93
Quick Ratio
ARI
NPH
KIO

Profitability

Metric
ARI
NPH
KIO
Return on Assets (Normalized)
10.73%5.76%25.42%
Return on Equity (Normalized)
13.85%11.00%49.27%
Return on Invested Capital (Normalized)
11.88%8.55%34.81%
Return on Assets
ARI
NPH
KIO
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