Kumba Iron OreFRA:KUI -1.30%72 Current Ratio is 2.46 as of Dec. 2025, which is 23% below its 10-year median of 3.21. GuruFocus rates FRA:KUI with a GF Score™ of 72/100 and a GF Value™ of €17.65 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 638 Steel companies, Kumba Iron Ore ranks better than 67.87% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Kumba Iron Ore's current ratio for the quarter that ended in Dec. 2025 was 2.46.
Kumba Iron Ore has a current ratio of 2.46. It generally indicates good short-term financial strength.
The historical rank and industry rank for Kumba Iron Ore's Current Ratio or its related term are showing as below:
FRA:KUI'
s Current Ratio Range Over the Past 10 Years
Min: 2 Med: 3.21 Max: 4.79
Current: 2.46
During the past 13 years, Kumba Iron Ore's highest Current Ratio was 4.79. The lowest was 2.00. And the median was 3.21.
FRA:KUI's Current Ratio is ranked better than 67.87% of 638
companies
in the Steel industry
Industry Median: 1.63
vs FRA:KUI: 2.46
Kumba Iron Ore (FRA:KUI) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Kumba Iron Ore Current Ratio Related Terms
Kumba Iron Ore Current Ratio Historical Data
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The historical data trend for Kumba Iron Ore's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:KUI vs NUE, STLD, RS: Current Ratio Comparison
For the Steel subindustry, Kumba Iron Ore's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Kumba Iron Ore Current Ratio vs Steel Industry
For the Steel industry and Basic Materials sector, Kumba Iron Ore's Current Ratio distribution charts can be found below:
* The bar in red indicates where Kumba Iron Ore's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Kumba Iron Ore (FRA:KUI) has a Current Ratio of 2.46 as of Dec. 2025. This is 23% below median its historical median of 3.21. Over the past decade, Kumba Iron Ore's Current Ratio has ranged from 2.00 to 4.79. According to the industry distribution chart, Kumba Iron Ore ranks #205 out of 638 companies in the Steel industry, placing it in the top 32.1%.
Is Kumba Iron Ore's Current Ratio too high?
Kumba Iron Ore's current Current Ratio of 2.46 is 23% below median its 10-year median of 3.21. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 4.79. The Steel industry median Current Ratio is 1.63. Kumba Iron Ore's value of 2.46 is 50.9% above this industry median. Based on the distribution chart, Kumba Iron Ore ranks #205 out of 638 companies in the Steel industry, which is above the industry midpoint. Overall, Kumba Iron Ore has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kumba Iron Ore's Current Ratio compare to NUE and STLD?
According to the Steel industry distribution chart, Kumba Iron Ore ranks #205 out of 638 companies for Current Ratio. This puts Kumba Iron Ore in the upper half of its industry. The industry median Current Ratio is 1.63. Kumba Iron Ore's value of 2.46 is 50.9% above this benchmark. Historically, Kumba Iron Ore's own Current Ratio has ranged from 2.00 to 4.79 over the past decade. While the company's 10-year median is 3.21 vs. the industry median of 1.63, Kumba Iron Ore has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Steel company?
The median Current Ratio among Steel companies is 1.63, based on 638 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kumba Iron Ore's current Current Ratio of 2.46 is 50.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Steel industry, the median Current Ratio is 1.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kumba Iron Ore's current Current Ratio is 2.46, which is 23% below median its own 10-year median of 3.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kumba Iron Ore stock overvalued right now?
Based on GuruFocus' analysis, Kumba Iron Ore (FRA:KUI) is currently considered Modestly Undervalued. The stock's GF Value™ is €17.65, compared to a current price of €15.20 — trading 13.9% below its estimated fair value. The current Current Ratio is 2.46, which is 23% below median its 10-year median of 3.21 and 50.9% above the Steel industry median of 1.63. Kumba Iron Ore's overall GF Score™ is 72/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Kumba Iron Ore (FRA:KUI), the current Current Ratio is 2.46 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Kumba Iron Ore (FRA:KUI) Overvalued in 2026?
Based on GuruFocus' analysis, Kumba Iron Ore stock appears to be undervalued.
The current stock price of €15.20 is trading 13.9% below its estimated GF Value™ of €17.65.
GuruFocus considers Kumba Iron Ore to be Modestly Undervalued.
Key valuation signals for FRA:KUI:
Current Ratio: 2.46 (23% below median its 10-year median of 3.21)
GF Value™: €17.65 vs. price of €15.20 (13.9% below fair value)
Industry Position: 50.9% above the Steel median (#205 of 638)
No single metric tells the full story. See the FRA:KUI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kumba Iron Ore Ltd is engaged in the exploration, mining, processing, blending, and sale of iron ore to the steel industry. The company operates in South Africa, with mining operations in the Northern Cape and Limpopo provinces, as well as a head office in Centurion, Gauteng, and a port operation in Saldanha Bay, Western Cape. The company's flagship asset is the Sishen mine, which it holds a majority stake in, located near the town of Kathu in the Northern Cape Province. The Sishen mine is opencast and produces the bulk of the group's iron ore, which is exported. It also holds an interest in the Kolomela mine. The company also generates revenue from Shipping operations. The majority of the company's revenue is generated from its products.
72GF Score
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