Kumba Iron OreFRA:KUI -1.30%72 Gross Margin % is 89.99% as of Dec. 2025, which is 4% above its 10-year median of 86.63. 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 597 Steel companies, Kumba Iron Ore ranks better than 99.16% on this metric.
The historical rank and industry rank for Kumba Iron Ore's Gross Margin % or its related term are showing as below:
FRA:KUI'
s Gross Margin % Range Over the Past 10 Years
Min: 66.02 Med: 86.63 Max: 92.35
Current: 88.54
During the past 13 years, the highestGross Margin % of Kumba Iron Ore was 92.35%. The lowest was 66.02%. And the median was 86.63%.
FRA:KUI's Gross Margin % is ranked better than 99.16% of 597
companies
in the Steel industry
Industry Median: 12.6
vs FRA:KUI: 88.54
Kumba Iron Ore had a gross margin of 89.99% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Kumba Iron Ore was -0.60% per year.
Kumba Iron Ore (FRA:KUI) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Kumba Iron Ore had a gross margin of 89.99% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Kumba Iron Ore Gross Margin % Related Terms
Kumba Iron Ore Gross Margin % Historical Data
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The historical data trend for Kumba Iron Ore's Gross Margin % 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: Gross Margin % Comparison
For the Steel subindustry, Kumba Iron Ore's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Kumba Iron Ore's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kumba Iron Ore's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Kumba Iron Ore (FRA:KUI) has a Gross Margin % of 89.99% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Kumba Iron Ore and its competitors. This is near median its historical median of 86.63. Over the past decade, Kumba Iron Ore's Gross Margin % has ranged from 66.02 to 92.35. According to the industry distribution chart, Kumba Iron Ore ranks #5 out of 597 companies in the Steel industry, placing it in the top 0.8%.
Is Kumba Iron Ore's Gross Margin % too high?
Kumba Iron Ore's current Gross Margin % of 89.99% is near median its 10-year median of 86.63. Over the past 10 years, this metric has ranged from a low of 66.02 to a high of 92.35. The Steel industry median Gross Margin % is 12.60. Kumba Iron Ore's value of 89.99% is 614.2% above this industry median. Based on the distribution chart, Kumba Iron Ore ranks #5 out of 597 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. 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 Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Kumba Iron Ore ranks #5 out of 597 companies for Gross Margin %. This places Kumba Iron Ore in the top 1% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 12.60. Kumba Iron Ore's value of 89.99% is 614.2% above this benchmark. Historically, Kumba Iron Ore's own Gross Margin % has ranged from 66.02 to 92.35 over the past decade. While the company's 10-year median is 86.63 vs. the industry median of 12.60, 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 Gross Margin % for a Steel company?
The median Gross Margin % among Steel companies is 12.60, based on 597 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kumba Iron Ore's current Gross Margin % of 89.99% is 614.2% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Kumba Iron Ore and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kumba Iron Ore's current Gross Margin % is 89.99%, which is near median its own 10-year median of 86.63. 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 Gross Margin % is 89.99%, which is near median its 10-year median of 86.63 and 614.2% above the Steel industry median of 12.60. 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 Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Kumba Iron Ore (FRA:KUI), the current Gross Margin % is 89.99% 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:
Gross Margin %: 89.99% (near median its 10-year median of 86.63)
GF Value™: €17.65 vs. price of €15.20 (13.9% below fair value)
Industry Position: 614.2% above the Steel median (#5 of 597)
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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