MERFF (Merafe Resources) Operating Income: $28.0 Mil (TTM As of Dec. 2025)

What is Merafe Resources Operating Income?

Merafe Resources MERFF 65 Operating Income is $28.0 Mil as of Dec. 2025. GuruFocus rates MERFF with a GF Score™ of 65/100 and a GF Value™ of $0.17. The stock has 9 warning signs investors should review.

Merafe Resources's Operating Income for the six months ended in Dec. 2025 was $1.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was $28.0 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Merafe Resources's Operating Income for the six months ended in Dec. 2025 was $1.3 Mil. Merafe Resources's Revenue for the six months ended in Dec. 2025 was $194.6 Mil. Therefore, Merafe Resources's Operating Margin % for the quarter that ended in Dec. 2025 was 0.69%.

Good Sign:

Merafe Resources Ltd operating margin is expanding. Margin expansion is usually a good sign.

Merafe Resources's 5-Year average Growth Rate for Operating Margin % was 21.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Merafe Resources's annualized ROC % for the quarter that ended in Dec. 2025 was 0.89%. Merafe Resources's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was -6.60%.

Merafe Resources (OTCPK:MERFF) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Merafe Resources's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

	ROC % (Q: Dec. 2025 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2025 )	+	Invested Capital (Q: Dec. 2025 ))	/ count )
=	2.678 * ( 1 - 22.06% )	/	( (232.519	+	237.023)	/ 2 )
=	2.0872332	/	234.771
=	0.89 %

where

	Invested Capital		(Q: Jun. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	337.027	-	40.43	-	( 64.078	-	max(0, 41.788	-	267.222	+	64.078	))
=	232.519

	Invested Capital		(Q: Dec. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	359.776	-	30.648	-	( 92.105	-	max(0, 57.443	-	281.576	+	92.105	))
=	237.023

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Merafe Resources's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2025 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2025		Q: Dec. 2025
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-13.848	/	( ( (62.39 + max(161.426, 0))	+	(69.204 + max(126.657, 0)) )	/	2 )
=	-13.848	/	( ( 223.816	+	195.861 )	/	2 )
=	-13.848	/	209.8385
=	-6.60 %

where Working Capital is:

	Working Capital		(Q: Jun. 2025 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(59.951	+	138.726	+	4.467)	-	(40.43	+	0	+	1.288)
=	161.426

	Working Capital		(Q: Dec. 2025 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(65.776	+	112.793	+	5.451)	-	(30.648	+	0	+	26.715)
=	126.657

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Merafe Resources's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2025 )	/	Revenue (Q: Dec. 2025 )
	=	1.339	/	194.644
	=	0.69 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Merafe Resources Operating Income Related Terms

Merafe Resources Operating Income Historical Data

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The historical data trend for Merafe Resources's Operating Income can be seen below:

Merafe Resources Operating Income Chart

Merafe Resources Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Operating Income

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139.48

107.23

104.47

72.16

29.52

Merafe Resources Semi-Annual Data
	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24	Jun25	Dec25
Operating Income	Get a 7-Day Free Trial															35.53	52.92	18.63	26.62	1.34

65GF Score

Merafe Resources Ltd MERFF

Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.

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Merafe Resources Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was $28.0 Mil.

Frequently Asked Questions Learn more about Operating Income →

What does a Operating Income of $28.0 Mil mean?

Merafe Resources (MERFF) has a Operating Income of $28.0 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Merafe Resources and its competitors.

Is Merafe Resources' Operating Income too high?

Merafe Resources' current Operating Income is $28.0 Mil. Overall, Merafe Resources has a GF Score™ of 65/100, reflecting its overall financial health beyond just this single metric.

How does Merafe Resources' Operating Income compare to competitors?

Merafe Resources' Operating Income of $28.0 Mil can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Operating Income for a Metals & Mining company?

A good Operating Income depends on the Metals & Mining industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Operating Income mean?

A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Merafe Resources and its competitors. Merafe Resources's current Operating Income is $28.0 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Merafe Resources stock overvalued right now?

Merafe Resources (MERFF) has a current Operating Income of $28.0 Mil. The stock's GF Value™ is $0.17, compared to a current price of $0.22 — trading 28.1% above its estimated fair value. The current Operating Income is $28.0 Mil. Merafe Resources' overall GF Score™ is 65/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Operating Income calculated?

Operating Income is calculated from a company's financial statements. For Merafe Resources (MERFF), the current Operating Income is $28.0 Mil 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 Merafe Resources (MERFF) Overvalued in 2026?

Based on GuruFocus' analysis, Merafe Resources stock appears to be overvalued. The current stock price of $0.22 is trading 28.1% above its estimated GF Value™ of $0.17.

Key valuation signals for MERFF:

Operating Income: $28.0 Mil
GF Value™: $0.17 vs. price of $0.22 (28.1% above fair value)
GF Score™: 65/100 with 9 warning signs

No single metric tells the full story. See the MERFF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Merafe Resources Business Description

Industry Basic Materials Metals & Mining

Comparable Companies JSE:WEZ JSE:MTU ASX:BHP ASX:RIO LSE:RIO MEX:GMEXICOB LSE:GLEN BSP:VALE3 SAU:1211 LSE:AAL HKSE:03993 ASX:FMG SZSE:000657 TSX:TECK.B SHSE:600111 BOM:500188 SHSE:600549 MEX:PE&OLES OSTO:BOL CAS:MNG

Other Exchanges MRF:South Africa RZT:Germany

Address 35 Ballyclare Drive, Building B, 2nd Floor, Ballyoaks Office Park, Bryanston, Johannesburg, GT, ZAF, 2191

Website https://www.meraferesources.co.za

Merafe Resources Ltd through its wholly-owned subsidiary, Merafe Ferrochrome and Mining Proprietary Limited, participates in chrome mining and the beneficiation of chrome ore into ferrochrome. The Glencore-Merafe Chrome Venture (Venture) operates five ferrochrome smelters, twenty-two ferrochrome furnaces, and nine mines, situated in the North-West, Limpopo, and Mpumalanga provinces of South Africa. The company has operating mines namel Marikana West; and Kroondal Gemini. The Group has one reportable segment being the mining and beneficiation of chrome ore into ferrochrome and associated minerals. Geographically, it has its presence in Africa, Americas, Asia, China, Indonesia, Other Asia, and Europe.

65GF Score

Get the complete analysis for MERFF

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$0.22

Price

$0.17

GF Value

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