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Kumba Iron OreFRA:KUI -1.54%79 Forward Rate of Return (Yacktman) % is 12.21% as of Dec. 2025, which is 50% below its 10-year median of 24.45. GuruFocus rates FRA:KUI with a GF Score™ of 79/100 and a GF Value™ of €16.31 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 496 Steel companies, Kumba Iron Ore ranks better than 82.46% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Kumba Iron Ore's forward rate of return for was 12.21%.
The historical rank and industry rank for Kumba Iron Ore's Forward Rate of Return (Yacktman) % or its related term are showing as below:
FRA:KUI'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -8.39 Med: 24.45 Max: 38.61
Current: 21.06
During the past 13 years, Kumba Iron Ore's highest Forward Rate of Return was 38.61. The lowest was -8.39. And the median was 24.45.
FRA:KUI's Forward Rate of Return (Yacktman) % is ranked better than 82.46% of 496
companies
in the Steel industry
Industry Median: 2.695
vs FRA:KUI: 21.06
Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Kumba Iron Ore (FRA:KUI) Forward Rate of Return (Yacktman) % Explanation
Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.
Be Aware
In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.
Kumba Iron Ore Forward Rate of Return (Yacktman) % Related Terms
Kumba Iron Ore Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Kumba Iron Ore's Forward Rate of Return (Yacktman) % 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.
Kumba Iron Ore Forward Rate of Return (Yacktman) % Chart
FRA:KUI vs NUE, STLD, RS: Forward Rate of Return (Yacktman) % Comparison
For the Steel subindustry, Kumba Iron Ore's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % 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 Forward Rate of Return (Yacktman) % vs Steel Industry
For the Steel industry and Basic Materials sector, Kumba Iron Ore's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Kumba Iron Ore's Forward Rate of Return (Yacktman) % falls into.
Kumba Iron Ore Forward Rate of Return (Yacktman) % Calculation
Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):
If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.
The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).
* 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.
What does a Forward Rate of Return (Yacktman) % of 12.21% mean?
Kumba Iron Ore (FRA:KUI) has a Forward Rate of Return (Yacktman) % of 12.21% as of Dec. 2025. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Kumba Iron Ore and its competitors. This is 50% below median its historical median of 24.45. According to the industry distribution chart, Kumba Iron Ore ranks #87 out of 496 companies in the Steel industry, placing it in the top 17.5%.
Is Kumba Iron Ore's Forward Rate of Return (Yacktman) % too high?
Kumba Iron Ore's current Forward Rate of Return (Yacktman) % of 12.21% is 50% below median its 10-year median of 24.45. The Steel industry median Forward Rate of Return (Yacktman) % is 2.70. Kumba Iron Ore's value of 12.21% is 353.1% above this industry median. Based on the distribution chart, Kumba Iron Ore ranks #87 out of 496 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 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kumba Iron Ore's Forward Rate of Return (Yacktman) % compare to NUE and STLD?
According to the Steel industry distribution chart, Kumba Iron Ore ranks #87 out of 496 companies for Forward Rate of Return (Yacktman) %. This places Kumba Iron Ore in the top 18% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 2.70. Kumba Iron Ore's value of 12.21% is 353.1% above this benchmark. While the company's 10-year median is 24.45 vs. the industry median of 2.70, 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 Forward Rate of Return (Yacktman) % for a Steel company?
The median Forward Rate of Return (Yacktman) % among Steel companies is 2.70, based on 496 companies in the industry. Companies in the top quartile (top 25%) have a Forward Rate of Return (Yacktman) % significantly above this median, while those in the bottom quartile fall well below. However, Forward Rate of Return (Yacktman) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kumba Iron Ore's current Forward Rate of Return (Yacktman) % of 12.21% is 353.1% 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 Forward Rate of Return (Yacktman) % mean?
A high Forward Rate of Return (Yacktman) % can signal that a stock is expensive relative to its fundamentals. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Kumba Iron Ore and its competitors. For the Steel industry, the median Forward Rate of Return (Yacktman) % is 2.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kumba Iron Ore's current Forward Rate of Return (Yacktman) % is 12.21%, which is 50% below median its own 10-year median of 24.45. 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 €16.31, compared to a current price of €12.80 — trading 21.5% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 12.21%, which is 50% below median its 10-year median of 24.45 and 353.1% above the Steel industry median of 2.70. Kumba Iron Ore's overall GF Score™ is 79/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward Rate of Return (Yacktman) % calculated?
Forward Rate of Return (Yacktman) % is calculated from a company's financial statements. For Kumba Iron Ore (FRA:KUI), the current Forward Rate of Return (Yacktman) % is 12.21% 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 €12.80 is trading 21.5% below its estimated GF Value™ of €16.31.
GuruFocus considers Kumba Iron Ore to be Modestly Undervalued.
Key valuation signals for FRA:KUI:
Forward Rate of Return (Yacktman) %: 12.21% (50% below median its 10-year median of 24.45)
GF Value™: €16.31 vs. price of €12.80 (21.5% below fair value)
Industry Position: 353.1% above the Steel median (#87 of 496)
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.
79GF Score
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