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Exxaro Resources Ltd (EXX) Fair Value & Analysis

Energy · ZA · Market cap 46.8B ZAC · ISIN ZAE000084992

What is Exxaro Resources Ltd really worth?

ER Exxaro Resources Ltd EXX · JSE
PriceR196.46
Fair ValueR359.50
Upside+83.0%
Quality62/100

A solid business, trading 45% below our fair value of R359.50.

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Strengths

Solidly profitable · 18.1% net margin
Low debt · generates free cash flow
Ranks above peers (11/15)

Risks

!Weak Growth (revenue 5y +7.6 %/yr)
!Moderate moat 57/100

For context

·8.70% dividend yield
Evidence: High Range R281.06 – R437.93

Fair value as of: Aug 22, 2026

From 26 valuation models · updated 14 days ago

Share price −1.2% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case (R281.06). The market is more pessimistic than our downside scenario.
  • Solid quality (62/100) at a price below fair value, the discount is the argument here, not the business quality.

Price vs Fair Value (5 years)

R227.50 R81.12 Fair Value R359.50 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 22, 2026.

How to read this chart

60‑month range R81.12 – R227.50 · fair‑value band R281.06 – R437.93 · the R196.46 price screens below the R359.50 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 22, 2026.

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Analysis

Exxaro Resources Ltd (EXX) currently trades at R196.46, while our model-based Fair Value estimate is R359.50, implying the stock looks roughly 45.4% undervalued today. The Quality Score stands at 62/100 (solid quality), in the Energy sector. Bull case: the DCF Models group reads highest at a median of R457.71 per share, and 25 of the 26 models we run sit above the R196.46 price. Bear case: the Asset-Based group reads lowest at R160.17, and 1 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Exxaro Resources Ltd generated revenue of 41.8B ZAR at a net margin of 18.1%. Revenue declined 2.5% year over year. It earns a return on equity of 14.1%. The balance sheet holds a net cash position of 10.7B ZAR. Fundamentals as of Aug 22, 2026

Our scenario range runs from R281.06 (bear case) to R437.93 (bull case); at R196.46, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Energy peers we cover trades at −22% fair-value upside, at 83%, EXX screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly 9.94 ZAR per share, which is 2.8 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence R397.93 R634.78 R1,023 79
Growth DCF R399.41 R626.81 R995.26 77
Owner Earnings R348.71 R551.74 R884.20 75
All 26 models by family
DCF Models
FCF DCF best evidence R397.93 R634.78 R1,023 79
Owner Earnings R348.71 R551.74 R884.20 75
5Y Revenue Exit R265.10 R377.13 R520.13 73
5Y EBITDA Exit R290.96 R428.10 R590.81 75
5Y P/E Exit R373.08 R589.96 R827.41 70
10Y Revenue Exit R303.46 R421.30 R583.44 67
10Y EBITDA Exit R325.15 R457.71 R640.11 69
10Y P/E Exit R378.61 R573.35 R829.80 63
Earnings-Based
Graham-Dodd R219.67 R861.70 R1,170 64
Lynch FV R212.34 R303.34 R394.35 61
PEG = 1.0 R212.34 R303.34 R394.35 57
EPV R254.68 R288.27 R317.67 74
Dividend Discount
Gordon GGM R159.64 R331.93 R526.57 66
DDM Multi-Stage R159.64 R279.89 R348.37 66
Multiples
P/E Multiple R339.20 R452.27 R565.34 63
P/S Multiple R160.56 R214.08 R267.60 58
P/B Multiple R322.73 R430.31 R537.89 55
EV/EBIT R288.40 R366.83 R445.27 66
EV/EBITDA R256.43 R324.21 R391.99 67
EV/Revenue R202.95 R267.17 R331.39 54
Asset-Based
NCAV (Graham) R119.53 R160.17 R239.06 54
Growth DCF
Growth DCF R399.41 R626.81 R995.26 77
Rev-Margin DCF R265.10 R378.96 R519.63 73
Economic Profit
Residual Income R230.57 R281.70 R579.33 71
ROIC Compounder R260.99 R327.86 R421.44 72
Growth Earnings
Growth-Adj P/E R303.30 R433.29 R563.28 67

Widest divergence: DCF Models (R457.71) versus Asset-Based (R160.17). Highest evidence: FCF DCF (79).

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Key figures & financial health

P/E ratio 6.2
P/S ratio 1.12 P/E × margin
EPS (TTM) R31.78 price ÷ EPS = P/E 6.2
Dividend yield 8.7% payout 53.8%
Net margin 18.1% FY2025
Return on equity 14.1% TTM
More key figures
Profitability
Return on assets (EBIT) 11.1% avg 5y
Operating margin 15.1% TTM
Growth
Revenue (TTM) 41.8B ZAR TTM
Revenue growth (YoY) −2.5% 3y avg −3.4%
EPS growth (YoY) −12.7%
Balance sheet & cash flow
Free cash flow 6.6B ZAC FY2025
Net cash 10.7B ZAC FY2025

Figures from reported company fundamentals · as of Aug 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 62 · Market factors (momentum, volatility) 60

Profitability 43
Margins and returns on capital today
Quality Growth 32
Are margins and returns improving?
Cashflow 68
Earnings quality: real cash, not paper profit
Fin. Strength 74
Balance sheet, leverage, solvency risk
Investment 60
Disciplined investing over empire-building
Low Volatility 89
Calm price path (market factor)
Momentum 42
Price trend over the last 3–12 months (market factor)
52W Momentum 56
Distance to the 52-week high (market factor)
Net Issuance 93
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Exxaro Resources Limited engages in coal, pigment manufacturing, and renewable energy businesses in South Africa, Europe, Asia, and internationally. The company mines and supplies thermal coal, metallurgical coal, and semi-soft coking coal products primarily in the Waterberg and Mpumalanga regions; manufactures ferrosilicon powder; and provides iron ore.

Full company description

Exxaro Resources Limited engages in coal, pigment manufacturing, and renewable energy businesses in South Africa, Europe, Asia, and internationally. The company mines and supplies thermal coal, metallurgical coal, and semi-soft coking coal products primarily in the Waterberg and Mpumalanga regions; manufactures ferrosilicon powder; and provides iron ore. Its energy solutions business consists of 229 megawatts of wind power generation assets. The company was formerly known as Kumba Resources Limited and changed its name to Exxaro Resources Limited in November 2006. Exxaro Resources Limited was incorporated in 2000 and is based in Centurion, South Africa.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Exxaro Resources Ltd reported revenue of 41.8B ZAR in FY2025 versus 32.8B ZAR in FY2021, a compound +6.3%/yr. Reported net income was 7.6B ZAR in FY2025, compounding −12.1%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
41.8B ZAR
Latest YoY
+2.6%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−3.4%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.6%
Avg. revenue growth/yr (20Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.5%
Value creation/yr (5Y, in ZAR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in ZAR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+4.6% (−4.1 + 8.7)
Revenue +6.3%/yr
FY21 32.8B ZAR
FY22 46.4B ZAR
FY23 38.7B ZAR
FY24 40.7B ZAR
FY25 41.8B ZAR
Net income −12.1%/yr
FY21 12.7B ZAR
FY22 13.8B ZAR
FY23 11.3B ZAR
FY24 7.7B ZAR
FY25 7.6B ZAR
Character of growth · EPS growth decomposed (2015-2025) +19.0 % p.a.
Revenue per share +14.0 %

of which total revenue +8.9 % · buybacks/dilution +4.7 %

EBIT margin +0.8 %
Tax rate +0.7 %
Residual (interest, one-offs) +2.9 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Exxaro Resources Ltd Fair Value". https://www.fairvalue-calculator.com/stock/EXX

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Thermal Coal · 99 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 62 · Top 25%
Fair Value upside +83% · Top 25%
Return on equity (TTM) 14% · Top 25%
Return on assets 5% · Above median
Net margin (TTM) 18% · Top 25%
Operating margin (TTM) 15% · Above median
Revenue growth −3% · Below median
Dividend yield (TTM) 8.7% · Top 25%
Debt / equity 0.20× · Higher than median

Valuation Multiples vs Thermal Coal median · lower = cheaper

P/E (TTM) 6.2× · Cheaper than 75% of peers
P/B 0.84× · Cheaper than median
P/S (TTM) 1.12× · Pricier than median
P/FCF 0.4× · Cheaper than 75% of peers
EV/EBITDA 3.4× · Cheaper than 75% of peers
PEG 50.31× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 8
FUTURE0 · sector 0
PAST56 · sector 21
HEALTH90 · sector 93
DIVIDEND100 · sector 54

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Coal Oil & gas

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Frequently asked questions

Is Exxaro Resources Ltd (EXX) overvalued or undervalued?
As of Aug 22, 2026, our model estimates a fair value of R359.50 versus a price of R196.46, about +83% upside (undervalued).
What is the fair value of EXX?
Our model-based fair value for Exxaro Resources Ltd is R359.50 (as of Aug 22, 2026), built from audited fundamentals. The current price: R196.46.
What is the quality score of EXX?
Exxaro Resources Ltd has a Quality Score of 62/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Exxaro Resources Ltd (EXX)?
Exxaro Resources Ltd reported trailing-twelve-month revenue of about 41.8B ZAR (latest available figure, as of Aug 22, 2026).
What is the net profit margin of EXX?
The net profit margin of Exxaro Resources Ltd is about 18.1%, meaning it keeps roughly 18.1% of revenue as net income. Based on the latest reported figures.
Does Exxaro Resources Ltd pay a dividend?
Exxaro Resources Ltd currently shows a dividend yield of about 8.70% relative to its recent price (as of Aug 22, 2026).
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