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Exxaro Resources Limited (EXX) Fair Value & Analysis

Energy · ZA · Market cap 46.8B ZAC

ER Exxaro Resources Limited EXX · JSE
PriceR191.10
Fair ValueR359.50
Upside+88.1%
Quality62/100
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Healthy Growth
Solidly profitable · 18.1% net margin
Low debt · generates free cash flow
0.09% dividend yield
Ranks above peers (11/15)
Moderate moat 57/100
Evidence: Medium Range R281.06 – R437.93 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated yesterday

Share price −3.7% over the past month.

A solid business, screening 88% undervalued on our models.

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.
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Price vs Fair Value (5 years)

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

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range R81.12 – R227.50 · fair‑value band R281.06 – R437.93 · the R191.10 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 13, 2026.

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Analysis

Exxaro Resources Limited (EXX) currently trades at R191.10, while our model-based Fair Value estimate is R359.50, implying the stock looks roughly 88.1% undervalued today. The Quality Score stands at 62/100 (solid quality), in the Energy sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Exxaro Resources Limited 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 13, 2026

Our scenario range runs from R281.06 (bear case) to R437.93 (bull case); at R191.10, 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 -5% fair-value upside, at 88%, EXX screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

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
Growth DCF R399.41 R626.81 R995.26 80
Residual Income R230.57 R281.70 R579.33 76
Rev-Margin DCF R265.10 R378.96 R519.63 74
All 26 models by family
DCF Models
FCF DCF R397.93 R634.78 R1,023 38
Owner Earnings R348.71 R551.74 R884.20 31
5Y Revenue Exit R265.10 R377.13 R520.13 39
5Y EBITDA Exit R290.96 R428.10 R590.81 41
5Y P/E Exit R373.08 R589.96 R827.41 38
10Y Revenue Exit R303.46 R421.30 R583.44 36
10Y EBITDA Exit R325.15 R457.71 R640.11 37
10Y P/E Exit R378.61 R573.35 R829.80 35
Earnings-Based
Graham-Dodd R219.67 R861.70 R1,170 54
Lynch FV R212.34 R303.34 R394.35 50
PEG = 1.0 R212.34 R303.34 R394.35 46
EPV R254.68 R288.27 R317.67 59
Dividend Discount
Gordon GGM R159.64 R331.93 R526.57 70
DDM Multi-Stage R159.64 R279.89 R348.37 61
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 53
EV/EBITDA R256.43 R324.21 R391.99 54
EV/Revenue R202.95 R267.17 R331.39 43
Asset-Based
NCAV (Graham) R119.53 R160.17 R239.06 50
Growth DCF
Growth DCF R399.41 R626.81 R995.26 80
Rev-Margin DCF R265.10 R378.96 R519.63 74
Economic Profit
Residual Income R230.57 R281.70 R579.33 76
ROIC Compounder R260.99 R327.86 R421.44 72
Growth Earnings
Growth-Adj P/E R303.30 R433.29 R563.28 68

Widest divergence: DCF Models (R457.71) versus Asset-Based (R160.17). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 41.8B ZAC
Revenue growth (YoY) -2.5%
Net margin 18.1%
Return on equity 14.1%
Free cash flow 6.6B ZAC FY2025
P/E ratio 6.0
More key figures
Operating margin 15.1%
EPS (TTM) R31.78
Dividend yield 0.1%
EPS growth (YoY) -12.7%
Net cash 10.7B ZAC FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 62 · Market factors (momentum, volatility) 64

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 87
Calm price path (market factor)
Momentum 50
Price trend over the last 3–12 months (market factor)
52W Momentum 61
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.

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 Limited reported revenue of R41.8B in FY2025 versus R32.8B in FY2021, a compound +6.3%/yr. Reported net income was R7.6B in FY2025, compounding −12.1%/yr from FY2021.

Growth Quality 85/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
41.8B ZAR
Latest YoY
+2.6%
Avg. 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. 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. 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%
Revenue +6.3%/yr
FY21 R32.8B
FY22 R46.4B
FY23 R38.7B
FY24 R40.7B
FY25 R41.8B
Net income −12.1%/yr
FY21 R12.7B
FY22 R13.8B
FY23 R11.3B
FY24 R7.7B
FY25 R7.6B
Character of growth · EPS growth decomposed (2015-2025) +19.0 % p.a.
Revenue per share +14.0 pp

of which total revenue +8.9 pp · buybacks/dilution +5.2 pp

EBIT margin +0.8 pp
Tax rate +0.7 pp
Residual (interest, one-offs) +3.5 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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

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 +84% · 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% · Above median
Dividend yield (TTM) 0.1% · Below median
Debt / equity 0.20× · Higher than median

Valuation Multiples vs Thermal Coal median · lower = cheaper

P/E (TTM) 6.0× · 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

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.

VALUE 100 · sector 30
FUTURE 0 · sector 0
PAST 56 · sector 21
HEALTH 90 · sector 93
DIVIDEND 2 · sector 38

Values & ESG

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

Coal Oil & gas

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Thermal Coal stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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Frequently asked questions

Is Exxaro Resources Limited (EXX) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of R359.50 versus a price of R191.10, about +88% (undervalued).
What is the fair value of EXX?
Our model-based fair value for Exxaro Resources Limited is R359.50 (as of Aug 13, 2026), built from audited fundamentals. The current price is R191.10.
What is the quality score of EXX?
Exxaro Resources Limited 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 Limited (EXX)?
Exxaro Resources Limited reported trailing-twelve-month revenue of about 41.8B ZAR (latest available figure, as of Aug 13, 2026).
What is the net profit margin of EXX?
The net profit margin of Exxaro Resources Limited is about 18.1%, meaning it keeps roughly 18.1% of revenue as net income. Based on the latest reported figures.
Does Exxaro Resources Limited pay a dividend?
Exxaro Resources Limited currently shows a dividend yield of about 0.08% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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