Exxaro Resources Limited (EXX.JO) stock analysis

In our weekly check, Exxaro Resources Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 4, red flags: 8.

About Exxaro Resources Limited

Exxaro Resources Limited is an Energy company (Coal) based in South Africa, listed on JNB as EXX.JO.

What our checks show for EXX.JO

Red flags

• Operating profit does not cover the interest bill (0.5x): interest is paid from cash or new debt.
• The net margin fell by 20.5 points over 5 years, to 18.1%: the company keeps less of each sale as profit.
• The gross margin fell by 28.5 points, to 55.3%: costs are rising faster than prices.
• Revenue fell 3.4% a year over the last 3 years.
• The dividend takes 900% of profit: little cushion if profit falls.
• A small company (market value $27 million): usually riskier and followed by fewer analysts.
• The stock has fallen as much as 82% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 6.1 years.

Warning signs

• Analysts expect the net margin to shrink by 2.3 points from today's 18.1%.
• Earnings per share fell 17.8% a year over the last 3 years.
• Net profit fell 18.2% a year over the last 3 years.
• Return on capital (ROCE) is only 7.2%.

Strengths

• Debt is low: 0.24x equity.
• Operating cash flow is 1.55x net profit: the profit arrives as real cash.
• Free cash flow is 15.9% of revenue: cash for dividends, buybacks or growth.
• The price is 6.7 times earnings (P/E), reasonable for its growth.
• Beta 0.12: the stock usually moves less than the market.
• Pay in shares is only 0% of free cash flow.

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Questions

What grade does Exxaro Resources Limited (EXX.JO) have?

In our weekly check, Exxaro Resources Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 4, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of EXX.JO stock?

This week's biggest flags for Exxaro Resources Limited: Weak interest cover, Margins falling, Gross margin falling. In total 12 of 25 checks show a warning or a red flag.

What does Exxaro Resources Limited do?

Exxaro Resources Limited is an Energy company (Coal) based in South Africa, listed on JNB as EXX.JO.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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