RIO TINTO PLC-SPON ADR (RIO) Stock Fundamental Analysis
NYSE:RIO - New York Stock Exchange, Inc. - US7672041008 - ADR
Taking everything into account, RIO scores 6 out of 10 in our fundamental rating. RIO was compared to 154 industry peers in the Metals & Mining industry. RIO has an excellent profitability rating, but there are some minor concerns on its financial health. RIO has a bad growth rate and is valued cheaply. These ratings could make RIO a good candidate for value investing.
1. Profitability
1.1 Basic Checks
RIO had positive earnings in the past year.
RIO had a positive operating cash flow in the past year.
In the past 5 years RIO has always been profitable.
RIO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RIO's Return On Assets of 9.71% is amongst the best of the industry. RIO outperforms 86.39% of its industry peers.
RIO has a Return On Equity of 18.43%. This is amongst the best in the industry. RIO outperforms 89.12% of its industry peers.
RIO's Return On Invested Capital of 12.33% is amongst the best of the industry. RIO outperforms 89.80% of its industry peers.
RIO had an Average Return On Invested Capital over the past 3 years of 18.29%. This is significantly above the industry average of 8.76%.
The 3 year average ROIC (18.29%) for RIO is well above the current ROIC(12.33%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.71% | ||
| ROE | 18.43% | ||
| ROIC | 12.33% |
ROA(3y)14.34%
ROA(5y)12.43%
ROE(3y)27.97%
ROE(5y)24.89%
ROIC(3y)18.29%
ROIC(5y)17.16%
1.3 Margins
RIO's Profit Margin of 18.61% is amongst the best of the industry. RIO outperforms 89.12% of its industry peers.
In the last couple of years the Profit Margin of RIO has declined.
RIO has a better Operating Margin (29.16%) than 89.12% of its industry peers.
RIO's Operating Margin has been stable in the last couple of years.
The Gross Margin of RIO (50.78%) is better than 89.12% of its industry peers.
RIO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.16% | ||
| PM (TTM) | 18.61% | ||
| GM | 50.78% |
OM growth 3Y-9.89%
OM growth 5Y-1.37%
PM growth 3Y-5.28%
PM growth 5Y-11.17%
GM growth 3Y-4.8%
GM growth 5Y-0.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RIO is creating value.
The number of shares outstanding for RIO remains at a similar level compared to 1 year ago.
RIO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, RIO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.95 indicates that RIO is not a great score, but indicates only limited risk for bankruptcy at the moment.
RIO has a Altman-Z score (2.95) which is in line with its industry peers.
RIO has a debt to FCF ratio of 1.78. This is a very positive value and a sign of high solvency as it would only need 1.78 years to pay back of all of its debts.
RIO has a better Debt to FCF ratio (1.78) than 77.55% of its industry peers.
RIO has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RIO (0.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | 2.95 |
ROIC/WACC1.22
WACC10.14%
2.3 Liquidity
RIO has a Current Ratio of 1.69. This is a normal value and indicates that RIO is financially healthy and should not expect problems in meeting its short term obligations.
RIO has a worse Current ratio (1.69) than 66.67% of its industry peers.
RIO has a Quick Ratio of 1.17. This is a normal value and indicates that RIO is financially healthy and should not expect problems in meeting its short term obligations.
RIO has a worse Quick ratio (1.17) than 61.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
RIO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.87%, which is quite good.
The Earnings Per Share has been growing slightly by 7.20% on average over the past years.
RIO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.30%.
RIO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.93% yearly.
EPS 1Y (TTM)13.87%
EPS 3Y-1.99%
EPS 5Y7.2%
EPS Q2Q%0.4%
Revenue 1Y (TTM)3.3%
Revenue growth 3Y6.6%
Revenue growth 5Y5.93%
Sales Q2Q%0.51%
3.2 Future
The Earnings Per Share is expected to decrease by -3.76% on average over the next years.
Based on estimates for the next years, RIO will show a decrease in Revenue. The Revenue will decrease by -2.94% on average per year.
EPS Next Y-3.62%
EPS Next 2Y-2.54%
EPS Next 3Y-2.23%
EPS Next 5Y-3.76%
Revenue Next Year-1.06%
Revenue Next 2Y-1.04%
Revenue Next 3Y-0.36%
Revenue Next 5Y-2.94%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
RIO is valuated reasonably with a Price/Earnings ratio of 8.37.
93.88% of the companies in the same industry are more expensive than RIO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.96. RIO is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.83, which indicates a very decent valuation of RIO.
RIO's Price/Forward Earnings ratio is rather cheap when compared to the industry. RIO is cheaper than 80.95% of the companies in the same industry.
RIO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 8.83 |
4.2 Price Multiples
RIO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RIO is cheaper than 89.80% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RIO indicates a rather cheap valuation: RIO is cheaper than 87.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.29 | ||
| EV/EBITDA | 4.72 |
4.3 Compensation for Growth
RIO has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as RIO's earnings are expected to decrease with -2.23% in the coming years.
PEG (NY)N/A
PEG (5Y)1.16
EPS Next 2Y-2.54%
EPS Next 3Y-2.23%
5. Dividend
5.1 Amount
RIO has a Yearly Dividend Yield of 7.03%, which is a nice return.
RIO's Dividend Yield is rather good when compared to the industry average which is at 3.26. RIO pays more dividend than 96.60% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, RIO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.03% |
5.2 History
The dividend of RIO has a limited annual growth rate of 4.85%.
RIO has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of RIO decreased recently.
Dividend Growth(5Y)4.85%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
RIO pays out 64.33% of its income as dividend. This is not a sustainable payout ratio.
RIO's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP64.33%
EPS Next 2Y-2.54%
EPS Next 3Y-2.23%
RIO TINTO PLC-SPON ADR
NYSE:RIO (1/17/2025, 8:24:38 PM)
After market: 61.6381 +0.54 (+0.88%)61.1
+1.31 (+2.19%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners46.95%
Inst Owner Change-0.1%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap99.23B
Analysts75.86
Price Target75.14 (22.98%)
Short Float %0.86%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.03% |
Yearly Dividend3.99
Dividend Growth(5Y)4.85%
DP64.33%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.57%
PT rev (3m)-7.42%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-6.28%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.84%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 8.83 | ||
| P/S | 1.84 | ||
| P/FCF | 12.29 | ||
| P/OCF | 6.55 | ||
| P/B | 1.82 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | 4.72 |
EPS(TTM)7.3
EY11.95%
EPS(NY)6.92
Fwd EY11.33%
FCF(TTM)4.97
FCFY8.14%
OCF(TTM)9.33
OCFY15.28%
SpS33.27
BVpS33.61
TBVpS30.42
PEG (NY)N/A
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.71% | ||
| ROE | 18.43% | ||
| ROCE | 17.35% | ||
| ROIC | 12.33% | ||
| ROICexc | 14% | ||
| ROICexgc | 14.97% | ||
| OM | 29.16% | ||
| PM (TTM) | 18.61% | ||
| GM | 50.78% | ||
| FCFM | 14.94% |
ROA(3y)14.34%
ROA(5y)12.43%
ROE(3y)27.97%
ROE(5y)24.89%
ROIC(3y)18.29%
ROIC(5y)17.16%
ROICexc(3y)21.21%
ROICexc(5y)19.97%
ROICexgc(3y)22.47%
ROICexgc(5y)21.12%
ROCE(3y)25.74%
ROCE(5y)24.15%
ROICexcg growth 3Y-6.51%
ROICexcg growth 5Y1.03%
ROICexc growth 3Y-6.97%
ROICexc growth 5Y0.82%
OM growth 3Y-9.89%
OM growth 5Y-1.37%
PM growth 3Y-5.28%
PM growth 5Y-11.17%
GM growth 3Y-4.8%
GM growth 5Y-0.07%
F-Score4
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.78 | ||
| Debt/EBITDA | 0.62 | ||
| Cap/Depr | 132.85% | ||
| Cap/Sales | 13.11% | ||
| Interest Coverage | 25.75 | ||
| Cash Conversion | 71.87% | ||
| Profit Quality | 80.27% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 2.95 |
F-Score4
WACC10.14%
ROIC/WACC1.22
Cap/Depr(3y)141.59%
Cap/Depr(5y)138.92%
Cap/Sales(3y)12.3%
Cap/Sales(5y)12.7%
Profit Quality(3y)80.38%
Profit Quality(5y)91.59%
High Growth Momentum
Growth
EPS 1Y (TTM)13.87%
EPS 3Y-1.99%
EPS 5Y7.2%
EPS Q2Q%0.4%
EPS Next Y-3.62%
EPS Next 2Y-2.54%
EPS Next 3Y-2.23%
EPS Next 5Y-3.76%
Revenue 1Y (TTM)3.3%
Revenue growth 3Y6.6%
Revenue growth 5Y5.93%
Sales Q2Q%0.51%
Revenue Next Year-1.06%
Revenue Next 2Y-1.04%
Revenue Next 3Y-0.36%
Revenue Next 5Y-2.94%
EBIT growth 1Y-20.76%
EBIT growth 3Y-3.94%
EBIT growth 5Y4.48%
EBIT Next Year31.15%
EBIT Next 3Y10.22%
EBIT Next 5Y2.57%
FCF growth 1Y-13.96%
FCF growth 3Y-5.89%
FCF growth 5Y4.79%
OCF growth 1Y-6.04%
OCF growth 3Y-1.52%
OCF growth 5Y5.1%