RIO TINTO PLC-SPON ADR (RIO) Stock Fundamental Analysis
USA - NYSE:RIO - US7672041008 - ADR
72.04 USD
-0.16 (-0.22%)
RIO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
RIO had positive earnings in the past year.
In the past year RIO had a positive cash flow from operations.
Each year in the past 5 years RIO has been profitable.
RIO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RIO (8.50%) is better than 86.36% of its industry peers.
RIO's Return On Equity of 17.65% is amongst the best of the industry. RIO outperforms 90.26% of its industry peers.
The Return On Invested Capital of RIO (9.47%) is better than 82.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RIO is above the industry average of 12.40%.
The 3 year average ROIC (14.66%) for RIO is well above the current ROIC(9.47%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.5% | ||
| ROE | 17.65% | ||
| ROIC | 9.47% |
ROA(3y)11.25%
ROA(5y)12.86%
ROE(3y)21.27%
ROE(5y)25.13%
ROIC(3y)14.66%
ROIC(5y)17.06%
1.3 Margins
Looking at the Profit Margin, with a value of 19.12%, RIO belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of RIO has grown nicely.
With a decent Operating Margin value of 25.78%, RIO is doing good in the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Operating Margin of RIO has declined.
RIO has a better Gross Margin (47.59%) than 85.71% of its industry peers.
RIO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.78% | ||
| PM (TTM) | 19.12% | ||
| GM | 47.59% |
OM growth 3Y-15.69%
OM growth 5Y-5.08%
PM growth 3Y-13.49%
PM growth 5Y3.02%
GM growth 3Y-9.8%
GM growth 5Y-2.74%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RIO is still creating some value.
RIO has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, RIO has about the same amount of shares outstanding.
RIO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.60 indicates that RIO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.60, RIO perfoms like the industry average, outperforming 43.51% of the companies in the same industry.
RIO has a debt to FCF ratio of 4.61. This is a neutral value as RIO would need 4.61 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.61, RIO is doing good in the industry, outperforming 72.08% of the companies in the same industry.
RIO has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RIO (0.39) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 2.6 |
ROIC/WACC0.96
WACC9.86%
2.3 Liquidity
A Current Ratio of 1.53 indicates that RIO should not have too much problems paying its short term obligations.
RIO has a worse Current ratio (1.53) than 70.78% of its industry peers.
A Quick Ratio of 1.03 indicates that RIO should not have too much problems paying its short term obligations.
RIO's Quick ratio of 1.03 is on the low side compared to the rest of the industry. RIO is outperformed by 67.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
RIO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.75%.
Measured over the past 5 years, RIO shows a small growth in Earnings Per Share. The EPS has been growing by 1.06% on average per year.
Looking at the last year, RIO shows a decrease in Revenue. The Revenue has decreased by -0.83% in the last year.
Measured over the past years, RIO shows a small growth in Revenue. The Revenue has been growing by 4.45% on average per year.
EPS 1Y (TTM)-15.75%
EPS 3Y-20.07%
EPS 5Y1.06%
EPS Q2Q%-16.45%
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y-5.46%
Revenue growth 5Y4.45%
Sales Q2Q%0.26%
3.2 Future
RIO is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.81% yearly.
The Revenue is expected to decrease by -2.97% on average over the next years.
EPS Next Y-8.58%
EPS Next 2Y-2.82%
EPS Next 3Y-0.06%
EPS Next 5Y-3.81%
Revenue Next Year1.18%
Revenue Next 2Y1.31%
Revenue Next 3Y1.75%
Revenue Next 5Y-2.97%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RIO is valuated reasonably with a Price/Earnings ratio of 11.68.
96.10% of the companies in the same industry are more expensive than RIO, based on the Price/Earnings ratio.
RIO is valuated cheaply when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.29 indicates a reasonable valuation of RIO.
Based on the Price/Forward Earnings ratio, RIO is valued a bit cheaper than 77.92% of the companies in the same industry.
RIO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 11.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RIO is valued cheaper than 86.36% of the companies in the same industry.
83.12% of the companies in the same industry are more expensive than RIO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.82 | ||
| EV/EBITDA | 7.08 |
4.3 Compensation for Growth
RIO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)11.06
EPS Next 2Y-2.82%
EPS Next 3Y-0.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.37%, RIO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.52, RIO pays a better dividend. On top of this RIO pays more dividend than 96.10% of the companies listed 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 | 5.37% |
5.2 History
The dividend of RIO decreases each year by -7.29%.
RIO has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of RIO decreased recently.
Dividend Growth(5Y)-7.29%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
RIO pays out 64.89% of its income as dividend. This is not a sustainable payout ratio.
RIO's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP64.89%
EPS Next 2Y-2.82%
EPS Next 3Y-0.06%
NYSE:RIO (10/31/2025, 11:11:46 AM)
72.04
-0.16 (-0.22%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners48.81%
Inst Owner Change-3.56%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap117.05B
Revenue(TTM)53.73B
Net Income(TTM)10.27B
Analysts77.42
Price Target71.88 (-0.22%)
Short Float %1.09%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.37% |
Yearly Dividend4.33
Dividend Growth(5Y)-7.29%
DP64.89%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)-0.93%
PT rev (3m)-1.37%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-5.9%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)4.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 11.29 | ||
| P/S | 2.18 | ||
| P/FCF | 22.82 | ||
| P/OCF | 7.57 | ||
| P/B | 2.01 | ||
| P/tB | 2.32 | ||
| EV/EBITDA | 7.08 |
EPS(TTM)6.17
EY8.56%
EPS(NY)6.38
Fwd EY8.86%
FCF(TTM)3.16
FCFY4.38%
OCF(TTM)9.52
OCFY13.21%
SpS33.07
BVpS35.82
TBVpS31.07
PEG (NY)N/A
PEG (5Y)11.06
Graham Number70.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.5% | ||
| ROE | 17.65% | ||
| ROCE | 12.94% | ||
| ROIC | 9.47% | ||
| ROICexc | 9.47% | ||
| ROICexgc | 10.2% | ||
| OM | 25.78% | ||
| PM (TTM) | 19.12% | ||
| GM | 47.59% | ||
| FCFM | 9.55% |
ROA(3y)11.25%
ROA(5y)12.86%
ROE(3y)21.27%
ROE(5y)25.13%
ROIC(3y)14.66%
ROIC(5y)17.06%
ROICexc(3y)16.42%
ROICexc(5y)19.71%
ROICexgc(3y)17.39%
ROICexgc(5y)20.82%
ROCE(3y)20.04%
ROCE(5y)23.31%
ROICexgc growth 3Y-22.87%
ROICexgc growth 5Y-5.32%
ROICexc growth 3Y-22.69%
ROICexc growth 5Y-5.1%
OM growth 3Y-15.69%
OM growth 5Y-5.08%
PM growth 3Y-13.49%
PM growth 5Y3.02%
GM growth 3Y-9.8%
GM growth 5Y-2.74%
F-Score3
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 4.61 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 170.72% | ||
| Cap/Sales | 19.24% | ||
| Interest Coverage | 19.59 | ||
| Cash Conversion | 77.7% | ||
| Profit Quality | 49.94% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 2.6 |
F-Score3
WACC9.86%
ROIC/WACC0.96
Cap/Depr(3y)143.38%
Cap/Depr(5y)146.4%
Cap/Sales(3y)14.4%
Cap/Sales(5y)13.74%
Profit Quality(3y)69.25%
Profit Quality(5y)78.39%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.75%
EPS 3Y-20.07%
EPS 5Y1.06%
EPS Q2Q%-16.45%
EPS Next Y-8.58%
EPS Next 2Y-2.82%
EPS Next 3Y-0.06%
EPS Next 5Y-3.81%
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y-5.46%
Revenue growth 5Y4.45%
Sales Q2Q%0.26%
Revenue Next Year1.18%
Revenue Next 2Y1.31%
Revenue Next 3Y1.75%
Revenue Next 5Y-2.97%
EBIT growth 1Y-10.95%
EBIT growth 3Y-20.29%
EBIT growth 5Y-0.86%
EBIT Next Year35.15%
EBIT Next 3Y13.9%
EBIT Next 5Y4.11%
FCF growth 1Y-14.93%
FCF growth 3Y-30.7%
FCF growth 5Y-8.7%
OCF growth 1Y22.41%
OCF growth 3Y-14.94%
OCF growth 5Y0.9%
RIO TINTO PLC-SPON ADR / RIO FAQ
What is the ChartMill fundamental rating of RIO TINTO PLC-SPON ADR (RIO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to RIO.
Can you provide the valuation status for RIO TINTO PLC-SPON ADR?
ChartMill assigns a valuation rating of 7 / 10 to RIO TINTO PLC-SPON ADR (RIO). This can be considered as Undervalued.
What is the profitability of RIO stock?
RIO TINTO PLC-SPON ADR (RIO) has a profitability rating of 8 / 10.
What is the valuation of RIO TINTO PLC-SPON ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for RIO TINTO PLC-SPON ADR (RIO) is 11.68 and the Price/Book (PB) ratio is 2.01.
Can you provide the expected EPS growth for RIO stock?
The Earnings per Share (EPS) of RIO TINTO PLC-SPON ADR (RIO) is expected to decline by -8.58% in the next year.