RIO TINTO PLC-SPON ADR (RIO) Stock Fundamental Analysis
NYSE:RIO - New York Stock Exchange, Inc. - US7672041008 - ADR - Currency: USD
Overall RIO gets a fundamental rating of 5 out of 10. We evaluated RIO against 152 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 would make RIO suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year RIO was profitable.
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 has a Return On Assets of 11.24%. This is amongst the best in the industry. RIO outperforms 90.13% of its industry peers.
The Return On Equity of RIO (20.91%) is better than 92.11% of its industry peers.
RIO's Return On Invested Capital of 12.04% is amongst the best of the industry. RIO outperforms 92.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RIO is significantly above the industry average of 8.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.24% | ||
| ROE | 20.91% | ||
| ROIC | 12.04% |
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 21.53%, RIO belongs to the top of the industry, outperforming 90.13% of the companies in the same industry.
RIO's Profit Margin has improved in the last couple of years.
The Operating Margin of RIO (27.91%) is better than 83.55% of its industry peers.
In the last couple of years the Operating Margin of RIO has declined.
RIO's Gross Margin of 47.66% is amongst the best of the industry. RIO outperforms 87.50% of its industry peers.
In the last couple of years the Gross Margin of RIO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.91% | ||
| PM (TTM) | 21.53% | ||
| GM | 47.66% |
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
RIO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for RIO remains at a similar level compared to 1 year ago.
The number of shares outstanding for RIO remains at a similar level compared to 5 years ago.
Compared to 1 year ago, RIO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.93 indicates that RIO is not a great score, but indicates only limited risk for bankruptcy at the moment.
RIO's Altman-Z score of 2.93 is in line compared to the rest of the industry. RIO outperforms 57.89% of its industry peers.
RIO has a debt to FCF ratio of 2.32. This is a good value and a sign of high solvency as RIO would need 2.32 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.32, RIO belongs to the best of the industry, outperforming 80.26% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that RIO is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.24, RIO perfoms like the industry average, outperforming 46.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 2.93 |
ROIC/WACC1.19
WACC10.12%
2.3 Liquidity
A Current Ratio of 1.63 indicates that RIO should not have too much problems paying its short term obligations.
The Current ratio of RIO (1.63) is worse than 65.79% of its industry peers.
A Quick Ratio of 1.13 indicates that RIO should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.13, RIO perfoms like the industry average, outperforming 40.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The earnings per share for RIO have decreased by -7.54% in the last year.
RIO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.06% yearly.
Looking at the last year, RIO shows a decrease in Revenue. The Revenue has decreased by -0.71% in the last year.
The Revenue has been growing slightly by 4.45% on average over the past years.
EPS 1Y (TTM)-7.54%
EPS 3Y-20.07%
EPS 5Y1.06%
EPS Q2Q%-15.08%
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y-5.46%
Revenue growth 5Y4.45%
Sales Q2Q%-1.89%
3.2 Future
The Earnings Per Share is expected to decrease by -3.77% 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 -3.00% on average per year.
EPS Next Y-2.67%
EPS Next 2Y-1.44%
EPS Next 3Y1.03%
EPS Next 5Y-3.77%
Revenue Next Year-2.17%
Revenue Next 2Y-0.36%
Revenue Next 3Y1.71%
Revenue Next 5Y-3%
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
With a Price/Earnings ratio of 8.63, the valuation of RIO can be described as very reasonable.
RIO's Price/Earnings ratio is rather cheap when compared to the industry. RIO is cheaper than 96.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, RIO is valued rather cheaply.
A Price/Forward Earnings ratio of 8.86 indicates a reasonable valuation of RIO.
Based on the Price/Forward Earnings ratio, RIO is valued cheaper than 91.45% of the companies in the same industry.
RIO is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 8.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RIO is valued cheaper than 89.47% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RIO is valued cheaply inside the industry as 82.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.81 | ||
| EV/EBITDA | 4.74 |
4.3 Compensation for Growth
RIO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)8.17
EPS Next 2Y-1.44%
EPS Next 3Y1.03%
5. Dividend
5.1 Amount
RIO has a Yearly Dividend Yield of 7.05%, which is a nice return.
Compared to an average industry Dividend Yield of 3.09, RIO pays a better dividend. On top of this RIO pays more dividend than 96.71% of the companies listed in the same industry.
RIO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.05% |
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.
RIO has decreased its dividend recently.
Dividend Growth(5Y)-7.29%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
RIO pays out 60.81% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of RIO has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP60.81%
EPS Next 2Y-1.44%
EPS Next 3Y1.03%
58.17
+1.01 (+1.77%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners49.48%
Inst Owner Change0.02%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap94.51B
Analysts78
Price Target78.56 (35.05%)
Short Float %0.77%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.05% |
Yearly Dividend4.33
Dividend Growth(5Y)-7.29%
DP60.81%
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)3.78%
PT rev (3m)4.55%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-5.1%
EPS NY rev (3m)-5.17%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 8.86 | ||
| P/S | 1.76 | ||
| P/FCF | 15.81 | ||
| P/OCF | 6.06 | ||
| P/B | 1.71 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 4.74 |
EPS(TTM)6.74
EY11.59%
EPS(NY)6.56
Fwd EY11.28%
FCF(TTM)3.68
FCFY6.33%
OCF(TTM)9.6
OCFY16.51%
SpS33.03
BVpS34
TBVpS31.83
PEG (NY)N/A
PEG (5Y)8.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.24% | ||
| ROE | 20.91% | ||
| ROCE | 16.45% | ||
| ROIC | 12.04% | ||
| ROICexc | 13.34% | ||
| ROICexgc | 13.94% | ||
| OM | 27.91% | ||
| PM (TTM) | 21.53% | ||
| GM | 47.66% | ||
| FCFM | 11.14% |
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%
ROICexcg growth 3Y-22.87%
ROICexcg 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-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.32 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 162.57% | ||
| Cap/Sales | 17.93% | ||
| Interest Coverage | 21.86 | ||
| Cash Conversion | 74.65% | ||
| Profit Quality | 51.75% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 2.93 |
F-Score5
WACC10.12%
ROIC/WACC1.19
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)-7.54%
EPS 3Y-20.07%
EPS 5Y1.06%
EPS Q2Q%-15.08%
EPS Next Y-2.67%
EPS Next 2Y-1.44%
EPS Next 3Y1.03%
EPS Next 5Y-3.77%
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y-5.46%
Revenue growth 5Y4.45%
Sales Q2Q%-1.89%
Revenue Next Year-2.17%
Revenue Next 2Y-0.36%
Revenue Next 3Y1.71%
Revenue Next 5Y-3%
EBIT growth 1Y-4.96%
EBIT growth 3Y-20.29%
EBIT growth 5Y-0.86%
EBIT Next Year38.52%
EBIT Next 3Y14.72%
EBIT Next 5Y4.02%
FCF growth 1Y-25.96%
FCF growth 3Y-30.7%
FCF growth 5Y-8.7%
OCF growth 1Y2.9%
OCF growth 3Y-14.94%
OCF growth 5Y0.9%