RIO TINTO PLC-SPON ADR (RIO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RIO - US7672041008 - ADR
75.66 USD
-1.08 (-1.41%)
75.66 USD
0 (0%)
Taking everything into account, RIO scores 5 out of 10 in our fundamental rating. RIO was compared to 155 industry peers in the Metals & Mining industry. RIO scores excellent on profitability, 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
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
Looking at the Return On Assets, with a value of 8.50%, RIO belongs to the top of the industry, outperforming 83.23% of the companies in the same industry.
The Return On Equity of RIO (17.65%) is better than 89.03% of its industry peers.
With a decent Return On Invested Capital value of 9.47%, RIO is doing good in the industry, outperforming 78.06% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RIO is in line with the industry average of 13.15%.
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
The Profit Margin of RIO (19.12%) is better than 83.23% of its industry peers.
RIO's Profit Margin has improved in the last couple of years.
RIO has a Operating Margin of 25.78%. This is in the better half of the industry: RIO outperforms 74.84% of its industry peers.
In the last couple of years the Operating Margin of RIO has declined.
RIO has a Gross Margin of 47.59%. This is amongst the best in the industry. RIO outperforms 83.23% 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
RIO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, RIO has about the same amount of shares outstanding.
Compared to 5 years ago, RIO has about the same amount of shares outstanding.
The debt/assets ratio for RIO has been reduced compared to a year ago.
2.2 Solvency
RIO has an Altman-Z score of 2.67. This is not the best score and indicates that RIO is in the grey zone with still only limited risk for bankruptcy at the moment.
RIO has a Altman-Z score of 2.67. This is comparable to the rest of the industry: RIO outperforms 41.29% of its industry peers.
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.
RIO has a Debt to FCF ratio of 4.61. This is in the better half of the industry: RIO outperforms 69.03% of its industry peers.
RIO has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.39, RIO is not doing good in the industry: 70.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.9
WACC10.54%
2.3 Liquidity
RIO has a Current Ratio of 1.53. 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 (1.53) than 73.55% of its industry peers.
A Quick Ratio of 1.03 indicates that RIO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.03, RIO is doing worse than 69.68% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing slightly by 1.06% on average over the past years.
RIO shows a decrease in Revenue. In the last year, the revenue decreased by -0.83%.
The Revenue has been growing slightly by 4.45% on average over the past years.
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 -3.80% yearly.
Based on estimates for the next years, RIO will show a decrease in Revenue. The Revenue will decrease by -3.10% on average per year.
EPS Next Y-3.66%
EPS Next 2Y3.27%
EPS Next 3Y2.46%
EPS Next 5Y-3.8%
Revenue Next Year2.84%
Revenue Next 2Y2.99%
Revenue Next 3Y2.92%
Revenue Next 5Y-3.1%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 12.26, which indicates a correct valuation of RIO.
Based on the Price/Earnings ratio, RIO is valued cheaper than 96.77% of the companies in the same industry.
RIO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.54.
RIO is valuated reasonably with a Price/Forward Earnings ratio of 10.50.
81.29% of the companies in the same industry are more expensive than RIO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RIO to the average of the S&P500 Index (23.78), we can say RIO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 10.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RIO indicates a rather cheap valuation: RIO is cheaper than 89.03% of the companies listed in the same industry.
82.58% 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 | 23.97 | ||
| EV/EBITDA | 7.45 |
4.3 Compensation for Growth
RIO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)11.61
EPS Next 2Y3.27%
EPS Next 3Y2.46%
5. Dividend
5.1 Amount
RIO has a Yearly Dividend Yield of 5.18%, which is a nice return.
RIO's Dividend Yield is rather good when compared to the industry average which is at 2.50. RIO pays more dividend than 96.13% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, RIO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
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.
The Dividend Rate of RIO has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP64.89%
EPS Next 2Y3.27%
EPS Next 3Y2.46%
75.66
-1.08 (-1.41%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners48.81%
Inst Owner Change-3.27%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap122.94B
Revenue(TTM)53.73B
Net Income(TTM)10.27B
Analysts76.77
Price Target78.95 (4.35%)
Short Float %1.21%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
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)5.15%
PT rev (3m)9.94%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.25%
EPS NY rev (3m)4.78%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 10.5 | ||
| P/S | 2.29 | ||
| P/FCF | 23.97 | ||
| P/OCF | 7.95 | ||
| P/B | 2.11 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 7.45 |
EPS(TTM)6.17
EY8.15%
EPS(NY)7.2
Fwd EY9.52%
FCF(TTM)3.16
FCFY4.17%
OCF(TTM)9.52
OCFY12.58%
SpS33.07
BVpS35.82
TBVpS31.07
PEG (NY)N/A
PEG (5Y)11.61
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 | 2.67 |
F-Score3
WACC10.54%
ROIC/WACC0.9
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-3.66%
EPS Next 2Y3.27%
EPS Next 3Y2.46%
EPS Next 5Y-3.8%
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y-5.46%
Revenue growth 5Y4.45%
Sales Q2Q%0.26%
Revenue Next Year2.84%
Revenue Next 2Y2.99%
Revenue Next 3Y2.92%
Revenue Next 5Y-3.1%
EBIT growth 1Y-10.95%
EBIT growth 3Y-20.29%
EBIT growth 5Y-0.86%
EBIT Next Year41.35%
EBIT Next 3Y16.74%
EBIT Next 5Y3.96%
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 12.26 and the Price/Book (PB) ratio is 2.11.
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 -3.66% in the next year.