RIO TINTO PLC-SPON ADR (RIO) Stock Fundamental Analysis
USA - NYSE:RIO - US7672041008 - ADR
69.07 USD
+0.29 (+0.42%)
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 scores excellent on profitability, but there are some minor concerns on its financial health. RIO has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year RIO was profitable.
In the past year RIO had a positive cash flow from operations.
RIO had positive earnings in each of the past 5 years.
Each year in the past 5 years RIO had a positive operating cash flow.
1.2 Ratios
RIO's Return On Assets of 8.50% is amongst the best of the industry. RIO outperforms 84.42% of its industry peers.
Looking at the Return On Equity, with a value of 17.65%, RIO belongs to the top of the industry, outperforming 89.61% of the companies in the same industry.
RIO's Return On Invested Capital of 9.47% is fine compared to the rest of the industry. RIO outperforms 79.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RIO is in line with the industry average of 12.85%.
The last Return On Invested Capital (9.47%) for RIO is well below the 3 year average (14.66%), which needs to be investigated, but indicates that RIO had better years and this may not be a problem.
| 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 83.77% of its industry peers.
In the last couple of years the Profit Margin of RIO has grown nicely.
RIO has a better Operating Margin (25.78%) than 77.27% of its industry peers.
In the last couple of years the Operating Margin of RIO has declined.
Looking at the Gross Margin, with a value of 47.59%, RIO belongs to the top of the industry, outperforming 84.42% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RIO 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
An Altman-Z score of 2.55 indicates that RIO is not a great score, but indicates only limited risk for bankruptcy at the moment.
RIO has a Altman-Z score (2.55) which is comparable to the rest of the industry.
The Debt to FCF ratio of RIO is 4.61, which is a neutral value as it means it would take RIO, 4.61 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.61, RIO is doing good in the industry, outperforming 72.73% 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.
With a Debt to Equity ratio value of 0.39, RIO is not doing good in the industry: 72.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.97
WACC9.77%
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.
With a Current ratio value of 1.53, RIO is not doing good in the industry: 74.68% of the companies in the same industry are doing better.
RIO has a Quick Ratio of 1.03. 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 Quick ratio of 1.03. This is in the lower half of the industry: RIO underperforms 70.78% 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%.
The Earnings Per Share has been growing slightly by 1.06% on average over the past years.
The Revenue has decreased by -0.83% in the past 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
The Earnings Per Share is expected to decrease by -3.80% on average over the next years.
RIO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.10% yearly.
EPS Next Y-4.85%
EPS Next 2Y1.22%
EPS Next 3Y2.09%
EPS Next 5Y-3.8%
Revenue Next Year2.28%
Revenue Next 2Y2.17%
Revenue Next 3Y2.65%
Revenue Next 5Y-3.1%
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 11.19, the valuation of RIO can be described as very reasonable.
Based on the Price/Earnings ratio, RIO is valued cheaper than 94.81% of the companies in the same industry.
When comparing the Price/Earnings ratio of RIO to the average of the S&P500 Index (25.07), we can say RIO is valued rather cheaply.
RIO is valuated reasonably with a Price/Forward Earnings ratio of 9.98.
Based on the Price/Forward Earnings ratio, RIO is valued a bit cheaper than the industry average as 79.87% of the companies are valued more expensively.
RIO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 9.98 |
4.2 Price Multiples
87.01% of the companies in the same industry are more expensive than RIO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, RIO is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.88 | ||
| EV/EBITDA | 6.8 |
4.3 Compensation for Growth
The excellent profitability rating of RIO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)10.6
EPS Next 2Y1.22%
EPS Next 3Y2.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.26%, RIO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.63, RIO pays a better dividend. On top of this RIO pays more dividend than 96.10% 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
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 2Y1.22%
EPS Next 3Y2.09%
NYSE:RIO (11/21/2025, 9:42:09 AM)
69.07
+0.29 (+0.42%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners48.81%
Inst Owner Change-3.1%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap112.23B
Revenue(TTM)53.73B
Net Income(TTM)10.27B
Analysts76.77
Price Target74.83 (8.34%)
Short Float %1.11%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.26% |
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)4.11%
PT rev (3m)4.61%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)4.08%
EPS NY rev (3m)-2.26%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.08%
Revenue NY rev (3m)4.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 9.98 | ||
| P/S | 2.09 | ||
| P/FCF | 21.88 | ||
| P/OCF | 7.26 | ||
| P/B | 1.93 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 6.8 |
EPS(TTM)6.17
EY8.93%
EPS(NY)6.92
Fwd EY10.02%
FCF(TTM)3.16
FCFY4.57%
OCF(TTM)9.52
OCFY13.78%
SpS33.07
BVpS35.82
TBVpS31.07
PEG (NY)N/A
PEG (5Y)10.6
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 | 2.55 |
F-Score3
WACC9.77%
ROIC/WACC0.97
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-4.85%
EPS Next 2Y1.22%
EPS Next 3Y2.09%
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 Year2.28%
Revenue Next 2Y2.17%
Revenue Next 3Y2.65%
Revenue Next 5Y-3.1%
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 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 11.19 and the Price/Book (PB) ratio is 1.93.
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 -4.85% in the next year.