RIO TINTO PLC-SPON ADR (RIO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RIO - US7672041008 - ADR
73.72 USD
-0.01 (-0.01%)
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 valued quite cheap, but it does not seem to be growing.
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.
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 83.12% of its industry peers.
The Return On Equity of RIO (17.65%) is better than 88.96% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.47%, RIO is in the better half of the industry, outperforming 78.57% 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 13.20%.
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
RIO has a Profit Margin of 19.12%. This is amongst the best in the industry. RIO outperforms 83.12% 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 76.62% 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 83.77% 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.
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
RIO has an Altman-Z score of 2.63. 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.
With a Altman-Z score value of 2.63, RIO perfoms like the industry average, outperforming 41.56% 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.
The Debt to FCF ratio of RIO (4.61) is better than 70.78% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that RIO is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.39, RIO is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.95
WACC9.94%
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's Current ratio of 1.53 is on the low side compared to the rest of the industry. RIO is outperformed by 73.38% of its industry peers.
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.
Looking at the Quick ratio, with a value of 1.03, RIO is doing worse than 69.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The earnings per share for RIO have decreased strongly by -15.75% 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.
The Revenue has decreased by -0.83% in the past year.
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
Based on estimates for the next years, RIO will show a decrease in Earnings Per Share. The EPS will decrease by -3.80% on average per year.
The Revenue is expected to decrease by -3.10% on average over the next years.
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
Based on the Price/Earnings ratio of 11.95, the valuation of RIO can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of RIO indicates a rather cheap valuation: RIO is cheaper than 96.10% of the companies listed in the same industry.
RIO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.41.
RIO is valuated reasonably with a Price/Forward Earnings ratio of 10.65.
RIO's Price/Forward Earnings ratio is rather cheap when compared to the industry. RIO is cheaper than 81.17% 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 35.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 10.65 |
4.2 Price Multiples
RIO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RIO is cheaper than 88.96% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RIO is valued cheaply inside the industry as 82.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.35 | ||
| EV/EBITDA | 7.21 |
4.3 Compensation for Growth
The excellent profitability rating of RIO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)11.31
EPS Next 2Y1.22%
EPS Next 3Y2.09%
5. Dividend
5.1 Amount
RIO has a Yearly Dividend Yield of 5.31%, which is a nice return.
Compared to an average industry Dividend Yield of 2.60, 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
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 (12/5/2025, 10:11:10 AM)
73.72
-0.01 (-0.01%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners48.81%
Inst Owner Change-3.28%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap119.79B
Revenue(TTM)53.73B
Net Income(TTM)10.27B
Analysts76.77
Price Target75.1 (1.87%)
Short Float %1.21%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
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)4.48%
PT rev (3m)4.58%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)4.08%
EPS NY rev (3m)3.49%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.08%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 10.65 | ||
| P/S | 2.23 | ||
| P/FCF | 23.35 | ||
| P/OCF | 7.74 | ||
| P/B | 2.06 | ||
| P/tB | 2.37 | ||
| EV/EBITDA | 7.21 |
EPS(TTM)6.17
EY8.37%
EPS(NY)6.92
Fwd EY9.39%
FCF(TTM)3.16
FCFY4.28%
OCF(TTM)9.52
OCFY12.91%
SpS33.07
BVpS35.82
TBVpS31.07
PEG (NY)N/A
PEG (5Y)11.31
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 | 2.63 |
F-Score3
WACC9.94%
ROIC/WACC0.95
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 8 / 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 11.95 and the Price/Book (PB) ratio is 2.06.
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.