RIO TINTO PLC-SPON ADR (RIO) Stock Fundamental Analysis
USA - NYSE:RIO - US7672041008 - ADR
62.14 USD
+0.16 (+0.26%)
We assign a fundamental rating of 5 out of 10 to RIO. RIO was compared to 156 industry peers in the Metals & Mining industry. While RIO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. RIO is valued quite cheap, but it does not seem to be growing. 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.
Each year in the past 5 years RIO has been profitable.
In the past 5 years RIO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.24%, RIO belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
RIO's Return On Equity of 20.91% is amongst the best of the industry. RIO outperforms 93.59% of its industry peers.
RIO's Return On Invested Capital of 12.04% is amongst the best of the industry. RIO outperforms 89.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RIO is in line with the industry average of 12.92%.
| 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
RIO has a Profit Margin of 21.53%. This is amongst the best in the industry. RIO outperforms 87.82% of its industry peers.
RIO's Profit Margin has improved in the last couple of years.
RIO's Operating Margin of 27.91% is amongst the best of the industry. RIO outperforms 81.41% of its industry peers.
In the last couple of years the Operating Margin of RIO has declined.
RIO has a better Gross Margin (47.66%) than 85.26% of its industry peers.
RIO's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, RIO has about the same amount of shares outstanding.
RIO has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, RIO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.01 indicates that RIO is not in any danger for bankruptcy at the moment.
RIO has a Altman-Z score (3.01) which is in line with 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.
Looking at the Debt to FCF ratio, with a value of 2.32, RIO is in the better half of the industry, outperforming 77.56% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that RIO is not too dependend on debt financing.
RIO has a Debt to Equity ratio of 0.24. This is comparable to the rest of the industry: RIO outperforms 41.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3.01 |
ROIC/WACC1.18
WACC10.18%
2.3 Liquidity
A Current Ratio of 1.63 indicates that RIO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.63, RIO is doing worse than 67.31% of the companies in the same industry.
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 is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.13 |
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.
The Revenue has decreased by -0.83% in the past year.
RIO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.45% yearly.
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-8.06%
EPS Next 2Y-3.48%
EPS Next 3Y-0.38%
EPS Next 5Y-3.81%
Revenue Next Year0.49%
Revenue Next 2Y0.66%
Revenue Next 3Y1.47%
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
The Price/Earnings ratio is 10.07, which indicates a very decent valuation of RIO.
Based on the Price/Earnings ratio, RIO is valued cheaply inside the industry as 95.51% of the companies are valued more expensively.
RIO is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.87, the valuation of RIO can be described as reasonable.
Based on the Price/Forward Earnings ratio, RIO is valued cheaply inside the industry as 83.97% 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 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.07 | ||
| Fwd PE | 9.87 |
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 92.95% of the companies listed in the same industry.
RIO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RIO is cheaper than 87.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.89 | ||
| EV/EBITDA | 5.04 |
4.3 Compensation for Growth
RIO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)9.54
EPS Next 2Y-3.48%
EPS Next 3Y-0.38%
5. Dividend
5.1 Amount
RIO has a Yearly Dividend Yield of 5.99%, which is a nice return.
RIO's Dividend Yield is rather good when compared to the industry average which is at 2.51. RIO pays more dividend than 96.15% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, RIO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.99% |
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
60.81% of the earnings are spent on dividend by RIO. 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.
DP60.81%
EPS Next 2Y-3.48%
EPS Next 3Y-0.38%
NYSE:RIO (9/19/2025, 10:05:10 AM)
62.14
+0.16 (+0.26%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners44.47%
Inst Owner Change-6.99%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap100.96B
Analysts76.67
Price Target72.56 (16.77%)
Short Float %0.8%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.99% |
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)1.43%
PT rev (3m)-6.45%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-5.55%
EPS NY rev (3m)-5.37%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.56%
Revenue NY rev (3m)3.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.07 | ||
| Fwd PE | 9.87 | ||
| P/S | 1.88 | ||
| P/FCF | 16.89 | ||
| P/OCF | 6.47 | ||
| P/B | 1.83 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | 5.04 |
EPS(TTM)6.17
EY9.93%
EPS(NY)6.29
Fwd EY10.13%
FCF(TTM)3.68
FCFY5.92%
OCF(TTM)9.6
OCFY15.45%
SpS33.02
BVpS34
TBVpS31.83
PEG (NY)N/A
PEG (5Y)9.54
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 | 3.01 |
F-Score5
WACC10.18%
ROIC/WACC1.18
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-8.06%
EPS Next 2Y-3.48%
EPS Next 3Y-0.38%
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 Year0.49%
Revenue Next 2Y0.66%
Revenue Next 3Y1.47%
Revenue Next 5Y-2.97%
EBIT growth 1Y-4.96%
EBIT growth 3Y-20.29%
EBIT growth 5Y-0.86%
EBIT Next Year35.42%
EBIT Next 3Y14.3%
EBIT Next 5Y4.11%
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%