RIO TINTO PLC-SPON ADR (RIO) Stock Fundamental Analysis
USA - NYSE:RIO - US7672041008 - ADR
70.63 USD
-0.41 (-0.58%)
70.63 USD
0 (0%)
Overall RIO gets a fundamental rating of 5 out of 10. We evaluated RIO against 154 industry peers in the Metals & Mining industry. While RIO has a great profitability rating, 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
RIO had positive earnings in the past year.
In the past year RIO had a positive cash flow from operations.
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
With an excellent Return On Assets value of 8.50%, RIO belongs to the best of the industry, outperforming 85.06% of the companies in the same industry.
RIO has a better Return On Equity (17.65%) than 90.91% of its industry peers.
RIO has a Return On Invested Capital of 9.47%. This is amongst the best in the industry. RIO outperforms 81.17% 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 12.68%.
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 84.42% of its industry peers.
RIO's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 25.78%, RIO is doing good in the industry, outperforming 77.27% of the companies in the same industry.
In the last couple of years the Operating Margin of RIO has declined.
With an excellent Gross Margin value of 47.59%, RIO belongs to the best 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
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.
RIO has a better debt/assets ratio than last year.
2.2 Solvency
RIO has an Altman-Z score of 2.59. 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 2.59, RIO perfoms like the industry average, outperforming 44.81% 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 73.38% 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.
RIO has a worse Debt to Equity ratio (0.39) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.97
WACC9.76%
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 Current ratio of 1.53. This is in the lower half of the industry: RIO underperforms 73.38% of its industry peers.
A Quick Ratio of 1.03 indicates that RIO should not have too much problems paying its short term obligations.
RIO has a worse Quick ratio (1.03) than 70.78% of its industry peers.
| 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.
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
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.
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-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
A Price/Earnings ratio of 11.45 indicates a reasonable valuation of RIO.
Compared to the rest of the industry, the Price/Earnings ratio of RIO indicates a rather cheap valuation: RIO is cheaper than 94.16% of the companies listed in the same industry.
RIO is valuated cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.20 indicates a reasonable valuation of RIO.
Based on the Price/Forward Earnings ratio, RIO is valued cheaper than 80.52% 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 34.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.45 | ||
| Fwd PE | 10.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RIO is valued cheaply inside the industry as 87.66% of the companies are valued more expensively.
RIO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RIO is cheaper than 82.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.37 | ||
| EV/EBITDA | 6.99 |
4.3 Compensation for Growth
RIO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)10.84
EPS Next 2Y1.22%
EPS Next 3Y2.09%
5. Dividend
5.1 Amount
RIO has a Yearly Dividend Yield of 5.41%, which is a nice return.
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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.41% |
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
64.89% of the earnings are spent on dividend by RIO. 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%
70.63
-0.41 (-0.58%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners48.81%
Inst Owner Change-3.06%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap114.77B
Revenue(TTM)53.73B
Net Income(TTM)10.27B
Analysts76.77
Price Target75.09 (6.31%)
Short Float %1.09%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.41% |
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)4.46%
PT rev (3m)4.97%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)4.08%
EPS NY rev (3m)-2.07%
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 | 11.45 | ||
| Fwd PE | 10.2 | ||
| P/S | 2.14 | ||
| P/FCF | 22.37 | ||
| P/OCF | 7.42 | ||
| P/B | 1.97 | ||
| P/tB | 2.27 | ||
| EV/EBITDA | 6.99 |
EPS(TTM)6.17
EY8.74%
EPS(NY)6.92
Fwd EY9.8%
FCF(TTM)3.16
FCFY4.47%
OCF(TTM)9.52
OCFY13.48%
SpS33.07
BVpS35.82
TBVpS31.07
PEG (NY)N/A
PEG (5Y)10.84
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 | 2.59 |
F-Score3
WACC9.76%
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 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 11.45 and the Price/Book (PB) ratio is 1.97.
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.