RIO TINTO PLC (RIO1.DE) Stock Fundamental Analysis
FRA:RIO1 - Deutsche Boerse Ag - GB0007188757 - Common Stock
RIO1 gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 39 industry peers in the Metals & Mining industry. RIO1 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. RIO1 is cheap, but on the other hand it scores bad on growth. This makes RIO1 very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year RIO1 was profitable.
In the past year RIO1 had a positive cash flow from operations.
Each year in the past 5 years RIO1 has been profitable.
In the past 5 years RIO1 always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.71%, RIO1 belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.43%, RIO1 belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.33%, RIO1 belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RIO1 is significantly above the industry average of 6.18%.
The 3 year average ROIC (18.29%) for RIO1 is well above the current ROIC(12.33%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.71% | ||
| ROE | 18.43% | ||
| ROIC | 12.33% |
ROA(3y)14.34%
ROA(5y)12.43%
ROE(3y)27.97%
ROE(5y)24.89%
ROIC(3y)18.29%
ROIC(5y)17.16%
1.3 Margins
RIO1's Profit Margin of 18.61% is amongst the best of the industry. RIO1 outperforms 88.89% of its industry peers.
In the last couple of years the Profit Margin of RIO1 has declined.
Looking at the Operating Margin, with a value of 29.16%, RIO1 belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
RIO1's Operating Margin has been stable in the last couple of years.
RIO1's Gross Margin of 50.78% is amongst the best of the industry. RIO1 outperforms 83.33% of its industry peers.
In the last couple of years the Gross Margin of RIO1 has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.16% | ||
| PM (TTM) | 18.61% | ||
| GM | 50.78% |
OM growth 3Y-9.89%
OM growth 5Y-1.37%
PM growth 3Y-5.28%
PM growth 5Y-11.17%
GM growth 3Y-4.8%
GM growth 5Y-0.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RIO1 is creating value.
RIO1 has about the same amout of shares outstanding than it did 1 year ago.
RIO1 has less shares outstanding than it did 5 years ago.
RIO1 has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.96 indicates that RIO1 is not a great score, but indicates only limited risk for bankruptcy at the moment.
RIO1 has a Altman-Z score of 2.96. This is amongst the best in the industry. RIO1 outperforms 83.33% of its industry peers.
RIO1 has a debt to FCF ratio of 1.78. This is a very positive value and a sign of high solvency as it would only need 1.78 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.78, RIO1 belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
RIO1 has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RIO1 (0.24) is better than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | 2.96 |
ROIC/WACC1.22
WACC10.14%
2.3 Liquidity
A Current Ratio of 1.69 indicates that RIO1 should not have too much problems paying its short term obligations.
RIO1 has a Current ratio (1.69) which is comparable to the rest of the industry.
RIO1 has a Quick Ratio of 1.17. This is a normal value and indicates that RIO1 is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.17, RIO1 is doing good in the industry, outperforming 63.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.87% over the past year.
The Earnings Per Share has been growing slightly by 7.20% on average over the past years.
The Revenue has been growing slightly by 3.30% in the past year.
RIO1 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.93% yearly.
EPS 1Y (TTM)13.87%
EPS 3Y-1.99%
EPS 5Y7.2%
EPS Q2Q%0.4%
Revenue 1Y (TTM)3.3%
Revenue growth 3Y6.6%
Revenue growth 5Y5.93%
Sales Q2Q%0.51%
3.2 Future
The Earnings Per Share is expected to decrease by -3.76% on average over the next years.
The Revenue is expected to decrease by -2.94% on average over the next years.
EPS Next Y-3.62%
EPS Next 2Y-2.54%
EPS Next 3Y-2.23%
EPS Next 5Y-3.76%
Revenue Next Year-1.06%
Revenue Next 2Y-1.04%
Revenue Next 3Y-0.36%
Revenue Next 5Y-2.94%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 8.47, which indicates a very decent valuation of RIO1.
RIO1's Price/Earnings ratio is a bit cheaper when compared to the industry. RIO1 is cheaper than 77.78% of the companies in the same industry.
RIO1's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.96.
RIO1 is valuated reasonably with a Price/Forward Earnings ratio of 8.93.
RIO1's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RIO1 is cheaper than 69.44% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.11. RIO1 is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 8.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RIO1 is valued a bit cheaper than 72.22% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RIO1 indicates a rather cheap valuation: RIO1 is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.37 | ||
| EV/EBITDA | 4.76 |
4.3 Compensation for Growth
RIO1 has an outstanding profitability rating, which may justify a higher PE ratio.
RIO1's earnings are expected to decrease with -2.23% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.18
EPS Next 2Y-2.54%
EPS Next 3Y-2.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.03%, RIO1 is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.85, RIO1 pays a better dividend. On top of this RIO1 pays more dividend than 91.67% of the companies listed in the same industry.
RIO1's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.03% |
5.2 History
The dividend of RIO1 has a limited annual growth rate of 4.85%.
Dividend Growth(5Y)4.85%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
64.33% of the earnings are spent on dividend by RIO1. This is not a sustainable payout ratio.
The Dividend Rate of RIO1 has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP64.33%
EPS Next 2Y-2.54%
EPS Next 3Y-2.23%
RIO TINTO PLC
FRA:RIO1 (1/17/2025, 7:00:00 PM)
59.87
+1.16 (+1.98%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners46.95%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap97.24B
Analysts75.86
Price Target72.61 (21.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.03% |
Yearly Dividend3.99
Dividend Growth(5Y)4.85%
DP64.33%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)0.18%
PT rev (3m)-0.37%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-6.27%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.84%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 8.93 | ||
| P/S | 1.85 | ||
| P/FCF | 12.37 | ||
| P/OCF | 6.59 | ||
| P/B | 1.83 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 4.76 |
EPS(TTM)7.07
EY11.81%
EPS(NY)6.7
Fwd EY11.2%
FCF(TTM)4.84
FCFY8.08%
OCF(TTM)9.09
OCFY15.18%
SpS32.39
BVpS32.72
TBVpS29.61
PEG (NY)N/A
PEG (5Y)1.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.71% | ||
| ROE | 18.43% | ||
| ROCE | 17.35% | ||
| ROIC | 12.33% | ||
| ROICexc | 14% | ||
| ROICexgc | 14.97% | ||
| OM | 29.16% | ||
| PM (TTM) | 18.61% | ||
| GM | 50.78% | ||
| FCFM | 14.94% |
ROA(3y)14.34%
ROA(5y)12.43%
ROE(3y)27.97%
ROE(5y)24.89%
ROIC(3y)18.29%
ROIC(5y)17.16%
ROICexc(3y)21.21%
ROICexc(5y)19.97%
ROICexgc(3y)22.47%
ROICexgc(5y)21.12%
ROCE(3y)25.74%
ROCE(5y)24.15%
ROICexcg growth 3Y-6.51%
ROICexcg growth 5Y1.03%
ROICexc growth 3Y-6.97%
ROICexc growth 5Y0.82%
OM growth 3Y-9.89%
OM growth 5Y-1.37%
PM growth 3Y-5.28%
PM growth 5Y-11.17%
GM growth 3Y-4.8%
GM growth 5Y-0.07%
F-Score4
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.78 | ||
| Debt/EBITDA | 0.62 | ||
| Cap/Depr | 132.85% | ||
| Cap/Sales | 13.11% | ||
| Interest Coverage | 25.75 | ||
| Cash Conversion | 71.87% | ||
| Profit Quality | 80.27% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 2.96 |
F-Score4
WACC10.14%
ROIC/WACC1.22
Cap/Depr(3y)141.59%
Cap/Depr(5y)138.92%
Cap/Sales(3y)12.3%
Cap/Sales(5y)12.7%
Profit Quality(3y)80.38%
Profit Quality(5y)91.59%
High Growth Momentum
Growth
EPS 1Y (TTM)13.87%
EPS 3Y-1.99%
EPS 5Y7.2%
EPS Q2Q%0.4%
EPS Next Y-3.62%
EPS Next 2Y-2.54%
EPS Next 3Y-2.23%
EPS Next 5Y-3.76%
Revenue 1Y (TTM)3.3%
Revenue growth 3Y6.6%
Revenue growth 5Y5.93%
Sales Q2Q%0.51%
Revenue Next Year-1.06%
Revenue Next 2Y-1.04%
Revenue Next 3Y-0.36%
Revenue Next 5Y-2.94%
EBIT growth 1Y-20.76%
EBIT growth 3Y-3.94%
EBIT growth 5Y4.48%
EBIT Next Year31.15%
EBIT Next 3Y10.22%
EBIT Next 5Y2.57%
FCF growth 1Y-13.96%
FCF growth 3Y-5.89%
FCF growth 5Y4.79%
OCF growth 1Y-6.04%
OCF growth 3Y-1.52%
OCF growth 5Y5.1%