RIO TINTO PLC-SPON ADR (RIO)
US7672041008 - ADR
Taking everything into account, RIO scores 6 out of 10 in our fundamental rating. RIO was compared to 154 industry peers in the Metals & Mining industry. RIO gets an excellent profitability rating and is at the same time showing great financial health properties. RIO is valued quite cheap, but it does not seem to be growing. With these ratings, RIO could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
RIO had positive earnings in the past year.
RIO had a positive operating cash flow in the past year.
In the past 5 years RIO has always been profitable.
In the past 5 years RIO always reported a positive cash flow from operatings.
1.2 Ratios
RIO has a better Return On Assets (9.71%) than 87.01% of its industry peers.
RIO has a Return On Equity of 18.43%. This is amongst the best in the industry. RIO outperforms 87.01% of its industry peers.
RIO's Return On Invested Capital of 12.33% is amongst the best of the industry. RIO outperforms 85.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RIO is significantly above the industry average of 8.77%.
The 3 year average ROIC (18.29%) for RIO 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
The Profit Margin of RIO (18.61%) is better than 91.56% of its industry peers.
In the last couple of years the Profit Margin of RIO has declined.
RIO's Operating Margin of 29.16% is amongst the best of the industry. RIO outperforms 89.61% of its industry peers.
RIO's Operating Margin has been stable in the last couple of years.
The Gross Margin of RIO (50.78%) is better than 88.96% of its industry peers.
RIO's Gross Margin has been stable in the last couple of years.
| 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), RIO is creating value.
RIO has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, RIO has less shares outstanding
The debt/assets ratio for RIO is higher compared to a year ago.
2.2 Solvency
RIO has an Altman-Z score of 3.15. This indicates that RIO is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.15, RIO is doing good in the industry, outperforming 61.69% of the companies in the same industry.
RIO 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.
The Debt to FCF ratio of RIO (1.78) is better than 83.77% of its industry peers.
RIO has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.24, RIO perfoms like the industry average, outperforming 43.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | 3.15 |
ROIC/WACC1.42
WACC8.68%
2.3 Liquidity
RIO has a Current Ratio of 1.69. 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 1.69. This is in the lower half of the industry: RIO underperforms 68.83% of its industry peers.
A Quick Ratio of 1.17 indicates that RIO should not have too much problems paying its short term obligations.
RIO has a Quick ratio (1.17) which is in line with its industry peers.
RIO does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The earnings per share for RIO have decreased strongly by -11.04% in the last year.
RIO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.20% yearly.
The Revenue has decreased by -2.72% in the past year.
The Revenue has been growing slightly by 5.93% on average over the past years.
EPS 1Y (TTM)-11.04%
EPS 3Y-1.99%
EPS 5Y7.2%
EPS growth Q2Q30.56%
Revenue 1Y (TTM)-2.72%
Revenue growth 3Y6.6%
Revenue growth 5Y5.93%
Revenue growth Q2Q6.19%
3.2 Future
The Earnings Per Share is expected to decrease by -3.14% on average over the next years.
RIO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.19% yearly.
EPS Next Y7.58%
EPS Next 2Y-0.43%
EPS Next 3Y-2.25%
EPS Next 5Y-3.14%
Revenue Next Year0.68%
Revenue Next 2Y-1.17%
Revenue Next 3Y-1.32%
Revenue Next 5Y-0.19%
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
RIO is valuated reasonably with a Price/Earnings ratio of 9.61.
Based on the Price/Earnings ratio, RIO is valued cheaper than 85.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.11, RIO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.93, the valuation of RIO can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RIO indicates a rather cheap valuation: RIO is cheaper than 90.91% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.39, RIO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.61 | ||
| Fwd PE | 8.93 |
4.2 Price Multiples
RIO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RIO is cheaper than 82.47% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RIO indicates a rather cheap valuation: RIO is cheaper than 83.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.09 | ||
| EV/EBITDA | 5.51 |
4.3 Compensation for Growth
RIO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of RIO may justify a higher PE ratio.
RIO's earnings are expected to decrease with -2.25% in the coming years. This may justify a cheaper valuation.
PEG (NY)1.27
PEG (5Y)1.33
EPS Next 2Y-0.43%
EPS Next 3Y-2.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.27%, RIO is a good candidate for dividend investing.
RIO's Dividend Yield is rather good when compared to the industry average which is at 2.86. RIO pays more dividend than 98.05% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, RIO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.27% |
5.2 History
The dividend of RIO has a limited annual growth rate of 4.85%.
RIO has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.85%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
64.33% of the earnings are spent on dividend by RIO. This is not a sustainable payout ratio.
RIO's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP64.33%
EPS Next 2Y-0.43%
EPS Next 3Y-2.25%
RIO TINTO PLC-SPON ADR
NYSE:RIO (5/7/2024, 7:20:09 PM)
Premarket: 69.02 -1.02 (-1.46%)70.04
+0.22 (+0.32%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap113.73B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.27% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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EPS NQ rev (1m)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.61 | ||
| Fwd PE | 8.93 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.27
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.71% | ||
| ROE | 18.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.16% | ||
| PM (TTM) | 18.61% | ||
| GM | 50.78% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-11.04%
EPS 3Y-1.99%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.72%
Revenue growth 3Y6.6%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y