RIO TINTO PLC-SPON ADR (RIO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RIO - US7672041008 - ADR
81.13 USD
-3.06 (-3.63%)
81.25 USD
+0.12 (+0.15%)
Taking everything into account, RIO scores 5 out of 10 in our fundamental rating. RIO was compared to 157 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
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
The Return On Assets of RIO (8.50%) is better than 84.71% of its industry peers.
RIO has a better Return On Equity (17.65%) than 90.45% of its industry peers.
RIO's Return On Invested Capital of 9.47% is fine compared to the rest of the industry. RIO outperforms 77.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RIO is above the industry average of 10.33%.
The last Return On Invested Capital (9.47%) for RIO is well below the 3 year average (14.66%), which needs to be investigated, but indicates that RIO had better years and this may not be a problem.
| 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 better Profit Margin (19.12%) than 82.80% of its industry peers.
RIO's Profit Margin has improved in the last couple of years.
RIO has a better Operating Margin (25.78%) than 75.16% of its industry peers.
RIO's Operating Margin has declined in the last couple of years.
The Gross Margin of RIO (47.59%) is better than 82.80% of its industry peers.
In the last couple of years the Gross Margin of RIO has declined.
| 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
RIO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for RIO remains at a similar level compared to 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
An Altman-Z score of 2.79 indicates that RIO is not a great score, but indicates only limited risk for bankruptcy at the moment.
RIO has a Altman-Z score (2.79) which is in line with its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 4.61, RIO is in the better half of the industry, outperforming 70.06% of the companies in the same industry.
RIO has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RIO (0.39) is worse than 68.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 2.79 |
ROIC/WACC0.94
WACC10.11%
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.
Looking at the Current ratio, with a value of 1.53, RIO is doing worse than 71.97% of the companies in the same industry.
A Quick Ratio of 1.03 indicates that RIO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.03, RIO is doing worse than 67.52% 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.
RIO shows a decrease in Revenue. In the last year, the revenue decreased by -0.83%.
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
RIO is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.80% yearly.
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-2.54%
EPS Next 2Y5.15%
EPS Next 3Y3.7%
EPS Next 5Y-3.8%
Revenue Next Year3.34%
Revenue Next 2Y3.43%
Revenue Next 3Y3.32%
Revenue Next 5Y-3.1%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 13.15 indicates a correct 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 95.54% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, RIO is valued rather cheaply.
A Price/Forward Earnings ratio of 10.86 indicates a reasonable valuation of RIO.
RIO's Price/Forward Earnings ratio is rather cheap when compared to the industry. RIO is cheaper than 81.53% of the companies in the same industry.
RIO is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 10.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RIO is valued cheaper than 89.17% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RIO is valued cheaper than 82.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.7 | ||
| EV/EBITDA | 8.06 |
4.3 Compensation for Growth
RIO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)12.45
EPS Next 2Y5.15%
EPS Next 3Y3.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.59%, RIO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.98, RIO pays a better dividend. On top of this RIO pays more dividend than 96.18% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.90, RIO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
5.2 History
The dividend of RIO decreases each year by -7.29%.
RIO has paid a dividend for at least 10 years, which is 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.
RIO's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP64.89%
EPS Next 2Y5.15%
EPS Next 3Y3.7%
81.13
-3.06 (-3.63%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners49.23%
Inst Owner Change0%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap131.83B
Revenue(TTM)53.73B
Net Income(TTM)10.27B
Analysts76.77
Price Target79.7 (-1.76%)
Short Float %1.46%
Short Ratio5.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
Yearly Dividend4.33
Dividend Growth(5Y)-7.29%
DP64.89%
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)6.12%
PT rev (3m)10.88%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.16%
EPS NY rev (3m)6.6%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 10.86 | ||
| P/S | 2.45 | ||
| P/FCF | 25.7 | ||
| P/OCF | 8.52 | ||
| P/B | 2.26 | ||
| P/tB | 2.61 | ||
| EV/EBITDA | 8.06 |
EPS(TTM)6.17
EY7.61%
EPS(NY)7.47
Fwd EY9.21%
FCF(TTM)3.16
FCFY3.89%
OCF(TTM)9.52
OCFY11.73%
SpS33.07
BVpS35.82
TBVpS31.07
PEG (NY)N/A
PEG (5Y)12.45
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 | 2.79 |
F-Score3
WACC10.11%
ROIC/WACC0.94
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-2.54%
EPS Next 2Y5.15%
EPS Next 3Y3.7%
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 Year3.34%
Revenue Next 2Y3.43%
Revenue Next 3Y3.32%
Revenue Next 5Y-3.1%
EBIT growth 1Y-10.95%
EBIT growth 3Y-20.29%
EBIT growth 5Y-0.86%
EBIT Next Year42.61%
EBIT Next 3Y16.72%
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.
What is the valuation status for RIO stock?
ChartMill assigns a valuation rating of 7 / 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 are the PE and PB ratios of RIO TINTO PLC-SPON ADR (RIO) stock?
The Price/Earnings (PE) ratio for RIO TINTO PLC-SPON ADR (RIO) is 13.15 and the Price/Book (PB) ratio is 2.26.
What is the expected EPS growth for RIO TINTO PLC-SPON ADR (RIO) stock?
The Earnings per Share (EPS) of RIO TINTO PLC-SPON ADR (RIO) is expected to decline by -2.54% in the next year.