RIO TINTO PLC-SPON ADR (RIO) Stock Fundamental Analysis
USA - NYSE:RIO - US7672041008 - ADR
71.99 USD
+1.06 (+1.49%)
72.25 USD
+0.26 (+0.36%)
Taking everything into account, RIO scores 5 out of 10 in our fundamental rating. RIO was compared to 154 industry peers in the Metals & Mining industry. RIO scores excellent on profitability, but 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.
Each year in the past 5 years RIO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RIO (8.50%) is better than 87.66% of its industry peers.
RIO's Return On Equity of 17.65% is amongst the best of the industry. RIO outperforms 90.91% of its industry peers.
The Return On Invested Capital of RIO (9.47%) is better than 83.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RIO is above the industry average of 12.40%.
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
Looking at the Profit Margin, with a value of 19.12%, RIO belongs to the top of the industry, outperforming 87.01% of the companies in the same industry.
RIO's Profit Margin has improved in the last couple of years.
RIO has a better Operating Margin (25.78%) than 78.57% of its industry peers.
RIO's Operating Margin has declined in the last couple of years.
RIO has a better Gross Margin (47.59%) than 85.71% of its industry peers.
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
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 2.58 indicates that RIO is not a great score, but indicates only limited risk for bankruptcy at the moment.
RIO has a Altman-Z score (2.58) which is comparable to the rest of the 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.
RIO has a Debt to FCF ratio of 4.61. This is in the better half of the industry: RIO outperforms 72.08% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that RIO is not too dependend on debt financing.
RIO has a worse Debt to Equity ratio (0.39) than 70.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.96
WACC9.86%
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 70.78% of the companies in the same industry.
RIO has a Quick Ratio of 1.03. 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 Quick ratio, with a value of 1.03, RIO is doing worse than 67.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.03 |
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%.
The Earnings Per Share has been growing slightly by 1.06% on average over the past years.
RIO shows a decrease in Revenue. In the last year, the revenue decreased by -0.83%.
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 -3.81% on average per year.
RIO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.97% yearly.
EPS Next Y-8.58%
EPS Next 2Y-2.82%
EPS Next 3Y-0.06%
EPS Next 5Y-3.81%
Revenue Next Year1.18%
Revenue Next 2Y1.31%
Revenue Next 3Y1.75%
Revenue Next 5Y-2.97%
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 11.67.
94.81% of the companies in the same industry are more expensive than RIO, based on the Price/Earnings ratio.
RIO is valuated cheaply when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.28 indicates a reasonable valuation of RIO.
79.22% of the companies in the same industry are more expensive than RIO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, RIO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 11.28 |
4.2 Price Multiples
85.71% of the companies in the same industry are more expensive than RIO, based on the Enterprise Value to EBITDA ratio.
RIO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RIO is cheaper than 83.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.8 | ||
| EV/EBITDA | 6.98 |
4.3 Compensation for Growth
The excellent profitability rating of RIO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)11.05
EPS Next 2Y-2.82%
EPS Next 3Y-0.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.37%, RIO is a good candidate for dividend investing.
RIO's Dividend Yield is rather good when compared to the industry average which is at 2.52. RIO pays more dividend than 96.10% of the companies in the same industry.
RIO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.37% |
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.
RIO has decreased its dividend recently.
Dividend Growth(5Y)-7.29%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
RIO pays out 64.89% of its income as dividend. 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 2Y-2.82%
EPS Next 3Y-0.06%
71.99
+1.06 (+1.49%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners48.81%
Inst Owner Change-3.56%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap116.97B
Revenue(TTM)53.73B
Net Income(TTM)10.27B
Analysts77.42
Price Target71.88 (-0.15%)
Short Float %1.09%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.37% |
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)-0.93%
PT rev (3m)-1.37%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-5.9%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)4.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 11.28 | ||
| P/S | 2.18 | ||
| P/FCF | 22.8 | ||
| P/OCF | 7.56 | ||
| P/B | 2.01 | ||
| P/tB | 2.32 | ||
| EV/EBITDA | 6.98 |
EPS(TTM)6.17
EY8.57%
EPS(NY)6.38
Fwd EY8.86%
FCF(TTM)3.16
FCFY4.39%
OCF(TTM)9.52
OCFY13.22%
SpS33.07
BVpS35.82
TBVpS31.07
PEG (NY)N/A
PEG (5Y)11.05
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 | 2.58 |
F-Score3
WACC9.86%
ROIC/WACC0.96
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-8.58%
EPS Next 2Y-2.82%
EPS Next 3Y-0.06%
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 Year1.18%
Revenue Next 2Y1.31%
Revenue Next 3Y1.75%
Revenue Next 5Y-2.97%
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 5Y4.11%
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 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 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 11.67 and the Price/Book (PB) ratio is 2.01.
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 -8.58% in the next year.