RIO TINTO PLC-SPON ADR (RIO) Stock Fundamental Analysis
NYSE:RIO - US7672041008 - ADR
62.69 USD
+1.39 (+2.27%)
62.8769 USD
+0.19 (+0.3%)
RIO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 156 industry peers in the Metals & Mining industry. RIO scores excellent on profitability, but there are some minor concerns on its financial health. RIO is valued quite cheap, but it does not seem to be growing. This makes RIO very considerable for value investing!
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
With an excellent Return On Assets value of 11.24%, RIO belongs to the best of the industry, outperforming 89.74% of the companies in the same industry.
With an excellent Return On Equity value of 20.91%, RIO belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
RIO's Return On Invested Capital of 12.04% is amongst the best of the industry. RIO outperforms 87.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RIO is in line with the industry average of 12.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.24% | ||
| ROE | 20.91% | ||
| ROIC | 12.04% |
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
With an excellent Profit Margin value of 21.53%, RIO belongs to the best of the industry, outperforming 87.82% of the companies in the same industry.
RIO's Profit Margin has improved in the last couple of years.
RIO has a Operating Margin of 27.91%. This is amongst the best in the industry. RIO outperforms 81.41% of its industry peers.
RIO's Operating Margin has declined in the last couple of years.
RIO has a Gross Margin of 47.66%. This is amongst the best in the industry. RIO outperforms 85.90% of its industry peers.
In the last couple of years the Gross Margin of RIO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.91% | ||
| PM (TTM) | 21.53% | ||
| GM | 47.66% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RIO 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
RIO has an Altman-Z score of 3.00. This indicates that RIO is financially healthy and has little risk of bankruptcy at the moment.
RIO has a Altman-Z score of 3.00. This is comparable to the rest of the industry: RIO outperforms 54.49% of its industry peers.
RIO has a debt to FCF ratio of 2.32. This is a good value and a sign of high solvency as RIO would need 2.32 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.32, RIO is doing good in the industry, outperforming 78.21% of the companies in the same industry.
RIO has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
RIO has a Debt to Equity ratio of 0.24. This is comparable to the rest of the industry: RIO outperforms 40.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3 |
ROIC/WACC1.17
WACC10.28%
2.3 Liquidity
A Current Ratio of 1.63 indicates that RIO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.63, RIO is doing worse than 67.95% of the companies in the same industry.
RIO has a Quick Ratio of 1.13. 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 Quick ratio of 1.13. This is in the lower half of the industry: RIO underperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The earnings per share for RIO have decreased strongly by -15.75% in the last year.
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 -0.83% yearly.
EPS Next Y-2.67%
EPS Next 2Y-1.44%
EPS Next 3Y1.03%
EPS Next 5Y-3.81%
Revenue Next Year-2.02%
Revenue Next 2Y0.27%
Revenue Next 3Y1.26%
Revenue Next 5Y-0.83%
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
RIO is valuated reasonably with a Price/Earnings ratio of 10.16.
94.87% of the companies in the same industry are more expensive than RIO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.24, RIO is valued rather cheaply.
A Price/Forward Earnings ratio of 9.55 indicates a reasonable valuation of RIO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RIO indicates a rather cheap valuation: RIO is cheaper than 83.97% of the companies listed 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 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 9.55 |
4.2 Price Multiples
RIO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RIO is cheaper than 91.67% of the companies in the same industry.
RIO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RIO is cheaper than 86.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.04 | ||
| EV/EBITDA | 4.98 |
4.3 Compensation for Growth
RIO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)9.62
EPS Next 2Y-1.44%
EPS Next 3Y1.03%
5. Dividend
5.1 Amount
RIO has a Yearly Dividend Yield of 6.13%, which is a nice return.
Compared to an average industry Dividend Yield of 2.57, RIO pays a better dividend. On top of this RIO pays more dividend than 96.79% 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.13% |
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 60.81% 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.
DP60.81%
EPS Next 2Y-1.44%
EPS Next 3Y1.03%
62.69
+1.39 (+2.27%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners44.47%
Inst Owner Change-6.99%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap101.86B
Analysts77.33
Price Target71.81 (14.55%)
Short Float %0.91%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.13% |
Yearly Dividend4.33
Dividend Growth(5Y)-7.29%
DP60.81%
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)-8.58%
PT rev (3m)-8.19%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.19%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.9%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 9.55 | ||
| P/S | 1.9 | ||
| P/FCF | 17.04 | ||
| P/OCF | 6.53 | ||
| P/B | 1.84 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | 4.98 |
EPS(TTM)6.17
EY9.84%
EPS(NY)6.56
Fwd EY10.47%
FCF(TTM)3.68
FCFY5.87%
OCF(TTM)9.6
OCFY15.32%
SpS33.03
BVpS34
TBVpS31.83
PEG (NY)N/A
PEG (5Y)9.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.24% | ||
| ROE | 20.91% | ||
| ROCE | 16.45% | ||
| ROIC | 12.04% | ||
| ROICexc | 13.34% | ||
| ROICexgc | 13.94% | ||
| OM | 27.91% | ||
| PM (TTM) | 21.53% | ||
| GM | 47.66% | ||
| FCFM | 11.14% |
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%
ROICexcg growth 3Y-22.87%
ROICexcg 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-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.32 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 162.57% | ||
| Cap/Sales | 17.93% | ||
| Interest Coverage | 21.86 | ||
| Cash Conversion | 74.65% | ||
| Profit Quality | 51.75% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 3 |
F-Score5
WACC10.28%
ROIC/WACC1.17
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-2.67%
EPS Next 2Y-1.44%
EPS Next 3Y1.03%
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 Year-2.02%
Revenue Next 2Y0.27%
Revenue Next 3Y1.26%
Revenue Next 5Y-0.83%
EBIT growth 1Y-4.96%
EBIT growth 3Y-20.29%
EBIT growth 5Y-0.86%
EBIT Next Year35.42%
EBIT Next 3Y14.3%
EBIT Next 5Y5.3%
FCF growth 1Y-25.96%
FCF growth 3Y-30.7%
FCF growth 5Y-8.7%
OCF growth 1Y2.9%
OCF growth 3Y-14.94%
OCF growth 5Y0.9%