RIO TINTO PLC-SPON ADR (RIO) Stock Fundamental Analysis
USA - NYSE:RIO - US7672041008 - ADR
66.11 USD
-0.15 (-0.23%)
66.22 USD
+0.11 (+0.17%)
RIO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 156 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.
RIO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RIO has a Return On Assets of 8.50%. This is amongst the best in the industry. RIO outperforms 87.18% of its industry peers.
RIO has a Return On Equity of 17.65%. This is amongst the best in the industry. RIO outperforms 91.03% of its industry peers.
RIO has a Return On Invested Capital of 9.47%. This is amongst the best in the industry. RIO outperforms 82.69% of its industry peers.
RIO had an Average Return On Invested Capital over the past 3 years of 14.66%. This is in line with the industry average of 12.87%.
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
Looking at the Profit Margin, with a value of 19.12%, RIO belongs to the top of the industry, outperforming 87.18% of the companies in the same industry.
In the last couple of years the Profit Margin of RIO has grown nicely.
RIO has a better Operating Margin (25.78%) than 78.21% of its industry peers.
RIO's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 47.59%, RIO belongs to the best of the industry, outperforming 85.26% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RIO is still creating some value.
The number of shares outstanding for RIO remains at a similar level compared to 1 year ago.
RIO has about the same amout of shares outstanding than it did 5 years ago.
RIO has a better debt/assets ratio than last year.
2.2 Solvency
RIO has an Altman-Z score of 2.51. This is not the best score and indicates that RIO is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.51, RIO perfoms like the industry average, outperforming 44.23% of the companies in the same 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.
With a decent Debt to FCF ratio value of 4.61, RIO is doing good in the industry, outperforming 71.79% of the companies in the same industry.
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 69.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.98
WACC9.68%
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.
RIO has a worse Current ratio (1.53) than 69.87% of its industry peers.
A Quick Ratio of 1.03 indicates that RIO should not have too much problems paying its short term obligations.
The Quick ratio of RIO (1.03) is worse than 66.03% of its industry peers.
| 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.
Looking at the last year, RIO shows a decrease in Revenue. The Revenue has decreased by -0.83% in the last year.
Measured over the past years, RIO shows a small growth in Revenue. The Revenue has been growing by 4.45% on average per year.
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 -3.81% yearly.
Based on estimates for the next years, RIO will show a decrease in Revenue. The Revenue will decrease by -2.97% on average per year.
EPS Next Y-8.58%
EPS Next 2Y-2.82%
EPS Next 3Y-0.06%
EPS Next 5Y-3.81%
Revenue Next Year0.49%
Revenue Next 2Y0.66%
Revenue Next 3Y1.47%
Revenue Next 5Y-2.97%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 10.71 indicates a reasonable valuation of RIO.
Based on the Price/Earnings ratio, RIO is valued cheaper than 96.79% of the companies in the same industry.
When comparing the Price/Earnings ratio of RIO to the average of the S&P500 Index (27.86), we can say RIO is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.36, the valuation of RIO can be described as very reasonable.
Based on the Price/Forward Earnings ratio, RIO is valued cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.32. RIO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.71 | ||
| Fwd PE | 10.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RIO is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
84.62% of the companies in the same industry are more expensive than RIO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.94 | ||
| EV/EBITDA | 6.6 |
4.3 Compensation for Growth
The excellent profitability rating of RIO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)10.15
EPS Next 2Y-2.82%
EPS Next 3Y-0.06%
5. Dividend
5.1 Amount
RIO has a Yearly Dividend Yield of 5.84%, which is a nice return.
RIO's Dividend Yield is rather good when compared to the industry average which is at 2.48. RIO pays more dividend than 96.79% of the companies in the same industry.
RIO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
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 2Y-2.82%
EPS Next 3Y-0.06%
66.11
-0.15 (-0.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners48.81%
Inst Owner Change-6.99%
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap107.41B
Analysts77.42
Price Target71.88 (8.73%)
Short Float %0.61%
Short Ratio1.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.84% |
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)1.04%
PT rev (3m)-7.27%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.54%
EPS NY rev (3m)-5.88%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)3.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.71 | ||
| Fwd PE | 10.36 | ||
| P/S | 2 | ||
| P/FCF | 20.94 | ||
| P/OCF | 6.94 | ||
| P/B | 1.85 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 6.6 |
EPS(TTM)6.17
EY9.33%
EPS(NY)6.38
Fwd EY9.65%
FCF(TTM)3.16
FCFY4.78%
OCF(TTM)9.52
OCFY14.4%
SpS33.07
BVpS35.82
TBVpS31.07
PEG (NY)N/A
PEG (5Y)10.15
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%
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-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 | 2.51 |
F-Score3
WACC9.68%
ROIC/WACC0.98
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 Year0.49%
Revenue Next 2Y0.66%
Revenue Next 3Y1.47%
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%