RIO TINTO PLC (RIO1.DE) Stock Fundamental Analysis
FRA:RIO1 - Deutsche Boerse Ag - GB0007188757 - Common Stock - Currency: EUR
Taking everything into account, RIO1 scores 6 out of 10 in our fundamental rating. RIO1 was compared to 39 industry peers in the Metals & Mining industry. RIO1 gets an excellent profitability rating and is at the same time showing great financial health properties. RIO1 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RIO1 was profitable.
In the past year RIO1 had a positive cash flow from operations.
RIO1 had positive earnings in each of the past 5 years.
RIO1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.24%, RIO1 belongs to the best of the industry, outperforming 89.74% of the companies in the same industry.
The Return On Equity of RIO1 (20.91%) is better than 92.31% of its industry peers.
RIO1 has a Return On Invested Capital of 12.04%. This is amongst the best in the industry. RIO1 outperforms 94.87% of its industry peers.
RIO1 had an Average Return On Invested Capital over the past 3 years of 14.66%. This is significantly above the industry average of 7.39%.
| 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%, RIO1 belongs to the best of the industry, outperforming 89.74% of the companies in the same industry.
RIO1's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 27.91%, RIO1 belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Operating Margin of RIO1 has declined.
RIO1 has a Gross Margin of 47.66%. This is in the better half of the industry: RIO1 outperforms 76.92% of its industry peers.
RIO1's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RIO1 is still creating some value.
RIO1 has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for RIO1 remains at a similar level compared to 5 years ago.
Compared to 1 year ago, RIO1 has an improved debt to assets ratio.
2.2 Solvency
RIO1 has an Altman-Z score of 3.01. This indicates that RIO1 is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.01, RIO1 belongs to the best of the industry, outperforming 82.05% of the companies in the same industry.
RIO1 has a debt to FCF ratio of 2.32. This is a good value and a sign of high solvency as RIO1 would need 2.32 years to pay back of all of its debts.
RIO1 has a better Debt to FCF ratio (2.32) than 76.92% of its industry peers.
RIO1 has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
RIO1 has a Debt to Equity ratio (0.24) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3.01 |
ROIC/WACC1.24
WACC9.74%
2.3 Liquidity
A Current Ratio of 1.63 indicates that RIO1 should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.63, RIO1 is doing worse than 64.10% of the companies in the same industry.
A Quick Ratio of 1.13 indicates that RIO1 should not have too much problems paying its short term obligations.
RIO1 has a Quick ratio (1.13) which is comparable to the rest of the industry.
RIO1 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 | 1.63 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
RIO1 shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.54%.
Measured over the past 5 years, RIO1 shows a small growth in Earnings Per Share. The EPS has been growing by 1.06% on average per year.
The Revenue has decreased by -0.71% in the past year.
Measured over the past years, RIO1 shows a small growth in Revenue. The Revenue has been growing by 4.45% on average per year.
EPS 1Y (TTM)-7.54%
EPS 3Y-20.07%
EPS 5Y1.06%
EPS Q2Q%-15.08%
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y-5.46%
Revenue growth 5Y4.45%
Sales Q2Q%-1.89%
3.2 Future
Based on estimates for the next years, RIO1 will show a decrease in Earnings Per Share. The EPS will decrease by -3.77% on average per year.
RIO1 is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.78% yearly.
EPS Next Y-2.67%
EPS Next 2Y-1.44%
EPS Next 3Y1.03%
EPS Next 5Y-3.77%
Revenue Next Year-2.89%
Revenue Next 2Y0.5%
Revenue Next 3Y1.71%
Revenue Next 5Y-0.78%
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 9.26 indicates a reasonable valuation of RIO1.
RIO1's Price/Earnings ratio is rather cheap when compared to the industry. RIO1 is cheaper than 82.05% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.53, RIO1 is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.52, the valuation of RIO1 can be described as very reasonable.
79.49% of the companies in the same industry are more expensive than RIO1, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RIO1 to the average of the S&P500 Index (36.71), we can say RIO1 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 9.52 |
4.2 Price Multiples
RIO1's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RIO1 is cheaper than 71.79% of the companies in the same industry.
76.92% of the companies in the same industry are more expensive than RIO1, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.88 | ||
| EV/EBITDA | 5.05 |
4.3 Compensation for Growth
RIO1 has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)8.77
EPS Next 2Y-1.44%
EPS Next 3Y1.03%
5. Dividend
5.1 Amount
RIO1 has a Yearly Dividend Yield of 7.00%, which is a nice return.
Compared to an average industry Dividend Yield of 3.08, RIO1 pays a better dividend. On top of this RIO1 pays more dividend than 94.87% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, RIO1 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7% |
5.2 History
The dividend of RIO1 decreases each year by -7.29%.
Dividend Growth(5Y)-7.29%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
60.81% of the earnings are spent on dividend by RIO1. This is not a sustainable payout ratio.
RIO1's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP60.81%
EPS Next 2Y-1.44%
EPS Next 3Y1.03%
FRA:RIO1 (7/21/2025, 7:00:00 PM)
53.25
+1.44 (+2.78%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners44.47%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap86.51B
Analysts77.33
Price Target62.69 (17.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7% |
Yearly Dividend3.71
Dividend Growth(5Y)-7.29%
DP60.81%
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)-8.34%
PT rev (3m)-12.95%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 9.52 | ||
| P/S | 1.88 | ||
| P/FCF | 16.88 | ||
| P/OCF | 6.47 | ||
| P/B | 1.83 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | 5.05 |
EPS(TTM)5.75
EY10.8%
EPS(NY)5.59
Fwd EY10.5%
FCF(TTM)3.15
FCFY5.92%
OCF(TTM)8.23
OCFY15.45%
SpS28.31
BVpS29.15
TBVpS27.28
PEG (NY)N/A
PEG (5Y)8.77
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 | 3.01 |
F-Score5
WACC9.74%
ROIC/WACC1.24
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)-7.54%
EPS 3Y-20.07%
EPS 5Y1.06%
EPS Q2Q%-15.08%
EPS Next Y-2.67%
EPS Next 2Y-1.44%
EPS Next 3Y1.03%
EPS Next 5Y-3.77%
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y-5.46%
Revenue growth 5Y4.45%
Sales Q2Q%-1.89%
Revenue Next Year-2.89%
Revenue Next 2Y0.5%
Revenue Next 3Y1.71%
Revenue Next 5Y-0.78%
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 5Y5.68%
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%