RIO TINTO PLC (RIO1.DE) Stock Fundamental Analysis
FRA:RIO1 - GB0007188757 - Common Stock
53.42 EUR
+0.52 (+0.98%)
We assign a fundamental rating of 6 out of 10 to RIO1. RIO1 was compared to 37 industry peers in the Metals & Mining industry. RIO1 scores excellent on profitability, but there are some minor concerns on its financial health. RIO1 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
RIO1 had positive earnings in the past year.
In the past year RIO1 had a positive cash flow from operations.
Each year in the past 5 years RIO1 has been profitable.
In the past 5 years RIO1 always reported a positive cash flow from operatings.
1.2 Ratios
RIO1's Return On Assets of 11.24% is amongst the best of the industry. RIO1 outperforms 86.49% of its industry peers.
With an excellent Return On Equity value of 20.91%, RIO1 belongs to the best of the industry, outperforming 91.89% of the companies in the same industry.
RIO1 has a better Return On Invested Capital (12.04%) than 91.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RIO1 is significantly above the industry average of 8.00%.
| 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
RIO1 has a better Profit Margin (21.53%) than 89.19% of its industry peers.
RIO1's Profit Margin has improved in the last couple of years.
The Operating Margin of RIO1 (27.91%) is better than 86.49% of its industry peers.
RIO1's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 47.66%, RIO1 is doing good in the industry, outperforming 72.97% of the companies in the same industry.
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.
Compared to 1 year ago, RIO1 has about the same amount of shares outstanding.
Compared to 5 years ago, RIO1 has about the same amount of shares outstanding.
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 a decent Altman-Z score value of 3.01, RIO1 is doing good in the industry, outperforming 75.68% of the companies in the same industry.
The Debt to FCF ratio of RIO1 is 2.32, which is a good value as it means it would take RIO1, 2.32 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.32, RIO1 is in the better half of the industry, outperforming 78.38% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that RIO1 is not too dependend on debt financing.
RIO1 has a Debt to Equity ratio of 0.24. This is comparable to the rest of the industry: RIO1 outperforms 45.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 3.01 |
ROIC/WACC1.22
WACC9.89%
2.3 Liquidity
RIO1 has a Current Ratio of 1.63. This is a normal value and indicates that RIO1 is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.63, RIO1 perfoms like the industry average, outperforming 45.95% of the companies in the same industry.
RIO1 has a Quick Ratio of 1.13. This is a normal value and indicates that RIO1 is financially healthy and should not expect problems in meeting its short term obligations.
RIO1 has a Quick ratio of 1.13. This is in the better half of the industry: RIO1 outperforms 64.86% 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 RIO1 have decreased strongly by -15.75% in the last year.
RIO1 shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.06% yearly.
The Revenue has decreased by -0.83% 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)-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, RIO1 will show a decrease in Earnings Per Share. The EPS will decrease by -3.77% on average per year.
The Revenue is expected to decrease by -0.83% on average over the next years.
EPS Next Y-8.06%
EPS Next 2Y-3.48%
EPS Next 3Y-0.38%
EPS Next 5Y-3.77%
Revenue Next Year0.46%
Revenue Next 2Y0.59%
Revenue Next 3Y1.4%
Revenue Next 5Y-0.83%
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
The Price/Earnings ratio is 10.18, which indicates a very decent valuation of RIO1.
Based on the Price/Earnings ratio, RIO1 is valued cheaper than 81.08% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.84. RIO1 is valued rather cheaply when compared to this.
RIO1 is valuated reasonably with a Price/Forward Earnings ratio of 9.97.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RIO1 indicates a somewhat cheap valuation: RIO1 is cheaper than 72.97% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of RIO1 to the average of the S&P500 Index (22.48), we can say RIO1 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.18 | ||
| Fwd PE | 9.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RIO1 is valued a bit cheaper than 75.68% of the companies in the same industry.
70.27% 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 | 16.92 | ||
| EV/EBITDA | 5.06 |
4.3 Compensation for Growth
The excellent profitability rating of RIO1 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)9.63
EPS Next 2Y-3.48%
EPS Next 3Y-0.38%
5. Dividend
5.1 Amount
RIO1 has a Yearly Dividend Yield of 5.95%, which is a nice return.
RIO1's Dividend Yield is rather good when compared to the industry average which is at 3.16. RIO1 pays more dividend than 86.49% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, RIO1 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.95% |
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
RIO1 pays out 60.81% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of RIO1 has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP60.81%
EPS Next 2Y-3.48%
EPS Next 3Y-0.38%
FRA:RIO1 (9/3/2025, 7:00:00 PM)
53.42
+0.52 (+0.98%)
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 Cap86.80B
Analysts77.33
Price Target61.73 (15.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.95% |
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)-1.53%
PT rev (3m)-9.46%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-5.55%
EPS NY rev (3m)-5.55%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.53%
Revenue NY rev (3m)3.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.18 | ||
| Fwd PE | 9.97 | ||
| P/S | 1.88 | ||
| P/FCF | 16.92 | ||
| P/OCF | 6.48 | ||
| P/B | 1.83 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 5.06 |
EPS(TTM)5.25
EY9.83%
EPS(NY)5.36
Fwd EY10.03%
FCF(TTM)3.16
FCFY5.91%
OCF(TTM)8.24
OCFY15.42%
SpS28.34
BVpS29.18
TBVpS27.31
PEG (NY)N/A
PEG (5Y)9.63
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
WACC9.89%
ROIC/WACC1.22
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-8.06%
EPS Next 2Y-3.48%
EPS Next 3Y-0.38%
EPS Next 5Y-3.77%
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y-5.46%
Revenue growth 5Y4.45%
Sales Q2Q%0.26%
Revenue Next Year0.46%
Revenue Next 2Y0.59%
Revenue Next 3Y1.4%
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%