RIO TINTO PLC (RIO1.DE) Stock Fundamental Analysis
Europe - FRA:RIO1 - GB0007188757 - Common Stock
54.49 EUR
+0.59 (+1.09%)
Taking everything into account, RIO1 scores 5 out of 10 in our fundamental rating. RIO1 was compared to 39 industry peers in the Metals & Mining industry. While RIO1 has a great profitability rating, there are some minor concerns on its financial health. RIO1 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
RIO1 had positive earnings in the past year.
RIO1 had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 8.50%, RIO1 belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.65%, RIO1 belongs to the top of the industry, outperforming 87.18% of the companies in the same industry.
RIO1's Return On Invested Capital of 9.47% is fine compared to the rest of the industry. RIO1 outperforms 79.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RIO1 is significantly above the industry average of 7.90%.
The last Return On Invested Capital (9.47%) for RIO1 is well below the 3 year average (14.66%), which needs to be investigated, but indicates that RIO1 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%, RIO1 belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
RIO1's Profit Margin has improved in the last couple of years.
RIO1 has a Operating Margin of 25.78%. This is in the better half of the industry: RIO1 outperforms 79.49% of its industry peers.
RIO1's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 47.59%, RIO1 is in the better half of the industry, outperforming 74.36% of the companies in the same industry.
In the last couple of years the Gross Margin of RIO1 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RIO1 is creating some value.
RIO1 has about the same amout of shares outstanding than it did 1 year ago.
RIO1 has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for RIO1 has been reduced compared to a year ago.
2.2 Solvency
RIO1 has an Altman-Z score of 2.48. This is not the best score and indicates that RIO1 is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of RIO1 (2.48) is better than 64.10% of its industry peers.
The Debt to FCF ratio of RIO1 is 4.61, which is a neutral value as it means it would take RIO1, 4.61 years of fcf income to pay off all of its debts.
RIO1 has a better Debt to FCF ratio (4.61) than 66.67% of its industry peers.
RIO1 has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.39, RIO1 is not doing good in the industry: 64.10% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 4.61 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.98
WACC9.63%
2.3 Liquidity
RIO1 has a Current Ratio of 1.53. 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 Current ratio of 1.53. This is in the lower half of the industry: RIO1 underperforms 66.67% of its industry peers.
RIO1 has a Quick Ratio of 1.03. 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 (1.03) which is in line with 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 RIO1 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.
RIO1 shows a decrease in Revenue. In the last year, the revenue decreased by -0.83%.
The Revenue has been growing slightly by 4.45% on average over the past years.
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
The Earnings Per Share is expected to decrease by -3.77% on average over the next years.
RIO1 is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.97% yearly.
EPS Next Y-8.06%
EPS Next 2Y-3.48%
EPS Next 3Y-0.38%
EPS Next 5Y-3.77%
Revenue Next Year0.49%
Revenue Next 2Y0.66%
Revenue Next 3Y1.47%
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.
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 10.46 indicates a reasonable valuation of RIO1.
Compared to the rest of the industry, the Price/Earnings ratio of RIO1 indicates a somewhat cheap valuation: RIO1 is cheaper than 79.49% of the companies listed in the same industry.
RIO1's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.29.
The Price/Forward Earnings ratio is 10.26, which indicates a very decent valuation of RIO1.
Based on the Price/Forward Earnings ratio, RIO1 is valued a bit cheaper than 74.36% of the companies in the same industry.
RIO1's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 10.26 |
4.2 Price Multiples
71.79% of the companies in the same industry are more expensive than RIO1, based on the Enterprise Value to EBITDA ratio.
66.67% 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 | 20.29 | ||
| EV/EBITDA | 6.42 |
4.3 Compensation for Growth
RIO1 has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)9.9
EPS Next 2Y-3.48%
EPS Next 3Y-0.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.22%, RIO1 is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.93, RIO1 pays a better dividend. On top of this RIO1 pays more dividend than 89.74% of the companies listed in the same industry.
RIO1's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.22% |
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 64.89% of its income as dividend. 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.
DP64.89%
EPS Next 2Y-3.48%
EPS Next 3Y-0.38%
FRA:RIO1 (9/24/2025, 7:00:00 PM)
54.49
+0.59 (+1.09%)
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 Cap88.53B
Analysts76.67
Price Target62.05 (13.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.22% |
Yearly Dividend3.69
Dividend Growth(5Y)-7.29%
DP64.89%
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)0.29%
PT rev (3m)-9.19%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-5.55%
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 | 10.46 | ||
| Fwd PE | 10.26 | ||
| P/S | 1.94 | ||
| P/FCF | 20.29 | ||
| P/OCF | 6.73 | ||
| P/B | 1.79 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 6.42 |
EPS(TTM)5.21
EY9.56%
EPS(NY)5.31
Fwd EY9.75%
FCF(TTM)2.69
FCFY4.93%
OCF(TTM)8.1
OCFY14.86%
SpS28.13
BVpS30.47
TBVpS26.43
PEG (NY)N/A
PEG (5Y)9.9
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 | 2.48 |
F-Score3
WACC9.63%
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-8.06%
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 Year0.49%
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 Year35.42%
EBIT Next 3Y14.3%
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%