RIO TINTO PLC (RIO1.DE) Stock Fundamental Analysis
FRA:RIO1 - Deutsche Boerse Ag - GB0007188757 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to RIO1. RIO1 was compared to 36 industry peers in the Metals & Mining industry. RIO1 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. RIO1 is valued correctly, but it does not seem to be growing.
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 has a better Return On Assets (11.24%) than 91.67% of its industry peers.
RIO1's Return On Equity of 20.91% is amongst the best of the industry. RIO1 outperforms 91.67% of its industry peers.
RIO1's Return On Invested Capital of 12.04% is amongst the best of the industry. RIO1 outperforms 94.44% 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 7.09%.
| 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
The Profit Margin of RIO1 (21.53%) is better than 91.67% of its industry peers.
RIO1's Profit Margin has improved in the last couple of years.
RIO1's Operating Margin of 27.91% is amongst the best of the industry. RIO1 outperforms 86.11% of its industry peers.
In the last couple of years the Operating Margin of RIO1 has declined.
With a decent Gross Margin value of 47.66%, RIO1 is doing good in the industry, outperforming 77.78% 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
RIO1 has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, RIO1 has about the same amount of shares outstanding.
RIO1 has about the same amout of shares outstanding than it did 5 years ago.
RIO1 has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.93 indicates that RIO1 is not a great score, but indicates only limited risk for bankruptcy at the moment.
RIO1 has a Altman-Z score of 2.93. This is amongst the best in the industry. RIO1 outperforms 83.33% of its industry peers.
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 Debt to FCF ratio of 2.32. This is amongst the best in the industry. RIO1 outperforms 80.56% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that RIO1 is not too dependend on debt financing.
RIO1's Debt to Equity ratio of 0.24 is in line compared to the rest of the industry. RIO1 outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.32 | ||
| Altman-Z | 2.93 |
ROIC/WACC1.23
WACC9.82%
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.
RIO1 has a Current ratio of 1.63. This is in the lower half of the industry: RIO1 underperforms 66.67% of its industry peers.
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's Quick ratio of 1.13 is fine compared to the rest of the industry. RIO1 outperforms 63.89% of its industry peers.
The current and quick ratio evaluation for RIO1 is rather negative, while it does have 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
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 -3.00% 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-3%
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
With a Price/Earnings ratio of 8.70, the valuation of RIO1 can be described as very reasonable.
Based on the Price/Earnings ratio, RIO1 is valued cheaper than 80.56% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.57. RIO1 is valued rather cheaply when compared to this.
RIO1 is valuated reasonably with a Price/Forward Earnings ratio of 8.94.
Based on the Price/Forward Earnings ratio, RIO1 is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
RIO1's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 8.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RIO1 is valued a bit cheaper than 72.22% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RIO1 indicates a somewhat cheap valuation: RIO1 is cheaper than 77.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.85 | ||
| EV/EBITDA | 4.73 |
4.3 Compensation for Growth
RIO1 has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)8.24
EPS Next 2Y-1.44%
EPS Next 3Y1.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.21%, RIO1 is a good candidate for dividend investing.
RIO1's Dividend Yield is rather good when compared to the industry average which is at 3.20. RIO1 pays more dividend than 94.44% of the companies in the same industry.
RIO1's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.21% |
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 (6/16/2025, 7:00:00 PM)
50.65
+0.2 (+0.4%)
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 Cap82.29B
Analysts79.33
Price Target68.4 (35.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.21% |
Yearly Dividend3.76
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)0.32%
PT rev (3m)-5.99%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-5.13%
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 | 8.7 | ||
| Fwd PE | 8.94 | ||
| P/S | 1.77 | ||
| P/FCF | 15.85 | ||
| P/OCF | 6.07 | ||
| P/B | 1.71 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 4.73 |
EPS(TTM)5.82
EY11.49%
EPS(NY)5.67
Fwd EY11.19%
FCF(TTM)3.2
FCFY6.31%
OCF(TTM)8.34
OCFY16.47%
SpS28.69
BVpS29.54
TBVpS27.65
PEG (NY)N/A
PEG (5Y)8.24
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 | 2.93 |
F-Score5
WACC9.82%
ROIC/WACC1.23
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-3%
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 5Y4.02%
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%