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Rio Tinto Group

ASX:RIO
Snowflake Description

Outstanding track record with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RIO
ASX
£63B
Market Cap
  1. Home
  2. AU
  3. Materials
Company description

Rio Tinto Group engages in finding, mining, and processing mineral resources worldwide. The last earnings update was 20 days ago. More info.


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RIO Share Price and Events
7 Day Returns
4%
ASX:RIO
1.3%
AU Metals and Mining
0.3%
AU Market
1 Year Returns
25.9%
ASX:RIO
13.7%
AU Metals and Mining
2.2%
AU Market
RIO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Rio Tinto Group (RIO) 4% 3.8% 23.7% 25.9% 116% 51.9%
AU Metals and Mining 1.3% 1.2% 13.3% 13.7% 88% 9.4%
AU Market 0.3% 1.7% 10.1% 2.2% 18.5% 5.5%
1 Year Return vs Industry and Market
  • RIO outperformed the Metals and Mining industry which returned 13.7% over the past year.
  • RIO outperformed the Market in Australia which returned 2.2% over the past year.
Price Volatility
RIO
Industry
5yr Volatility vs Market

Value

 Is Rio Tinto Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Rio Tinto Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Rio Tinto Group.

ASX:RIO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:RIO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6.7%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.121 (1 + (1- 19%) (15.23%))
1.174
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.174 * 6.65%)
10.12%

Discounted Cash Flow Calculation for ASX:RIO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Rio Tinto Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:RIO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.12%)
2019 8,276.12 Analyst x14 7,515.56
2020 7,386.93 Analyst x13 6,091.63
2021 7,008.32 Analyst x7 5,248.30
2022 10,351.50 Analyst x2 7,039.51
2023 10,936.02 Est @ 5.65% 6,753.57
2024 11,444.15 Est @ 4.65% 6,417.89
2025 11,895.74 Est @ 3.95% 6,058.08
2026 12,306.83 Est @ 3.46% 5,691.47
2027 12,689.91 Est @ 3.11% 5,329.31
2028 13,054.42 Est @ 2.87% 4,978.58
Present value of next 10 years cash flows $61,123.89
ASX:RIO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $13,054.42 × (1 + 2.31%) ÷ (10.12% – 2.31%)
$171,063.77
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $171,063.77 ÷ (1 + 10.12%)10
$65,238.76
ASX:RIO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $61,123.89 + $65,238.76
$126,362.65
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $126,362.65 / 1,483.16
$85.2
ASX:RIO Discount to Share Price
Calculation Result
Exchange Rate USD/GBP
(Reporting currency to currency of LSE:RIO)
0.756
Value per Share
(GBP)
= Value per Share in USD x Exchange Rate (USD/GBP)
= $85.2 x 0.756
£64.4
Non-primary Listing Adjustment Factor 1 share in ASX:RIO represents 2.21666x of LSE:RIO
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
2.21666x
Value per Share
(Listing Adjusted, AUD)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 64.40 x 2.21666
A$142.75
Value per share (AUD) From above. A$142.75
Current discount Discount to share price of A$94.75
= -1 x (A$94.75 - A$142.75) / A$142.75
33.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Rio Tinto Group is available for.
Intrinsic value
34%
Share price is A$94.75 vs Future cash flow value of A$142.75
Current Discount Checks
For Rio Tinto Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Rio Tinto Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Rio Tinto Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Rio Tinto Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Rio Tinto Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:RIO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $7.93
LSE:RIO Share Price ** LSE (2019-03-19) in GBP £42.75
LSE:RIO Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.323 $56.55
Australia Metals and Mining Industry PE Ratio Median Figure of 82 Publicly-Listed Metals and Mining Companies 12.84x
Australia Market PE Ratio Median Figure of 543 Publicly-Listed Companies 16.33x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Rio Tinto Group.

ASX:RIO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:RIO Share Price ÷ EPS (both in USD)

= 56.55 ÷ 7.93

7.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rio Tinto Group is good value based on earnings compared to the AU Metals and Mining industry average.
  • Rio Tinto Group is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Rio Tinto Group's expected growth come at a high price?
Raw Data
ASX:RIO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.13x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
-17%per year
Australia Metals and Mining Industry PEG Ratio Median Figure of 40 Publicly-Listed Metals and Mining Companies 0.7x
Australia Market PEG Ratio Median Figure of 362 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

ASX:RIO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.13x ÷ -17%

-0.42x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rio Tinto Group earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Rio Tinto Group's assets?
Raw Data
ASX:RIO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $26.54
LSE:RIO Share Price * LSE (2019-03-19) in GBP £42.75
LSE:RIO Share Price converted to USD reporting currency Exchange rate (GBP/ USD) 1.323 $56.55
Australia Metals and Mining Industry PB Ratio Median Figure of 584 Publicly-Listed Metals and Mining Companies 1.56x
Australia Market PB Ratio Median Figure of 1,670 Publicly-Listed Companies 1.67x
ASX:RIO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:RIO Share Price ÷ Book Value per Share (both in USD)

= 56.55 ÷ 26.54

2.13x

* Primary Listing of Rio Tinto Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rio Tinto Group is overvalued based on assets compared to the AU Metals and Mining industry average.
X
Value checks
We assess Rio Tinto Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Rio Tinto Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Rio Tinto Group expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-17%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Rio Tinto Group expected to grow at an attractive rate?
  • Rio Tinto Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Rio Tinto Group's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.
  • Rio Tinto Group's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:RIO Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:RIO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts -17%
ASX:RIO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 0.1%
Australia Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average -0.6%
Australia Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average -0%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.4%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:RIO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:RIO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 43,304 7,909 2
2022-12-31 41,455 13,079 7,522 3
2021-12-31 39,077 12,308 7,408 10
2020-12-31 39,564 12,703 7,446 15
2019-12-31 39,879 13,531 9,080 16
ASX:RIO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 40,522 11,821 13,638
2018-09-30 40,574 12,314 11,738
2018-06-30 40,625 12,806 9,837
2018-03-31 40,328 13,345 9,300
2017-12-31 40,030 13,884 8,762
2017-09-30 38,815 12,708 7,486
2017-06-30 37,600 11,531 6,209
2017-03-31 35,691 9,998 5,413
2016-12-31 33,781 8,465 4,617
2016-09-30 33,065 8,327 2,329
2016-06-30 32,349 8,188 41
2016-03-31 33,589 8,786 -413

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Rio Tinto Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Rio Tinto Group's revenue is expected to grow by 0.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:RIO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from Rio Tinto Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:RIO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 4.95 4.95 4.95 1.00
2022-12-31 4.70 4.70 4.70 1.00
2021-12-31 4.46 5.27 3.39 9.00
2020-12-31 4.90 5.97 3.91 10.00
2019-12-31 5.47 6.67 4.62 12.00
ASX:RIO Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 7.93
2018-09-30 6.75
2018-06-30 5.59
2018-03-31 5.25
2017-12-31 4.90
2017-09-30 4.18
2017-06-30 3.46
2017-03-31 3.01
2016-12-31 2.57
2016-09-30 1.29
2016-06-30 0.02
2016-03-31 -0.23

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Rio Tinto Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Rio Tinto Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Rio Tinto Group has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Rio Tinto Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Rio Tinto Group's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Rio Tinto Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Rio Tinto Group's 1-year earnings growth exceeds its 5-year average (55.6% vs 25.6%)
  • Rio Tinto Group's earnings growth has exceeded the AU Metals and Mining industry average in the past year (55.6% vs 14%).
Earnings and Revenue History
Rio Tinto Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Rio Tinto Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:RIO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 40,522.00 13,638.00 488.00
2018-09-30 40,573.50 11,737.50 495.00
2018-06-30 40,625.00 9,837.00 502.00
2018-03-31 40,327.50 9,299.50 473.50
2017-12-31 40,030.00 8,762.00 445.00
2017-09-30 38,815.00 7,485.50 425.00
2017-06-30 37,600.00 6,209.00 405.00
2017-03-31 35,690.50 5,413.00 451.00
2016-12-31 33,781.00 4,617.00 497.00
2016-09-30 33,065.00 2,329.00 548.50
2016-06-30 32,349.00 41.00 600.00
2016-03-31 33,589.00 -412.50 588.00
2015-12-31 34,829.00 -866.00 576.00
2015-09-30 38,068.00 1,032.50 613.00
2015-06-30 41,307.00 2,931.00 650.00
2015-03-31 44,485.50 4,729.00 698.50
2014-12-31 47,664.00 6,527.00 747.00
2014-09-30 49,330.50 6,437.00 754.00
2014-06-30 50,997.00 6,347.00 761.00
2014-03-31 51,084.00 5,006.00 854.50
2013-12-31 51,171.00 3,665.00 948.00
2013-06-30 50,129.00 -7,182.00 1,468.00
2013-03-31 50,535.50 -5,101.50 1,719.50
2012-12-31 50,942.00 -3,021.00 1,971.00
2012-06-30 56,805.00 4,140.00 2,014.00
2012-03-31 58,671.00 4,988.00 1,725.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Rio Tinto Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Rio Tinto Group used its assets more efficiently than the AU Metals and Mining industry average last year based on Return on Assets.
  • Rio Tinto Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Rio Tinto Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Rio Tinto Group has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Rio Tinto Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Rio Tinto Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Rio Tinto Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Rio Tinto Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Rio Tinto Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Rio Tinto Group Company Filings, last reported 2 months ago.

ASX:RIO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 49,823.00 12,752.00 13,377.00
2018-09-30 49,823.00 12,752.00 13,377.00
2018-06-30 48,616.00 12,913.00 8,135.00
2018-03-31 48,616.00 12,913.00 8,135.00
2017-12-31 51,115.00 15,176.00 11,605.00
2017-09-30 51,115.00 15,176.00 11,605.00
2017-06-30 48,825.00 15,355.00 8,099.00
2017-03-31 48,825.00 15,355.00 8,099.00
2016-12-31 45,730.00 17,630.00 8,536.00
2016-09-30 45,730.00 17,630.00 8,536.00
2016-06-30 44,060.00 21,344.00 8,384.00
2016-03-31 44,060.00 21,344.00 8,384.00
2015-12-31 44,128.00 23,338.00 9,470.00
2015-09-30 44,128.00 23,338.00 9,470.00
2015-06-30 50,633.00 24,824.00 11,550.00
2015-03-31 50,633.00 24,824.00 11,550.00
2014-12-31 54,594.00 25,129.00 12,580.00
2014-09-30 54,594.00 25,129.00 12,580.00
2014-06-30 57,779.00 26,025.00 10,100.00
2014-03-31 57,779.00 26,025.00 10,100.00
2013-12-31 53,502.00 28,474.00 10,505.00
2013-06-30 56,079.00 29,513.00 7,768.00
2013-03-31 56,079.00 29,513.00 7,768.00
2012-12-31 57,740.00 26,696.00 7,373.00
2012-06-30 65,567.00 20,875.00 7,768.00
2012-03-31 65,567.00 20,875.00 7,768.00
  • Rio Tinto Group's level of debt (25.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (53.1% vs 25.6% today).
  • Debt is well covered by operating cash flow (92.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 26.3x coverage).
X
Financial health checks
We assess Rio Tinto Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Rio Tinto Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Rio Tinto Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.37%
Current annual income from Rio Tinto Group dividends. Estimated to be 5.56% next year.
If you bought A$2,000 of Rio Tinto Group shares you are expected to receive A$107 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Rio Tinto Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.59%).
  • Rio Tinto Group's dividend is below the markets top 25% of dividend payers in Australia (5.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:RIO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
Australia Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 36 Stocks 3.8%
Australia Market Average Dividend Yield Market Cap Weighted Average of 418 Stocks 4.4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:RIO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 2.64 1.00
2022-12-31 3.05 2.00
2021-12-31 2.90 17.00
2020-12-31 2.97 24.00
2019-12-31 3.52 24.00
ASX:RIO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-27 3.035 5.456
2018-04-06 2.664 5.418
2017-09-15 2.396 4.944
2017-03-31 1.667 4.088
2016-03-03 1.726 5.623
2016-02-11 1.985 7.541
2015-03-06 1.910 5.718
2015-02-12 2.032 4.301
2014-09-05 1.843 4.105
2014-04-04 1.959 3.680
2013-01-11 1.584 3.388
2012-02-09 1.450 2.891
2011-08-04 1.170 2.193
2011-03-15 1.072 1.583
2011-02-10 1.078 1.575
2010-08-05 0.900 1.432
2010-02-11 0.900 1.767
2009-06-05 0.000 0.000
2009-03-20 1.173 3.210

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Rio Tinto Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess Rio Tinto Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Rio Tinto Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Rio Tinto Group has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Rio Tinto Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
J-S Jacques
COMPENSATION $6,139,000
AGE 47
TENURE AS CEO 2.7 years
CEO Bio

Mr. Jean-Sébastien Jacques, M.Sc., has been the Chief Executive Officer of Rio Tinto plc, Rio Tinto Limited and Rio Tinto Group since July 2, 2016. Mr. Jacques served as the Deputy Chief Executive at Rio Tinto Ltd. from March 17, 2016 to July 2, 2016 and Rio Tinto plc since March 17, 2016 until March 24, 2016. Mr. Jacques served as the Chief Executive Officer of Copper & Coal at Rio Tinto Ltd. since February 2015 until March 2016. Mr. Jacques served as the Chief executive, Copper & Coal at Rio Tinto Ltd. and Rio Tinto plc since February 14, 2013. Mr. Jacques served as the President of International Operations within the Rio Tinto Copper Group since 2011. Mr. Jacques worked for aluminium company Pechiney. He joined Rio Tinto in October 2011. He has an extensive experience in the metal and mining industry and in the management of international teams, where he led a senior team and effectively managed interests in the Palabora Mining Company in South Africa, Northparkes Mines in Australia, Kennecott Eagle Minerals in Michigan, Pebble Mine in Alaska and Sulawesi in Indonesia. He served several senior positions including Corporate Development and Strategy Director for Corus group. Mr. Jacques served as a Group Director of Strategy at Tata Steel Limited from November 2007 to 2011. He served as a Group Director of Strategy at Corus Group Limited. He served as Copper chief executive at Rio Tinto plc from February 14, 2013 to February 2015. Mr. Jacques began his career as a manufacturing engineer, corporate development and strategy, acquiring experiences in mining, steel, aluminium and packaging industries. He has metals and mining experience with Pechiney. He has been a Director of Rio Tinto Group since March 17, 2016. He has been an Executive Director of Rio Tinto Ltd. and Rio Tinto plc since March 17, 2016. He served as a Director of Turquoise Hill Resources Ltd. from February 20, 2013 to September 17, 2013. He served as a Director at Bougainville Copper Ltd. until April 09, 2013. He served as a Non Executive Director of Palabora Mining Company Limited from December 1, 2011 to July 31, 2013. He also had responsibility for two growth projects, Oyu Tolgoi in Mongolia and Resolution in the US, both of which saw significant progress during his tenure. Prior to joining Rio Tinto, Jean-Sébastien spent more than 15 years working in various roles across Europe, South East Asia, India and the US. He covered a wide range of operational and functional positions for the aluminium, bauxite and steel industries and notably served as group director, Strategy, for Tata Steel Group from 2007 to 2011. He was Chairman of the International Copper Association since 2014. Mr. Jacques holds Master of Science with honours from Ecole Centrale Paris.

CEO Compensation
  • J-S's compensation has increased by more than 20% in the past year.
  • J-S's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure and age of the Rio Tinto Group management team in years:

2.7
Average Tenure
50
Average Age
  • The tenure for the Rio Tinto Group management team is about average.
Management Team

J-S Jacques

TITLE
CEO & Director
COMPENSATION
$6M
AGE
47
TENURE
2.7 yrs

Jakob Stausholm

TITLE
CFO & Executive Director
COMPENSATION
$2M
AGE
50
TENURE
0.5 yrs

Philip Richards

TITLE
Group Executive & Group General Counsel
COMPENSATION
$2M
AGE
62
TENURE
2 yrs

Vera Kirikova

TITLE
Human Resources Group Executive
COMPENSATION
$2M
AGE
44
TENURE
2.2 yrs

Simon Trott

TITLE
Chief Commercial Officer
COMPENSATION
$3M
AGE
43

Alf Barrios

TITLE
Chief Executive of Rio Tinto Aluminium
COMPENSATION
$3M
AGE
52
TENURE
5.2 yrs

Chris Salisbury

TITLE
Chief Executive of Iron Ore Group
COMPENSATION
$3M
AGE
51
TENURE
2.7 yrs

Arnaud Soirat

TITLE
Chief Executive of Copper & Diamonds
COMPENSATION
$3M
AGE
53
TENURE
2.7 yrs

Bold Baatar

TITLE
Chief Executive of Energy & Minerals
COMPENSATION
$2M
AGE
44
TENURE
2.3 yrs

Peter Toth

TITLE
Global Head of Corporate Development & Head of Strategy
TENURE
3.9 yrs
Board of Directors Tenure

Average tenure and age of the Rio Tinto Group board of directors in years:

2
Average Tenure
59
Average Age
  • The average tenure for the Rio Tinto Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Simon Thompson

TITLE
Chairman of the Board
COMPENSATION
$852K
AGE
59
TENURE
1 yrs

J-S Jacques

TITLE
CEO & Director
COMPENSATION
$6M
AGE
47
TENURE
3 yrs

Jakob Stausholm

TITLE
CFO & Executive Director
COMPENSATION
$2M
AGE
50
TENURE
0.5 yrs

Ann Godbehere

TITLE
Senior Independent Director
COMPENSATION
$316K
AGE
63
TENURE
1.8 yrs

Sam Laidlaw

TITLE
Independent Non-Executive Director
COMPENSATION
$237K
AGE
62
TENURE
2.1 yrs

Michael L'Estrange

TITLE
Independent Non-Executive Director
COMPENSATION
$275K
AGE
65
TENURE
4.5 yrs

Megan Clark

TITLE
Independent Non-Executive Director
COMPENSATION
$332K
AGE
59
TENURE
4.3 yrs

David Constable

TITLE
Independent Non-Executive Director
COMPENSATION
$323K
AGE
57
TENURE
2.1 yrs

Simon Henry

TITLE
Independent Non-Executive Director
COMPENSATION
$224K
AGE
57
TENURE
1.9 yrs

Moya Greene

TITLE
Independent Non-Executive Director
COMPENSATION
$70K
AGE
64
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
12. Feb 19 Sell BlackRock, Inc. Company 16. Nov 18 08. Feb 19 -1,638,005 A$91.99 A$-113,664
12. Feb 19 Buy BlackRock, Inc. Company 16. Nov 18 11. Feb 19 3,143,055 A$92.85 A$0
06. Dec 18 Buy Michael L'Estrange Individual 05. Dec 18 05. Dec 18 500 A$73.46 A$36,730
18. Nov 18 Sell BlackRock, Inc. Company 10. Oct 16 15. Nov 18 -16,881,837 A$86.75 A$-301,374
18. Nov 18 Buy BlackRock, Inc. Company 21. Sep 16 15. Nov 18 11,388,697 A$86.75 A$0
31. Oct 18 Buy Megan Clark Individual 29. Oct 18 29. Oct 18 530 A$74.66 A$39,570
25. Oct 18 Buy Paul Arnold Individual 17. Oct 18 17. Oct 18 18 A$78.56 A$1,414
25. Oct 18 Buy Zara Fisher Individual 17. Oct 18 17. Oct 18 18 A$78.56 A$1,414
10. Sep 18 Sell Zara Fisher Individual 05. Sep 18 05. Sep 18 -500 A$0.14 A$-70
14. Aug 18 Sell Zara Fisher Individual 08. Aug 18 10. Aug 18 -1,786 A$77.91 A$-138,723
18. Jul 18 Sell The Vanguard Group, Inc. Company 16. Mar 18 12. Jul 18 -242,026 A$86.81 A$-20,860,402
18. Jul 18 Buy The Vanguard Group, Inc. Company 21. Mar 18 16. Jul 18 245,898 A$86.72 A$21,325,325
04. Jun 18 Sell Stephen McIntosh Individual 31. May 18 31. May 18 -306 A$82.75 A$-25,321
04. Jun 18 Sell Chris Salisbury Individual 31. May 18 31. May 18 -212 A$82.75 A$-17,543
X
Management checks
We assess Rio Tinto Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Rio Tinto Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Rio Tinto Limited (ASX:RIO) A Smart Choice For Dividend Investors?

Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. … Historically, Rio Tinto Limited (ASX:RIO) has been paying a dividend to shareholders. … Let's take a look at Rio Tinto in more detail.

Simply Wall St -

Can We See Significant Institutional Ownership On The Rio Tinto Limited (ASX:RIO) Share Register?

If you want to know who really controls Rio Tinto Limited (ASX:RIO), then you'll have to look at the makeup of its share registry. … Rio Tinto has a market capitalization of AU$157b, so it's too big to fly under the radar. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

Is Rio Tinto Limited’s (ASX:RIO) 15% ROCE Any Good?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

Is Rio Tinto Limited (ASX:RIO) Expensive For A Reason? A Look At The Intrinsic Value

Help shape the future of investing tools and you could win a $250 gift card! … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

Why Investors Should Run Towards Rio Tinto Limited (ASX:RIO)

Stock market crashes are an opportune time to buy. … High quality companies, such as Rio Tinto Limited, are impacted by general market panic and sell-off, but the fundamentals of these companies stay the same. … Take the survey and be part of one of the most advanced studies of stock market investors to date.

Simply Wall St -

How Should Investors React To Rio Tinto Limited's (ASX:RIO) CEO Pay?

This analysis aims first to contrast CEO compensation with other large companies. … At the time of writing our data says that Rio Tinto Limited has a market cap of AU$127b, and is paying total annual CEO compensation of US$2.9m. … When we examined a group of companies with market caps over US$8.0b, we found that their median CEO compensation was US$4.1m

Simply Wall St -

Is Rio Tinto Limited (ASX:RIO) A Financially Strong Company?

Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an abundance of stock in the public market available for trading. … In times of low liquidity in the market, these firms won’t be left high and dry. … Using the most recent data for RIO, I will determine its financial status based on its solvency and liquidity, and assess whether the stock is a safe investment.

Simply Wall St -

Have Insiders Been Selling Rio Tinto Limited (ASX:RIO) Shares This Year?

So before you buy or sell Rio Tinto Limited (ASX:RIO), you may well want to know whether insiders have been buying or selling. … So we know that an insider sold shares at around the present share price of AU$72.21. … Over the last year we saw more insider selling of Rio Tinto shares, than buying

Simply Wall St -

Why I Like Rio Tinto Limited (ASX:RIO)

Attractive stocks have exceptional fundamentals. … In the case of Rio Tinto Limited (ASX:RIO), there's … , dividend-paying company with a

Simply Wall St -

Do Institutions Own Shares In Rio Tinto Limited (ASX:RIO)?

Generally speaking, as a company grows, institutions will increase their ownership. … We'd expect to see both institutions and retail investors owning a portion of the company. … institutional investors have bought into the company.

Simply Wall St -

Company Info

Description

Rio Tinto Group engages in finding, mining, and processing mineral resources worldwide. The company offers aluminium, silver, molybdenum, copper, diamonds, gold, borates, titanium dioxide, salt, iron ore, and uranium. It is also involved in the alumina production; primary aluminium smelting; bauxite mining; alumina refining; and ilmenite mining, as well as provision of gypsum. Rio Tinto Group is headquartered in London, the United Kingdom.

Details
Name: Rio Tinto Group
RIO
Exchange: ASX
Founded:
£117,962,577,308
1,483,161,862
Website: http://www.riotinto.com
Address: Rio Tinto Group
6 St James’s Square,
London,
Greater London, SW1Y 4AD,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE RIO PLC Ordinary Shares London Stock Exchange GB GBP 06. Jan 1975
OTCPK RTPP.F PLC Ordinary Shares Pink Sheets LLC US USD 06. Jan 1975
DB RIO1 PLC Ordinary Shares Deutsche Boerse AG DE EUR 06. Jan 1975
XTRA RIO1 PLC Ordinary Shares XETRA Trading Platform DE EUR 06. Jan 1975
SWX RIOP PLC Ordinary Shares SIX Swiss Exchange CH CHF 06. Jan 1975
BATS-CHIXE RIOL PLC Ordinary Shares BATS 'Chi-X Europe' GB GBP 06. Jan 1975
NYSE RIO ADR EACH REP 1 ORD New York Stock Exchange US USD 28. Jun 1990
ASX RIO LTD Ordinary Shares Australian Securities Exchange AU AUD 21. Dec 1995
OTCPK RTNT.F LTD Ordinary Shares Pink Sheets LLC US USD 21. Dec 1995
DB CRA1 LTD Ordinary Shares Deutsche Boerse AG DE EUR 21. Dec 1995
DB RIOA ADR EACH REP 1 ORD Deutsche Boerse AG DE EUR 28. Jun 1990
LSE 0KWZ ADR EACH REP 1 ORD London Stock Exchange GB USD 28. Jun 1990
TSX RIO1EUR LTD Ordinary Shares The Toronto Stock Exchange CA EUR 21. Dec 1995
SWX RIO LTD Ordinary Shares SIX Swiss Exchange CH CHF 21. Dec 1995
BMV RIO N ADR EACH REP 1 ORD Bolsa Mexicana de Valores MX MXN 28. Jun 1990
CHIA RIO LTD Ordinary Shares Chi-X Australia AU AUD 21. Dec 1995
Number of employees
Current staff
Staff numbers
47,458
Rio Tinto Group employees.
Industry
Diversified Metals and Mining
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 10:32
End of day share price update: 2019/03/19 00:00
Last estimates confirmation: 2019/03/18
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.