Rio Tinto Group
Market Cap
UK£71.0b
Last Updated
2020/02/19 21:06 UTC
Data Sources
Company Financials +
Executive Summary
Rio Tinto Group engages in finding, mining, and processing mineral resources worldwide.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -9.9% per year for the next 3 years
Snowflake Analysis
Outstanding track record with excellent balance sheet and pays a dividend.
Similar Companies
Share Price & News
How has Rio Tinto Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RIO has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.4%
RIO
-0.8%
GB Metals and Mining
-0.4%
GB Market
1 Year Return
-5.6%
RIO
-0.4%
GB Metals and Mining
6.6%
GB Market
Return vs Industry: RIO underperformed the UK Metals and Mining industry which returned -0% over the past year.
Return vs Market: RIO underperformed the UK Market which returned 6.2% over the past year.
Shareholder returns
| RIO | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.4% | -0.8% | -0.4% |
| 30 Day | -10.2% | -5.6% | -1.7% |
| 90 Day | 2.6% | 8.0% | 5.4% |
| 1 Year | 6.1%-5.6% | 8.2%-0.4% | 12.4%6.6% |
| 3 Year | 46.0%16.5% | 33.8%11.9% | 18.5%3.4% |
| 5 Year | 84.9%32.5% | 73.0%32.5% | 35.8%4.7% |
Price Volatility Vs. Market
How volatile is Rio Tinto Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Could Rio Tinto Group (LON:RIO) Have The Makings Of Another Dividend Aristocrat?2 weeks ago | Simply Wall St
Here's Why Rio Tinto Group (LON:RIO) Can Manage Its Debt Responsibly4 weeks ago | Simply Wall St
Is Rio Tinto Group's (LON:RIO) CEO Pay Justified?Valuation
Is Rio Tinto Group undervalued compared to its fair value and its price relative to the market?
33.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RIO (£42.02) is trading below our estimate of fair value (£63.24)
Significantly Below Fair Value: RIO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RIO is good value based on its PE Ratio (6.8x) compared to the Metals and Mining industry average (9.7x).
PE vs Market: RIO is good value based on its PE Ratio (6.8x) compared to the UK market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: RIO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: RIO is overvalued based on its PB Ratio (2.2x) compared to the GB Metals and Mining industry average (1.1x).
Next Steps
Future Growth
How is Rio Tinto Group forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
-9.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RIO's earnings are forecast to decline over the next 3 years (-9.9% per year).
Earnings vs Market: RIO's earnings are forecast to decline over the next 3 years (-9.9% per year).
High Growth Earnings: RIO's earnings are forecast to decline over the next 3 years.
Revenue vs Market: RIO's revenue is expected to decline over the next 3 years (-3.5% per year).
High Growth Revenue: RIO's revenue is forecast to decline over the next 3 years (-3.5% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RIO's Return on Equity is forecast to be low in 3 years time (17.1%).
Next Steps
Past Performance
How has Rio Tinto Group performed over the past 5 years?
32.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RIO has high quality earnings.
Growing Profit Margin: RIO's current net profit margins (32.4%) are higher than last year (24.2%).
Past Earnings Growth Analysis
Earnings Trend: RIO's earnings have grown significantly by 32.2% per year over the past 5 years.
Accelerating Growth: RIO's earnings growth over the past year (36.1%) exceeds its 5-year average (32.2% per year).
Earnings vs Industry: RIO earnings growth over the past year (36.1%) exceeded the Metals and Mining industry 7%.
Return on Equity
High ROE: RIO's Return on Equity (27.9%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Rio Tinto Group's financial position?
Financial Position Analysis
Short Term Liabilities: RIO's short term assets ($16.9B) exceed its short term liabilities ($11.1B).
Long Term Liabilities: RIO's short term assets ($16.9B) do not cover its long term liabilities ($31.4B).
Debt to Equity History and Analysis
Debt Level: RIO's debt to equity ratio (29.3%) is considered satisfactory.
Reducing Debt: RIO's debt to equity ratio has reduced from 45% to 29.3% over the past 5 years.
Debt Coverage: RIO's debt is well covered by operating cash flow (100.1%).
Interest Coverage: RIO's interest payments on its debt are well covered by EBIT (33.7x coverage).
Balance Sheet
Inventory Level: RIO has a high level of physical assets or inventory.
Debt Coverage by Assets: RIO's debt is covered by short term assets (assets are 1.3x debt).
Next Steps
Dividend
What is Rio Tinto Group's current dividend yield, its reliability and sustainability?
5.82%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: RIO's dividend (5.82%) is higher than the bottom 25% of dividend payers in the UK market (1.82%).
High Dividend: RIO's dividend (5.82%) is in the top 25% of dividend payers in the UK market (5.15%)
Stability and Growth of Payments
Stable Dividend: RIO's dividend payments have been volatile in the past 10 years.
Growing Dividend: RIO's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (40.5%), RIO's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RIO's dividends in 3 years are forecast to be covered by earnings (66.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.4yrs
Average management tenure
CEO
J-S Jacques (48yo)
3.6yrs
Tenure
US$6,139,000
Compensation
Mr. Jean-Sébastien Jacques, M.Sc., has been the Chief Executive Officer of Rio Tinto plc, Rio Tinto Limited and Rio Tinto Group since July 2, 2016. Mr. Jacques served as the Deputy Chief Executive at Rio T ...
CEO Compensation Analysis
Compensation vs Market: J-S's total compensation ($USD6.14M) is above average for companies of similar size in the UK market ($USD4.71M).
Compensation vs Earnings: J-S's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3.6yrs | US$6.14m | 0.0063% $4.5m | |
| CFO & Executive Director | 1.4yrs | US$1.97m | 0.00093% $660.4k | |
| Human Resources Group Executive | 3.1yrs | US$1.64m | 0.00024% $170.4k | |
| Group Executive of Growth & Innovation | 1.1yrs | US$2.60m | 0.0012% $852.2k | |
| Chief Commercial Officer | 0yrs | US$2.52m | 0.00076% $539.7k | |
| Chief Executive of Aluminium | 6.1yrs | US$3.24m | 0.0029% $2.0m | |
| Chief Executive of Iron Ore Group | 3.6yrs | US$2.52m | 0.0018% $1.3m | |
| Chief Executive of Copper & Diamonds | 3.6yrs | US$2.64m | 0.0018% $1.3m | |
| Chief Executive of Energy & Minerals | 3.2yrs | US$2.22m | 0.0022% $1.5m | |
| Head of Investor Relations | 0yrs | no data | no data |
3.4yrs
Average Tenure
51yo
Average Age
Experienced Management: RIO's management team is considered experienced (3.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3.6yrs | US$6.14m | 0.0063% $4.5m | |
| CFO & Executive Director | 1.4yrs | US$1.97m | 0.00093% $660.4k | |
| Independent Non-Executive Director | 5.3yrs | US$332.00k | no data | |
| Senior Independent Non-Executive Director | 0.8yrs | US$237.00k | 0.00046% $326.7k | |
| Independent Chairman of the Board | 1.9yrs | US$852.00k | 0.00046% $326.7k | |
| Independent Non-Executive Director | 2.8yrs | US$224.00k | 0.000030% $21.3k | |
| Independent Non-Executive Director | 5.4yrs | US$275.00k | no data | |
| Independent Non-Executive Director | 1.1yrs | no data | no data | |
| Independent Non-Executive Director | 3yrs | US$323.00k | 0.00016% $113.6k |
2.8yrs
Average Tenure
60yo
Average Age
Experienced Board: RIO's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: RIO insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Rio Tinto Group's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Rio Tinto Group
- Ticker: RIO
- Exchange: LSE
- Founded: 1873
- Industry: Diversified Metals and Mining
- Sector: Materials
- Market Cap: UK£71.014b
- Shares outstanding: 1.61b
- Website: https://www.riotinto.com
Number of Employees
Location
- Rio Tinto Group
- 6 St James’s Square
- London
- Greater London
- SW1Y 4AD
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RTPP.F | OTCPK (Pink Sheets LLC) | Yes | PLC Ordinary Shares | US | USD | Jan 1975 |
| RIO | LSE (London Stock Exchange) | Yes | PLC Ordinary Shares | GB | GBP | Jan 1975 |
| RIO1 | DB (Deutsche Boerse AG) | Yes | PLC Ordinary Shares | DE | EUR | Jan 1975 |
| RIOP | SWX (SIX Swiss Exchange) | Yes | PLC Ordinary Shares | CH | CHF | Jan 1975 |
| RIO1 | XTRA (XETRA Trading Platform) | Yes | PLC Ordinary Shares | DE | EUR | Jan 1975 |
| RIOL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | PLC Ordinary Shares | GB | GBP | Jan 1975 |
| RIO | NYSE (New York Stock Exchange) | SPONSORED ADR | US | USD | Jun 1990 | |
| 0KWZ | LSE (London Stock Exchange) | SPONSORED ADR | GB | USD | Jun 1990 | |
| RIO N | BMV (Bolsa Mexicana de Valores) | SPONSORED ADR | MX | MXN | Jun 1990 | |
| RIOA | DB (Deutsche Boerse AG) | SPONSORED ADR | DE | EUR | Jun 1990 | |
| RTNT.F | OTCPK (Pink Sheets LLC) | LTD Ordinary Shares | US | USD | Dec 1995 | |
| CRA1 | DB (Deutsche Boerse AG) | LTD Ordinary Shares | DE | EUR | Dec 1995 | |
| RIO | ASX (Australian Securities Exchange) | LTD Ordinary Shares | AU | AUD | Dec 1995 | |
| RIO | SWX (SIX Swiss Exchange) | LTD Ordinary Shares | CH | CHF | Dec 1995 | |
| RIO | CHIA (Chi-X Australia) | LTD Ordinary Shares | AU | AUD | Dec 1995 | |
| RIO1EUR | TSX (The Toronto Stock Exchange) | LTD Ordinary Shares | CA | EUR | Dec 1995 |
Biography
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 was incorporated in 1873 and is headquartered in London, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 21:06 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.