| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 0/6 |
| Past Performance | 6/6 |
| Financial Health | 5/6 |
| Dividends | 5/6 |
RIO Overview
Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide.
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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: RIO's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-8.3%
RIO
-6.7%
GB Metals and Mining
-1.0%
GB Market
1 Year Return
-3.5%
RIO
17.8%
GB Metals and Mining
19.2%
GB Market
Return vs Industry: RIO underperformed the UK Metals and Mining industry which returned 17.8% over the past year.
Return vs Market: RIO underperformed the UK Market which returned 19.2% over the past year.
Shareholder returns
| RIO | Industry | Market | |
|---|---|---|---|
| 7 Day | -8.3% | -6.7% | -1.0% |
| 30 Day | -7.0% | -6.6% | -2.2% |
| 90 Day | -16.9% | -7.6% | 0.5% |
| 1 Year | 8.1%-3.5% | 27.5%17.8% | 24.1%19.2% |
| 3 Year | 66.5%23.2% | 53.4%25.0% | 15.3%2.5% |
| 5 Year | 189.2%91.7% | 136.7%78.3% | 35.4%10.7% |
Long-Term 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
2 months ago | Simply Wall St
Returns Are Gaining Momentum At Rio Tinto Group (LON:RIO)3 months ago | Simply Wall St
Is Rio Tinto Group (LON:RIO) A Risky Investment?3 months ago | Simply Wall St
What Is The Ownership Structure Like For Rio Tinto Group (LON:RIO)?Rio Tinto Group Fundamentals Summary
| RIO fundamental statistics | |
|---|---|
| Market Cap | US$109.49b |
| Earnings (TTM) | US$18.77b |
| Revenue (TTM) | US$58.33b |
5.7x
P/E Ratio1.8x
P/S RatioIs RIO overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| RIO income statement (TTM) | |
|---|---|
| Revenue | US$58.33b |
| Cost of Revenue | US$29.01b |
| Gross Profit | US$29.32b |
| Expenses | US$10.55b |
| Earnings | US$18.77b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 11.60 |
| Gross Margin | 50.26% |
| Net Profit Margin | 32.17% |
| Debt/Equity Ratio | 21.3% |
How did RIO perform over the long term?
See historical performance and comparisonDividends
14.2%
Current Dividend Yield60%
Payout RatioValuation
Is Rio Tinto Group undervalued compared to its fair value and its price relative to the market?
3.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RIO (£48.3) is trading below our estimate of fair value (£50.12)
Significantly Below Fair Value: RIO is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: RIO is good value based on its PE Ratio (5.7x) compared to the UK Metals and Mining industry average (7.6x).
PE vs Market: RIO is good value based on its PE Ratio (5.7x) compared to the UK market (23.5x).
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 good value based on its PB Ratio (2x) compared to the GB Metals and Mining industry average (2.2x).
Future Growth
How is Rio Tinto Group forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
-32.5%
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 (-32.5% per year).
Earnings vs Market: RIO's earnings are forecast to decline over the next 3 years (-32.5% 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 (-14.8% per year).
High Growth Revenue: RIO's revenue is forecast to decline over the next 3 years (-14.8% 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 (18.3%).
Past Performance
How has Rio Tinto Group performed over the past 5 years?
21.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RIO has high quality earnings.
Growing Profit Margin: RIO's current net profit margins (32.2%) are higher than last year (17.2%).
Past Earnings Growth Analysis
Earnings Trend: RIO's earnings have grown significantly by 21.3% per year over the past 5 years.
Accelerating Growth: RIO's earnings growth over the past year (160.8%) exceeds its 5-year average (21.3% per year).
Earnings vs Industry: RIO earnings growth over the past year (160.8%) exceeded the Metals and Mining industry 140.8%.
Return on Equity
High ROE: RIO's Return on Equity (34.4%) is considered high.
Financial Health
How is Rio Tinto Group's financial position?
Financial Position Analysis
Short Term Liabilities: RIO's short term assets ($25.8B) exceed its short term liabilities ($12.1B).
Long Term Liabilities: RIO's short term assets ($25.8B) do not cover its long term liabilities ($33.2B).
Debt to Equity History and Analysis
Debt Level: RIO's debt to equity ratio (21.3%) is considered satisfactory.
Reducing Debt: RIO's debt to equity ratio has reduced from 48.2% to 21.3% over the past 5 years.
Debt Coverage: RIO's debt is well covered by operating cash flow (192.7%).
Interest Coverage: RIO's interest payments on its debt are well covered by EBIT (84x coverage).
Balance Sheet
Dividend
What is Rio Tinto Group current dividend yield, its reliability and sustainability?
14.20%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RIO's dividend (14.2%) is higher than the bottom 25% of dividend payers in the UK market (1.34%).
High Dividend: RIO's dividend (14.2%) is in the top 25% of dividend payers in the UK market (3.92%)
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 reasonable payout ratio (59.7%), RIO's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RIO's dividends in 3 years are forecast to be covered by earnings (66.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.0yrs
Average management tenure
CEO
Jakob Stausholm (53 yo)
0.67
Tenure
US$3,274,000
Compensation
Mr. Jakob Stausholm, MS Economics, serves as Executive Director at Rio Tinto, Rio Tinto Ltd, Rio Tinto plc. since September 3, 2018. He serves as Chief Executive Officer at Rio Tinto, Rio Tinto Ltd, Rio Ti...
CEO Compensation Analysis
Compensation vs Market: Jakob's total compensation ($USD3.27M) is about average for companies of similar size in the UK market ($USD3.69M).
Compensation vs Earnings: Jakob's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: RIO's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Board Members
Experienced Board: RIO's board of directors are not considered experienced ( 2.5 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: Insufficient data to determine if insiders have bought more shares than they have sold 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£79.606b
- Shares outstanding: 1.62b
- 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
Biography
Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. The company offers aluminum, copper, diamonds, gold, borates, titanium dioxide, salt, iron ore, and uranium. It als...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/18 17:37 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.