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RIO

Rio Tinto GroupLSE:RIO Stock Report

Market Cap

UK£75.9b

7D

0.8%

1Y

-16.0%

Updated

03 Dec, 2021

Data

Company Financials +
RIO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance6/6
Financial Health5/6
Dividends5/6

RIO Stock Overview

Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide.

Rio Tinto Group Competitors

Glencore

LSE:GLEN

UK£46.2b

Mining and Metallurgical Company Norilsk Nickel

LSE:MNOD

US$45.1b

Anglo American

LSE:AAL

UK£33.3b

Exxon Mobil

NYSE:XOM

US$257.8b

Price History & Performance

Summary of all time highs, changes and price drops for Rio Tinto Group
Historical stock prices
Current Share PriceUK£45.79
52 Week HighUK£67.88
52 Week LowUK£43.54
Beta0.63
1 Month Change2.63%
3 Month Change-15.34%
1 Year Change-15.99%
3 Year Change27.73%
5 Year Change42.04%
Change since IPO861.87%

Recent News & Updates

Sep 20
Rio Tinto Group's (LON:RIO) Dividend may be Threatened by the Fall of Iron Ore Prices

Rio Tinto Group's (LON:RIO) Dividend may be Threatened by the Fall of Iron Ore Prices

Rio Tinto Group (LON:RIO) investors are taken on a rollercoaster ride with the high success in the last 12 months, followed by the recent downfall of Iron Ore prices. Dividend yields for investors reached some 14%, however, the seemingly attractive yield may not be sustainable in light of the changing macro situation. We are going to overview the dividend policy and earnings potential for Rio Tinto, in order to see if the recent market volatility represents an opportunity or a convergence to true value.

Shareholder Returns

RIOGB Metals and MiningGB Market
7D0.8%1.2%1.0%
1Y-16.0%1.1%9.4%

Return vs Industry: RIO underperformed the UK Metals and Mining industry which returned 4.8% over the past year.

Return vs Market: RIO underperformed the UK Market which returned 10.5% over the past year.

Price Volatility

Is RIO's price volatile compared to industry and market?
RIO volatility
RIO Average Weekly Movement4.2%
Metals and Mining Industry Average Movement7.0%
Market Average Movement4.9%
10% most volatile stocks in GB Market10.0%
10% least volatile stocks in GB Market2.6%

Stable Share Price: RIO is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RIO's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
187347,500Jakob Stausholmhttps://www.riotinto.com

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 also owns and operates open pit and underground mines, mills, refineries, smelters, power stations, and research and service facilities.

Rio Tinto Group Fundamentals Summary

How do Rio Tinto Group's earnings and revenue compare to its market cap?
RIO fundamental statistics
Market CapUS$100.38b
Earnings (TTM)US$18.77b
Revenue (TTM)US$58.33b

5.2x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RIO income statement (TTM)
RevenueUS$58.33b
Cost of RevenueUS$29.01b
Gross ProfitUS$29.32b
ExpensesUS$10.55b
EarningsUS$18.77b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)11.60
Gross Margin50.26%
Net Profit Margin32.17%
Debt/Equity Ratio21.3%

How did RIO perform over the long term?

See historical performance and comparison

Dividends

15.1%

Current Dividend Yield

60%

Payout Ratio

Valuation

Is Rio Tinto Group undervalued compared to its fair value and its price relative to the market?

1.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RIO (£45.79) is trading below our estimate of fair value (£46.38)

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 (5.2x) compared to the UK Metals and Mining industry average (9.4x).

PE vs Market: RIO is good value based on its PE Ratio (5.2x) compared to the UK market (19.3x).


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's PB Ratio (1.8x) is in line with the GB Metals and Mining industry average.


Future Growth

How is Rio Tinto Group forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

-27.2%

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 (-27.2% per year).

Earnings vs Market: RIO's earnings are forecast to decline over the next 3 years (-27.2% 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 (-11.9% per year).

High Growth Revenue: RIO's revenue is forecast to decline over the next 3 years (-11.9% 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 (19.4%).


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 150.4%.


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 has more cash than its total debt.

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?

15.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RIO's dividend (15.13%) is higher than the bottom 25% of dividend payers in the UK market (1.38%).

High Dividend: RIO's dividend (15.13%) is in the top 25% of dividend payers in the UK market (4.17%)


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 (67% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure


CEO

Jakob Stausholm (53 yo)

0.92

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 ($USD3.27M) is about average for companies of similar size in the UK market ($USD3.65M).

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 ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: RIO's board of directors are not considered experienced ( 2.6 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 only sold shares 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 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£75.920b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 21:11
End of Day Share Price2021/12/03 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.