Now trading at a price of $65.81, Rio Tinto Plc has moved 0.6% so far today.
Rio Tinto Plc returned gains of 28.0% last year, with its stock price reaching a high of $80.52 and a low of $50.92. Over the same period, the stock outperformed the S&P 500 index by 10.0%. More recently, the company's 50-day average price was $63.85. Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. Based in London, United Kingdom, the large-cap Basic Materials company has 54,000 full time employees. Rio Tinto Plc has offered a 6.1% dividend yield over the last 12 months.
Wider Gross Margins Than the Industry Average of 32.76%:
| 2016-01-01 | 2017-01-01 | 2018-01-01 | 2019-01-01 | 2020-01-01 | 2021-01-01 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $34,829 | $33,781 | $40,030 | $40,522 | $43,165 | $44,611 |
| Gross Margins | 52.0% | 54.0% | 61.0% | 59.0% | 37.0% | 41.0% |
| Operating Margins | 17% | 19% | 32% | 31% | 35% | 40% |
| Net Margins | -2.0% | 14.0% | 22.0% | 34.0% | 19.0% | 1.0% |
| Net Income (MM) | -$866 | $4,617 | $8,762 | $13,638 | $8,010 | $631 |
| Net Interest Expense (MM) | -$1,084 | -$1,042 | -$838 | -$616 | -$254 | -$127 |
| Earnings Per Share | -$0.12 | $0.64 | $1.23 | $1.93 | $1.22 | $0.1 |
| EPS Growth | n/a | 633.33% | 92.19% | 56.91% | -36.79% | -91.8% |
| Diluted Shares (MM) | 7,299 | 7,189 | 7,147 | 7,072 | 6,568 | 6,520 |
| Free Cash Flow (MM) | $14,068 | $11,477 | $18,366 | $17,251 | $20,351 | $27,966 |
| Capital Expenditures (MM) | -$4,685 | -$3,012 | -$4,482 | -$5,430 | -$5,439 | -$6,144 |
| Net Current Assets (MM) | -$31,882 | -$28,447 | -$25,933 | -$20,224 | -$25,257 | n/a |
Rio Tinto Plc has exceptional EPS growth, wider gross margins than its peer group, and decent operating margins with a positive growth rate. Furthermore, Rio Tinto Plc has weak revenue growth and a flat capital expenditure trend and irregular cash flows.
Rio Tinto Plc's Valuation Is in Line With Its Sector Averages:
Rio Tinto Plc has a trailing twelve month P/E ratio of 12.1, compared to an average of 10.03 for the Basic Materials sector. Based on its EPS guidance of $4.21, the company has a forward P/E ratio of 15.2. The company doesn't provide forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 88.5%. On this basis, Rio Tinto Plc's PEG ratio is 0.14. Using instead the 11.6% weighted average of Rio Tinto Plc's earnings CAGR and the broader market's anticipated 5-year EPS growth rate, the company's PEG ratio is 1.04, which shows that its shares might be fairly priced. Additionally, the market is possibly undervaluing Rio Tinto Plc in terms of its equity because its P/B ratio is 2.07 whereas the sector average is 2.08. The company's shares are currently trading 1455.7% above their Graham number.
Rio Tinto Plc Has No Average Rating Visible In Our Data:
The 3 analysts following Rio Tinto Plc have set target prices ranging from $76.5 to $92.0 per share, for an average of $83.17 with a buy rating. As of April 2023, the company is trading -23.2% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
The largest shareholder is Wellington Management Group, LLP, whose 1% stake in the company is worth $1,082,210,826.
