RIO Investors - Our Quick Report For You.

Now trading at a price of $62.37, Rio Tinto Plc has moved 1.8% so far today.

Rio Tinto Plc returned gains of 15.0% last year, with its stock price reaching a high of $80.52 and a low of $52.25. Over the same period, the stock underperformed the S&P 500 index by -7.0%. As of April 2023, the company's 50-day average price was $62.57. 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 6.5% 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 12.0, 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 14.9. The company doesn't provide forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 88.2%. 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 1.96 whereas the sector average is 2.08. The company's shares are currently trading 1374.5% 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 -24.8% 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 $1,025,673,010.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.