Now trading at a price of $101.14, Rio Tinto has moved 2.1% so far today.
Rio Tinto returned gains of 68.8% last year, with its stock price reaching a high of $112.58 and a low of $55.64. Over the same period, the stock outperformed the S&P 500 index by 48.6%. More recently, the company's 50-day average price was $101.77. Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. Based in London, United Kingdom, the Large-Cap Basic Materials company has 56,890 full time employees. Rio Tinto has offered a 4.1% dividend yield over the last 12 months.
A Positive EPS Growth Rate and an Average Current Ratio:
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $44,611 | $63,495 | $55,554 | $54,041 | $53,658 | $57,638 |
| Operating Margins | 38% | 47% | 36% | 27% | 29% | 26% |
| Net Margins | 23% | 36% | 23% | 18% | 22% | 18% |
| Net Income (M) | $10,400 | $22,597 | $13,048 | $9,953 | $11,574 | $10,249 |
| Net Interest Expense (M) | -$1,751 | -$26 | -$1,846 | -$1,713 | -$876 | -$1,846 |
| Depreciation & Amort. (M) | $4,279 | $4,697 | $470 | $484 | $559 | $594 |
| Diluted Shares (M) | 1,256 | 1,256 | 1,256 | 1,256 | 1,256 | 1,256 |
| Earnings Per Share | $6.0 | $12.96 | $7.6 | $6.16 | $7.07 | $6.08 |
| EPS Growth | n/a | 116.0% | -41.36% | -18.95% | 14.77% | -14.0% |
| Avg. Price | $44.97 | $65.16 | $66.34 | $74.46 | $58.82 | $100.69 |
| P/E Ratio | 7.45 | 4.99 | 8.67 | 12.01 | 8.26 | 16.4 |
| Free Cash Flow (M) | $15,875 | $25,345 | $16,134 | $15,160 | $15,599 | $16,832 |
| EV / EBITDA | 2.81 | 2.36 | 4.25 | 6.27 | 4.79 | 8.94 |
| Total Debt (M) | $13,247 | $12,395 | $10,148 | $12,177 | $12,262 | $21,198 |
| Net Debt / EBITDA | 0.14 | -0.01 | 0.17 | 0.16 | 0.23 | 0.79 |
| Current Ratio | 1.8 | 1.93 | 1.64 | 1.69 | 1.63 | 1.44 |
Rio Tinto has decent operating margins with a negative growth trend, positive cash flows, and just enough current assets to cover current liabilities, as shown by its current ratio of 1.44. We also note that the company benefits from positive EPS growth and healthy leverage levels. Furthermore, Rio Tinto's financial statements do not display any obvious red flags.
an Increase in Expected Earnings Improves Its Value Outlook but Priced at a Premium:
Rio Tinto has a trailing twelve month P/E ratio of 16.7, compared to an average of 20.25 for the Basic Materials sector. Based on its EPS guidance of $8.84, the company has a forward P/E ratio of 11.5. The 5.7% compound average growth rate of Rio Tinto's historical and projected earnings per share yields a PEG ratio of 2.94. This suggests that these shares are overvalued. Furthermore, Rio Tinto is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.64 is higher than the sector average of 2.31. The company's shares are currently trading 18.4% below their Graham number.
Analysts Give Rio Tinto an Average Rating of Buy:
The 7 analysts following Rio Tinto have set target prices ranging from $83.5 to $125.0 per share, for an average of $102.87 with a buy rating.
Rio Tinto has a very low short interest because 1.1% of the company's shares are sold short. Institutions own 10.4% of the company's shares, and the insider ownership rate stands at 0.0%, suggesting a small amount of insider investors. The largest shareholder is Fisher Asset Management, LLC, whose 2% stake in the company is worth $2,036,554,218.
