(RIO) Rio Tinto - Overview
Sector: Basic Materials | Industry: Other Industrial Metals & Mining | Exchange: NYSE (USA) | Market Cap: 173.375m USD | Total Return: 79% in 12m
Avg Turnover: 247M
Warnings
Beneish M-Score -1.38 > -1.5 - likely earnings manipulation
Below Avwap Earnings
Tailwinds
Idiosyncratic Leader
Rio Tinto Group is a multinational mining organization headquartered in London, specializing in the extraction and processing of iron ore, aluminum, lithium, and copper. The company maintains integrated operations that include open-pit and underground mines alongside refineries, smelters, and global shipping infrastructure.
The business model relies on high-capital expenditure projects to secure long-term mineral reserves, which are essential for global infrastructure and battery technology. As a diversified miner, Rio Tintos revenue is heavily influenced by cyclical commodity prices and industrial demand in major markets like China.
To evaluate how these commodity cycles impact long-term valuation, consider exploring the data available on ValueRay. The firms geographic focus remains centered on Western Australia for iron ore, while its copper and lithium segments target the growing global transition toward electrification.
- Chinese steel demand and infrastructure spending dictate iron ore revenue volatility
- Simandou project execution risks impact long-term iron ore production capacity
- Fluctuating global aluminum and copper prices drive base metal profit margins
- Decarbonization capital expenditures pressure free cash flow and dividend payout ratios
- Lithium market expansion and acquisition strategy shape future battery metal growth
| Net Income: 21.5b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 2.64 > 1.0 |
| NWC/Revenue: 5.96% < 20% (prev 16.34%; Δ -10.38% < -1%) |
| CFO/TA 0.26 > 3% & CFO 32.7b > Net Income 21.5b |
| Net Debt (16.7b) to EBITDA (40.6b): 0.41 < 3 |
| Current Ratio: 1.44 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.64b) vs 12m ago 0.34% < -2% |
| Gross Margin: 27.92% > 18% (prev 56.43%; Δ -28.52% > 0.5%) |
| Asset Turnover: 96.19% > 50% (prev 51.82%; Δ 44.37% > 0%) |
| Interest Coverage Ratio: 15.86 > 6 (EBIT TTM 28.9b / Interest Expense TTM 1.82b) |
| A: 0.05 (Total Current Assets 21.6b - Total Current Liabilities 14.9b) / Total Assets 128b |
| B: 0.36 (Retained Earnings 46.6b / Total Assets 128b) |
| C: 0.25 (EBIT TTM 28.9b / Avg Total Assets 116b) |
| D: 1.02 (Book Value of Equity 62.2b / Total Liabilities 61.1b) |
| Altman-Z'' = 4.27 = AA |
| DSRI: 0.72 (Receivables 5.16b/3.47b, Revenue 111b/53.7b) |
| GMI: 2.02 (GM 56.43% / 27.92%) |
| AQI: 1.32 (AQ_t 0.17 / AQ_t-1 0.13) |
| SGI: 2.08 (Revenue 111b / 53.7b) |
| TATA: -0.09 (NI 21.5b - CFO 32.7b) / TA 128b) |
| Beneish M = -1.38 (Cap -4..+1) = D |
As of June 06, 2026, the stock is trading at USD 100.69 with a total of 3,411,025 shares traded.
Over the past week, the price has changed by -5.36%,
over one month by +0.19%,
over three months by +10.86% and
over the past year by +78.96%.
Rio Tinto has received a consensus analysts rating of 4.43. Therefore, it is recommended to buy RIO.
- StrongBuy: 4
- Buy: 2
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 101.3 | 0.6% |
P/E Trailing = 17.5057
P/E Forward = 12.9702
P/S = 3.008
P/B = 2.7872
P/EG = 5.6909
Revenue TTM = 111b USD
EBIT TTM = 28.9b USD
EBITDA TTM = 40.6b USD
Long Term Debt = 21.2b USD (from longTermDebt, last quarter)
Short Term Debt = 1.26b USD (from shortTermDebt, last quarter)
Debt = 26.2b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.59b
Net Debt = 16.7b USD (calculated: Debt 26.2b - CCE 9.45b)
Enterprise Value = 190b USD (173b + Debt 26.2b - CCE 9.45b)
Interest Coverage Ratio = 15.86 (Ebit TTM 28.9b / Interest Expense TTM 1.82b)
EV/FCF = 17.65x (Enterprise Value 190b / FCF TTM 10.8b)
FCF Yield = 5.67% (FCF TTM 10.8b / Enterprise Value 190b)
FCF Margin = 9.67% (FCF TTM 10.8b / Revenue TTM 111b)
Net Margin = 19.28% (Net Income TTM 21.5b / Revenue TTM 111b)
Gross Margin = 27.92% ((Revenue TTM 111b - Cost of Revenue TTM 80.3b) / Revenue TTM)
Gross Margin QoQ = 26.60% (prev 24.99%)
Tobins Q-Ratio = 1.48 (Enterprise Value 190b / Total Assets 128b)
Interest Expense / Debt = 6.97% (Interest Expense 1.82b / Debt 26.2b)
Taxrate = 27.72% (8.35b / 30.1b)
NOPAT = 20.9b (EBIT 28.9b * (1 - 27.72%))
Current Ratio = 1.44 (Total Current Assets 21.6b / Total Current Liabilities 14.9b)
Debt / Equity = 0.42 (Debt 26.2b / totalStockholderEquity, last quarter 62.2b)
Debt / EBITDA = 0.41 (Net Debt 16.7b / EBITDA 40.6b)
Debt / FCF = 1.55 (Net Debt 16.7b / FCF TTM 10.8b)
Total Stockholder Equity = 57.7b (last 4 quarters mean from totalStockholderEquity)
RoA = 18.54% (Net Income 21.5b / Total Assets 128b)
RoE = 37.21% (Net Income TTM 21.5b / Total Stockholder Equity 57.7b)
RoCE = 36.65% (EBIT 28.9b / Capital Employed (Equity 57.7b + L.T.Debt 21.2b))
RoIC = 19.21% (NOPAT 20.9b / Invested Capital 109b)
WACC = 8.57% (E(173b)/V(200b) * Re(9.10%) + D(26.2b)/V(200b) * Rd(6.97%) * (1-Tc(0.28)))
Discount Rate = 9.10% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 86.67 | Cagr: 0.27%
[DCF] Terminal Value 77.27% ; FCFF base≈8.85b ; Y1≈10.1b ; Y5≈14.9b
[DCF] Fair Price = 159.3 (EV 217b - Net Debt 16.7b = Equity 200b / Shares 1.25b; r=8.57% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 50.89 | EPS CAGR: 12.58% | SUE: 0.0 | # QB: 0
Revenue Correlation: 67.58 | Revenue CAGR: 2.11% | SUE: N/A | # QB: 0
EPS current Year (2026-12-31): EPS=8.36 | Chg30d=+0.97% | Revisions=+0% | GrowthEPS=+25.0% | GrowthRev=+9.9%
EPS next Year (2027-12-31): EPS=8.86 | Chg30d=+3.71% | Revisions=+25% | GrowthEPS=+5.9% | GrowthRev=+2.1%
[Analyst] Revisions Ratio: +25%