Rio Tinto Plc (RIO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sylvania Platinum Ltd.

Antofagasta Plc

Rio Tinto Plc

Ecora Resources Plc

RHI Magnesita NV

Anglo American Plc

Central Asia Metals Plc

Jubilee Metals Group Plc

Kenmare Resources Plc

Petra Diamonds Ltd.

Atalaya Mining Plc

Why is Rio Tinto Plc ?

Weak Long Term Fundamental Strength with a -4.40% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate -4.40% of over the last 5 years

Positive results in Jun 26

INTEREST COVERAGE RATIO(Q) Highest at 2,972.96
DEBTORS TURNOVER RATIO(HY) Highest at 278.36 times
NET SALES(Q) Highest at GBP 23,066.35 MM

With ROE of 17.14%, it has a fair valuation with a 1.94 Price to Book Value

Over the past year, while the stock has generated a return of 65.60%, its profits have fallen by -15.9%

Market Beating Performance

The stock has generated a return of 65.60% in the last 1 year, much higher than market (FTSE 100) returns of 18.59%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Rio Tinto Plc should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Minerals & Mining)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Rio Tinto Plc for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Rio Tinto Plc

65.6%

1.44

29.08%

FTSE 100

18.59%

1.58

11.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.71%

EBIT Growth (5y)

-4.40%

EBIT to Interest (avg)

38.05

Debt to EBITDA (avg)

0.28

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.80

Tax Ratio

27.75%

Dividend Payout Ratio

64.63%

Pledged Shares

Institutional Holding

0.07%

ROCE (avg)

28.17%

ROE (avg)

27.23%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.94

EV to EBIT

9.05

EV to EBITDA

6.01

EV to Capital Employed

1.78

EV to Sales

2.28

PEG Ratio

Dividend Yield

0.42%

ROCE (Latest)

19.67%

ROE (Latest)

17.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 2,972.96

DEBTORS TURNOVER RATIO(HY)

Highest at 278.36 times

NET SALES(Q)

Highest at GBP 23,066.35 MM

OPERATING PROFIT(Q)

Highest at GBP 9,481.38 MM

NET PROFIT(Q)

Highest at GBP 4,950.74 MM

EPS(Q)

Highest at GBP 3.02

-3What is not working for the Company

DIVIDEND PER SHARE(HY)

Lowest at GBP 278.36

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

Here's what is working for Rio Tinto Plc

Interest Coverage Ratio

Highest at 2,972.96

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at GBP 23,066.35 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Operating Profit

Highest at GBP 9,481.38 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Net Profit

Highest at GBP 4,950.74 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

EPS

Highest at GBP 3.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Debtors Turnover Ratio

Highest at 278.36 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at GBP 3,013.02 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Rio Tinto Plc

Dividend per share

Lowest at GBP 278.36 and Fallen

In each year in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (GBP)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)