ScoreWhy is Rio Tinto Plc ?
1
High Management Efficiency with a high ROE of 27.23%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 55.91
3
Poor long term growth as Operating profit has grown by an annual rate -4.40% of over the last 5 years
4
Flat results in Dec 25
- OPERATING CASH FLOW(Y) Lowest at GBP 25,258.27 MM
- INTEREST(HY) At GBP 386.82 MM has Grown at 30.71%
- ROCE(HY) Lowest at 16.72%
5
With ROE of 17.14%, it has a fair valuation with a 1.84 Price to Book Value
- Over the past year, while the stock has generated a return of 29.16%, its profits have fallen by -15.9%
6
Market Beating Performance
- The stock has generated a return of 29.16% in the last 1 year, much higher than market (FTSE 100) returns of 15.58%
Real-Time Research ReportHow 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, Medium Return
Absolute
Risk Adjusted
Volatility
Rio Tinto Plc
27.29%
0.83
24.68%
FTSE 100
13.98%
1.15
13.60%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.71%
EBIT Growth (5y)
-4.40%
EBIT to Interest (avg)
55.91
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
0.07
Sales to Capital Employed (avg)
0.82
Tax Ratio
27.36%
Dividend Payout Ratio
64.39%
Pledged Shares
0
Institutional Holding
0.07%
ROCE (avg)
37.50%
ROE (avg)
27.23%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
1.84
EV to EBIT
8.62
EV to EBITDA
5.72
EV to Capital Employed
1.70
EV to Sales
2.17
PEG Ratio
NA
Dividend Yield
0.59%
ROCE (Latest)
19.67%
ROE (Latest)
17.14%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 0.41% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 6.63 times
NET SALES(Q)
Highest at GBP 22,974.19 MM
OPERATING PROFIT(Q)
Highest at GBP 8,814.05 MM
-7What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at GBP 25,258.27 MM
INTEREST(HY)
At GBP 386.82 MM has Grown at 30.71%
ROCE(HY)
Lowest at 16.72%
Here's what is working for Rio Tinto Plc
Net Sales
Highest at GBP 22,974.19 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (GBP MM)
Operating Profit
Highest at GBP 8,814.05 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (GBP MM)
Inventory Turnover Ratio
Highest at 6.63 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 0.41% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at GBP 2,993.78 MM
in the last five periodsMOJO 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
Operating Cash Flow
Lowest at GBP 25,258.27 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (GBP MM)
Interest
At GBP 386.82 MM has Grown at 30.71%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (GBP MM)
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