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

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sylvania Platinum Ltd.

Antofagasta Plc

Rio Tinto Plc

Central Asia Metals Plc

Anglo American Plc

RHI Magnesita NV

Jubilee Metals Group Plc

Kenmare Resources Plc

Ecora Resources Plc

Petra Diamonds Ltd.

Atalaya Mining Plc

Why is Rio Tinto Plc ?

Poor long term growth as Operating profit has grown by an annual rate -2.60% of over the last 5 years

Negative results in Jun 25

OPERATING CASH FLOW(Y) Lowest at GBP 24,609.02 MM
INTEREST(HY) At GBP 419.53 MM has Grown at 39.27%
DIVIDEND PER SHARE(HY) Lowest at GBP 24.51

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Rio Tinto Plc for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Rio Tinto Plc

9.44%

0.21

21.19%

FTSE 100

15.94%

1.23

12.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.58%

EBIT Growth (5y)

-2.60%

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)

0.83

Tax Ratio

27.36%

Dividend Payout Ratio

55.44%

Pledged Shares

Institutional Holding

0.07%

ROCE (avg)

37.50%

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

1.44

EV to EBIT

7.03

EV to EBITDA

4.61

EV to Capital Employed

1.36

EV to Sales

1.71

PEG Ratio

Dividend Yield

0.61%

ROCE (Latest)

19.37%

ROE (Latest)

19.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 24.51%

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at GBP 24,609.02 MM

INTEREST(HY)

At GBP 419.53 MM has Grown at 39.27%

DIVIDEND PER SHARE(HY)

Lowest at GBP 24.51

INTEREST COVERAGE RATIO(Q)

Lowest at 1,847.61

RAW MATERIAL COST(Y)

Grown by 15.56% (YoY

CASH AND EQV(HY)

Lowest at GBP 6,811.4 MM

DEBT-EQUITY RATIO (HY)

Highest at 24.58 %

NET SALES(Q)

Lowest at GBP 20,724.24 MM

PRE-TAX PROFIT(Q)

Lowest at GBP 4,718.92 MM

NET PROFIT(Q)

Lowest at GBP 3,540.39 MM

EPS(Q)

Lowest at GBP 2.13

Here's what is working for Rio Tinto Plc

Debtors Turnover Ratio

Highest at 24.51%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Rio Tinto Plc

Operating Cash Flow

Lowest at GBP 24,609.02 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (GBP MM)

Interest Coverage Ratio

Lowest at 1,847.61

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At GBP 419.53 MM has Grown at 39.27%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Dividend per share

Lowest at GBP 24.51 and Fallen

In each year in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (GBP)

Net Sales

Lowest at GBP 20,724.24 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Pre-Tax Profit

Lowest at GBP 4,718.92 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Pre-Tax Profit

Fallen at -22.82%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Net Profit

Lowest at GBP 3,540.39 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

Net Profit

Fallen at -23.28%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP 2.13

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Cash and Eqv

Lowest at GBP 6,811.4 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 24.58 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 15.56% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales