Rio2 Limited Fundamental Analysis
Rio2 Limited (RIO.TO) shows weak financial fundamentals with a PE ratio of 116.24, profit margin of 13.11%, and ROE of 4.55%. The company generates $0.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RIO.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakRIO.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateRIO.TO shows balanced valuation metrics.
Growth Score
ModerateRIO.TO shows steady but slowing expansion.
Financial Health Score
ModerateRIO.TO shows balanced financial health with some risks.
Profitability Score
WeakRIO.TO struggles to sustain strong margins.
Key Financial Metrics
Is RIO.TO Expensive or Cheap?
P/E Ratio
RIO.TO trades at 116.24 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RIO.TO's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Rio2 Limited at 2.97 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 52.45 times EBITDA. This signals the market has high growth expectations.
How Well Does RIO.TO Make Money?
Net Profit Margin
For every $100 in sales, Rio2 Limited keeps $13.11 as profit after all expenses.
Operating Margin
Core operations generate 6.13 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.55 in profit for every $100 of shareholder equity.
ROA
Rio2 Limited generates $0.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rio2 Limited generates strong operating cash flow of $92.73M, reflecting robust business health.
Free Cash Flow
Rio2 Limited generates weak or negative free cash flow of $-12.81M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.03 in free cash annually.
FCF Yield
RIO.TO converts -1.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
116.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
13.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.007
vs 25 benchmark
ROCE
Return on capital employed
0.004
vs 25 benchmark
How RIO.TO Stacks Against Its Sector Peers
| Metric | RIO.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 116.24 | 25.27 | Worse (Expensive) |
| ROE | 4.55% | 1030.00% | Weak |
| Net Margin | 13.11% | -16616.00% (disorted) | Strong |
| Debt/Equity | 0.25 | 0.50 | Strong (Low Leverage) |
| Current Ratio | 0.90 | 7.10 | Weak Liquidity |
| ROA | 0.70% | -5145.00% (disorted) | Weak |
RIO.TO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rio2 Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Commodity, Value
EPS CAGR
N/A
Industry Style: Cyclical, Commodity, Value
FCF CAGR
N/A
Industry Style: Cyclical, Commodity, Value