Rio Tinto Group
Rio Tinto Group Fundamental Analysis
Rio Tinto Group (RTNTF) shows moderate financial fundamentals with a PE ratio of 18.77, profit margin of 17.29%, and ROE of 16.71%. The company generates $58.6B in annual revenue with moderate year-over-year growth of 9.67%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RTNTF's fundamental strength across five key dimensions:
Efficiency Score
WeakRTNTF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRTNTF trades at attractive valuation levels.
Growth Score
ModerateRTNTF shows steady but slowing expansion.
Financial Health Score
ExcellentRTNTF maintains a strong and stable balance sheet.
Profitability Score
ExcellentRTNTF achieves industry-leading margins.
Key Financial Metrics
Is RTNTF Expensive or Cheap?
P/E Ratio
RTNTF trades at 18.77 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RTNTF's PEG of -11.83 indicates potential undervaluation.
Price to Book
The market values Rio Tinto Group at 3.04 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.18 times EBITDA. This is generally considered low.
How Well Does RTNTF Make Money?
Net Profit Margin
For every $100 in sales, Rio Tinto Group keeps $17.29 as profit after all expenses.
Operating Margin
Core operations generate 26.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.71 in profit for every $100 of shareholder equity.
ROA
Rio Tinto Group generates $7.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rio Tinto Group generates strong operating cash flow of $17.16B, reflecting robust business health.
Free Cash Flow
Rio Tinto Group produces free cash flow of $4.76B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.91 in free cash annually.
FCF Yield
RTNTF converts 2.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-11.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How RTNTF Stacks Against Its Sector Peers
| Metric | RTNTF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.77 | 27.41 | Better (Cheaper) |
| ROE | 16.71% | 859.00% | Weak |
| Net Margin | 17.29% | -120873.00% (disorted) | Strong |
| Debt/Equity | 0.40 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 1.44 | 4.80 | Neutral |
| ROA | 7.85% | -3590.00% (disorted) | Weak |
RTNTF outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rio Tinto Group's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
35.49%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
6.98%
Industry Style: Cyclical, Commodity, Value
GrowingFCF CAGR
13.26%
Industry Style: Cyclical, Commodity, Value
High Growth