Is Rio Tinto Stock a Good Investment?
Rio Tinto Investment Advice | RIO |
- Examine Rio Tinto's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Rio Tinto's leadership team and their track record. Good management can help Rio Tinto navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Diversified Metals & Mining space and any emerging trends that could impact Rio Tinto's business and its evolving consumer preferences.
- Compare Rio Tinto's performance and market position to its competitors. Analyze how Rio Tinto is positioned in terms of product offerings, innovation, and market share.
- Check if Rio Tinto pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Rio Tinto's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Rio Tinto ADR stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Rio Tinto ADR is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Rio Tinto Stock
Researching Rio Tinto's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The company has price-to-book ratio of 1.83. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Rio Tinto ADR recorded earning per share (EPS) of 6.58. The entity last dividend was issued on the 16th of August 2024. The firm had 4:1 split on the 30th of April 2010.
To determine if Rio Tinto is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Rio Tinto's research are outlined below:
| On 26th of September 2024 Rio Tinto paid $ 1.77 per share dividend to its current shareholders | |
| Latest headline from fool.com.au: Down 15 percent this year, wheres the next stop for Rio Tinto shares |
Rio Tinto Quarterly Long Term Debt |
|
Rio Tinto uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Rio Tinto ADR. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Rio Tinto's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 28th of February 2024 Upcoming Quarterly Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 28th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Rio Tinto's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Rio Tinto's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2004-02-02 | 2003-12-31 | 0.57 | 0.63 | 0.06 | 10 | ||
2003-07-31 | 2003-06-30 | 0.58 | 0.47 | -0.11 | 18 | ||
2007-02-01 | 2006-12-31 | 3.12 | 2.75 | -0.37 | 11 | ||
2017-08-02 | 2017-06-30 | 2.41 | 1.83 | -0.58 | 24 | ||
2019-10-16 | 2019-09-30 | 2.73 | 1.1853 | -1.5447 | 56 | ||
2022-02-23 | 2021-12-31 | 3.91 | 5.69 | 1.78 | 45 |
Know Rio Tinto's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Rio Tinto is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Rio Tinto ADR backward and forwards among themselves. Rio Tinto's institutional investor refers to the entity that pools money to purchase Rio Tinto's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Harding Loevner L.p. | 2024-06-30 | 2.2 M | Ubs Group Ag | 2024-06-30 | 2 M | Arrowstreet Capital Limited Partnership | 2024-06-30 | 1.7 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 1.5 M | Jpmorgan Chase & Co | 2024-06-30 | 1.4 M | Fmr Inc | 2024-09-30 | 1.4 M | Earnest Partners Llc | 2024-06-30 | 1.4 M | Northern Trust Corp | 2024-09-30 | 1.3 M | Blackrock Inc | 2024-06-30 | 1.3 M | Wellington Management Company Llp | 2024-06-30 | 22.2 M | Fisher Asset Management, Llc | 2024-09-30 | 17.5 M |
Rio Tinto's market capitalization trends
The company currently falls under 'Mega-Cap' category with a total capitalization of 100.76 B.Market Cap |
|
Rio Tinto's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.10 | 0.07 | |
| Return On Capital Employed | 0.16 | 0.17 | |
| Return On Assets | 0.10 | 0.07 | |
| Return On Equity | 0.18 | 0.14 |
Determining Rio Tinto's profitability involves analyzing its financial statements and using various financial metrics to determine if Rio Tinto is a good buy. For example, gross profit margin measures Rio Tinto's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Rio Tinto's profitability and make more informed investment decisions.
Rio Tinto's Earnings Breakdown by Geography
Evaluate Rio Tinto's management efficiency
Rio Tinto ADR has Return on Asset of 0.0923 % which means that on every $100 spent on assets, it made $0.0923 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1972 %, implying that it generated $0.1972 on every 100 dollars invested. Rio Tinto's management efficiency ratios could be used to measure how well Rio Tinto manages its routine affairs as well as how well it operates its assets and liabilities. As of the 21st of November 2024, Return On Capital Employed is likely to grow to 0.17, while Return On Tangible Assets are likely to drop 0.07. At this time, Rio Tinto's Non Currrent Assets Other are very stable compared to the past year. As of the 21st of November 2024, Other Current Assets is likely to grow to about 3.2 B, while Total Assets are likely to drop about 59.2 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 34.75 | 36.49 | |
| Tangible Book Value Per Share | 32.77 | 34.41 | |
| Enterprise Value Over EBITDA | 6.15 | 5.85 | |
| Price Book Value Ratio | 2.21 | 2.10 | |
| Enterprise Value Multiple | 6.15 | 5.85 | |
| Price Fair Value | 2.21 | 2.10 | |
| Enterprise Value | 112.9 B | 69.4 B |
The operational strategies employed by Rio Tinto management play a crucial role in its market positioning. Assessing these strategies alongside financial data helps us evaluate the stock's investment potential.
Dividend Yield 0.0697 | Forward Dividend Yield 0.0697 | Forward Dividend Rate 4.35 | Beta 0.617 |
Basic technical analysis of Rio Stock
As of the 21st of November, Rio Tinto holds the Semi Deviation of 1.73, coefficient of variation of 7129.0, and Risk Adjusted Performance of 0.0162. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Rio Tinto, as well as the relationship between them.Rio Tinto's Outstanding Corporate Bonds
Rio Tinto issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Rio Tinto ADR uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Rio bonds can be classified according to their maturity, which is the date when Rio Tinto ADR has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| RIO TINTO FIN Corp BondUS767201AL06 | View | |
| RIOLN 275 02 NOV 51 Corp BondUS767201AT32 | View | |
| RIO TINTO FIN Corp BondUS767201AD89 | View | |
| RIO TINTO FIN Corp BondUS76720AAD81 | View | |
| RIO TINTO FIN Corp BondUS76720AAG13 | View | |
| RIOLN 5 09 MAR 33 Corp BondUS76720AAN63 | View |
Understand Rio Tinto's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Rio Tinto's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0162 | |||
| Market Risk Adjusted Performance | 0.0341 | |||
| Mean Deviation | 1.22 | |||
| Semi Deviation | 1.73 | |||
| Downside Deviation | 1.77 | |||
| Coefficient Of Variation | 7129.0 | |||
| Standard Deviation | 1.73 | |||
| Variance | 2.99 | |||
| Information Ratio | (0.04) | |||
| Jensen Alpha | (0.04) | |||
| Total Risk Alpha | (0.18) | |||
| Sortino Ratio | (0.04) | |||
| Treynor Ratio | 0.0241 | |||
| Maximum Drawdown | 9.06 | |||
| Value At Risk | (2.84) | |||
| Potential Upside | 3.28 | |||
| Downside Variance | 3.12 | |||
| Semi Variance | 3.0 | |||
| Expected Short fall | (1.28) | |||
| Skewness | (0.15) | |||
| Kurtosis | 1.66 |
| Risk Adjusted Performance | 0.0162 | |||
| Market Risk Adjusted Performance | 0.0341 | |||
| Mean Deviation | 1.22 | |||
| Semi Deviation | 1.73 | |||
| Downside Deviation | 1.77 | |||
| Coefficient Of Variation | 7129.0 | |||
| Standard Deviation | 1.73 | |||
| Variance | 2.99 | |||
| Information Ratio | (0.04) | |||
| Jensen Alpha | (0.04) | |||
| Total Risk Alpha | (0.18) | |||
| Sortino Ratio | (0.04) | |||
| Treynor Ratio | 0.0241 | |||
| Maximum Drawdown | 9.06 | |||
| Value At Risk | (2.84) | |||
| Potential Upside | 3.28 | |||
| Downside Variance | 3.12 | |||
| Semi Variance | 3.0 | |||
| Expected Short fall | (1.28) | |||
| Skewness | (0.15) | |||
| Kurtosis | 1.66 |
Consider Rio Tinto's intraday indicators
Rio Tinto intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Rio Tinto stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Rio Tinto Corporate Filings
6K | 1st of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
| 9th of October 2024 Other Reports | ViewVerify | |
| 6th of September 2024 Other Reports | ViewVerify |
Rio Stock media impact
Far too much social signal, news, headlines, and media speculation about Rio Tinto that are available to investors today. That information is available publicly through Rio media outlets and privately through word of mouth or via Rio internal channels. However, regardless of the origin, that massive amount of Rio data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Rio Tinto news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Rio Tinto relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Rio Tinto's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Rio Tinto alpha.
Rio Tinto Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Rio Tinto can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Rio Tinto ADR Historical Investor Sentiment
Investor biases related to Rio Tinto's public news can be used to forecast risks associated with an investment in Rio. The trend in average sentiment can be used to explain how an investor holding Rio can time the market purely based on public headlines and social activities around Rio Tinto ADR. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Rio Tinto's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Rio Tinto and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Rio Tinto news discussions. The higher the estimate score, the more favorable the investor's outlook on Rio Tinto.
Rio Tinto Corporate Directors
| Simon McKeon | Non-Executive Independent Director | Profile | |
| Sam Laidlaw | Senior Independent Non-Executive Director | Profile | |
| David Constable | Independent Non-Executive Director | Profile | |
| Michael LEstrange | Independent Non-Executive Director | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Rio Tinto ADR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
Is Diversified Metals & Mining space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Rio Tinto. If investors know Rio will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Rio Tinto listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.133 | Dividend Share 4.349 | Earnings Share 6.58 | Revenue Per Share 33.396 | Quarterly Revenue Growth 0.005 |
The market value of Rio Tinto ADR is measured differently than its book value, which is the value of Rio that is recorded on the company's balance sheet. Investors also form their own opinion of Rio Tinto's value that differs from its market value or its book value, called intrinsic value, which is Rio Tinto's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Rio Tinto's market value can be influenced by many factors that don't directly affect Rio Tinto's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Rio Tinto's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Rio Tinto is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rio Tinto's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.