Rio Tinto Group (RIO) is a leading other industrial metals & mining business based in the UK. Rio Tinto Group is listed on the London Stock Exchange (LSE) and employs 46,000 staff. All prices are listed in pence sterling.
|52-week range||2882.6583p - 6378p|
|50-day moving average||5755.9414p|
|200-day moving average||4914.0913p|
|Wall St. target price||53.7p|
|Dividend yield||2.97p (5.06%)|
|Earnings per share (TTM)||440.7p|
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Valuing Rio Tinto Group stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Rio Tinto Group's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Rio Tinto Group's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 13x. In other words, Rio Tinto Group shares trade at around 13x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
Rio Tinto Group's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping £17.9 billion.
The EBITDA is a measure of a Rio Tinto Group's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||£41.8 billion|
|Operating margin TTM||30.08%|
|Gross profit TTM||£16.2 billion|
|Return on assets TTM||9.18%|
|Return on equity TTM||17.04%|
|Market capitalisation||£73.3 billion|
TTM: trailing 12 months
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Rio Tinto Group.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 32.79
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Rio Tinto Group's overall score of 32.79 (as at 01/01/2019) is pretty weak – landing it in it in the 67th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Rio Tinto Group is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Environmental score: 13.49/100
Rio Tinto Group's environmental score of 13.49 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that Rio Tinto Group is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 13.38/100
Rio Tinto Group's social score of 13.38 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that Rio Tinto Group is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 10.92/100
Rio Tinto Group's governance score puts it squarely in the 5th percentile of companies rated in the same sector. That could suggest that Rio Tinto Group is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 4/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, Rio Tinto Group scored a 4 out of 5 for controversy – the second-lowest score possible, reflecting that Rio Tinto Group has a damaged public profile.
|Total ESG score||32.79|
|Total ESG percentile||67.48|
|Environmental score percentile||5|
|Social score percentile||5|
|Governance score percentile||5|
|Level of controversy||4|
Dividend payout ratio: 85.72% of net profits
Recently Rio Tinto Group has paid out, on average, around 85.72% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 5.06% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Rio Tinto Group shareholders could enjoy a 5.06% return on their shares, in the form of dividend payments. In Rio Tinto Group's case, that would currently equate to about 2.97p per share.
Rio Tinto Group's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
The latest dividend was paid out to all shareholders who bought their shares by 6 August 2020 (the "ex-dividend date").
Rio Tinto Group's shares were split on a 2:1 basis on 23 October 1987. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Rio Tinto Group shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Rio Tinto Group shares which in turn could have impacted Rio Tinto Group's share price.
Over the last 12 months, Rio Tinto Group's shares have ranged in value from as little as 2882.6583p up to 6378p. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while Rio Tinto Group's is 0.6359. This would suggest that Rio Tinto Group's shares are less volatile than average (for this exchange).
Rio Tinto Group engages in finding, mining, and processing mineral resources worldwide. The company offers aluminum, silver, molybdenum, copper, diamonds, gold, borates, titanium dioxide, salt, iron ore, and uranium. It is also involved in the alumina production; primary aluminum smelting; bauxite mining; alumina refining; and ilmenite, rutile, and zircon mining, as well as provision of gypsum. Rio Tinto Group was founded in 1873 and is headquartered in London, the United Kingdom.
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