Rio Tinto Limited (RIO) AI Stock Analysis

• Market Cap: AU$203.93B
• Dividend Yield: 3.98%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.61
• Revenue Growth: 0.38%
• EPS Growth: -3.57%
• Country: AU
• Employees: 60,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 4.41
• Shares Outstanding: 371,216,220
• 10 Day Avg. Volume: 1,400,844
• 30 Day Avg. Volume: 1,281,895
• PEG Ratio: 0.66
• Price to Book (P/B): 2.14
• Price to Sales (P/S): 2.20
• P/FCF Ratio: 19.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$132.59
• Price Target Upside: -8.25% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: AU$140.00 ▼(-3.13% Downside)

Rio Tinto Limited's overall stock score reflects its strong financial performance and positive technical indicators. The company benefits from a robust balance sheet and attractive dividend yield. However, recent revenue declines and reduced free cash flow are concerns that need addressing to sustain growth.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage indicates financial stability, providing the company with flexibility to invest in growth opportunities and withstand economic downturns.

Operational Efficiency

High EBIT and EBITDA margins reflect efficient operations, allowing Rio Tinto to maintain profitability and competitive advantage in the mining industry.

Cash Earnings Capacity

Strong cash earnings capacity ensures Rio Tinto can fund operations and investments internally, reducing reliance on external financing and enhancing long-term sustainability.

Negative Factors

Revenue Decline

A decline in revenue, even if slight, could indicate challenges in maintaining market share or demand, potentially impacting future growth if not addressed.

Decreased Free Cash Flow

A significant decrease in free cash flow limits Rio Tinto's ability to invest in new projects and return capital to shareholders, potentially impacting long-term growth.

Net Profit Margin Decline

A declining net profit margin suggests increased expenses or reduced revenue efficiency, which could erode profitability if the trend continues.

Rio Tinto Limited Business Overview & Revenue Model

Company Description

Rio Tinto Limited (RIO) is a global mining and metals company headquartered in London, United Kingdom. It operates in various sectors, primarily focusing on the extraction and production of minerals and metals, including aluminum, copper, diamonds, gold, and iron ore. Rio Tinto is known for its commitment to sustainable mining practices and innovation in the resources sector, with operations spanning around 35 countries worldwide.

How the Company Makes Money

Rio Tinto generates revenue primarily through the sale of its mined products, which include iron ore, aluminum, copper, diamonds, and various industrial minerals. The company’s key revenue streams are dominated by iron ore sales, which contribute a significant portion of its total earnings due to high global demand, particularly from countries like China. Additionally, Rio Tinto earns money from its aluminum segment, which includes bauxite mining and alumina refining, as well as from copper operations that serve various industrial applications. The company also engages in joint ventures and partnerships, such as its collaborations with other mining firms and local governments, which can enhance operational efficiencies and expand its market reach. Factors contributing to Rio Tinto’s earnings include global commodity prices, production volumes, and operational cost management.

Rio Tinto Limited Financial Statement Overview

Summary

Rio Tinto Limited shows strong financial performance with efficient operations and solid margins. The balance sheet is robust with low leverage and a strong equity base. However, concerns exist over recent revenue declines and reduced free cash flow, which could impact future growth.

Income Statement

Rio Tinto Limited has demonstrated solid financial performance. The gross profit margin stands at 56.4%, indicating efficient cost management. However, the net profit margin is at 21.5%, slightly lower than previous years, suggesting increased expenses or lower revenue efficiency. The company experienced a slight revenue decline of 0.71% compared to the previous year, which could be a concern if this trend continues. Nonetheless, the EBIT and EBITDA margins are strong at 29.2% and 43.2%, respectively, reflecting good operational efficiency.

Balance Sheet

The balance sheet of Rio Tinto Limited is robust, with a debt-to-equity ratio of 0.25, indicating a conservative approach to leverage. The equity ratio is healthy at 53.8%, which suggests financial stability and a strong capital base. Return on equity is 20.9%, showing effective use of equity to generate profits. Despite these strengths, the total equity has shown minimal growth, which may limit future financial flexibility.

Cash Flow

The cash flow situation is stable, with a free cash flow to net income ratio of 0.52, indicating adequate cash generation relative to profits. However, the free cash flow has decreased by 25.9% compared to the previous year, which could impact future investment capacity if not improved. The operating cash flow to net income ratio is robust at 1.35, reflecting strong cash earnings capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	53.73B	53.66B	54.04B	55.55B	63.49B	44.61B
Gross Profit	29.00B	30.28B	17.30B	21.30B	31.34B	18.70B
EBITDA	22.31B	23.16B	21.08B	22.71B	33.93B	21.51B
Net Income	10.27B	11.55B	10.06B	12.42B	21.09B	9.77B
Balance Sheet
Total Assets	120.81B	102.79B	103.55B	96.74B	102.90B	97.39B
Cash, Cash Equivalents and Short-Term Investments	9.33B	7.20B	9.78B	8.91B	15.29B	12.76B
Total Debt	23.64B	13.86B	14.35B	12.27B	13.53B	13.83B
Total Liabilities	58.84B	44.82B	47.21B	44.47B	46.31B	45.49B
Stockholders Equity	58.20B	55.25B	54.59B	50.63B	51.43B	47.05B
Cash Flow
Free Cash Flow	5.13B	5.98B	8.07B	9.38B	17.96B	9.69B
Operating Cash Flow	15.47B	15.60B	15.16B	16.13B	25.34B	15.88B
Investing Cash Flow	-17.27B	-9.59B	-6.96B	-6.71B	-7.16B	-6.56B
Financing Cash Flow	1.53B	-7.09B	-5.28B	-15.47B	-15.86B	-7.13B

Rio Tinto Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 144.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RIO, the sentiment is Positive. The current price of 144.52 is above the 20-day moving average (MA) of 138.02, above the 50-day MA of 133.71, and above the 200-day MA of 118.17, indicating a bullish trend. The MACD of 3.15 indicates Negative momentum. The RSI at 67.46 is Neutral, neither overbought nor oversold. The STOCH value of 89.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:RIO.

Rio Tinto Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIO	78 Outperform	AU$203.93B	15.02	18.11%	3.98%	0.38%	-3.57%
FMG	76 Outperform	$68.50B	13.09	17.06%	4.94%	-13.65%	-39.85%
BHP	68 Neutral	$228.85B	16.60	19.51%	3.79%	-6.74%	15.92%
S32	64 Neutral	AU$15.54B	39.21	3.64%	2.69%	6.53%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MIN	58 Neutral	AU$10.96B	-12.13	-26.55%	―	-15.27%	-817.26%
IGO	56 Neutral	AU$5.97B	-6.28	-35.65%	―	-37.23%	-32433.33%

Rio Tinto Limited Corporate Events

Rio Tinto Announces Vesting of Bonus Deferral Awards for Key Executives

Rio Tinto Limited announced the vesting of Bonus Deferral Awards (BDA) for its key management personnel, as part of its 2018 Equity Incentive Plan. The awards, which are delivered as deferred ordinary shares, saw a portion sold to cover taxes and deductions, with the remainder retained by the executives. This move reflects the company’s ongoing commitment to aligning management incentives with shareholder interests.

Rio Tinto Reports Initial Lithium Resource and Reserve Estimates

Rio Tinto has announced the initial reporting of Mineral Resources and Ore Reserves for seven lithium assets acquired from Arcadium Lithium. These assets include four lithium brines deposits in Argentina and three hard rock spodumene deposits in Canada and Australia. This announcement positions Rio Tinto to strengthen its presence in the lithium market, which is vital for the growing demand in electric vehicle batteries. The detailed reporting of these resources and reserves highlights the company’s strategic focus on expanding its lithium production capabilities, potentially impacting its market positioning and offering significant opportunities for stakeholders.

Rio Tinto Reports Initial Lithium Resources and Reserves

Rio Tinto has announced the initial reporting of Mineral Resources and Ore Reserves for seven lithium assets acquired through the purchase of Arcadium Lithium. These assets include four lithium brine deposits in Argentina and three hard rock spodumene deposits in Canada and Australia. This marks the first time Rio Tinto is reporting these resources in compliance with the JORC Code and ASX Listing Rules. The announcement highlights Rio Tinto’s strategic expansion into the lithium market, which is crucial for the growing demand in electric vehicle batteries and renewable energy storage. This move is expected to strengthen the company’s position in the lithium industry and provide significant opportunities for growth and development.

Rio Tinto Highlights Strategic Focus Amid Industry Challenges

Rio Tinto’s recent presentation at the Capital Markets Day highlighted the company’s strategic focus and the challenges it faces, including geopolitical impacts, climate change, and technological advancements. The company emphasized the importance of managing risks and uncertainties to maintain its industry position and meet stakeholder expectations.

Rio Tinto Unveils Strategic Plan for Enhanced Returns and Growth

Rio Tinto has announced a strategic plan to enhance its operations by becoming stronger, sharper, and simpler, aiming to deliver industry-leading returns. The company is focusing on operational excellence, project execution, and capital discipline to drive growth and improve productivity. Key initiatives include a 7% production growth expected in 2025, significant productivity benefits, and the opportunistic release of $5-10 billion from existing assets. The strategy also involves upgrading production guidance for copper and bauxite, while maintaining a strong balance sheet and a commitment to decarbonization. These efforts are designed to position Rio Tinto as the most valued metals and mining company, benefiting shareholders, employees, partners, and communities.

Rio Tinto Announces Strategic Board Restructuring

Rio Tinto Limited has announced several changes to its Board of Directors, marking the end of a transitional phase. Key changes include the stepping down of Simon Henry and Martina Merz, with Sharon Thorne taking over as Chair of the Audit & Risk Committee and Susan Lloyd-Hurwitz joining the Sustainability Committee. Ben Wyatt has been appointed as the Senior Independent Director with a focus on Board engagement in Australia. These changes reflect Rio Tinto’s ongoing efforts to enhance its governance and strategic focus on sustainability and innovation.

Rio Tinto Announces Share Vesting and Acquisitions by Key Management

Rio Tinto Limited announced the vesting and acquisition of shares by its key management personnel under the Global Employee Share Plan (myShare) and the UK Share Plan (UKSP). On 17 October 2025, several key management personnel received vested matching shares, with some sold to cover taxes, while others acquired new shares under the plans. These initiatives are part of Rio Tinto’s efforts to align employee interests with company performance, potentially enhancing stakeholder value and employee engagement.

Rio Tinto Reports Strong Q3 2025 Production with Upgraded Bauxite Guidance

Rio Tinto’s third quarter 2025 production results highlight strong performance across its portfolio, with record production in bauxite and significant progress in copper output at Oyu Tolgoi. The company has upgraded its bauxite production guidance and is on track to meet its 2025 targets, despite challenges in Pilbara iron ore shipments due to cyclone impacts. The company is focused on operational excellence and strategic growth projects, aiming to deliver further shareholder value.

Rio Tinto Issues Unquoted Share Rights for Employee Incentive

Rio Tinto Limited has announced the issuance of 40,903 unquoted share rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to incentivize its workforce, potentially impacting employee retention and motivation, and aligning their interests with those of the company, thereby strengthening its operational framework.

JPMorgan Chase & Co. Reduces Stake in Rio Tinto Limited

JPMorgan Chase & Co. and its affiliates have ceased to be substantial holders in Rio Tinto Limited as of October 3, 2025. This change in holdings involves various subsidiaries of JPMorgan, including JPMorgan Chase Bank, N.A., and J.P. Morgan Securities Australia Limited, among others, affecting a total of 168,426 ordinary shares. The adjustment in JPMorgan’s stake in Rio Tinto may impact the company’s shareholder composition but does not directly affect its operational activities.

Rio Tinto Announces $733 Million Investment to Extend West Angelas Iron Ore Mine

Rio Tinto, in collaboration with Mitsui and Nippon Steel, has announced a $733 million investment to extend the West Angelas iron ore mine in Western Australia’s Pilbara region. This project, part of the Robe River Joint Venture, has received all necessary government approvals and aims to maintain the hub’s annual production capacity of 35 million tonnes. The development will include new deposits, infrastructure, and haul roads, with first ore expected by 2027. The initiative is set to create approximately 600 construction jobs and sustain 950 full-time roles, reinforcing Rio Tinto’s commitment to the Pilbara region and its partnerships with local Indigenous communities.

Rio Tinto Executives Increase Shareholdings via Dividend Reinvestment

Rio Tinto has announced that its key management personnel have acquired shares in the company through its dividend reinvestment plan, which allows shareholders to purchase additional shares using their cash dividends. This move signifies confidence in the company’s future prospects and could positively impact shareholder value by increasing insider ownership.

Rio Tinto Director Increases Stake Through Dividend Reinvestment

Rio Tinto Limited announced a change in the director’s interest notice, detailing the acquisition of 32 ordinary shares by Simon Trott under the company’s Global Employee Share Plan. This acquisition, made through dividend reinvestment provisions, reflects the company’s ongoing commitment to employee investment and could potentially influence stakeholder perceptions of executive alignment with shareholder interests.

Rio Tinto Management Increases Shareholdings Through Dividend Reinvestment

Rio Tinto Limited announced that key management personnel and persons discharging managerial responsibility have acquired additional shares in the company through dividend reinvestment plans. These acquisitions, made under various share plans such as the Share Plan Account, UK Share Plan, and Global Employee Share Plan, demonstrate the company’s commitment to aligning management interests with shareholder value. The reinvestment of dividends into company shares suggests confidence in the company’s future performance and may positively impact stakeholder perception.

Rio Tinto Updates Dividend Reinvestment Details for 2025

Rio Tinto Limited has updated its previous announcement regarding the dividend reinvestment share price and share allocation date for its ordinary fully paid securities. This update pertains to the dividend distribution for the six-month period ending on June 30, 2025, with the record date set for August 15, 2025, and payment date as previously announced.

Rio Tinto Announces Currency Exchange Rates for 2025 Interim Dividend

Rio Tinto has announced the currency exchange rates for its 2025 interim dividend, initially declared at 148.00 US cents per share. Shareholders who opted to receive dividends in pounds sterling, Australian dollars, or New Zealand dollars will have their dividends converted at rates set on 16 September 2025. The interim dividend is scheduled for payment on 25 September 2025, impacting shareholders of both Rio Tinto Limited and Rio Tinto plc, as well as ADR holders.

Rio Tinto Updates Dividend Distribution Details

Rio Tinto Limited has updated its previous announcement regarding the notification of dividend distribution. The update includes details about the currency exchange rates and amounts related to the dividend for the period ending June 30, 2025. This update is significant for stakeholders as it provides clarity on the financial aspects of the dividend distribution, which is crucial for investment decisions and financial planning.

Rio Tinto Director Increases Shareholding

Rio Tinto Limited announced a change in the director’s interest as Ben Wyatt acquired 200 additional ordinary shares, increasing his total holdings to 900 shares. This acquisition, conducted through an on-market trade, reflects a personal investment decision by the director and does not indicate any strategic shift or operational impact for the company.