Rio Tinto (RIO) AI Stock Analysis

• Market Cap: $120.60B
• Dividend Yield: 5.28%
• Average Volume (3M): 3.53M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.66
• Revenue Growth: -0.44%
• EPS Growth: -4.20%
• Country: US
• Employees: 60,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 2.96
• Shares Outstanding: 1,254,156,300
• 10 Day Avg. Volume: 3,620,986
• 30 Day Avg. Volume: 3,533,528
• PEG Ratio: 0.56
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 1.78
• P/FCF Ratio: 15.97
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 2.11
• Enterprise Value/Gross Profit: 7.98
• Enterprise Value/Ebitda: 6.14
• 1Y Price Target: $88.33
• Price Target Upside: 25.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 80 Outperform
• Price Target: $77.00 ▲(9.16% Upside)

Rio Tinto's stock score is driven by strong technical indicators and a solid valuation, supported by a robust dividend yield. Financial performance is stable, with strong profitability and a solid balance sheet, though revenue growth and cash flow conversion present challenges. The absence of earnings call and corporate events data did not impact the score.

Rio Tinto Business Overview & Revenue Model

Company Description

Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. The company operates through Iron Ore, Aluminium, Copper, and Minerals Segments. The Iron Ore segment engages in the iron ore mining, and salt and gypsum production in Western Australia. The Aluminum segment is involved in bauxite mining; alumina refining; and aluminium smelting. The Copper segment engages in mining and refining of copper, gold, silver, molybdenum, and other by-products and exploration activities. The Minerals segment is involved in mining and processing of borates, titanium dioxide feedstock, and iron concentrate and pellets; diamond mining, sorting, and marketing; and development projects for battery materials, such as lithium. It also owns and operates open pit and underground mines; and refineries, smelters, processing plants and power, and shipping facilities. Rio Tinto Group was founded in 1873 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Rio Tinto generates revenue primarily through the extraction and sale of minerals and metals. Its key revenue streams include the production and sale of iron ore, which is a significant contributor to its overall earnings, along with aluminum, copper, and diamonds. The company sells its products to various sectors, including construction, automotive, and electronics. Additionally, Rio Tinto benefits from long-term supply contracts and strategic partnerships with major customers in these industries. Market prices for commodities heavily influence its revenue, and the company employs rigorous cost management and operational efficiency to enhance profitability. Factors such as global demand for minerals, changes in commodity prices, and its ability to maintain a sustainable supply chain also significantly impact its financial performance.

Rio Tinto Financial Statement Overview

Summary

Rio Tinto's financials are stable with strong profitability margins and an excellent balance sheet. Challenges exist in revenue growth and cash flow conversion, but operational efficiency and capital structure are commendable.

Income Statement

Rio Tinto has shown a mixed performance in its recent income statements. The Gross Profit Margin improved in 2024, reaching 56.43% from 32.01% in 2023, indicating better cost management. However, the Net Profit Margin saw a slight decline from 18.61% in 2023 to 21.53% in 2024. The Revenue Growth Rate was negative at -0.71% from 2023 to 2024, showing a slight contraction in sales. Despite these challenges, EBIT and EBITDA margins remain strong at 29.17% and 43.16% respectively, showcasing operational efficiency.

Balance Sheet

Rio Tinto maintains a solid balance sheet with a healthy Equity Ratio of 53.73% in 2024, reflecting strong capitalization. The Debt-to-Equity Ratio improved to 0.25 from 0.26, indicating effective management of liabilities. Return on Equity is robust at 20.91%, a slight increase from 18.43% in 2023, highlighting the company's ability to generate returns for its shareholders.

Cash Flow

The cash flow position of Rio Tinto shows some areas of concern. Free Cash Flow decreased by 25.95% from 2023 to 2024, but operating cash flow remains stable. The Operating Cash Flow to Net Income Ratio is strong at 1.35, indicating good cash generation relative to net profits. However, the Free Cash Flow to Net Income Ratio fell to 0.52, suggesting reduced cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	53.96B	53.66B	54.04B	55.55B	63.49B	44.61B
Gross Profit	14.24B	30.28B	17.30B	34.27B	44.93B	29.13B
EBITDA	18.50B	19.06B	20.38B	24.76B	35.08B	19.66B
Net Income	10.25B	11.55B	10.06B	12.39B	21.11B	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	10.79B	8.94B	15.35B	13.23B
Total Debt	23.64B	13.86B	14.35B	12.27B	13.53B	14.02B
Total Liabilities	58.84B	44.82B	47.21B	44.47B	46.31B	45.49B
Stockholders Equity	58.20B	55.25B	54.59B	50.17B	51.43B	47.05B
Cash Flow
Free Cash Flow	5.20B	5.98B	8.07B	9.38B	17.96B	9.69B
Operating Cash Flow	15.58B	15.60B	15.16B	16.13B	25.34B	15.88B
Investing Cash Flow	-16.58B	-9.59B	-6.96B	-6.71B	-7.16B	-6.56B
Financing Cash Flow	-207.45M	-7.09B	-5.28B	-15.47B	-15.86B	-7.13B

Rio Tinto Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.54
• 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 RIO, the sentiment is Positive. The current price of 70.54 is above the 20-day moving average (MA) of 67.72, above the 50-day MA of 64.65, and above the 200-day MA of 60.02, indicating a bullish trend. The MACD of 1.61 indicates Negative momentum. The RSI at 67.18 is Neutral, neither overbought nor oversold. The STOCH value of 88.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RIO.

Rio Tinto Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIO	80 Outperform	$120.60B	11.10	18.18%	5.28%	-0.44%	-4.20%
BHP	77 Outperform	$143.46B	15.67	19.51%	3.90%	-7.86%	14.17%
MTRN	76 Outperform	$2.79B	175.58	1.79%	0.42%	5.55%	-79.38%
VALE	74 Outperform	$48.89B	9.48	13.49%	7.03%	-12.89%	-46.86%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MP	56 Neutral	$12.54B	―	-9.57%	―	39.42%	-172.40%
NEXA	55 Neutral	$750.93M	―	-9.63%	1.78%	8.66%	66.06%

Rio Tinto Corporate Events

Rio Tinto’s August Announcements: Investments and Safety Concerns

In August 2025, Rio Tinto made several significant announcements impacting its operations and market positioning. On August 5, the company released a new disclosure on tailings facilities aligned with GISTM requirements, highlighting its commitment to safety and environmental standards. On August 7, Rio Tinto approved a US$180 million investment in the Norman Creek project, securing the long-term future of its Amrun bauxite operations in Queensland, Australia. However, a fatal incident at the Simandou project was reported on August 23, raising concerns about operational safety. These developments reflect Rio Tinto’s ongoing efforts to enhance its operational capabilities and address stakeholder concerns.