0.29%
3.22%
-2.81%
-3.00%
-11.41%
-5.98%
19.37%
AI Spotlight on RIO
Company Description
Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide.The company offers aluminum, copper, diamonds, gold, borates, titanium dioxide, salt, iron ore, and lithium.It also owns and operates open pit and underground mines, mills, refineries, smelters, power stations, and research and service facilities.
Rio Tinto Group was founded in 1873 and is headquartered in London, the United Kingdom.
Market Data
| Last Price | 4875 |
| Change Percentage | 0.29% |
| Open | 4885 |
| Previous Close | 4861 |
| Market Cap ( Millions) | 82490 |
| Volume | 419059 |
| Year High | 5854 |
| Year Low | 4509 |
| M A 50 | 4874.59 |
| M A 200 | 5055.85 |
Financial Ratios
| FCF Yield | 6.97% |
| Dividend Yield | 6.92% |
| ROE | 19.57% |
| Debt / Equity | 25.28% |
| Net Debt / EBIDTA | 23.98% |
| Price To Book | 1.79 |
| Price Earnings Ratio | 9.19 |
| Price To FCF | 14.35 |
| Price To sales | 1.89 |
| EV / EBITDA | 5.45 |
News
- 09:48 - Rio Tinto Group (RIO) Faces 6% Stock Decline Amid Copper Tariff Concerns and Slower AI Chip Demand
- Jan -30 - Rio Tinto and Hydro collaborate on carbon capture in aluminium electrolysis process
- Jan -30 - Rio Tinto and Hydro partner on carbon capture technologies for aluminium smelters
- Jan -29 - Vale Q4 Iron Ore Output Declines Y/Y, Copper & Nickel Rise
- Jan -28 - Where the UK’s ISA millionaires are investing
- Jan -25 - Critical Minerals Boom Drives Mining Sector Consolidation
- Jan -24 - Is Rio Tinto Group (RIO) the Best Falling Stock to Invest in Right Now?
- Jan -24 - Monadelphous wins A$150m contracts from Rio Tinto
- Jan -24 - Rio Says Storm Damage at Port to Impact Iron Ore Shipments
- Jan -23 - Rio Tinto provides Iron Ore update following Tropical Cyclone Sean
- Jan -21 - Trump's EV rollback not expected to suppress appetite for critical minerals
- Jan -21 - BHP Posts 1H25 Production: Iron Ore Inches Up 1% Y/Y, Copper Rises 10%
- Jan -21 - Glencore expresses openness to value-accretive M&A deals
- Jan -20 - Glencore open to deals as investors brace for more mining M&A
- Jan -20 - Rio Tinto to establish lithium unit post Arcadium acquisition
- Jan -19 - Australia Plans $1.2 Billion Credit for Green Aluminum Industry
- Jan -19 - Rio Tinto welcomes Australian Government support for low-carbon aluminium
- Jan -17 - Rio Tinto and Glencore Spoke for Months About Deal That Was Once Taboo
- Jan -17 - What next for Glencore after failed Rio Tinto merger talks?
- Jan -17 - Rio Tinto-Glencore, Bumble CEO, airline downgrades: Top Stocks
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Iron Ore
Expected Growth : 3.5 %
What the company do ?
Iron ore from Rio Tinto Group is a high-grade ore used to produce steel, mined from Pilbara region in Western Australia, known for its low impurity levels.
Why we expect these perspectives ?
Rio Tinto's 3.5% iron ore growth driven by increasing demand from China's infrastructure development, urbanization, and steel production. Additionally, supply constraints in Brazil and Vale's production issues contribute to higher prices, supporting Rio Tinto's growth. Furthermore, the company's productivity improvements and cost-cutting initiatives enhance its competitiveness.
Segment n°2 -> Aluminium
Expected Growth : 2.8 %
What the company do ?
Rio Tinto's Aluminium segment produces bauxite, alumina, and aluminium, with operations in Australia, Canada, and France, serving the aerospace, automotive, and construction industries.
Why we expect these perspectives ?
Rio Tinto's 2.8% aluminium growth driven by increasing demand from electric vehicle production, renewable energy infrastructure, and construction activities. Strong supply chain management, cost-cutting initiatives, and favourable market conditions also contribute to growth. Additionally, the company's focus on high-margin, low-carbon aluminium products supports premium pricing and profitability.
Segment n°3 -> Copper
Expected Growth : 3.2 %
What the company do ?
Copper from Rio Tinto Group is a high-quality copper product extracted from Rio Tinto's mining operations, used in various industrial and electrical applications.
Why we expect these perspectives ?
Rio Tinto's 3.2% copper growth driven by increasing demand from electric vehicle production, renewable energy infrastructure, and construction activities. Strong supply chain management, operational efficiency, and strategic investments in growth projects also contribute to the growth. Additionally, copper's role in reducing carbon emissions and its limited substitutability support long-term demand.
Segment n°4 -> Minerals
Expected Growth : 2.5 %
What the company do ?
Rio Tinto Group's Minerals segment includes iron ore, copper, aluminum, and other minerals, providing essential materials for construction, manufacturing, and technology industries.
Why we expect these perspectives ?
Rio Tinto's 2.5% growth in minerals is driven by increasing demand for copper and iron ore from China's infrastructure development, electrification of transportation, and renewable energy projects. Additionally, the company's cost-cutting initiatives, productivity improvements, and strategic investments in growth projects contribute to its growth momentum.
Segment n°5 -> Reconciling Items
Expected Growth : 0.5 %
What the company do ?
Reconciling Items from Rio Tinto Group refers to the differences between the company's financial records and the actual financial position, requiring adjustments to reconcile the two.
Why we expect these perspectives ?
Rio Tinto's 0.5% growth is driven by increased iron ore prices, steady copper production, and cost savings from operational efficiencies. Additionally, the company's focus on productivity and capital discipline has enabled it to maintain a strong balance sheet, supporting investments in growth projects and dividend payments to shareholders.
Segment n°6 -> Inter-segment Transactions
Expected Growth : 0.2 %
What the company do ?
Inter-segment transactions in Rio Tinto Group refer to the exchange of goods or services between different business segments within the company, such as Iron Ore, Copper, and Aluminium.
Why we expect these perspectives ?
Rio Tinto's 0.2% inter-segment transaction growth is driven by increased iron ore shipments from Pilbara, Western Australia, and higher copper sales from Escondida, Chile. Additionally, the company's cost-saving initiatives and productivity improvements have contributed to the growth, offsetting the impact of lower aluminum and coal prices.
Segment n°7 -> Other
Expected Growth : 1.8 %
What the company do ?
Other from Rio Tinto Group refers to the company's smaller businesses, including aluminum, copper, and diamonds, which are not part of its core iron ore business.
Why we expect these perspectives ?
Rio Tinto's 1.8% growth in 'Other' segment is driven by increased demand for aluminum and copper from the renewable energy and electric vehicle sectors, coupled with the company's efforts to reduce costs and improve operational efficiency. Additionally, the segment benefits from the company's diversified portfolio of industrial minerals and metals.
Rio Tinto Group Products
| Product Range | What is it ? |
|---|---|
| Iron Ore | Rio Tinto is one of the largest iron ore producers in the world, with operations in Australia, Canada, and Guinea. Iron ore is a key ingredient in the production of steel. |
| Copper | Rio Tinto is a significant copper producer, with operations in Chile, Peru, and Mongolia. Copper is a highly conductive metal used in a wide range of applications. |
| Aluminum | Rio Tinto is a major aluminum producer, with operations in Canada, Australia, and Iceland. Aluminum is a lightweight, corrosion-resistant metal used in a variety of applications. |
| Gold | Rio Tinto produces gold as a by-product of its copper mining operations in Chile and Peru. Gold is a highly valued precious metal used in jewelry, coins, and electronics. |
| Molybdenum | Rio Tinto produces molybdenum as a by-product of its copper mining operations in Chile and Peru. Molybdenum is a hard, silver-white metal used in steel production. |
| Uranium | Rio Tinto produces uranium as a by-product of its gold mining operations in Australia. Uranium is a radioactive metal used as fuel in nuclear power plants. |
| Diamonds | Rio Tinto is a significant diamond producer, with operations in Australia and Canada. Diamonds are highly valued gemstones used in jewelry. |
| Industrial Minerals | Rio Tinto produces a range of industrial minerals, including borates, talc, and salt. These minerals are used in a variety of applications, including ceramics, glass, and paper production. |
Rio Tinto Group's Porter Forces
Threat Of Substitutes
Rio Tinto Group operates in the mining industry, where substitutes are limited. However, the company faces some threat from recycling and substitution of certain metals.
Bargaining Power Of Customers
Rio Tinto Group's customers are largely industrial companies and manufacturers, which have limited bargaining power due to their dependence on the company's products.
Bargaining Power Of Suppliers
Rio Tinto Group relies on suppliers for equipment, services, and labor, but the company's large scale and diversified operations mitigate the bargaining power of suppliers.
Threat Of New Entrants
The mining industry has high barriers to entry, including significant capital requirements, regulatory hurdles, and environmental concerns, making it difficult for new entrants to join the market.
Intensity Of Rivalry
The mining industry is highly competitive, with several large players competing for market share, resources, and talent, leading to a high intensity of rivalry.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 20.82% |
| Debt Cost | 7.10% |
| Equity Weight | 79.18% |
| Equity Cost | 7.10% |
| WACC | 7.10% |
| Leverage | 26.29% |
Rio Tinto Group : Quality Control
Rio Tinto Group passed 6 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| KMR.L | Kenmare Resources plc, together with its subsidiaries, produces and sells mineral sand products in China, Europe, the United States, and internationally. It operates the Moma Titanium Minerals Mine located on … |
| GLEN.L | Glencore plc produces, refines, processes, stores, transports, and markets metals and minerals, and energy products in the Americas, Europe, Asia, Africa, and Oceania. It operates through two segments, Marketing Activities … |
| AAL.L | Anglo American plc operates as a mining company worldwide. The company explores for rough and polished diamonds, copper, platinum group metals, metallurgical and thermal coal, and iron ore; and nickel, … |
| BHP.L | BHP Group Limited operates as a resources company in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America, and internationally. The company operates through … |
| HEI.DE | HeidelbergCement AG, together with its subsidiaries, produces and distributes cement, aggregates, ready-mixed concrete, and asphalt worldwide. It provides cement products, natural stone aggregates, such as sand and gravel; crushed aggregates … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Kenmare Resources
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BHP
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Rio Tinto
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4
HeidelbergCement
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5
Glencore
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6
