RIORIO
US • —
$94.07
P/E
15.46
PEG
—
FCF Yield
—
Rev Growth YoY
+7.4% YoY
Gross Margin
—
Health Score
7/10
D/E Ratio
0.38
Confidence
MEDIUM
Business Snapshot
Rio Tinto is a global mining and metals company, primarily involved in the production of aluminum, copper, diamonds, gold, iron ore, and industrial minerals. It operates as a large-cap company, competing as a dominant player in the highly capital-intensive resources sector, particularly in iron ore. The company's defining characteristic is its position as one of the world's leading diversified mining firms, with significant scale and cost advantages. Revenue of N/A limits a precise scale assessment, but its market capitalisation is reflective of a major multi-national enterprise.
Financial Health
The net margin (TTM) of 17.3% is a solid indicator of profitability, though gross margin data is unavailable for trend comparison. The balance sheet is conservative, with a low debt-to-equity ratio of 0.38x and a current ratio of 1.44x, indicating a healthy liquidity position and manageable leverage...
Risk Assessment
- EARNINGS QUALITY — Earnings missed estimates in 0 of the last 4 quarters, and earnings growth declined 14.0% year-over-year, signalling weak earnings quality and execution risk.
- VALUATION DIVERGENCE — The EV/EBITDA of 41.28x is a severe anomaly relative to the P/E of 15.46x, suggesting the market is assigning a high price to operating earnings before depreciation and amortisation, a potential valuation warning.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- 52-WEEK POSITION — The current price of $94.07 cannot be evaluated relative to the 52-week range because the high and low values are not available....
The net margin (TTM) of 17.3% is a solid indicator of profitability, though gross margin data is unavailable for trend comparison. The balance sheet is conservative, with a low debt-to-equity ratio of 0.38x and a current ratio of 1.44x, indicating a healthy liquidity position and manageable leverage. Return on equity of 18.1% shows the company is generating strong returns on shareholder capital. Free cash flow is not reported, preventing an assessment of cash generation ability. Overall financial health appears sound, supported by low debt and solid profitability, which provides flexibility for dividends and strategic investments.
- EARNINGS QUALITY — Earnings missed estimates in 0 of the last 4 quarters, and earnings growth declined 14.0% year-over-year, signalling weak earnings quality and execution risk. - VALUATION DIVERGENCE — The EV/EBITDA of 41.28x is a severe anomaly relative to the P/E of 15.46x, suggesting the market is assigning a high price to operating earnings before depreciation and amortisation, a potential valuation warning. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - 52-WEEK POSITION — The current price of $94.07 cannot be evaluated relative to the 52-week range because the high and low values are not available.
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