# Rio Tinto plc (RIO.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Basic Materials / Metals & Mining. Price 7674p, market value 124.8 billionp.

## Valuation
- **P/E (trailing): 14.1×** (5-yr avg 747.2×, 3-yr avg 866.7×). Rio Tinto plc trades at 14.1× trailing earnings, well below its own five-year average of 747.2×: cheap by its own standards. The Basic Materials median in the September 2026 study was 19.0×. Forward P/E is 12.5×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 1.5×**. Each dollar of revenue is priced at 1.5×.
- **Price / book: 2.6×**. The shares trade at 2.6× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 4.1×**. Enterprise value is 4.1× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 6.3%** (5-yr avg 0.1%). Free cash flow equals 6.3% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 7.1%**. The inverse of the P/E: 7.1% of the price is earned each year.

## Profitability
- **Gross margin: 41.2%**. Rio Tinto plc keeps 41.2% of revenue after the direct cost of what it sells.
- **Operating margin: 27.7%**. 27.7% of revenue is left after running the business, an exceptional level.
- **Net margin: 16.9%**. 16.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 16.0%**. 16.0% on shareholders' equity is solid.
- **Return on invested capital: 29.2%**. Return on all capital, debt included, is 29.2%: comfortably above what that capital costs.
- **Return on assets: 16.8%**. Each dollar of assets produces 16.8% of profit.

## Growth
- **Revenue growth (1 yr): 9.7%** (3-yr 1.9%/yr, 5-yr 5.7%/yr). Revenue grew 9.7% over the last year, against 5.7% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -14.0%** (3-yr -7.2%/yr, 5-yr 0.3%/yr). Earnings per share fell 14.0%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -19.4%/yr**. Free cash flow has compounded at -19.4% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.38**. Debt is 0.38 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.3×**. It would take 0.3 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 11.2×**. Operating profit covers interest 11.2× over, a safe margin.
- **Current ratio: 1.44** (quick 0.98). Current assets cover the next year's liabilities 1.44 times.
- **Altman Z-score: 2.82**. A Z-score of 2.82 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.

## Dividends
- **Dividend yield: 4.56%** (3p per share, trailing). Rio Tinto plc yields 4.56%, an income-level yield.
- **Payout ratio: 63%** (122% of free cash flow). 63% of earnings goes out as dividends, leaving room to keep raising it.
- **Dividend growth (5 yr): -0.9%/yr** (1-yr -15.8%). The dividend has not grown over five years.
- **Shareholder yield: 4.6%**. Dividends plus net buybacks return 4.6% of the market value a year.

## Analyst view
- **Analyst consensus: hold** (21 analysts). 21 analysts cover Rio Tinto plc; the consensus is hold, with an average price target of 7537p (-2% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 62.6%** (YTD 27.0%, 3-mo 0.5%). The shares are up 62.6% over twelve months including dividends.
- **From 52-week high: -15.8%** (69.5% above the low). Trading 16% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 59**. An RSI of 59 is neutral.
- **Beta (1 yr): 1.25** (volatility 28%). Beta of 1.25 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=RIO.L · Page: https://foliofundamentals.com/stocks/rio.l

Not investment advice.