Rio Tinto (RIO-N)
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Financials
Technical Analysis
Buy, Sell or Hold?
This summary was created by AI, based on 7 opinions in the last 12 months.
Rio Tinto (RIO-N) is presented as a strong candidate for investment, primarily due to its diversified portfolio that includes key materials such as iron ore, aluminum, copper, and lithium. A notable factor is the expected copper production growth of over 30% in the next three years, alongside a competitive valuation at around 10x earnings and a solid return on equity (ROE) of 20%. The dividend yield, which approximates 5.9% to 7.3%, is supported by a payout ratio well below 70% of cash flow, showcasing the company's robust cash generation capabilities. Despite a reliance on the global economy, particularly China, analysts express confidence in Rio Tinto’s long-term value and sustainability of its dividend, making it a favorite among several experts for growth potential and cash flow generation in the mining sector.
If you believe that the iron price doesn't fall further, then a pretty decent buy here. For those who believe in his natural resource thesis over 5 years, you have to own it. Need to pay attention to the global economy, but especially the Chinese economy.
He's less concerned about 20% fluctuations in the stock price over time, and more concerned about long-term value and the sustainability of the dividend.
A safer bet in minerals is RIO, which trades at 11.37x earnings. It mines not only copper, but also aluminum, diamonds, gold and particularly iron ore. Also attractive is its solid 6.59% dividend yield, far higher than Teck's 0.84%, for example. Rio is a favourite of Stockchaser Michael O'Reilly who likes the company's growing cash reserves, declining debt and 20% return on equity.
As a leader of metal resources production, we reiterate RIO as a TOP PICK. Management is optimistic that a commitment to aluminum smelter development in Australia is supportive for the company's plans. We like that cash reserves are growing, while debt is retired. It trades at 9x earnings, under 2x book and supports a 20% ROE. The robust dividend is backed by a payout ratio of 70% of cash flow. We recommend trailing up the stop (from $49) to $58 at this time, looking to achieve $82 -- upside potential of 32%. Yield 6.2%
(Analysts’ price target is $81.93)The company is engaged in new iron ore, copper, and lithium projects worldwide -- looking to increase capital spending 33% to $9.5 billion. It trades at 9x earnings, 1.7x book and supports a 19% ROE. It pays a solid dividend, backed by a payout ratio under 67% of cash flow. We recommend setting a stop-loss at $49, looking to achieve $82 -- upside potential of 38%. Yield 7.3%
(Analysts’ price target is $82.20)Is struggling given perceived weakness of China's economy. He's owned this a long time and won't sell it. RIO generates a lot of free cash, has a reasonable development pipeline, a great iron business and a good copper business. But traders may see near-term weakness given China's outlook.
Rio Tinto(RIO-N) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 2
Neutral - Hold Signals / Votes : 2
Bearish - Sell Signals / Votes : 2
Total Signals / Votes : 6
Rio Tinto(RIO-N) Frequently Asked Questions
What is Rio Tinto stock symbol?
Rio Tinto is a OTC stock, trading under the symbol RIO-N on the (). It is usually referred to as or RIO-N
Is Rio Tinto a buy or a sell?
In the last year, 6 stock analysts published opinions about RIO-N. 2 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Rio Tinto.
Is Rio Tinto a good investment or a top pick?
Rio Tinto was recommended as a Top Pick by on . Read the latest stock experts ratings for Rio Tinto.
Why is Rio Tinto stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Rio Tinto worth watching?
6 stock analysts on Stockchase covered Rio Tinto In the last year. It is a trending stock that is worth watching.
What is Rio Tinto stock price?
On , Rio Tinto (RIO-N) stock closed at a price of $.
Offering diversification globally into materials such as iron ore, aluminum, copper and lithium, we reiterate RIO as a TOP PICK. Analysts expect their copper production will grow over 30% over the next 3 years. It trades at 10x earnings, under 2x book and supports a ROE of 20%. The robust dividend is backed by a payout ratio under 60% of cash flow. We continue to recommend a stop at $58, looking to achieve $81 — upside over 25%. Yield 5.9%
(Analysts’ price target is $81.13)