RIORio Tinto Group
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.6×).
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Margins have held roughly steady, a stable cost structure.
Margin-driven, fat margins on slower asset turns. ROE 16% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is RIO?
Rio Tinto Group earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 6.8 points above what the capital costs: growth creates value
- Operating margin
- 26%
Operating margin · Other Industrial Metals & Mining median 8.9% · fiscal year to FY2025
- Cash conversion
- 1.60×
Cash conversion · 1.34× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.28%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 38% |
| FY2021 | 47% |
| FY2022 | 36% |
| FY2023 | 27% |
| FY2024 | 29% |
| FY2025 | 26% |
Details›
- Gross marginfiscal year to FY2025
- 77%
- Operating marginfiscal year to FY2025
- 26%
- Net marginfiscal year to FY2025
- 17%
- Free cash flow margin
- 6.8%
- R&D as % of revenue
- 0.91%
- Revenue, trailing twelve months
- $57.6B
- Free cash flow, trailing twelve months
- $3.91B
- Net income, trailing twelve months
- $9.97B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 16%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Other Industrial Metals & Mining
Ranks #3 of 24 by RyuScore