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Rio Tinto

RIO
55
Industrial Materials · Basic Materials
Price
$90.15
-0.52 (-0.57%)
Market Cap
$146.41B
Exchange
New York Stock Exchange
Winston Score
55
Winston is curious
A decent business — some strong pillars, some weaker.

Rio Tinto is one of the largest mining companies in the world. It digs up raw materials from the earth and sells them to manufacturers and governments. Its biggest product is iron ore, which steelmakers use to build cars, buildings, and infrastructure. It also mines copper, aluminum, lithium, and other minerals used in electronics and clean energy products.

Rio Tinto earns money by selling these mined commodities on global markets, so its revenue rises and falls with commodity prices. The company operates mines and processing facilities across Australia, Canada, the United States, Africa, and other regions, generating over $50 billion in annual revenue. Its competitive advantage comes from owning large, low-cost mines that are expensive and difficult for rivals to replicate. The biggest risk the company faces is falling commodity prices, particularly iron ore, which still accounts for the majority of its earnings. Growing demand for copper and lithium tied to electric vehicles and clean energy represents its clearest long-term growth opportunity.

Winston Score History

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+14.1% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-5.9% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

Declining (-100% vs prior year)

0.0% of revenue

Below sector average (3%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

11.9%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$17.0B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Rio Tinto is a rare growth stock that's already generating positive cash flow while growing at 14%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.6% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 1.63B (2021) → 1.64B (2025)

Score breakdown

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Quality

Gross Margin
25.3%
Modest — 25.3% gross margin
Operating Margin
25.3%
Excellent — 25.3% operating margin
ROCE
9.2%
Below par — 9.2% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+0.7%
Nearly flat sales (0.7% YoY)
EPS YoY
-4.9%
Earnings shrinking (-4.9% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
152%
Turns 152% of profit into real cash
FCF Margin
9.7%
Modest free cash flow (9.7%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.35
Conservative — low debt load (0.35)
Interest Cover
16.55x
Comfortably covers interest (16.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
6.8x
Attractive valuation — P/E 6.8

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
-4.7
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield
4.25%
Healthy income — 4.25% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend Growth
-13.1%
Dividend cut (-13.1% YoY) — warning sign

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