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Morning Momentum: Rio Tinto plc, (RIO)

Friday February 24th 2017: Rio Tinto plc, RIO is in the exchange NYSE and its industry is Industrial Metals & Minerals in the sector of Basic Materials. Based in United Kingdom, Rio Tinto plc, RIO  has a market cap of 73.45 B. Since its IPO date on the 6/28/1990, Rio Tinto plc, RIO performance year to date is 2.18%. Today Rio Tinto plc, RIO has gained -0.13%, with a current price of 39.3.

Ownership of the company is 6.50% for insider ownership while institutional ownership is 6.80%. The management of the company have seen the company have a payout ratio of 65.80%. Return of assets are at 5.00%, with return on investment at 8.60%.

In terms of debt levels and profit levels, Rio Tinto plc, RIO is seeing a long-term debt/equity of 0.44. While Total debt/equity is 0.47. With a profit margin of 13.70%, this is combined with a gross margin of *TBA, and operating margin of 20.10%. Rio Tinto plc ability to meet debt levels, with a current ratio of 1.6, while the quick ratio is 1.3.

For the last year Rio Tinto plc, RIO has seen a EPS growth of 637.90%. A performance for the year of 38.14%. The 52-week high is -16.58%, and the 52-week low is 43.69%. The average volume for Rio Tinto plc, RIO is 3250885.

With a target price of 48.3, can Rio Tinto plc, RIO reach this target? Looking at the value indicators of Rio Tinto plc, RIO. Rio Tinto plc has a P/E of 15.4 and a forward P/E of 10.11. Perhaps the more useful indicator than P/E, is PEG which has a value of 0.92. Rio Tinto plc also has a P/S and a P/B of 2.17 and 1.8 respectively. For P/cash, Rio Tinto plc has a value of 8.58, while it is 26.92 for P/free cash flow.

At the current price of 39.3, Rio Tinto plc has a dividend yield of 4.33%. We see a return on equity of 11.80%.

Looking more long-term Rio Tinto plc, is projected to get an EPS growth for the next five years of 16.80%. In the short-term an EPS growth of -16.23% in the next year is forecasted. This is after a EPS growth of 637.90% for this year and for the last five years a -3.30% growth has been seen.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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