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Rio Tinto plc (NYSE: RIO) – Is this large market cap stock undervalued?

Rio Tinto plc (NYSE: RIO), is firmly in the large market cap category with market cap of 56692.79. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Rio Tinto plc is 31 (with a change from open of 0.27%), this in conjunction with a target price of 35.6. Volume today has so far reached 1875807, with an average volume of about 4011.26. The GAP for this stock, is 3.38%.

The P/E ratio is 1196, bringing the forward P/E to a value of 11.89. The current EPS for Rio Tinto plc, is 0.03, with a EPS growth for this year coming to a value of -113.50%. Performance has been interesting with performance year to date coming to 8.25%.

Looking further into the growth statistics for Rio Tinto plc, EPS is looking like it will grow 30.31% in the next year. Looking even further it is projected to be 16.80%. Quarter over quarter is -60.00% for EPS growth and for sales growth quarter over quarter it is -36.30%. Looking at past EPS growth statistics we see that for the past five years it has been -15.60%. Sales growth for the past five years has in fact been -8.80%.

Looking at the ownership, we see that the insider ownership is at 6.50% and institutional ownership is 7.00%. Shares outstanding is 1896.08, while shares float is at a value of 1183.38. Float short for Rio Tinto plc is 1.05% and the short ratio is 3.08.

In terms of debt, long term debt/equity is 0.55, while the total debt/equity comes to 0.58. The ability to meet these debts, means that the current ratio is 1.7, and the quick ratio is 1.3. The most recent gross margin is and their operating margin is 7.40%. The profit margin is 0.10%.

Rio Tinto plc has seen returns on assets of 0.00%, and on investment, 4.30%. Return on equity is 0.10%. Price/Earnings to growth ratio is 71.19. Price/Sales ratio is at a value of 1.75, with Price/book ratio coming to 1.43 and Price/cash is 6.76, and finally Price/Free cash Flow is 68.39.

The simple moving averages are -2.03% and 7.98% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -18.41% and the 52 week low is 49.28%.

Rio Tinto plc has a dividend yield of 3.01%, with a current price of 31. The ability to pay this means the payout ratio is . This is in an industry, Industrial Metals & Minerals, with equally high dividends from other companies in this sector, which it is Basic Materials. Rio Tinto plc is based in United Kingdom.

Performance in the Industrial Metals & Minerals industry means that Rio Tinto plc has seen performance for the past week of -2.73%, with performance for the month coming to -7.20%. Looking at the data for the quarter it is at a value of 3.85%, and for the half year the performance is -14.25%. Volatility for this week is 2.53% and for the month this is 2.09%.

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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Mark Hines

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