Rio Tinto Group (RIO) AI Stock Analysis

Rio Tinto Group, headquartered in London, United Kingdom, is a global leader in the exploration, mining, and processing of mineral resources. Founded in 1873, the company employs 56,890 people across several continents. Its diversified portfolio includes iron ore, aluminum, copper, lithium, diamonds, gold, borates, titanium dioxide, and salt. Rio Tinto operates open pit and underground mines, along with mills, refineries, smelters, power stations, and research and service facilities worldwide. Its operations focus on meeting global demand for essential minerals and metals through operational excellence and exploration.

Rio Tinto generated $57.77B in revenue during FY2025, up 7.7% after three consecutive years of revenue declines, including a 0.7% decrease in FY2024 to $53.66B. Operating margin was 25.9% in FY2025, down from 29.2% in FY2024 and 47.0% in FY2021. Net income reached $9.99B in FY2025, corresponding to a net margin of 17.3%. Over the 5-year period from FY2020 to FY2025, revenue grew at a CAGR of 5.3%. In the latest quarter ended June 30, 2026, quarterly revenue growth accelerated to 15.5% year-over-year, while quarterly earnings growth increased 46.9% year-over-year.

As of June 30, 2026, Rio Tinto held $9.51B in cash and short-term investments against total debt of $22.85B, leaving net debt at $13.35B. Shareholders' equity was $65.46B, with a debt-to-equity ratio of 0.35 and a current ratio of 1.42. In FY2025, operating cash flow was $17.19B, which funded $12.36B in capital expenditures and resulted in free cash flow of $4.82B. Cash allocation included $6.16B paid out in dividends, while share issuance totaled $1.63B.

At $90.32 per share, Rio Tinto trades at a trailing P/E of 12.2x and a forward P/E of 12.1x, both below the median of its US-listed Basic Materials peers at 19.7x and 13.4x, respectively. Its enterprise value to EBITDA ratio of 6.5x is lower than the peer group median of 10.5x, while its price-to-sales multiple of 2.4x is above the peer median of 1.8x. Over the past year, the stock returned 38.0%, outpacing the S&P 500 index return of 16.8%, but its 5-year return of 81.3% trails the S&P 500's 83.0% return.

Rio Tinto pays a semiannual dividend with an annualized forward payout of $4.65, representing a dividend yield of 5.15%. The company has paid dividends for 37 consecutive years, operating with a payout ratio of 54.5%. Over the past five years, dividend growth annualized was -0.7%. The last ex-dividend date was August 14, 2026.

Wall Street analysts carry 4 Strong Buy, 1 Buy, 4 Hold, 0 Sell, and 1 Strong Sell ratings on the stock. The mean price target of $103.04 implies an upside of 14.1% from the last close of $90.32. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $8.47 (a 26.6% increase) on revenue of $63.02B. Over the last four quarters, the company delivered 2 EPS beats.

This page is an AI-written research summary of Rio Tinto Group (RIO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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