| Interest Expense | Gross Profit | ||
| 2013 | 0.00 | 0.00 | |
| 2014 | 0.00 | 0.00 | |
| 2015 | 0.00 | 0.00 | |
| 2018 | 0.00 | 0.00 | |
| 2019 (projected) | 0.00 | 0.00 |
Rio Tinto is down -0.92 percent inspite market upsurge
 | By Vlad Skutelnik | Macroaxis Story |
This thesis is geared towards all Rio Tinto partners and investors who considers an exit from the corporation. I will inspect the possibilities of making Rio Tinto into a steady grower in September inspite the current mess. This firm current daily volatility is 1.61 percent, with beta of 0.61 and alpha of -0.54 over S&P 500. Rio Tinto Plc holds recent Real Value of $57.8713 per share. The prevailing price of the company is $48.25. At this time the company appears to be undervalued. This module determines value of Rio Tinto Plc from analyzing the company fundamentals such as Return On Equity of 26.60%, Operating Margin of 42.88% and Shares Outstanding of 1.69B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support investing in undervalued entities and to dispose of overvalued entities since at some point stocks prices and their ongoing real values will merge together.
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Reviewed by Raphi Shpitalnik
The company has 14.16B in debt with debt to equity (D/E) ratio of 31.9 . This implies that the entity may be unable to create cash to meet all of its financial commitments. Rio Tinto dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $2.12 per share. The company has Net Profit Margin of 32.39 % which may imply that it executes well on its competitive polices and has a good control over its expenditures and variable costs. This is very large. In the same way, it shows Net Operating Margin of 42.88 % which entails that for every 100 dollars of revenue it generated 0.43 of operating income. Rio Tinto financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Rio Tinto, including all of Rio Tinto's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Rio Tinto assets, the company is considered highly leveraged. Understanding the composition and structure of overall Rio Tinto debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
How important is Rio Tinto's Liquidity
Rio Tinto financial leverage refers to using borrowed capital as a funding source to finance Rio Tinto ADR ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Rio Tinto financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Rio Tinto's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Rio Tinto's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Rio Tinto's total debt and its cash.
Breaking down the case for Rio Tinto
The big decline in price over the last few months for Rio Tinto Plchas created some momentum for investors as it was traded today as low as 48.065 and as high as 48.59 per share. The company executives failed to add value to investors and positioning the company components to exploit market volatility in July. However, diversifying your holdings with Rio Tinto Plc or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.6088. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Rio Tinto is trading at 48.25 which is 0.92% down. Today lowest is 48.065. Rio Tinto Property Plant and Equipment Net is quite stable at the moment. Further, Rio Tinto Weighted Average Shares Diluted is quite stable at the moment.
Taking everything into account, I belive Rio Tinto is currently undervalued. It Follows market closely and projects below average probability of distress in the next two years. Our prevailing buy vs. sell advice on the corporation is Hold.
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