Rio Tinto Adr Stock Buy Hold or Sell Recommendation

RIO Stock  USD 63.74  0.28  0.44%   
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Rio Tinto ADR is 'Hold'. Macroaxis provides Rio Tinto buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding RIO positions. The advice algorithm takes into account all of Rio Tinto's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Rio Tinto's buy or sell advice are summarized below:
Real Value
74.06
Target Price
83.17
Hype Value
63.54
Market Value
63.74
Naive Value
62.81
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Rio Tinto ADR given historical horizon and risk tolerance towards Rio Tinto. When Macroaxis issues a 'buy' or 'sell' recommendation for Rio Tinto ADR, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Rio Tinto Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Rio and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Rio Tinto ADR. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product.

Execute Rio Tinto Buy or Sell Advice

The Rio recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Rio Tinto ADR. Macroaxis does not own or have any residual interests in Rio Tinto ADR or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Rio Tinto's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Rio TintoBuy Rio Tinto
Hold

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Responds to the marketDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Rio Tinto ADR has a Risk Adjusted Performance of (0.06), Jensen Alpha of (0.37), Total Risk Alpha of (0.47) and Treynor Ratio of (0.11)
Macroaxis provides unbiased recommendation on Rio Tinto ADR that should be used to complement current analysts and expert consensus on Rio Tinto ADR. Our trade recommendations engine determines the firm's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Rio Tinto is not overpriced, please check all Rio Tinto ADR fundamentals, including its short ratio, current liabilities, and the relationship between the total debt and market capitalization . Given that Rio Tinto ADR has a price to book of 1.85 X, we recommend you to check out Rio Tinto ADR market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Rio Tinto Trading Alerts and Improvement Suggestions

Rio Tinto ADR generated a negative expected return over the last 90 days
Latest headline from deseret.com: Salt Lake City considers very rare road closure to address illegal dumping problem

Rio Tinto Returns Distribution Density

The distribution of Rio Tinto's historical returns is an attempt to chart the uncertainty of Rio Tinto's future price movements. The chart of the probability distribution of Rio Tinto daily returns describes the distribution of returns around its average expected value. We use Rio Tinto ADR price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Rio Tinto returns is essential to provide solid investment advice for Rio Tinto.
Mean Return
-0.16
Value At Risk
-2.14
Potential Upside
2.07
Standard Deviation
1.35
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Rio Tinto historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Rio Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Rio Tinto is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Rio Tinto ADR backward and forwards among themselves. Rio Tinto's institutional investor refers to the entity that pools money to purchase Rio Tinto's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Northern Trust Corp2023-09-30
1.9 M
Citadel Advisors Llc2023-09-30
1.8 M
Earnest Partners Llc2023-09-30
1.4 M
Blackrock Inc2023-09-30
1.3 M
Holocene Advisors, Lp2023-09-30
1.3 M
Royal Bank Of Canada2023-09-30
1.2 M
Todd Asset Management2023-12-31
973.6 K
Meag Munich Ergo Kag2023-12-31
798 K
Td Asset Management Inc2023-12-31
790.3 K
Wellington Management Company Llp2023-12-31
24.8 M
Fisher Asset Management, Llc2023-09-30
15.6 M
Note, although Rio Tinto's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Rio Tinto Cash Flow Accounts

201920202021202220232024 (projected)
Change In Cash(2.9B)2.4B2.4B(6.0B)2.9B3.0B
Free Cash Flow9.4B9.7B18.0B9.4B8.1B4.3B
Depreciation4.4B4.3B4.7B5.0B5.3B2.9B
Other Non Cash Items3.5B1.5B(848M)(1.5B)799M839.0M
Capital Expenditures5.5B6.2B7.4B6.8B7.1B5.0B
Net Income7.0B10.4B22.6B13.1B10.0B6.2B
End Period Cash Flow8.0B10.4B12.8B6.8B9.7B10.2B
Change To Inventory28M(281M)(1.4B)(1.2B)(422M)(400.9M)
Dividends Paid10.3B6.1B15.4B11.7B(6.5B)(6.1B)
Investments(5.5B)(6.6B)75M(6.7B)(7.0B)(6.6B)
Net Borrowings(438M)(920M)(577M)(843M)(969.5M)(1.0B)
Change To Netincome1.2B1.8B1.1B411M369.9M710.7M

Rio Tinto Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Rio Tinto or Metals & Mining sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Rio Tinto's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Rio stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.37
β
Beta against NYSE Composite1.58
σ
Overall volatility
1.38
Ir
Information ratio -0.22

Rio Tinto Volatility Alert

Rio Tinto ADR exhibits very low volatility with skewness of -0.51 and kurtosis of 0.59. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Rio Tinto's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Rio Tinto's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Rio Tinto Implied Volatility

Rio Tinto's implied volatility exposes the market's sentiment of Rio Tinto ADR stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Rio Tinto's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Rio Tinto stock will not fluctuate a lot when Rio Tinto's options are near their expiration.

Rio Tinto Fundamentals Vs Peers

Comparing Rio Tinto's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Rio Tinto's direct or indirect competition across all of the common fundamentals between Rio Tinto and the related equities. This way, we can detect undervalued stocks with similar characteristics as Rio Tinto or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Rio Tinto's fundamental indicators could also be used in its relative valuation, which is a method of valuing Rio Tinto by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Rio Tinto to competition
FundamentalsRio TintoPeer Average
Return On Equity0.18-0.31
Return On Asset0.0928-0.14
Profit Margin0.19 %(1.27) %
Operating Margin0.26 %(5.51) %
Current Valuation105.5 B16.62 B
Shares Outstanding1.62 B571.82 M
Shares Owned By Institutions11.45 %39.21 %
Number Of Shares Shorted6.73 M4.71 M
Price To Earning11.03 X28.72 X
Price To Book1.85 X9.51 X
Price To Sales1.93 X11.42 X
Revenue54.04 B9.43 B
Gross Profit21.3 B27.38 B
EBITDA22.05 B3.9 B
Net Income9.95 B570.98 M
Cash And Equivalents4.89 B2.7 B
Cash Per Share8.59 X5.01 X
Total Debt14.35 B5.32 B
Debt To Equity0.23 %48.70 %
Current Ratio1.79 X2.16 X
Book Value Per Share33.66 X1.93 K
Cash Flow From Operations15.16 B971.22 M
Short Ratio2.55 X4.00 X
Earnings Per Share6.17 X3.12 X
Target Price82.75
Number Of Employees57 K18.84 K
Beta0.66-0.15
Market Capitalization104.46 B19.03 B
Total Asset103.55 B29.47 B
Retained Earnings38.35 B9.33 B
Working Capital8.77 B1.48 B
Current Asset15.26 B9.34 B
Current Liabilities10.05 B7.9 B

Rio Tinto Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Rio . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Rio Tinto Buy or Sell Advice

When is the right time to buy or sell Rio Tinto ADR? Buying financial instruments such as Rio Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total13.5B12.3B14.4B13.0B
Total Assets102.9B96.7B103.5B59.2B

Use Investing Ideas to Build Portfolios

In addition to having Rio Tinto in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Precious Metals ETFs Thematic Idea Now

Precious Metals ETFs
Precious Metals ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Precious Metals ETFs theme has 29 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Precious Metals ETFs Theme or any other thematic opportunities.
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When determining whether Rio Tinto ADR offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Rio Tinto's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Rio Tinto Adr Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Rio Tinto Adr Stock:
Check out Rio Tinto Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.

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Is Rio Tinto's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Rio Tinto. If investors know Rio will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Rio Tinto listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.431
Dividend Share
4.349
Earnings Share
6.17
Revenue Per Share
33.33
Quarterly Revenue Growth
0.062
The market value of Rio Tinto ADR is measured differently than its book value, which is the value of Rio that is recorded on the company's balance sheet. Investors also form their own opinion of Rio Tinto's value that differs from its market value or its book value, called intrinsic value, which is Rio Tinto's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Rio Tinto's market value can be influenced by many factors that don't directly affect Rio Tinto's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Rio Tinto's value and its price as these two are different measures arrived at by different means. Investors typically determine if Rio Tinto is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rio Tinto's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.