Rio Tinto (Australia) Buy Hold or Sell Recommendation
| RIO Stock | 117.18 0.74 0.64% |
Assuming the 90 days trading horizon and your typical level of risk aversion, our recommendation regarding Rio Tinto is 'Sell'. A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Rio Tinto given historical horizon and risk tolerance towards Rio Tinto. When Macroaxis issues a 'buy' or 'sell' recommendation for Rio Tinto, 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. Note, we conduct extensive research on individual companies such as Rio and provide practical buy, sell, or hold advice based on investors' constraints. Rio Tinto. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Rio |
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. Macroaxis does not own or have any residual interests in Rio Tinto 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
 |  |
Sell
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Rio Tinto Trading Alerts and Improvement Suggestions
| Latest headline from news.google.com: Rio Tinto Group Shares Sold by Moran Wealth Management LLC - MarketBeat |
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 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 | 0.1 | Value At Risk | -2.27 | Potential Upside | 3.43 | Standard Deviation | 1.56 |
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 Tinto Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 28M | (281M) | (1.4B) | (1.2B) | (422M) | (400.9M) | |
| Capital Expenditures | 5.5B | 6.2B | 7.4B | 6.8B | 7.1B | 6.4B | |
| Net Income | 7.0B | 10.4B | 22.6B | 13.1B | 10.0B | 7.7B | |
| Change In Cash | (2.9B) | 2.4B | 2.4B | (6.0B) | 2.9B | 3.0B | |
| Free Cash Flow | 9.4B | 9.7B | 18.0B | 9.4B | 8.1B | 6.1B | |
| Depreciation | 4.4B | 4.3B | 4.7B | 5.0B | 5.3B | 3.8B | |
| Dividends Paid | 10.3B | 6.1B | 15.4B | 11.7B | 6.5B | 4.4B | |
| End Period Cash Flow | 8.0B | 10.4B | 12.8B | 6.8B | 9.7B | 7.0B | |
| Investments | 7M | 15M | 75M | (6.7B) | (7.0B) | (6.6B) | |
| Net Borrowings | (438M) | (920M) | (577M) | (843M) | (969.5M) | (1.0B) | |
| Change To Netincome | 1.2B | 1.8B | 1.1B | 411M | 369.9M | 710.9M |
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 Dow Jones | 0.06 | |
β | Beta against Dow Jones | 0.19 | |
σ | Overall volatility | 1.57 | |
Ir | Information ratio | -0.02 |
Rio Tinto Volatility Alert
Rio Tinto has relatively low volatility with skewness of 0.24 and kurtosis of 0.09. 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 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 |
| Fundamentals | Rio Tinto | Peer Average |
| Return On Equity | 0.2 | -0.31 |
| Return On Asset | 0.0923 | -0.14 |
| Profit Margin | 0.20 % | (1.27) % |
| Operating Margin | 0.29 % | (5.51) % |
| Current Valuation | 197.17 B | 16.62 B |
| Shares Outstanding | 371.22 M | 571.82 M |
| Shares Owned By Insiders | 0.18 % | 10.09 % |
| Shares Owned By Institutions | 38.07 % | 39.21 % |
| Price To Book | 2.24 X | 9.51 X |
| Price To Sales | 3.51 X | 11.42 X |
| Revenue | 54.04 B | 9.43 B |
| Gross Profit | 21.3 B | 27.38 B |
| EBITDA | 21.08 B | 3.9 B |
| Net Income | 9.95 B | 570.98 M |
| Cash And Equivalents | 6.78 B | 2.7 B |
| Total Debt | 14.35 B | 5.32 B |
| Book Value Per Share | 34.05 X | 1.93 K |
| Cash Flow From Operations | 15.16 B | 971.22 M |
| Earnings Per Share | 10.11 X | 3.12 X |
| Target Price | 86.18 | |
| Number Of Employees | 57 K | 18.84 K |
| Beta | 0.62 | -0.15 |
| Market Capitalization | 190.29 B | 19.03 B |
| Total Asset | 103.55 B | 29.47 B |
| Retained Earnings | 38.35 B | 9.33 B |
| Working Capital | 8.77 B | 1.48 B |
| Annual Yield | 0.06 % | |
| Net Asset | 103.55 B | |
| Last Dividend Paid | 4.35 |
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? 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.
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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 Technology Theme or any other thematic opportunities.
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Additional Tools for Rio Stock Analysis
When running Rio Tinto's price analysis, check to measure Rio Tinto's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Rio Tinto is operating at the current time. Most of Rio Tinto's value examination focuses on studying past and present price action to predict the probability of Rio Tinto's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Rio Tinto's price. Additionally, you may evaluate how the addition of Rio Tinto to your portfolios can decrease your overall portfolio volatility.