On the stock market since 1990, it operates in the world of raw materials. It has 57,271 employees. Now — the numbers.
This is an established company with proven profits.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
No real growth (-2% a year).
The gap is $14.1B. In times of high interest rates, a gap like that can squeeze a company.
The stock trades 20% below its peak. The market has trimmed its expectations for the company.
The net profit margin is 17% — still a thick cushion, though costs have been eating into it lately.
It pays out $4.02 per share each year — regular cash for whoever holds the stock.
Over the last 3 years, sales grew only 1% a year on average. At this size, speeding back up is not easy.
On our five-subject report card, RIO sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: RIO is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.