a cyclical mining giant, finding it hard to find a long term (5-10 year) negative on RIO. even if there is deflationary pressures this is so cheap on so many metrics. - Paid down alot of debt. - Current div yield of 10.4% - ROIC long term mean of 13% (+ div of 5ish?) = 18% ROIC - Current ROIC with inflationary pressures = 26% + 10% div?! - Trading at a current PE Ratio of 5.88x! being a cyclical it is hard to get a feel of the PE but its very much on the low side. - Input costs and labour pressures are here and trading at 1.8x price to sales.
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RIO may be topping out with the global back drop, but with China re-opening I'm happy to hold this blue chip through a downturn. Up on my position, base price of $80
Analysts found many negatives in Oct 2021. Evergrande was going to be the Lehman of the (tightly regulated…) Chinese economy. The steel industry shutdowns, ordered to stabilize the grid over winter, would somehow last into spring. The post-Covid commodities rebound was thought to be over.
They were wrong on all counts.
Analysts are rolling out the same stories again—this time, it's different?
But if enough people believe the stories again, RIO could have further to fall.
They were wrong on all counts.
Analysts are rolling out the same stories again—this time, it's different?
But if enough people believe the stories again, RIO could have further to fall.