Rio TintoBSP:RIOT34 -2.04%64 Operating Margin % is 27.16% as of Dec. 2025, which is 14% below its 10-year median of 31.40. GuruFocus rates BSP:RIOT34 with a GF Score™ of 64/100 and a GF Value™ of R$358.67 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 841 Metals & Mining companies, Rio Tinto ranks better than 76.69% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Rio Tinto's Operating Income for the
six
months ended in Dec. 2025 was R$45,582 Mil. Rio Tinto's Revenue for the
six
months ended in Dec. 2025 was R$167,845 Mil. Therefore, Rio Tinto's Operating Margin % for the quarter that ended in Dec. 2025 was 27.16%.
Warning Sign:
Rio Tinto PLC operating margin has been in a 5-year decline. The average rate of decline per year is -10.5%.
The historical rank and industry rank for Rio Tinto's Operating Margin % or its related term are showing as below:
BSP:RIOT34'
s Operating Margin % Range Over the Past 10 Years
Min: 19.32 Med: 31.4 Max: 47.41
Current: 26.8
BSP:RIOT34's Operating Margin % is ranked better than 76.69% of 841
companies
in the Metals & Mining industry
Industry Median: 5.72
vs BSP:RIOT34: 26.80
Rio Tinto's 5-Year Average Operating Margin % Growth Rate was -10.50% per year.
Rio Tinto's Operating Income for the
six
months ended in Dec. 2025 was R$45,582 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was R$84,919 Mil.
Rio Tinto (BSP:RIOT34) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Rio Tinto Operating Margin % Related Terms
Rio Tinto Operating Margin % Historical Data
* Premium members only.
The historical data trend for Rio Tinto's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Rio Tinto Operating Margin % Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Rio Tinto's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rio Tinto Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Rio Tinto's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Rio Tinto's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Rio Tinto's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Rio Tinto (BSP:RIOT34) has a Operating Margin % of 27.16% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Rio Tinto and its competitors. This is 14% below median its historical median of 31.40. Over the past decade, Rio Tinto's Operating Margin % has ranged from 19.32 to 47.41. According to the industry distribution chart, Rio Tinto ranks #196 out of 841 companies in the Metals & Mining industry, placing it in the top 23.3%.
Is Rio Tinto's Operating Margin % too high?
Rio Tinto's current Operating Margin % of 27.16% is 14% below median its 10-year median of 31.40. Over the past 10 years, this metric has ranged from a low of 19.32 to a high of 47.41. The Metals & Mining industry median Operating Margin % is 5.72. Rio Tinto's value of 27.16% is 374.8% above this industry median. Based on the distribution chart, Rio Tinto ranks #196 out of 841 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, Rio Tinto has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rio Tinto's Operating Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, Rio Tinto ranks #196 out of 841 companies for Operating Margin %. This places Rio Tinto in the top 23% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.72. Rio Tinto's value of 27.16% is 374.8% above this benchmark. Historically, Rio Tinto's own Operating Margin % has ranged from 19.32 to 47.41 over the past decade. While the company's 10-year median is 31.40 vs. the industry median of 5.72, Rio Tinto has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Metals & Mining company?
The median Operating Margin % among Metals & Mining companies is 5.72, based on 841 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rio Tinto's current Operating Margin % of 27.16% is 374.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Rio Tinto and its competitors. For the Metals & Mining industry, the median Operating Margin % is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rio Tinto's current Operating Margin % is 27.16%, which is 14% below median its own 10-year median of 31.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rio Tinto stock overvalued right now?
Based on GuruFocus' analysis, Rio Tinto (BSP:RIOT34) is currently considered Significantly Overvalued. The stock's GF Value™ is R$358.67, compared to a current price of R$494.00 — trading 37.7% above its estimated fair value. The current Operating Margin % is 27.16%, which is 14% below median its 10-year median of 31.40 and 374.8% above the Metals & Mining industry median of 5.72. Rio Tinto's overall GF Score™ is 64/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Rio Tinto (BSP:RIOT34), the current Operating Margin % is 27.16% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rio Tinto (BSP:RIOT34) Overvalued in 2026?
Based on GuruFocus' analysis, Rio Tinto stock appears to be overvalued.
The current stock price of R$494.00 is trading 37.7% above its estimated GF Value™ of R$358.67.
GuruFocus considers Rio Tinto to be Significantly Overvalued.
Key valuation signals for BSP:RIOT34:
Operating Margin %: 27.16% (14% below median its 10-year median of 31.40)
GF Value™: R$358.67 vs. price of R$494.00 (37.7% above fair value)
Industry Position: 374.8% above the Metals & Mining median (#196 of 841)
No single metric tells the full story. See the BSP:RIOT34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rio Tinto is a global diversified miner. Iron ore is its major commodity, with lesser contributions from copper and aluminum. Lithium, diamonds, gold, and industrial minerals are more minor contributors. The 1995 merger of RTZ and CRA, via a dual-listed structure, created the present-day company. The two operate as a single business entity, with shareholders in each company having equivalent economic and voting rights. Major assets included the Pilbara iron ore operations, a 30% stake in the Escondida copper mine, 66%-ownership of the Oyu Tolgoi copper mine in Mongolia, the Weipa and Gove bauxite mines in Australia, and six hydro-powered aluminum smelters in Canada.
64GF Score
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