Two Stocks Under Focus: Rio Tinto Plc and Rolls-Royce Holdings PLC

  • Nov 04, 2019 GMT
  • Team Kalkine
Two Stocks Under Focus: Rio Tinto Plc and Rolls-Royce Holdings PLC

Rio Tinto Plc

Rio Tinto Plc (Identifier: RIO) is a global metal and mining company that focuses on exploring, mining and processing the Earth's mineral resources. As on November 01, 1973, shares of the company got admitted to the main market of the London Stock Exchange for trading and is a constituent of the FTSE 100 index. BlackRock Investment Management (UK) Ltd., Capital Research & Management Co. (Global Investors), The Vanguard Group, Inc., Legal & General Investment Management Ltd. and Aviva Investors Global Services Ltd. are the major institutional shareholders in the company. (Source: Thomson Reuters).

RIO-Recent developments

The group reported its exploration update related to Winu Project located in Western Australia where it had discovered copper-gold mineralisation in August 2019. Wide intersections of vein style copper mineralisation associated with gold and silver beneath relatively shallow cover were indicated by the new data provided on twenty-eight reverse circulation (RC) drill holes and fourteen diamond drill holes. The mining group reported that preliminary technical studies have commenced on the project, but enough understanding of the mineralised body is not available as the exploration project is still at an early stage.

RIO-Financial highlights for H1 FY19

Led by solid growth in Iron ore prices during the period under consideration, the gross revenue of the group was up by 2.8% against the same period of the corresponding financial year at US$21.8bn. However, its revenue was partially offset by a 17% aluminium price deceleration and 11% plunge in the copper prices on a YoY basis. However, a strong growth in the Iron Ore prices during the first half of FY19 allowed the group to partially offset the impact of the price change in two other metals.

Underlying EBITDA during the H1 FY19 shot up by 11% to US$10.25 billion on YoY basis, however, excluding the contribution from the coking coal assets divested in 2018, the underlying EBITDA was 19% higher against the underlying EBITDA of H1 FY18, and EBITDA margin excluding divestment of coking coal assets stood at 47% respectively.  Basic earnings per share remained flat over the year at 252.5 US cents, while the underlying earnings per share rose by 19% to record 301.5 US cents. The group declared an ordinary dividend per share of 151 US cents, which amounted to US$2.5 billion, and announced a special dividend of 61 US cents per share, which amounted to US$1 billion.

RIO-Share price performance

(Source: Thomson Reuters)

While writing (as on 04th November 2019, at 12:34 PM GMT), Rio Tinto Plc shares were trading at GBX 4300.50 per share, up by 3.17 per cent as compared to the previous day closing price level. The company’s market capitalisation was around £52.3 billion.

RIO shares have clocked a high of GBX 4,979.14 (as on 03rd July 2019) and a low of GBX 3,306.25 (as on 06 December 2018) in the past year. At the current price point, as quoted in the price chart, the company’s shares were trading 13.62 per cent below the 52-week high price point and 30.07 per cent above the 52-week low price point.

At the time of writing, the stock’s volume before the market close, stood at 1,187,074. Stock's average daily traded volume for 5 days was 2,415,184.00; 30 days- 2,378,187.33 and 90 days – 2,752,553.88. The company’s stock beta (5Y monthly) was 1.42, which makes it more volatile as against the benchmark index.

The average daily traded volume for 5 days surged by 1.56 per cent as against 30 days average daily traded volume. At the time of writing, the shares of the company were trading above the 30-days and 60-days SMA.

In the past 1 month, RIO shares have delivered negative return of 0.80 per cent. Also, on a YTD (Year-to-Date) time interval, the stock surged by approximately 13.09 per cent and was down by 7.08 per cent in the last three months.

The stock's RSI (Relative Strength Index) for the 30-days, 14-days and 9-days was recorded at 50.13, 55.37 and 59.46 respectively. Also, the stock’s 3-days RSI was recorded at 69.96.

Rolls-Royce Holdings PLC

Rolls-Royce Holdings Plc (Identifier: RR) is a London, United Kingdom-headquartered multinational engineering company with a focus on power and propulsion systems. It is one of the world’s leading industrial technology companies and seeks to deliver clean, safe and competitive solutions to a wide range of industries.

RR-Recent News

The company announced that Sir Frank Chapman on 21st October 2019, as a Non-Executive Director of the company, had been admitted as a Non-Executive Director of NextDecade Corporation, a company listed on NASDAQ, with effect from November 1, 2019.

RR-Financial Highlights for H1 FY19

In the first half of 2019, the company’s underlying revenue rose by 7% to £7,353 million as compared with the corresponding period of the last year, while reported revenue surged by 5% to £7,883 million in H1 FY19. Revenue surged because of an increase in the Underlying ITP Aero (up 23%), Civil Aerospace revenue (up 11%), Defence (up 2%), and Power Systems (up 6%). Underlying operating profit saw an improvement of 32 per cent from the previous year same period data. For the first half of 2019, underlying loss per share was 1.6 pence against the earnings per share of 2.5 pence in H1 FY18, while reported loss per share stood at 48 pence in H1 FY19 as against loss of 51.6 pence per share in H1 FY 18.

RR-Share price performance

(Source: Thomson Reuters)

While writing (as on 04th November 2019, at 12:40 PM GMT), Rolls-Royce Holdings Plc shares were trading at GBX 737 per share, up by 1.71 per cent as compared to the previous day closing price level. The company’s market capitalisation was around £13.99 billion.

RR shares have clocked a high of GBX 989.47 (as on 28 February 2019) and a low of GBX 687.80 (as on 01 November 2019) in the past year. At the current price point, as quoted in the price chart, the company’s shares were trading 25.51 per cent below the 52-week high price point and 7.15 per cent above the 52-week low price point.

At the time of writing, the stock’s volume before the market close, stood at 1,301,463. Stock's average daily traded volume for 5 days was 4,725,745.80; 30 days- 4,570,733.10 and 90 days – 4,175,982.41. The company’s stock beta (5Y monthly) was 1.11, which makes it more volatile as against the benchmark index.

The average daily traded volume for 5 days surged by 3.39 per cent as against 30 days average daily traded volume. At the time of writing, the shares of the company were trading below the 30-days and 60-days SMA.

In the past 1 month, RR shares have delivered negative return of 5.96 per cent. Also, on a YTD (Year-to-Date) time interval, the stock plunged by approximately 11.46 per cent and was down by 14.93 per cent in the last three months.

The stock's RSI (Relative Strength Index) for the 30-days, 14-days and 9-days was recorded at 44.09, 47.00 and 51.13 respectively. Also, the stock’s 3-days RSI was recorded at 71.54.

With Bank of England reducing the interest rates to a historic low level, the spotlight is back on diverse investment opportunities. 

Amidst this, are you getting worried about these falling interest rates and wondering where to put your money?

Well! Team Kalkine has a solution for you. You still can earn a relatively stable income by putting money in the dividend-paying stocks.

We think it is the perfect time when you should start accumulating selective dividend stocks to beat the low-interest rates, while we provide a tailored offering in view of valuable stock opportunities and any dividend cut backs to be considered amid scenarios including a prolonged market meltdown.

To know more about these dividend stocks, click here

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK