Rio Tinto Mines Profit Growth, Plans Buybacks and Pays Out More Dividends
Mining behemoth Rio Tinto experienced solidly positive growth in profit in the first half of the year and has announced more share repurchases along with a dividend hike.
Its profits during the first half of 2018 were $4.42 billion, compared to $3.94 billion in the same period last year.
The company wants to buy back an additional $1 billion in shares, by the end of February 2019. It also reported an interim dividend of $1.27 per share, up 15 percent on the year. The total interim dividend was $2.2 billion, the highest ever in the company's history.
One of the major factors bolstering the firm’s financials/prospects is a rebound in prices of commodities, such as iron ore and copper.
The multinational said that it shipped 88.5 million tons of iron ore in the Q2 2018 - a 14% increase compared to the year-ago period – on the back of improved productivity and fewer weather tailwinds. It projects the year's shipments to be near the upper end of the guidance range of 330 to 340 million tons.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Aroon Indicator for VALE shows an upward move is likely
VALE's Aroon Indicator triggered a bullish signal on September 14, 2026. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 264 similar instances where the Aroon Indicator showed a similar pattern. In 204 of the 264 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at 77%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
VALE moved above its 50-day moving average on August 20, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for VALE crossed bullishly above the 50-day moving average on August 25, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 75%.
Following a +4.24% 3-day Advance, the price is estimated to grow further. Considering data from situations where VALE advanced for three days, in 230 of 311 cases, the price rose further within the following month. The odds of a continued upward trend are 74%.
VALE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The 10-day RSI Indicator for VALE moved out of overbought territory on September 03, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 41 similar instances where the indicator moved out of overbought territory. In 20 of the 41 cases, the stock moved lower in the following days. This puts the odds of a move lower at 49%.
The Momentum Indicator moved below the 0 level on September 11, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on VALE as a result. In 46 of 74 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 62%.
The Moving Average Convergence Divergence Histogram (MACD) for VALE turned negative on September 14, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In 29 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 59%.
The 50-day moving average for VALE moved below the 200-day moving average on August 27, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where VALE declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 71%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 4 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 5 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.636) is normal, around the industry mean (13.053). P/E Ratio (29.220) is within average values for comparable stocks, (119.752). Projected Growth (PEG Ratio) (0.316) is also within normal values, averaging (0.286). VALE has a moderately high Dividend Yield (0.082) as compared to the industry average of (0.033). P/S Ratio (1.514) is also within normal values, averaging (283.393).
The Tickeron Price Growth Rating for this company is 39 (best 1 - 100 worst), indicating steady price growth. VALE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 58 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock slightly better than average.
The Tickeron SMR rating for this company is 82 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a company that mines and exports iron ore and pellets, manganese, and iron alloys
Industry OtherMetalsMinerals
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