` Comparison: SKY vs RIO - Alpha Spread

SKY
vs
RIO

Over the past 12 months, SKY has significantly outperformed RIO, delivering a return of +302% compared to the RIO's +71% growth.

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SKY
RIO
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Valuation Comparison

SKY Intrinsic Value
0.43 AUD
Undervaluation 62%
Intrinsic Value
Price AU$0.165
RIO Intrinsic Value
5 110.15 GBX
Overvaluation 30%
Intrinsic Value
Price GBX7 346
Company Last Price Intrinsic Value DCF Value Multiples-Based Value Wall St Target
Sky Metals Ltd
ASX:SKY
0.165 AUD
Rio Tinto PLC
LSE:RIO
7 346 GBX
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Valuation Scenario:
Bear Case
Base Case
Bull Case

Growth Comparison

Growth Over Time
SKY, RIO

SKY
RIO
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Revenue
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Company LTM Historical Growth Growth Streak % Positive Years Max Drawdown Volatility Forecasted Growth
3 Years 5 Years 10 Years 1 Year 3 Years
Sky Metals Ltd
Revenue
Rio Tinto PLC
Revenue

All metrics are calculated based on data from the last 10 years.

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Profitability Comparison

Free Cash Flow
SKY, RIO

SKY
RIO
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Free Cash Flow
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Company LTM Average Historical Growth FCF Margin Conversion
3 Years 5 Years 3 Years 5 Years 10 Years
Sky Metals Ltd
ASX:SKY
Rio Tinto PLC
LSE:RIO
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What is Free Cash Flow?

Gross Margin

SKY
0%
RIO
49.2%
LTM 3Y Avg 5Y Avg 10Y Avg
Sky Metals Ltd
Rio Tinto PLC

Operating Margin

SKY
0%
RIO
30.4%
LTM 3Y Avg 5Y Avg 10Y Avg
Sky Metals Ltd
Rio Tinto PLC

Net Margin

SKY
0%
RIO
17.3%
LTM 3Y Avg 5Y Avg 10Y Avg
Sky Metals Ltd
Rio Tinto PLC

FCF Margin

SKY
0%
RIO
7.8%
LTM 3Y Avg 5Y Avg 10Y Avg
Sky Metals Ltd
Rio Tinto PLC

ROE

SKY
-13.7%
RIO
17.6%
LTM 3Y Avg 5Y Avg 10Y Avg
Sky Metals Ltd
Rio Tinto PLC

ROA

SKY
-13.2%
RIO
8.9%
LTM 3Y Avg 5Y Avg 10Y Avg
Sky Metals Ltd
Rio Tinto PLC

ROIC

SKY
-18.5%
RIO
11.9%
LTM 3Y Avg 5Y Avg 10Y Avg
Sky Metals Ltd
Rio Tinto PLC

ROCE

SKY
-14.3%
RIO
17.7%
LTM 3Y Avg 5Y Avg 10Y Avg
Sky Metals Ltd
Rio Tinto PLC

Solvency Comparison

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Balance Sheet Comparison
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Stocks Performance

Stocks Performance
SKY, RIO

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Performance Gap
SKY, RIO

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SKY
RIO
Difference
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Performance By Year
SKY, RIO

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SKY
RIO
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Compare SKY to other stocks
RIO
Rio Tinto Ltd
More expensive
vs SKY
BHP
BHP Group Ltd
More expensive
vs SKY
GMEXICOB
Grupo Mexico SAB de CV
More expensive
vs SKY
GLEN
Glencore PLC
More expensive
vs SKY
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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett