RB GLOBAL INC (RBA.CA) Stock Fundamental Analysis
Canada - TSX:RBA - CA74935Q1072 - Common Stock
142.5 CAD
+0.11 (+0.08%)
RBA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 24 industry peers in the Commercial Services & Supplies industry. While RBA has a great profitability rating, there are some minor concerns on its financial health. RBA shows excellent growth, but is valued quite expensive already. These ratings would make RBA suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year RBA was profitable.
RBA had a positive operating cash flow in the past year.
RBA had positive earnings in each of the past 5 years.
In the past 5 years RBA always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.10%, RBA is doing good in the industry, outperforming 75.00% of the companies in the same industry.
RBA has a Return On Equity (6.36%) which is comparable to the rest of the industry.
RBA's Return On Invested Capital of 5.31% is fine compared to the rest of the industry. RBA outperforms 75.00% of its industry peers.
RBA had an Average Return On Invested Capital over the past 3 years of 7.18%. This is in line with the industry average of 7.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 6.36% | ||
| ROIC | 5.31% |
ROA(3y)5.26%
ROA(5y)5.45%
ROE(3y)11.5%
ROE(5y)13.11%
ROIC(3y)7.18%
ROIC(5y)7.77%
1.3 Margins
RBA has a Profit Margin of 8.54%. This is amongst the best in the industry. RBA outperforms 87.50% of its industry peers.
In the last couple of years the Profit Margin of RBA has declined.
RBA has a Operating Margin of 17.44%. This is amongst the best in the industry. RBA outperforms 87.50% of its industry peers.
In the last couple of years the Operating Margin of RBA has grown nicely.
RBA has a better Gross Margin (45.78%) than 87.50% of its industry peers.
In the last couple of years the Gross Margin of RBA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.44% | ||
| PM (TTM) | 8.54% | ||
| GM | 45.78% |
OM growth 3Y-1.2%
OM growth 5Y1.93%
PM growth 3Y-6.72%
PM growth 5Y-5.1%
GM growth 3Y-6.92%
GM growth 5Y-1.72%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RBA is destroying value.
The number of shares outstanding for RBA has been increased compared to 1 year ago.
Compared to 5 years ago, RBA has more shares outstanding
RBA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.57 indicates that RBA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.57, RBA is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of RBA is 4.46, which is a neutral value as it means it would take RBA, 4.46 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.46, RBA is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
RBA has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.44, RBA is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.46 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.63
WACC8.37%
2.3 Liquidity
RBA has a Current Ratio of 1.28. This is a normal value and indicates that RBA is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of RBA (1.28) is comparable to the rest of the industry.
RBA has a Quick Ratio of 1.22. This is a normal value and indicates that RBA is financially healthy and should not expect problems in meeting its short term obligations.
RBA has a better Quick ratio (1.22) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
RBA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.10%.
Measured over the past years, RBA shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.81% on average per year.
Looking at the last year, RBA shows a small growth in Revenue. The Revenue has grown by 4.65% in the last year.
Measured over the past years, RBA shows a very strong growth in Revenue. The Revenue has been growing by 26.58% on average per year.
EPS 1Y (TTM)7.1%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%13.83%
Revenue 1Y (TTM)4.65%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%8.2%
3.2 Future
The Earnings Per Share is expected to grow by 21.27% on average over the next years. This is a very strong growth
Based on estimates for the next years, RBA will show a quite strong growth in Revenue. The Revenue will grow by 8.39% on average per year.
EPS Next Y12.11%
EPS Next 2Y11.82%
EPS Next 3Y21.27%
EPS Next 5YN/A
Revenue Next Year7.13%
Revenue Next 2Y6%
Revenue Next 3Y8.76%
Revenue Next 5Y8.39%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.05, which means the current valuation is very expensive for RBA.
70.83% of the companies in the same industry are more expensive than RBA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.91. RBA is around the same levels.
A Price/Forward Earnings ratio of 23.21 indicates a rather expensive valuation of RBA.
The rest of the industry has a similar Price/Forward Earnings ratio as RBA.
When comparing the Price/Forward Earnings ratio of RBA to the average of the S&P500 Index (22.92), we can say RBA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.05 | ||
| Fwd PE | 23.21 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RBA.
RBA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.11 | ||
| EV/EBITDA | 18.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RBA does not grow enough to justify the current Price/Earnings ratio.
RBA has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RBA's earnings are expected to grow with 21.27% in the coming years.
PEG (NY)2.32
PEG (5Y)1.35
EPS Next 2Y11.82%
EPS Next 3Y21.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.17%, RBA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.40, RBA pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.17, RBA pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
5.2 History
The dividend of RBA is nicely growing with an annual growth rate of 11.54%!
RBA has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)11.54%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
65.92% of the earnings are spent on dividend by RBA. This is not a sustainable payout ratio.
RBA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP65.92%
EPS Next 2Y11.82%
EPS Next 3Y21.27%
TSX:RBA (10/24/2025, 7:00:00 PM)
142.5
+0.11 (+0.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.23%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap26.45B
Revenue(TTM)4.42B
Net Income(TTM)377.30M
Analysts81.82
Price Target126.23 (-11.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend1.83
Dividend Growth(5Y)11.54%
DP65.92%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.72%
Min EPS beat(2)6.38%
Max EPS beat(2)11.05%
EPS beat(4)4
Avg EPS beat(4)10.83%
Min EPS beat(4)6.38%
Max EPS beat(4)19.36%
EPS beat(8)8
Avg EPS beat(8)18.53%
EPS beat(12)12
Avg EPS beat(12)16.27%
EPS beat(16)14
Avg EPS beat(16)45.64%
Revenue beat(2)2
Avg Revenue beat(2)3.86%
Min Revenue beat(2)3.04%
Max Revenue beat(2)4.68%
Revenue beat(4)3
Avg Revenue beat(4)2.08%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)6.29%
Revenue beat(8)5
Avg Revenue beat(8)1.9%
Revenue beat(12)9
Avg Revenue beat(12)4.64%
Revenue beat(16)12
Avg Revenue beat(16)4.4%
PT rev (1m)0%
PT rev (3m)4.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.73%
EPS NY rev (1m)0%
EPS NY rev (3m)2.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.05 | ||
| Fwd PE | 23.21 | ||
| P/S | 4.27 | ||
| P/FCF | 31.11 | ||
| P/OCF | 19.78 | ||
| P/B | 3.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.02 |
EPS(TTM)5.08
EY3.56%
EPS(NY)6.14
Fwd EY4.31%
FCF(TTM)4.58
FCFY3.21%
OCF(TTM)7.2
OCFY5.05%
SpS33.39
BVpS44.85
TBVpS-8.81
PEG (NY)2.32
PEG (5Y)1.35
Graham Number71.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 6.36% | ||
| ROCE | 7.24% | ||
| ROIC | 5.31% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 19.52% | ||
| OM | 17.44% | ||
| PM (TTM) | 8.54% | ||
| GM | 45.78% | ||
| FCFM | 13.72% |
ROA(3y)5.26%
ROA(5y)5.45%
ROE(3y)11.5%
ROE(5y)13.11%
ROIC(3y)7.18%
ROIC(5y)7.77%
ROICexc(3y)8.53%
ROICexc(5y)9.12%
ROICexgc(3y)37.02%
ROICexgc(5y)34.04%
ROCE(3y)9.79%
ROCE(5y)10.6%
ROICexgc growth 3Y13.17%
ROICexgc growth 5Y-9.74%
ROICexc growth 3Y-7.75%
ROICexc growth 5Y-13.21%
OM growth 3Y-1.2%
OM growth 5Y1.93%
PM growth 3Y-6.72%
PM growth 5Y-5.1%
GM growth 3Y-6.92%
GM growth 5Y-1.72%
F-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.46 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 90.91% | ||
| Cap/Sales | 7.86% | ||
| Interest Coverage | 3.72 | ||
| Cash Conversion | 82.73% | ||
| Profit Quality | 160.64% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 2.57 |
F-Score6
WACC8.37%
ROIC/WACC0.63
Cap/Depr(3y)78.22%
Cap/Depr(5y)67.07%
Cap/Sales(3y)6.67%
Cap/Sales(5y)5.24%
Profit Quality(3y)137.07%
Profit Quality(5y)143.6%
High Growth Momentum
Growth
EPS 1Y (TTM)7.1%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%13.83%
EPS Next Y12.11%
EPS Next 2Y11.82%
EPS Next 3Y21.27%
EPS Next 5YN/A
Revenue 1Y (TTM)4.65%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%8.2%
Revenue Next Year7.13%
Revenue Next 2Y6%
Revenue Next 3Y8.76%
Revenue Next 5Y8.39%
EBIT growth 1Y-0.49%
EBIT growth 3Y42.86%
EBIT growth 5Y29.02%
EBIT Next Year35.13%
EBIT Next 3Y19.93%
EBIT Next 5Y17.05%
FCF growth 1Y380.48%
FCF growth 3Y33.7%
FCF growth 5Y17.56%
OCF growth 1Y202.67%
OCF growth 3Y43.17%
OCF growth 5Y22.87%
RB GLOBAL INC / RBA.CA FAQ
What is the ChartMill fundamental rating of RB GLOBAL INC (RBA.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to RBA.CA.
What is the valuation status of RB GLOBAL INC (RBA.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to RB GLOBAL INC (RBA.CA). This can be considered as Overvalued.
How profitable is RB GLOBAL INC (RBA.CA) stock?
RB GLOBAL INC (RBA.CA) has a profitability rating of 7 / 10.
What is the financial health of RB GLOBAL INC (RBA.CA) stock?
The financial health rating of RB GLOBAL INC (RBA.CA) is 5 / 10.
Can you provide the dividend sustainability for RBA stock?
The dividend rating of RB GLOBAL INC (RBA.CA) is 5 / 10 and the dividend payout ratio is 65.92%.