RB GLOBAL INC (RBA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RBA - CA74935Q1072 - Common Stock
159.43 CAD
-1 (-0.62%)
Overall RBA gets a fundamental rating of 6 out of 10. We evaluated RBA against 24 industry peers in the Commercial Services & Supplies industry. RBA has an excellent profitability rating, but there are some minor concerns on its financial health. RBA is valued quite expensive, but it does show an excellent growth. These ratings could make RBA a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
- RBA had positive earnings in the past year.
- RBA had a positive operating cash flow in the past year.
- Each year in the past 5 years RBA has been profitable.
- Each year in the past 5 years RBA had a positive operating cash flow.
1.2 Ratios
- RBA has a better Return On Assets (3.20%) than 75.00% of its industry peers.
- Looking at the Return On Equity, with a value of 6.56%, RBA is in line with its industry, outperforming 58.33% of the companies in the same industry.
- RBA has a better Return On Invested Capital (5.29%) than 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 5.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 6.56% | ||
| ROIC | 5.29% |
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
- With an excellent Profit Margin value of 8.64%, RBA belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- RBA's Profit Margin has declined in the last couple of years.
- RBA's Operating Margin of 17.06% is amongst the best of 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's Gross Margin of 45.87% is amongst the best of the industry. RBA outperforms 87.50% of its industry peers.
- In the last couple of years the Gross Margin of RBA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.06% | ||
| PM (TTM) | 8.64% | ||
| GM | 45.87% |
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
- RBA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
- Compared to 1 year ago, RBA has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.82 indicates that RBA is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.82, RBA is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
- The Debt to FCF ratio of RBA is 4.97, which is a neutral value as it means it would take RBA, 4.97 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 4.97, RBA is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- RBA has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of RBA (0.43) is better than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.82 |
ROIC/WACC0.62
WACC8.58%
2.3 Liquidity
- RBA has a Current Ratio of 1.23. This is a normal value and indicates that RBA is financially healthy and should not expect problems in meeting its short term obligations.
- RBA's Current ratio of 1.23 is in line compared to the rest of the industry. RBA outperforms 50.00% of its industry peers.
- A Quick Ratio of 1.15 indicates that RBA should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.15, RBA is in line with its industry, outperforming 54.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 13.95% over the past year.
- The Earnings Per Share has been growing by 20.81% on average over the past years. This is a very strong growth
- The Revenue has grown by 8.26% in the past year. This is quite good.
- 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)13.95%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%30.99%
Revenue 1Y (TTM)8.26%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%11.3%
3.2 Future
- RBA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.24% yearly.
- 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 Y11.97%
EPS Next 2Y11.13%
EPS Next 3Y12.51%
EPS Next 5Y18.24%
Revenue Next Year7.27%
Revenue Next 2Y5.63%
Revenue Next 3Y5.24%
Revenue Next 5Y8.39%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 30.37 indicates a quite expensive valuation of RBA.
- RBA's Price/Earnings ratio is a bit cheaper when compared to the industry. RBA is cheaper than 70.83% of the companies in the same industry.
- When comparing the Price/Earnings ratio of RBA to the average of the S&P500 Index (28.82), we can say RBA is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 26.96, the valuation of RBA can be described as expensive.
- RBA's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of RBA to the average of the S&P500 Index (25.95), we can say RBA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.37 | ||
| Fwd PE | 26.96 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.26 | ||
| EV/EBITDA | 20.89 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of RBA may justify a higher PE ratio.
- A more expensive valuation may be justified as RBA's earnings are expected to grow with 12.51% in the coming years.
PEG (NY)2.54
PEG (5Y)1.46
EPS Next 2Y11.13%
EPS Next 3Y12.51%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.04%, RBA has a reasonable but not impressive dividend return.
- RBA's Dividend Yield is a higher than the industry average which is at 1.00.
- Compared to an average S&P500 Dividend Yield of 1.82, RBA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
- On average, the dividend of RBA grows each year by 11.54%, which is quite nice.
- RBA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.54%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 64.84% 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.
DP64.84%
EPS Next 2Y11.13%
EPS Next 3Y12.51%
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.
Can you provide the valuation status for RB GLOBAL INC?
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.
Can you provide the PE and PB ratios for RBA stock?
The Price/Earnings (PE) ratio for RB GLOBAL INC (RBA.CA) is 30.37 and the Price/Book (PB) ratio is 3.63.
What is the expected EPS growth for RB GLOBAL INC (RBA.CA) stock?
The Earnings per Share (EPS) of RB GLOBAL INC (RBA.CA) is expected to grow by 11.97% in the next year.