RB GLOBAL INC (RBA.CA) Stock Fundamental Analysis
Canada - TSX:RBA - CA74935Q1072 - Common Stock
161.51 CAD
-0.73 (-0.45%)
We assign a fundamental rating of 6 out of 10 to RBA. RBA was compared to 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 is valued quite expensive, but it does show an excellent growth. This makes RBA very considerable for growth investing!
1. Profitability
1.1 Basic Checks
RBA had positive earnings in the past year.
In the past year RBA had a positive cash flow from operations.
In the past 5 years RBA has always been profitable.
In the past 5 years RBA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RBA (3.10%) is better than 75.00% of its industry peers.
RBA has a Return On Equity (6.36%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 5.31%, RBA is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RBA is in line with the industry average of 7.32%.
| 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
The Profit Margin of RBA (8.54%) is better than 87.50% of its industry peers.
In the last couple of years the Profit Margin of RBA has declined.
With an excellent Operating Margin value of 17.44%, RBA belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
RBA's Operating Margin has improved in the last couple of years.
RBA has a Gross Margin of 45.78%. This is amongst the best in 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 | 17.44% | ||
| 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
Compared to 1 year ago, RBA has an improved debt to assets ratio.
2.2 Solvency
RBA has an Altman-Z score of 2.83. This is not the best score and indicates that RBA is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of RBA (2.83) is better than 70.83% of its industry peers.
RBA has a debt to FCF ratio of 4.46. This is a neutral value as RBA would need 4.46 years to pay back of 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.
A Debt/Equity ratio of 0.44 indicates that RBA is not too dependend on debt financing.
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 | 2.83 |
ROIC/WACC0.63
WACC8.42%
2.3 Liquidity
A Current Ratio of 1.28 indicates that RBA should not have too much problems paying its short term obligations.
RBA has a Current ratio of 1.28. This is comparable to the rest of the industry: RBA outperforms 54.17% of its industry peers.
A Quick Ratio of 1.22 indicates that RBA should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.22, RBA is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.10% 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
RBA shows a small growth in Revenue. In the last year, the Revenue has grown by 4.65%.
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
RBA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.27% yearly.
The Revenue is expected to grow by 8.39% on average over the next years. This is quite good.
EPS Next Y12.05%
EPS Next 2Y11.98%
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 32.30, which means the current valuation is very expensive for RBA.
Compared to the rest of the industry, the Price/Earnings ratio of RBA indicates a somewhat cheap valuation: RBA is cheaper than 66.67% of the companies listed in the same industry.
RBA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 26.62 indicates a quite expensive valuation of RBA.
RBA's Price/Forward Earnings ratio is in line with the industry average.
RBA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.3 | ||
| Fwd PE | 26.62 |
4.2 Price Multiples
RBA's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as RBA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.78 | ||
| EV/EBITDA | 16.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RBA has a very decent profitability rating, which may justify a higher PE ratio.
RBA's earnings are expected to grow with 21.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.68
PEG (5Y)1.55
EPS Next 2Y11.98%
EPS Next 3Y21.27%
5. Dividend
5.1 Amount
RBA has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.34, RBA pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.02, RBA pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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 2Y11.98%
EPS Next 3Y21.27%
TSX:RBA (9/16/2025, 7:00:00 PM)
161.51
-0.73 (-0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.1%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap29.98B
Analysts81.82
Price Target126.23 (-21.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend1.81
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)3.77%
PT rev (3m)4.87%
EPS NQ rev (1m)-3.53%
EPS NQ rev (3m)-1.8%
EPS NY rev (1m)2.37%
EPS NY rev (3m)2.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)1.34%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.3 | ||
| Fwd PE | 26.62 | ||
| P/S | 4.91 | ||
| P/FCF | 35.78 | ||
| P/OCF | 22.75 | ||
| P/B | 3.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.97 |
EPS(TTM)5
EY3.1%
EPS(NY)6.07
Fwd EY3.76%
FCF(TTM)4.51
FCFY2.79%
OCF(TTM)7.1
OCFY4.39%
SpS32.9
BVpS44.19
TBVpS-8.68
PEG (NY)2.68
PEG (5Y)1.55
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%
ROICexcg growth 3Y13.17%
ROICexcg 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 | 1.89 | ||
| Cap/Depr | 56.49% | ||
| Cap/Sales | 7.86% | ||
| Interest Coverage | 3.72 | ||
| Cash Conversion | 68.83% | ||
| Profit Quality | 160.64% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 2.83 |
F-Score6
WACC8.42%
ROIC/WACC0.63
Cap/Depr(3y)60.97%
Cap/Depr(5y)56.72%
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 Y12.05%
EPS Next 2Y11.98%
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 Year33.95%
EBIT Next 3Y14%
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%