RB GLOBAL INC (RBA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RBA - CA74935Q1072 - Common Stock
137.54 CAD
+2.64 (+1.96%)
Taking everything into account, RBA scores 6 out of 10 in our fundamental rating. RBA was compared to 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 shows excellent growth, but is valued quite expensive already. This makes RBA very considerable 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.
In the past 5 years RBA has always been profitable.
Each year in the past 5 years RBA had a positive operating cash flow.
1.2 Ratios
RBA has a Return On Assets of 3.20%. This is in the better half of the industry: RBA outperforms 75.00% of its industry peers.
RBA's Return On Equity of 6.56% is in line compared to the rest of the industry. RBA outperforms 58.33% of its industry peers.
RBA has a Return On Invested Capital of 5.29%. This is in the better half 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 6.91%.
| 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
RBA has a better Profit Margin (8.64%) than 87.50% of its industry peers.
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 has a better Gross Margin (45.87%) than 87.50% of its industry peers.
RBA's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RBA is destroying value.
Compared to 1 year ago, RBA has more shares outstanding
RBA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RBA has an improved debt to assets ratio.
2.2 Solvency
RBA has an Altman-Z score of 2.48. 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.
RBA's Altman-Z score of 2.48 is fine compared to the rest of the industry. RBA outperforms 66.67% of its industry peers.
RBA has a debt to FCF ratio of 4.97. This is a neutral value as RBA would need 4.97 years to pay back of all of its debts.
RBA has a Debt to FCF ratio of 4.97. This is in the better half of the industry: RBA outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that RBA is not too dependend on debt financing.
RBA has a Debt to Equity ratio of 0.43. This is in the better half of the industry: RBA outperforms 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.63
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.23 indicates that RBA should not have too much problems paying its short term obligations.
RBA has a Current ratio (1.23) which is in line with 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.
RBA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.81% yearly.
RBA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.26%.
RBA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.58% yearly.
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 Y11.44%
EPS Next 2Y11.78%
EPS Next 3Y15.86%
EPS Next 5Y18.24%
Revenue Next Year7.67%
Revenue Next 2Y6.18%
Revenue Next 3Y6.42%
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
The Price/Earnings ratio is 25.38, 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 25.98. RBA is around the same levels.
A Price/Forward Earnings ratio of 22.29 indicates a rather expensive valuation of RBA.
The rest of the industry has a similar Price/Forward Earnings ratio as RBA.
RBA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.38 | ||
| Fwd PE | 22.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RBA is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RBA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.65 | ||
| EV/EBITDA | 17.74 |
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 15.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.22
PEG (5Y)1.22
EPS Next 2Y11.78%
EPS Next 3Y15.86%
5. Dividend
5.1 Amount
RBA has a Yearly Dividend Yield of 1.23%. Purely for dividend investing, there may be better candidates out there.
RBA's Dividend Yield is a higher than the industry average which is at 2.39.
Compared to an average S&P500 Dividend Yield of 2.41, RBA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
On average, the dividend of RBA grows each year by 11.54%, which is quite nice.
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
RBA pays out 64.84% of its income as dividend. 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 2Y11.78%
EPS Next 3Y15.86%
TSX:RBA (11/25/2025, 7:00:00 PM)
137.54
+2.64 (+1.96%)
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 Cap25.53B
Revenue(TTM)4.53B
Net Income(TTM)391.10M
Analysts85.45
Price Target124.44 (-9.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend1.84
Dividend Growth(5Y)11.54%
DP64.84%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.81%
Min EPS beat(2)11.05%
Max EPS beat(2)12.57%
EPS beat(4)4
Avg EPS beat(4)12.34%
Min EPS beat(4)6.38%
Max EPS beat(4)19.36%
EPS beat(8)8
Avg EPS beat(8)14.12%
EPS beat(12)12
Avg EPS beat(12)17.1%
EPS beat(16)14
Avg EPS beat(16)46.17%
Revenue beat(2)2
Avg Revenue beat(2)2.87%
Min Revenue beat(2)2.7%
Max Revenue beat(2)3.04%
Revenue beat(4)4
Avg Revenue beat(4)4.18%
Min Revenue beat(4)2.7%
Max Revenue beat(4)6.29%
Revenue beat(8)5
Avg Revenue beat(8)1.66%
Revenue beat(12)9
Avg Revenue beat(12)3.78%
Revenue beat(16)12
Avg Revenue beat(16)4.53%
PT rev (1m)-1.41%
PT rev (3m)-1.41%
EPS NQ rev (1m)-3.99%
EPS NQ rev (3m)-5.5%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)-1.76%
Revenue NQ rev (3m)-1.76%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.38 | ||
| Fwd PE | 22.29 | ||
| P/S | 3.99 | ||
| P/FCF | 33.65 | ||
| P/OCF | 20.07 | ||
| P/B | 3.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.74 |
EPS(TTM)5.42
EY3.94%
EPS(NY)6.17
Fwd EY4.49%
FCF(TTM)4.09
FCFY2.97%
OCF(TTM)6.85
OCFY4.98%
SpS34.44
BVpS45.36
TBVpS-9.46
PEG (NY)2.22
PEG (5Y)1.22
Graham Number74.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 6.56% | ||
| ROCE | 7.2% | ||
| ROIC | 5.29% | ||
| ROICexc | 5.65% | ||
| ROICexgc | 19.62% | ||
| OM | 17.06% | ||
| PM (TTM) | 8.64% | ||
| GM | 45.87% | ||
| FCFM | 11.87% |
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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 4.97 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 102.31% | ||
| Cap/Sales | 8.04% | ||
| Interest Coverage | 3.95 | ||
| Cash Conversion | 79.9% | ||
| Profit Quality | 137.46% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.48 |
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)13.95%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%30.99%
EPS Next Y11.44%
EPS Next 2Y11.78%
EPS Next 3Y15.86%
EPS Next 5Y18.24%
Revenue 1Y (TTM)8.26%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%11.3%
Revenue Next Year7.67%
Revenue Next 2Y6.18%
Revenue Next 3Y6.42%
Revenue Next 5Y8.39%
EBIT growth 1Y1.03%
EBIT growth 3Y42.86%
EBIT growth 5Y29.02%
EBIT Next Year35.13%
EBIT Next 3Y19.93%
EBIT Next 5Y17.05%
FCF growth 1Y254.81%
FCF growth 3Y33.7%
FCF growth 5Y17.56%
OCF growth 1Y122.13%
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 64.84%.