RB GLOBAL INC (RBA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RBA - CA74935Q1072 - Common Stock
158.34 CAD
-2.3 (-1.43%)
Overall RBA gets a fundamental rating of 6 out of 10. We evaluated RBA against 24 industry peers in the Commercial Services & Supplies industry. While RBA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. RBA is valued quite expensively, but it does show have an excellent growth rating. 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.
- 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.
- With a Return On Equity value of 6.56%, RBA perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
- RBA's Return On Invested Capital of 5.29% is fine compared to the rest of the industry. RBA outperforms 75.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for RBA 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
- RBA has a better Profit Margin (8.64%) than 87.50% of its industry peers.
- In the last couple of years the Profit Margin of RBA has declined.
- RBA has a better Operating Margin (17.06%) than 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.
- 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.
- RBA has more shares outstanding than it did 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.
- RBA has a better Altman-Z score (2.82) than 70.83% of its industry peers.
- 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.
- RBA's Debt to FCF ratio of 4.97 is fine compared to the rest of the industry. RBA outperforms 75.00% of its industry peers.
- A Debt/Equity ratio of 0.43 indicates that RBA is not too dependend on debt financing.
- RBA's Debt to Equity ratio of 0.43 is fine compared to the rest 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 | 2.82 |
ROIC/WACC0.62
WACC8.59%
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 has a Current ratio of 1.23. This is comparable 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.
- 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.
- 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
- Based on estimates for the next years, RBA will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.24% on average per year.
- 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 2Y11.08%
EPS Next 3Y12.47%
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.
- 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
- With a Price/Earnings ratio of 29.88, RBA can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, RBA is valued a bit cheaper than 70.83% of the companies in the same industry.
- RBA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 26.54, which means the current valuation is very expensive for RBA.
- The rest of the industry has a similar Price/Forward Earnings ratio as RBA.
- RBA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.88 | ||
| Fwd PE | 26.54 |
4.2 Price Multiples
- RBA's Enterprise Value to EBITDA is on the same level as the industry average.
- 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 | 39.59 | ||
| EV/EBITDA | 20.84 |
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.
- RBA's earnings are expected to grow with 12.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.5
PEG (5Y)1.44
EPS Next 2Y11.08%
EPS Next 3Y12.47%
5. Dividend
5.1 Amount
- RBA has a Yearly Dividend Yield of 1.04%.
- Compared to an average industry Dividend Yield of 0.99, RBA pays a bit more dividend than its industry peers.
- With a Dividend Yield of 1.04, RBA pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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
- 64.84% of the earnings are spent on dividend by RBA. This is not a sustainable payout ratio.
- The dividend of RBA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP64.84%
EPS Next 2Y11.08%
EPS Next 3Y12.47%
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 29.88 and the Price/Book (PB) ratio is 3.57.
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.