RB GLOBAL INC (RBA.CA) Stock Fundamental Analysis
TSX:RBA - Toronto Stock Exchange - CA74935Q1072 - Common Stock - Currency: CAD
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. While RBA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. RBA is valied quite expensively at the moment, while it does show a decent growth rate.
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
With a decent Return On Assets value of 3.16%, RBA is doing good in the industry, outperforming 75.00% of the companies in the same industry.
RBA has a better Return On Equity (6.53%) than 66.67% of its industry peers.
RBA has a better Return On Invested Capital (5.54%) than 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RBA is in line with the industry average of 8.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 6.53% | ||
| ROIC | 5.54% |
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 (8.70%) is better than 87.50% of its industry peers.
RBA's Profit Margin has declined in the last couple of years.
RBA's Operating Margin of 18.36% is amongst the best of the industry. RBA outperforms 91.67% of its industry peers.
RBA's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 46.79%, RBA belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
RBA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.36% | ||
| PM (TTM) | 8.7% | ||
| GM | 46.79% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RBA is destroying value.
RBA has more shares outstanding than it did 1 year ago.
RBA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RBA has been reduced compared to a year ago.
2.2 Solvency
RBA has an Altman-Z score of 2.60. 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.
Looking at the Altman-Z score, with a value of 2.60, RBA is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
RBA has a debt to FCF ratio of 4.19. This is a neutral value as RBA would need 4.19 years to pay back of all of its debts.
RBA's Debt to FCF ratio of 4.19 is fine compared to the rest of the industry. RBA outperforms 75.00% of its industry peers.
RBA has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
RBA has a Debt to Equity ratio of 0.48. This is in the better half of the industry: RBA outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 2.6 |
ROIC/WACC0.65
WACC8.52%
2.3 Liquidity
A Current Ratio of 1.29 indicates that RBA should not have too much problems paying its short term obligations.
RBA has a Current ratio (1.29) which is in line with its industry peers.
RBA has a Quick Ratio of 1.20. 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 Quick ratio (1.20) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.24% 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 16.43% in the past year. This is quite good.
The Revenue has been growing by 26.58% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)18.24%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%15.85%
Revenue 1Y (TTM)16.43%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%9.67%
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 11.47% yearly.
RBA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.33% yearly.
EPS Next Y6.77%
EPS Next 2Y10.45%
EPS Next 3Y11.47%
EPS Next 5YN/A
Revenue Next Year4.19%
Revenue Next 2Y4.47%
Revenue Next 3Y5.51%
Revenue Next 5Y5.33%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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 29.03 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 62.50% of the companies in the same industry.
RBA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.35.
With a Price/Forward Earnings ratio of 27.20, RBA can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as RBA.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, RBA is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.03 | ||
| Fwd PE | 27.2 |
4.2 Price Multiples
RBA's Enterprise Value to EBITDA is on the same level as the industry average.
62.50% of the companies in the same industry are more expensive than RBA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.67 | ||
| EV/EBITDA | 15.13 |
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.
PEG (NY)4.29
PEG (5Y)1.39
EPS Next 2Y10.45%
EPS Next 3Y11.47%
5. Dividend
5.1 Amount
RBA has a Yearly Dividend Yield of 1.17%.
Compared to an average industry Dividend Yield of 2.37, 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 2.33.
| 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.
RBA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.54%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
RBA pays out 64.45% of its income as dividend. This is not a sustainable payout ratio.
RBA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP64.45%
EPS Next 2Y10.45%
EPS Next 3Y11.47%
TSX:RBA (3/7/2025, 7:00:00 PM)
145.73
+3.19 (+2.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners95.69%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap26.92B
Analysts83.64
Price Target117.56 (-19.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend1.87
Dividend Growth(5Y)11.54%
DP64.45%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.94%
Min EPS beat(2)6.51%
Max EPS beat(2)19.36%
EPS beat(4)4
Avg EPS beat(4)16.62%
Min EPS beat(4)6.51%
Max EPS beat(4)29.14%
EPS beat(8)8
Avg EPS beat(8)19.96%
EPS beat(12)11
Avg EPS beat(12)63.4%
EPS beat(16)13
Avg EPS beat(16)45.39%
Revenue beat(2)1
Avg Revenue beat(2)-0.04%
Min Revenue beat(2)-5.69%
Max Revenue beat(2)5.61%
Revenue beat(4)2
Avg Revenue beat(4)0.78%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)6.7%
Revenue beat(8)5
Avg Revenue beat(8)3.44%
Revenue beat(12)9
Avg Revenue beat(12)5.88%
Revenue beat(16)11
Avg Revenue beat(16)4.28%
PT rev (1m)12.44%
PT rev (3m)13.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.84%
EPS NY rev (1m)1.46%
EPS NY rev (3m)1.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.03 | ||
| Fwd PE | 27.2 | ||
| P/S | 4.38 | ||
| P/FCF | 28.67 | ||
| P/OCF | 20.15 | ||
| P/B | 3.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.13 |
EPS(TTM)5.02
EY3.44%
EPS(NY)5.36
Fwd EY3.68%
FCF(TTM)5.08
FCFY3.49%
OCF(TTM)7.23
OCFY4.96%
SpS33.25
BVpS44.28
TBVpS-11.44
PEG (NY)4.29
PEG (5Y)1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 6.53% | ||
| ROCE | 7.51% | ||
| ROIC | 5.54% | ||
| ROICexc | 5.84% | ||
| ROICexgc | 20.86% | ||
| OM | 18.36% | ||
| PM (TTM) | 8.7% | ||
| GM | 46.79% | ||
| FCFM | 15.29% |
ROA(3y)5.26%
ROA(5y)5.45%
ROE(3y)11.5%
ROE(5y)13.11%
ROIC(3y)7.18%
ROIC(5y)7.77%
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 | 0.48 | ||
| Debt/FCF | 4.19 | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 46.24% | ||
| Cap/Sales | 6.46% | ||
| Interest Coverage | 3.44 | ||
| Cash Conversion | 67.28% | ||
| Profit Quality | 175.77% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 2.6 |
F-Score6
WACC8.52%
ROIC/WACC0.65
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)18.24%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%15.85%
EPS Next Y6.77%
EPS Next 2Y10.45%
EPS Next 3Y11.47%
EPS Next 5YN/A
Revenue 1Y (TTM)16.43%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%9.67%
Revenue Next Year4.19%
Revenue Next 2Y4.47%
Revenue Next 3Y5.51%
Revenue Next 5Y5.33%
EBIT growth 1Y15.22%
EBIT growth 3Y42.86%
EBIT growth 5Y29.02%
EBIT Next Year29.65%
EBIT Next 3Y14.62%
EBIT Next 5Y11.49%
FCF growth 1Y231.19%
FCF growth 3Y33.7%
FCF growth 5Y17.56%
OCF growth 1Y71.32%
OCF growth 3Y43.17%
OCF growth 5Y22.87%