RB GLOBAL INC (RBA.CA) Stock Fundamental Analysis
TSX:RBA - Toronto Stock Exchange - CA74935Q1072 - Common Stock - Currency: CAD
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 scores excellent on profitability, but there are some minor concerns on its financial health. RBA has a correct valuation and a medium growth rate.
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.
RBA had positive earnings in each of the past 5 years.
Each year in the past 5 years RBA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.18%, RBA is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Return On Equity of RBA (6.56%) is comparable to the rest of the industry.
The Return On Invested Capital of RBA (5.38%) is better than 70.83% 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 7.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 6.56% | ||
| ROIC | 5.38% |
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's Profit Margin of 8.75% is amongst the best of the industry. RBA outperforms 87.50% of its industry peers.
In the last couple of years the Profit Margin of RBA has declined.
RBA's Operating Margin of 17.77% is amongst the best of the industry. RBA outperforms 91.67% of its industry peers.
In the last couple of years the Operating Margin of RBA has grown nicely.
The Gross Margin of RBA (46.24%) is better than 87.50% of its industry peers.
RBA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.77% | ||
| PM (TTM) | 8.75% | ||
| GM | 46.24% |
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 2.67 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 (2.67) than 70.83% of its industry peers.
RBA has a debt to FCF ratio of 4.00. This is a neutral value as RBA would need 4.00 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.00, RBA is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that RBA is not too dependend on debt financing.
RBA has a Debt to Equity ratio of 0.47. This is in the better half of the industry: RBA outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.62
WACC8.66%
2.3 Liquidity
RBA has a Current Ratio of 1.31. This is a normal value and indicates that RBA is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.31, RBA perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
A Quick Ratio of 1.21 indicates that RBA should not have too much problems paying its short term obligations.
RBA's Quick ratio of 1.21 is fine compared to the rest of the industry. RBA outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
RBA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.08%.
RBA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.81% yearly.
The Revenue has been growing slightly by 2.27% in the past year.
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)6.08%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%-1.11%
Revenue 1Y (TTM)2.27%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%4.12%
3.2 Future
The Earnings Per Share is expected to grow by 12.16% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.69% on average over the next years.
EPS Next Y9.45%
EPS Next 2Y10.15%
EPS Next 3Y12.16%
EPS Next 5YN/A
Revenue Next Year5.51%
Revenue Next 2Y4.78%
Revenue Next 3Y3.87%
Revenue Next 5Y3.69%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
RBA is valuated quite expensively with a Price/Earnings ratio of 30.36.
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 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 24.94, which indicates a rather expensive current 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 similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.36 | ||
| Fwd PE | 24.94 |
4.2 Price Multiples
RBA's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, RBA is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.89 | ||
| EV/EBITDA | 15.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RBA does not grow enough to justify the current Price/Earnings ratio.
RBA has a very decent profitability rating, which may justify a higher PE ratio.
RBA's earnings are expected to grow with 12.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.21
PEG (5Y)1.46
EPS Next 2Y10.15%
EPS Next 3Y12.16%
5. Dividend
5.1 Amount
RBA has a Yearly Dividend Yield of 1.16%.
Compared to an average industry Dividend Yield of 2.29, RBA pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.16, RBA pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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
RBA pays out 64.60% of its income as dividend. This is not a sustainable payout ratio.
RBA's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP64.6%
EPS Next 2Y10.15%
EPS Next 3Y12.16%
TSX:RBA (7/4/2025, 7:00:00 PM)
143.89
+0.14 (+0.1%)
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 Cap26.65B
Analysts81.82
Price Target120.36 (-16.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Yearly Dividend1.78
Dividend Growth(5Y)11.54%
DP64.6%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.87%
Min EPS beat(2)6.38%
Max EPS beat(2)19.36%
EPS beat(4)4
Avg EPS beat(4)10.93%
Min EPS beat(4)6.38%
Max EPS beat(4)19.36%
EPS beat(8)8
Avg EPS beat(8)18.4%
EPS beat(12)11
Avg EPS beat(12)13.33%
EPS beat(16)13
Avg EPS beat(16)44.23%
Revenue beat(2)2
Avg Revenue beat(2)5.49%
Min Revenue beat(2)4.68%
Max Revenue beat(2)6.29%
Revenue beat(4)2
Avg Revenue beat(4)0.44%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)6.29%
Revenue beat(8)5
Avg Revenue beat(8)1.89%
Revenue beat(12)9
Avg Revenue beat(12)5.28%
Revenue beat(16)11
Avg Revenue beat(16)3.85%
PT rev (1m)3.06%
PT rev (3m)2.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.36 | ||
| Fwd PE | 24.94 | ||
| P/S | 4.53 | ||
| P/FCF | 28.89 | ||
| P/OCF | 20.34 | ||
| P/B | 3.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.75 |
EPS(TTM)4.74
EY3.29%
EPS(NY)5.77
Fwd EY4.01%
FCF(TTM)4.98
FCFY3.46%
OCF(TTM)7.07
OCFY4.92%
SpS31.76
BVpS42.31
TBVpS-9.98
PEG (NY)3.21
PEG (5Y)1.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 6.56% | ||
| ROCE | 7.31% | ||
| ROIC | 5.38% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 19.75% | ||
| OM | 17.77% | ||
| PM (TTM) | 8.75% | ||
| GM | 46.24% | ||
| FCFM | 15.68% |
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-Score7
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 47.02% | ||
| Cap/Sales | 6.59% | ||
| Interest Coverage | 3.55 | ||
| Cash Conversion | 70.05% | ||
| Profit Quality | 179.31% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 2.67 |
F-Score7
WACC8.66%
ROIC/WACC0.62
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)6.08%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%-1.11%
EPS Next Y9.45%
EPS Next 2Y10.15%
EPS Next 3Y12.16%
EPS Next 5YN/A
Revenue 1Y (TTM)2.27%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%4.12%
Revenue Next Year5.51%
Revenue Next 2Y4.78%
Revenue Next 3Y3.87%
Revenue Next 5Y3.69%
EBIT growth 1Y-2.83%
EBIT growth 3Y42.86%
EBIT growth 5Y29.02%
EBIT Next Year33.95%
EBIT Next 3Y14%
EBIT Next 5Y8.97%
FCF growth 1Y474.94%
FCF growth 3Y33.7%
FCF growth 5Y17.56%
OCF growth 1Y336.95%
OCF growth 3Y43.17%
OCF growth 5Y22.87%