RB GLOBAL INC (RBA.CA) Stock Fundamental Analysis
Canada - TSX:RBA - CA74935Q1072 - Common Stock
140.81 CAD
+5.01 (+3.69%)
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. RBA has an excellent profitability rating, but there are some minor concerns on its financial health. RBA is valued quite expensive, but it does show an excellent growth. These ratings could make RBA a good candidate 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.
RBA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RBA has a better Return On Assets (3.10%) than 79.17% of its industry peers.
Looking at the Return On Equity, with a value of 6.36%, RBA is in line with its industry, outperforming 58.33% of the companies in the same industry.
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.
Measured over the past 3 years, the Average Return On Invested Capital for RBA is in line with the industry average of 7.08%.
| 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.
RBA's Profit Margin has declined in the last couple of years.
RBA has a Operating Margin of 17.44%. This is amongst the best in the industry. RBA outperforms 87.50% of its industry peers.
RBA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 45.78%, RBA belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
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.
RBA has more shares outstanding than it did 5 years ago.
RBA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.54 indicates that RBA is not a great score, but indicates only limited risk for bankruptcy at the moment.
RBA has a Altman-Z score of 2.54. This is in the better half of the industry: RBA outperforms 66.67% 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.
RBA has a Debt to FCF ratio of 4.46. This is in the better half of the industry: RBA outperforms 70.83% of its industry peers.
RBA has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RBA (0.44) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.46 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.63
WACC8.44%
2.3 Liquidity
RBA has a Current Ratio of 1.28. 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 1.28, RBA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.22 indicates that RBA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.22, RBA perfoms like the industry average, outperforming 58.33% 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 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 16.43%.
The Revenue has been growing by 26.58% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)13.95%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%30.99%
Revenue 1Y (TTM)16.43%
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.
RBA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.39% yearly.
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.
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
A Price/Earnings ratio of 25.98 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 70.83% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.06. RBA is around the same levels.
Based on the Price/Forward Earnings ratio of 22.82, the valuation of RBA can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as RBA.
When comparing the Price/Forward Earnings ratio of RBA to the average of the S&P500 Index (32.73), we can say RBA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.98 | ||
| Fwd PE | 22.82 |
4.2 Price Multiples
RBA's Enterprise Value to EBITDA is on the same level as the industry average.
RBA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.56 | ||
| EV/EBITDA | 17.73 |
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.
The decent profitability rating of RBA 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)2.27
PEG (5Y)1.25
EPS Next 2Y11.78%
EPS Next 3Y15.86%
5. Dividend
5.1 Amount
RBA has a Yearly Dividend Yield of 1.23%.
Compared to an average industry Dividend Yield of 2.42, RBA pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.23, RBA pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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 2Y11.78%
EPS Next 3Y15.86%
TSX:RBA (11/7/2025, 7:00:00 PM)
140.81
+5.01 (+3.69%)
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 Cap26.13B
Revenue(TTM)4.28B
Net Income(TTM)377.30M
Analysts85.45
Price Target126.23 (-10.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend1.84
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)0%
PT rev (3m)3.77%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-0.97%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)1.81%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)1.72%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)1.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.98 | ||
| Fwd PE | 22.82 | ||
| P/S | 4.19 | ||
| P/FCF | 30.56 | ||
| P/OCF | 19.43 | ||
| P/B | 3.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.73 |
EPS(TTM)5.42
EY3.85%
EPS(NY)6.17
Fwd EY4.38%
FCF(TTM)4.61
FCFY3.27%
OCF(TTM)7.25
OCFY5.15%
SpS33.58
BVpS45.11
TBVpS-8.86
PEG (NY)2.27
PEG (5Y)1.25
Graham Number74.17
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%
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 Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.46 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 90.91% | ||
| Cap/Sales | 7.86% | ||
| Interest Coverage | 3.72 | ||
| Cash Conversion | 82.73% | ||
| Profit Quality | 160.64% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 2.54 |
F-Score6
WACC8.44%
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)16.43%
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 1Y-0.49%
EBIT growth 3Y42.86%
EBIT growth 5Y29.02%
EBIT Next Year35.13%
EBIT Next 3Y19.93%
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%
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 4 / 10 to RB GLOBAL INC (RBA.CA). This can be considered as Fairly Valued.
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 65.92%.