RB GLOBAL INC (RBA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RBA - CA74935Q1072 - Common Stock
144.26 CAD
-0.02 (-0.01%)
RBA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 24 industry peers in the Commercial Services & Supplies industry. While RBA has a great profitability rating, there are some minor concerns on its financial health. RBA is valued quite expensively, but it does show have an excellent growth rating. These ratings could make RBA a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year RBA was profitable.
In the past year RBA had a positive cash flow from operations.
RBA had positive earnings in each of the past 5 years.
RBA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RBA's Return On Assets of 3.20% is fine compared to the rest of the industry. RBA outperforms 75.00% of its industry peers.
RBA has a Return On Equity (6.56%) which is in line with its industry peers.
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
Looking at the Profit Margin, with a value of 8.64%, RBA belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
RBA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 17.06%, RBA belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
RBA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 45.87%, 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 | 17.06% | ||
| 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
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.
The number of shares outstanding for RBA has been increased compared to 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 2.62. 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 2.62 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.
With a decent Debt to FCF ratio value of 4.97, RBA is doing good in the industry, outperforming 75.00% of the companies in the same industry.
RBA has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
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 | 2.62 |
ROIC/WACC0.62
WACC8.48%
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 (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.
RBA has a Quick ratio of 1.15. This is comparable to the rest of the industry: RBA outperforms 54.17% of its industry peers.
| 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.
The Earnings Per Share has been growing by 20.81% on average over the past years. This is a very strong growth
RBA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.26%.
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.
The Revenue is expected to grow by 8.39% on average over the next years. This is quite good.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
With a Price/Earnings ratio of 27.48, RBA can be considered very expensive at the moment.
Based on the Price/Earnings ratio, RBA is valued a bit cheaper than the industry average as 70.83% of the companies are valued more expensively.
RBA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.92.
Based on the Price/Forward Earnings ratio of 24.41, the valuation of RBA can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RBA is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, RBA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.48 | ||
| Fwd PE | 24.41 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RBA.
RBA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.42 | ||
| EV/EBITDA | 19.06 |
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 12.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.3
PEG (5Y)1.32
EPS Next 2Y11.08%
EPS Next 3Y12.47%
5. Dividend
5.1 Amount
RBA has a Yearly Dividend Yield of 1.16%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.02, 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 2.00.
| 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 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.
RBA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP64.84%
EPS Next 2Y11.08%
EPS Next 3Y12.47%
TSX:RBA (12/24/2025, 7:00:00 PM)
144.26
-0.02 (-0.01%)
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 Cap26.79B
Revenue(TTM)4.53B
Net Income(TTM)391.10M
Analysts85.45
Price Target127.76 (-11.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Yearly Dividend1.79
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)2.66%
PT rev (3m)1.21%
EPS NQ rev (1m)-0.97%
EPS NQ rev (3m)-4.92%
EPS NY rev (1m)0.47%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-2.02%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.48 | ||
| Fwd PE | 24.41 | ||
| P/S | 4.32 | ||
| P/FCF | 36.42 | ||
| P/OCF | 21.72 | ||
| P/B | 3.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.06 |
EPS(TTM)5.25
EY3.64%
EPS(NY)5.91
Fwd EY4.1%
FCF(TTM)3.96
FCFY2.75%
OCF(TTM)6.64
OCFY4.6%
SpS33.37
BVpS43.96
TBVpS-9.16
PEG (NY)2.3
PEG (5Y)1.32
Graham Number72.06
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 | 2.62 |
F-Score6
WACC8.48%
ROIC/WACC0.62
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 Y11.97%
EPS Next 2Y11.08%
EPS Next 3Y12.47%
EPS Next 5Y18.24%
Revenue 1Y (TTM)8.26%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%11.3%
Revenue Next Year7.27%
Revenue Next 2Y5.63%
Revenue Next 3Y5.24%
Revenue Next 5Y8.39%
EBIT growth 1Y1.03%
EBIT growth 3Y42.86%
EBIT growth 5Y29.02%
EBIT Next Year35.91%
EBIT Next 3Y17.76%
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%.