RB GLOBAL INC (RBA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RBA - CA74935Q1072 - Common Stock
159.43 CAD
-1 (-0.62%)
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. RBA scores excellent on profitability, but there are some minor concerns on its financial health. RBA shows excellent growth, but is valued quite expensive already. With these ratings, RBA could be worth investigating further for growth investing!.
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.
- 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.
- RBA has a Return On Equity (6.56%) which is in line with its industry peers.
- RBA has a better Return On Invested Capital (5.29%) than 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
- With an excellent Profit Margin value of 8.64%, RBA belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- In the last couple of years the Profit Margin of RBA has declined.
- With an excellent Operating Margin value of 17.06%, RBA belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- In the last couple of years the Operating Margin of RBA has grown nicely.
- RBA has a better Gross Margin (45.87%) than 87.50% of its industry peers.
- RBA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.06% | ||
| 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
- RBA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, RBA has more shares outstanding
- Compared to 5 years ago, RBA has more shares outstanding
- The debt/assets ratio for RBA has been reduced compared to a year ago.
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.
- The Altman-Z score of RBA (2.82) is better 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.
- 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 better Debt to Equity ratio (0.43) than 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
WACC8.58%
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.
- The Current ratio of RBA (1.23) is comparable to the rest of the industry.
- RBA has a Quick Ratio of 1.15. 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 (1.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
- RBA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.95%, which is quite good.
- 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 8.26%.
- 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)8.26%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%11.3%
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 18.24% yearly.
- 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 2Y11.13%
EPS Next 3Y12.51%
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 30.37, 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.
- When comparing the Price/Earnings ratio of RBA to the average of the S&P500 Index (28.82), we can say RBA is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 26.96, the valuation of RBA can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RBA is on the same level as its industry peers.
- RBA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.37 | ||
| Fwd PE | 26.96 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RBA is on the same level as its industry peers.
- 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 | 40.26 | ||
| EV/EBITDA | 20.89 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- RBA has a very decent profitability rating, which may justify a higher PE ratio.
- RBA's earnings are expected to grow with 12.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.54
PEG (5Y)1.46
EPS Next 2Y11.13%
EPS Next 3Y12.51%
5. Dividend
5.1 Amount
- RBA has a Yearly Dividend Yield of 1.04%. Purely for dividend investing, there may be better candidates out there.
- RBA's Dividend Yield is a higher than the industry average which is at 1.00.
- Compared to an average S&P500 Dividend Yield of 1.82, RBA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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.
- The dividend of RBA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP64.84%
EPS Next 2Y11.13%
EPS Next 3Y12.51%
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 30.37 and the Price/Book (PB) ratio is 3.63.
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.