RB GLOBAL INC (RBA) Stock Fundamental Analysis
USA - NYSE:RBA - CA74935Q1072 - Common Stock
101.57 USD
+0.87 (+0.86%)
101.57 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to RBA. RBA was compared to 82 industry peers in the Commercial Services & Supplies industry. RBA has only an average score on both its financial health and profitability. RBA is valued quite expensive, but it does show an excellent growth.
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.
Each year in the past 5 years RBA has been profitable.
Each year in the past 5 years RBA had a positive operating cash flow.
1.2 Ratios
RBA's Return On Assets of 3.20% is fine compared to the rest of the industry. RBA outperforms 62.20% of its industry peers.
The Return On Equity of RBA (6.56%) is comparable to the rest of the industry.
RBA has a Return On Invested Capital (5.29%) which is in line with its industry peers.
RBA had an Average Return On Invested Capital over the past 3 years of 7.18%. This is below the industry average of 10.52%.
| 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 80.49% of the companies in the same industry.
RBA's Profit Margin has declined in the last couple of years.
The Operating Margin of RBA (17.06%) is better than 90.24% of its industry peers.
In the last couple of years the Operating Margin of RBA has grown nicely.
The Gross Margin of RBA (45.87%) is better than 82.93% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
Compared to 1 year ago, RBA has an improved debt to assets ratio.
2.2 Solvency
RBA has an Altman-Z score of 2.54. 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 has a Altman-Z score (2.54) which is comparable to the rest of the industry.
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.
RBA has a Debt to FCF ratio of 4.97. This is in the better half of the industry: RBA outperforms 69.51% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that RBA is not too dependend on debt financing.
The Debt to Equity ratio of RBA (0.43) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.63
WACC8.34%
2.3 Liquidity
A Current Ratio of 1.23 indicates that RBA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.23, RBA is not doing good in the industry: 64.63% of the companies in the same industry are doing better.
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's Quick ratio of 1.15 is on the low side compared to the rest of the industry. RBA is outperformed by 63.41% 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
Looking at the last year, RBA shows a quite strong growth in Revenue. The Revenue has grown by 8.26% in the last year.
RBA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.58% yearly.
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.
Based on estimates for the next years, RBA will show a quite strong growth in Revenue. The Revenue will grow by 8.39% on average per year.
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
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
The Price/Earnings ratio is 26.45, which means the current valuation is very expensive for RBA.
Compared to the rest of the industry, the Price/Earnings ratio of RBA is on the same level as its industry peers.
RBA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
Based on the Price/Forward Earnings ratio of 23.23, the valuation of RBA can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RBA indicates a somewhat cheap valuation: RBA is cheaper than 62.20% of the companies listed in the same industry.
RBA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.45 | ||
| Fwd PE | 23.23 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as RBA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.07 | ||
| EV/EBITDA | 18.27 |
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)2.31
PEG (5Y)1.27
EPS Next 2Y11.78%
EPS Next 3Y15.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.18%, RBA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.55, RBA pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.18, RBA pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
The dividend of RBA is nicely growing with an annual growth rate of 11.54%!
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 64.84% of its income as dividend. 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 2Y11.78%
EPS Next 3Y15.86%
101.57
+0.87 (+0.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.23%
Inst Owner Change-0.17%
Ins Owners0.09%
Ins Owner Change-1.85%
Market Cap18.85B
Revenue(TTM)4.53B
Net Income(TTM)391.10M
Analysts85.45
Price Target90 (-11.39%)
Short Float %4.81%
Short Ratio8.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Yearly Dividend1.31
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)-0.11%
PT rev (3m)1.25%
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 | 26.45 | ||
| Fwd PE | 23.23 | ||
| P/S | 4.16 | ||
| P/FCF | 35.07 | ||
| P/OCF | 20.91 | ||
| P/B | 3.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.27 |
EPS(TTM)3.84
EY3.78%
EPS(NY)4.37
Fwd EY4.31%
FCF(TTM)2.9
FCFY2.85%
OCF(TTM)4.86
OCFY4.78%
SpS24.4
BVpS32.14
TBVpS-6.7
PEG (NY)2.31
PEG (5Y)1.27
Graham Number52.7
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 | 2.54 |
F-Score6
WACC8.34%
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)8.26%
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 1Y1.03%
EBIT growth 3Y42.86%
EBIT growth 5Y29.02%
EBIT Next Year35.13%
EBIT Next 3Y19.93%
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 FAQ
What is the ChartMill fundamental rating of RB GLOBAL INC (RBA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to RBA.
What is the valuation status of RB GLOBAL INC (RBA) stock?
ChartMill assigns a valuation rating of 3 / 10 to RB GLOBAL INC (RBA). This can be considered as Overvalued.
How profitable is RB GLOBAL INC (RBA) stock?
RB GLOBAL INC (RBA) has a profitability rating of 6 / 10.
What is the financial health of RB GLOBAL INC (RBA) stock?
The financial health rating of RB GLOBAL INC (RBA) is 4 / 10.
Can you provide the dividend sustainability for RBA stock?
The dividend rating of RB GLOBAL INC (RBA) is 5 / 10 and the dividend payout ratio is 64.84%.