RB GLOBAL INC (RBA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RBA - CA74935Q1072 - Common Stock
116.98 USD
+1.4 (+1.21%)
116.98 USD
0 (0%)
Taking everything into account, RBA scores 5 out of 10 in our fundamental rating. RBA was compared to 80 industry peers in the Commercial Services & Supplies industry. RBA has an average financial health and profitability rating. RBA is valued quite expensively, but it does show have an excellent growth rating.
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.
- 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
- The Return On Assets of RBA (3.20%) is better than 65.00% of its industry peers.
- The Return On Equity of RBA (6.56%) is better than 62.50% of its industry peers.
- RBA has a Return On Invested Capital (5.29%) which is in line with its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for RBA is below the industry average of 10.58%.
| 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
- RBA's Profit Margin of 8.64% is amongst the best of the industry. RBA outperforms 82.50% of its industry peers.
- RBA's Profit Margin has declined in the last couple of years.
- RBA's Operating Margin of 17.06% is amongst the best of the industry. RBA outperforms 88.75% of its industry peers.
- RBA's Operating Margin has improved in the last couple of years.
- RBA's Gross Margin of 45.87% is amongst the best of the industry. RBA outperforms 82.50% of its industry peers.
- 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
- 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.
- The number of shares outstanding for RBA has been increased compared to 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 2.83. 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 2.83 is in line compared to the rest of the industry. RBA outperforms 58.75% 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 71.25% 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.
- With a Debt to Equity ratio value of 0.43, RBA perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.83 |
ROIC/WACC0.62
WACC8.5%
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 of 1.23. This is in the lower half of the industry: RBA underperforms 62.50% of its industry peers.
- 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.
- With a Quick ratio value of 1.15, RBA is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| 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.
- 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%.
- 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
- The Earnings Per Share is expected to grow by 18.24% on average over the next years. This is quite good.
- 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
- A Price/Earnings ratio of 30.46 indicates a quite expensive valuation of 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 27.25.
- A Price/Forward Earnings ratio of 27.06 indicates a quite expensive valuation of RBA.
- 61.25% of the companies in the same industry are more expensive than RBA, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of RBA to the average of the S&P500 Index (25.98), we can say RBA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.46 | ||
| Fwd PE | 27.06 |
4.2 Price Multiples
- RBA's Enterprise Value to EBITDA is on the same level as the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as RBA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.41 | ||
| EV/EBITDA | 20.96 |
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 12.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.55
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%.
- Compared to an average industry Dividend Yield of 0.82, RBA pays a bit more dividend than its industry peers.
- 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
- 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
- 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 2Y11.13%
EPS Next 3Y12.51%
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.
Can you provide the valuation status for RB GLOBAL INC?
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.
Can you provide the PE and PB ratios for RBA stock?
The Price/Earnings (PE) ratio for RB GLOBAL INC (RBA) is 30.46 and the Price/Book (PB) ratio is 3.64.
What is the expected EPS growth for RB GLOBAL INC (RBA) stock?
The Earnings per Share (EPS) of RB GLOBAL INC (RBA) is expected to grow by 11.97% in the next year.