RB GLOBAL INC (RBA) Stock Fundamental Analysis
USA - NYSE:RBA - CA74935Q1072 - Common Stock
100.4 USD
+4.19 (+4.36%)
100.4 USD
0 (0%)
Taking everything into account, RBA scores 5 out of 10 in our fundamental rating. 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.
RBA had positive earnings in each of the past 5 years.
In the past 5 years RBA always reported a positive cash flow from operatings.
1.2 Ratios
RBA has a better Return On Assets (3.10%) than 63.41% of its industry peers.
RBA has a Return On Equity of 6.36%. This is comparable to the rest of the industry: RBA outperforms 56.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.31%, RBA is in line with its industry, outperforming 54.88% of the companies in the same industry.
RBA had an Average Return On Invested Capital over the past 3 years of 7.18%. This is below the industry average of 10.49%.
| 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 80.49% of its industry peers.
In the last couple of years the Profit Margin of RBA has declined.
RBA has a Operating Margin of 17.44%. This is amongst the best in the industry. RBA outperforms 90.24% of its industry peers.
In the last couple of years the Operating Margin of RBA has grown nicely.
Looking at the Gross Margin, with a value of 45.78%, RBA belongs to the top of the industry, outperforming 84.15% of the companies in the same industry.
RBA's Gross Margin has declined in the last couple of years.
| 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
RBA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
RBA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RBA has more shares outstanding
RBA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.47 indicates that RBA is not a great score, but indicates only limited risk for bankruptcy at the moment.
RBA's Altman-Z score of 2.47 is in line compared to the rest of the industry. RBA outperforms 54.88% of its industry peers.
The Debt to FCF ratio of RBA is 4.46, which is a neutral value as it means it would take RBA, 4.46 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.46, RBA is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that RBA is not too dependend on debt financing.
The Debt to Equity ratio of RBA (0.44) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.46 | ||
| Altman-Z | 2.47 |
ROIC/WACC0.64
WACC8.34%
2.3 Liquidity
A Current Ratio of 1.28 indicates that RBA should not have too much problems paying its short term obligations.
RBA has a worse Current ratio (1.28) than 64.63% of its industry peers.
A Quick Ratio of 1.22 indicates that RBA should not have too much problems paying its short term obligations.
RBA's Quick ratio of 1.22 is in line compared to the rest of the industry. RBA outperforms 42.68% of its industry peers.
| 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.
Looking at the last year, RBA shows a quite strong growth in Revenue. The Revenue has grown by 16.43% in the last year.
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
The Earnings Per Share is expected to grow by 18.24% on average over the next years. This is quite good.
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
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.
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
RBA is valuated quite expensively with a Price/Earnings ratio of 26.15.
The rest of the industry has a similar Price/Earnings ratio as RBA.
The average S&P500 Price/Earnings ratio is at 25.67. RBA is around the same levels.
With a Price/Forward Earnings ratio of 22.96, RBA is valued on the expensive side.
Based on the Price/Forward Earnings ratio, RBA is valued a bit cheaper than the industry average as 62.20% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 31.86, RBA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.15 | ||
| Fwd PE | 22.96 |
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 | 30.74 | ||
| EV/EBITDA | 17.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of RBA may justify a higher PE ratio.
A more expensive valuation may be justified as RBA's earnings are expected to grow with 15.86% in the coming years.
PEG (NY)2.29
PEG (5Y)1.26
EPS Next 2Y11.78%
EPS Next 3Y15.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.23%, RBA has a reasonable but not impressive dividend return.
RBA's Dividend Yield is a higher than the industry average which is at 2.60.
Compared to an average S&P500 Dividend Yield of 2.40, RBA's dividend is way lower than the S&P500 average.
| 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 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
65.92% 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.
DP65.92%
EPS Next 2Y11.78%
EPS Next 3Y15.86%
100.4
+4.19 (+4.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.23%
Inst Owner Change-0.29%
Ins Owners0.09%
Ins Owner Change0.18%
Market Cap18.63B
Revenue(TTM)4.28B
Net Income(TTM)377.30M
Analysts85.45
Price Target90.54 (-9.82%)
Short Float %4.81%
Short Ratio8.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend1.31
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)-0.82%
PT rev (3m)3.27%
EPS NQ rev (1m)0.49%
EPS NQ rev (3m)-0.24%
EPS NY rev (1m)0%
EPS NY rev (3m)2.43%
Revenue NQ rev (1m)0.94%
Revenue NQ rev (3m)2.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.15 | ||
| Fwd PE | 22.96 | ||
| P/S | 4.22 | ||
| P/FCF | 30.74 | ||
| P/OCF | 19.55 | ||
| P/B | 3.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.15 |
EPS(TTM)3.84
EY3.82%
EPS(NY)4.37
Fwd EY4.36%
FCF(TTM)3.27
FCFY3.25%
OCF(TTM)5.14
OCFY5.12%
SpS23.8
BVpS31.98
TBVpS-6.28
PEG (NY)2.29
PEG (5Y)1.26
Graham Number52.56
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 | 2.47 |
F-Score6
WACC8.34%
ROIC/WACC0.64
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 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 65.92%.