RB GLOBAL INC (RBA) Stock Fundamental Analysis
USA - NYSE:RBA - CA74935Q1072 - Common Stock
97.69 USD
-0.09 (-0.09%)
98.3 USD
+0.61 (+0.62%)
RBA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Commercial Services & Supplies industry. RBA has an average financial health and profitability rating. RBA shows excellent growth, but is valued quite expensive already.
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.
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.
With a Return On Equity value of 6.56%, RBA perfoms like the industry average, outperforming 58.54% of the companies in the same industry.
RBA's Return On Invested Capital of 5.29% is in line compared to the rest of the industry. RBA outperforms 54.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RBA is below the industry average of 10.48%.
| 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 has a Profit Margin of 8.64%. This is amongst the best in the industry. RBA outperforms 81.71% of its industry peers.
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 90.24% of the companies in the same industry.
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 82.93% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
RBA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.49 indicates that RBA is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.49, RBA is in line with its industry, outperforming 53.66% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 4.97, RBA is in the better half of the industry, outperforming 69.51% 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's Debt to Equity ratio of 0.43 is in line compared to the rest of the industry. RBA outperforms 56.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.64
WACC8.33%
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's Current ratio of 1.23 is on the low side compared to the rest of the industry. RBA is outperformed by 63.41% of 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 worse Quick ratio (1.15) than 62.20% 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
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 Y11.44%
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
With a Price/Earnings ratio of 25.44, RBA can be considered very expensive at the moment.
RBA's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.47, RBA is valued at the same level.
The Price/Forward Earnings ratio is 22.34, which indicates a rather expensive current valuation of RBA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RBA indicates a somewhat cheap valuation: RBA is cheaper than 63.41% of the companies listed in the same industry.
RBA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.44 | ||
| Fwd PE | 22.34 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.73 | ||
| EV/EBITDA | 17.78 |
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.
RBA's earnings are expected to grow with 15.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.22
PEG (5Y)1.22
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.
Compared to an average S&P500 Dividend Yield of 2.44, RBA's dividend is way lower than the S&P500 average.
| 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.
The dividend of RBA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP64.84%
EPS Next 2Y11.78%
EPS Next 3Y15.86%
97.69
-0.09 (-0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.23%
Inst Owner Change3.93%
Ins Owners0.09%
Ins Owner Change-1.08%
Market Cap18.13B
Revenue(TTM)4.53B
Net Income(TTM)391.10M
Analysts85.45
Price Target90 (-7.87%)
Short Float %4.74%
Short Ratio7.54
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)-0.71%
PT rev (3m)0.64%
EPS NQ rev (1m)-1.92%
EPS NQ rev (3m)-5.54%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)1.81%
Revenue NQ rev (1m)-1.09%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)1.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.44 | ||
| Fwd PE | 22.34 | ||
| P/S | 4 | ||
| P/FCF | 33.73 | ||
| P/OCF | 20.11 | ||
| P/B | 3.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.78 |
EPS(TTM)3.84
EY3.93%
EPS(NY)4.37
Fwd EY4.48%
FCF(TTM)2.9
FCFY2.97%
OCF(TTM)4.86
OCFY4.97%
SpS24.4
BVpS32.14
TBVpS-6.7
PEG (NY)2.22
PEG (5Y)1.22
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 | 2.49 |
F-Score6
WACC8.33%
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)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%.