RB GLOBAL INC (RBA)
CA74935Q1072 - Common Stock
Taking everything into account, RBA scores 5 out of 10 in our fundamental rating. RBA was compared to 83 industry peers in the Commercial Services & Supplies industry. RBA has an average financial health and profitability rating. RBA is not priced too expensively while it is growing strongly. Keep and eye on this one!
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.
In the past 5 years RBA always reported a positive cash flow from operatings.
1.2 Ratios
RBA has a better Return On Assets (2.85%) than 61.45% of its industry peers.
RBA has a Return On Equity of 5.98%. This is in the better half of the industry: RBA outperforms 60.24% of its industry peers.
The Return On Invested Capital of RBA (5.52%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for RBA is below the industry average of 10.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 5.98% | ||
| ROIC | 5.52% |
ROA(3y)5.61%
ROA(5y)6.15%
ROE(3y)14.05%
ROE(5y)15.11%
ROIC(3y)7.73%
ROIC(5y)8.76%
1.3 Margins
The Profit Margin of RBA (8.14%) is better than 79.52% of its industry peers.
In the last couple of years the Profit Margin of RBA has declined.
The Operating Margin of RBA (18.28%) is better than 87.95% of its industry peers.
In the last couple of years the Operating Margin of RBA has grown nicely.
The Gross Margin of RBA (47.37%) is better than 83.13% of its industry peers.
In the last couple of years the Gross Margin of RBA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.28% | ||
| PM (TTM) | 8.14% | ||
| GM | 47.37% |
OM growth 3Y-1.74%
OM growth 5Y2.98%
PM growth 3Y-27.26%
PM growth 5Y-14.47%
GM growth 3Y-4.39%
GM growth 5Y-2.34%
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
RBA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RBA has a worse debt to assets ratio.
2.2 Solvency
RBA has an Altman-Z score of 2.33. 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 (2.33) which is comparable to the rest of the industry.
RBA has a debt to FCF ratio of 3.57. This is a good value and a sign of high solvency as RBA would need 3.57 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.57, RBA is in the better half of the industry, outperforming 71.08% of the companies in the same industry.
RBA has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
RBA's Debt to Equity ratio of 0.48 is in line compared to the rest of the industry. RBA outperforms 49.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 2.33 |
ROIC/WACC0.62
WACC8.94%
2.3 Liquidity
RBA has a Current Ratio of 1.28. 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 Current ratio value of 1.28, RBA is not doing good in the industry: 66.27% of the companies in the same industry are doing better.
RBA has a Quick Ratio of 1.17. 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 of 1.17. This is comparable to the rest of the industry: RBA outperforms 40.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.50% over the past year.
The Earnings Per Share has been growing by 22.34% on average over the past years. This is a very strong growth
Looking at the last year, RBA shows a very strong growth in Revenue. The Revenue has grown by 35.72%.
RBA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.75% yearly.
EPS 1Y (TTM)19.5%
EPS 3Y20.78%
EPS 5Y22.34%
EPS Q2Q%-1.39%
Revenue 1Y (TTM)35.72%
Revenue growth 3Y38.76%
Revenue growth 5Y25.75%
Sales Q2Q%-3.73%
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 12.29% on average per year.
RBA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.06% yearly.
EPS Next Y13.91%
EPS Next 2Y11.29%
EPS Next 3Y12.29%
EPS Next 5YN/A
Revenue Next Year14.5%
Revenue Next 2Y9.34%
Revenue Next 3Y7.88%
Revenue Next 5Y7.06%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
RBA is valuated quite expensively with a Price/Earnings ratio of 26.86.
RBA's Price/Earnings ratio is a bit cheaper when compared to the industry. RBA is cheaper than 60.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, RBA is valued at the same level.
A Price/Forward Earnings ratio of 24.69 indicates a rather expensive valuation of RBA.
Based on the Price/Forward Earnings ratio, RBA is valued a bit cheaper than the industry average as 62.65% of the companies are valued more expensively.
RBA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.86 | ||
| Fwd PE | 24.69 |
4.2 Price Multiples
RBA's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RBA indicates a somewhat cheap valuation: RBA is cheaper than 66.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.37 | ||
| EV/EBITDA | 15.66 |
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.
RBA has a very decent profitability rating, which may justify a higher PE ratio.
RBA's earnings are expected to grow with 12.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.93
PEG (5Y)1.2
EPS Next 2Y11.29%
EPS Next 3Y12.29%
5. Dividend
5.1 Amount
RBA has a Yearly Dividend Yield of 1.12%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.08, RBA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, RBA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
5.2 History
The dividend of RBA is nicely growing with an annual growth rate of 26.12%!
RBA has been paying a dividend for at least 10 years, so it has a reliable track record.
RBA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)26.12%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
69.25% of the earnings are spent on dividend by RBA. This is not a sustainable payout ratio.
The dividend of RBA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP69.25%
EPS Next 2Y11.29%
EPS Next 3Y12.29%
RB GLOBAL INC
NYSE:RBA (12/20/2024, 8:04:00 PM)
After market: 90.51 0 (0%)90.51
-0.35 (-0.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.51%
Inst Owner Change-3.08%
Ins Owners0.24%
Ins Owner Change-0.18%
Market Cap16.69B
Analysts83.33
Price Target72.98 (-19.37%)
Short Float %3.24%
Short Ratio7.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Dividend Growth(5Y)26.12%
DP69.25%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.99%
Min EPS beat(2)6.51%
Max EPS beat(2)11.46%
EPS beat(4)4
Avg EPS beat(4)15.89%
Min EPS beat(4)6.51%
Max EPS beat(4)29.14%
EPS beat(8)8
Avg EPS beat(8)19.48%
EPS beat(12)10
Avg EPS beat(12)57.44%
EPS beat(16)12
Avg EPS beat(16)43.31%
Revenue beat(2)0
Avg Revenue beat(2)-4.6%
Min Revenue beat(2)-5.69%
Max Revenue beat(2)-3.51%
Revenue beat(4)1
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)6.7%
Revenue beat(8)5
Avg Revenue beat(8)3.58%
Revenue beat(12)8
Avg Revenue beat(12)4.64%
Revenue beat(16)11
Avg Revenue beat(16)3.98%
PT rev (1m)2.24%
PT rev (3m)8.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.05%
EPS NY rev (1m)1.06%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)-0.91%
Revenue NQ rev (3m)-1.72%
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)-1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.86 | ||
| Fwd PE | 24.69 | ||
| P/S | 3.99 | ||
| P/FCF | 21.37 | ||
| P/OCF | 15.39 | ||
| P/B | 2.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.66 |
EPS(TTM)3.37
EY3.72%
EPS(NY)3.67
Fwd EY4.05%
FCF(TTM)4.24
FCFY4.68%
OCF(TTM)5.88
OCFY6.5%
SpS22.69
BVpS30.86
TBVpS-8.58
PEG (NY)1.93
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 5.98% | ||
| ROCE | 7.29% | ||
| ROIC | 5.52% | ||
| ROICexc | 5.88% | ||
| ROICexgc | 22.4% | ||
| OM | 18.28% | ||
| PM (TTM) | 8.14% | ||
| GM | 47.37% | ||
| FCFM | 18.67% |
ROA(3y)5.61%
ROA(5y)6.15%
ROE(3y)14.05%
ROE(5y)15.11%
ROIC(3y)7.73%
ROIC(5y)8.76%
ROICexc(3y)9.29%
ROICexc(5y)10.58%
ROICexgc(3y)35.74%
ROICexgc(5y)37.75%
ROCE(3y)10.28%
ROCE(5y)11.64%
ROICexcg growth 3Y-25.03%
ROICexcg growth 5Y-8.3%
ROICexc growth 3Y-26.5%
ROICexc growth 5Y-12.9%
OM growth 3Y-1.74%
OM growth 5Y2.98%
PM growth 3Y-27.26%
PM growth 5Y-14.47%
GM growth 3Y-4.39%
GM growth 5Y-2.34%
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.57 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 69.81% | ||
| Cap/Sales | 7.26% | ||
| Interest Coverage | 3.22 | ||
| Cash Conversion | 90.41% | ||
| Profit Quality | 229.37% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 2.33 |
F-Score6
WACC8.94%
ROIC/WACC0.62
Cap/Depr(3y)73.94%
Cap/Depr(5y)67.5%
Cap/Sales(3y)5.54%
Cap/Sales(5y)4.57%
Profit Quality(3y)138.65%
Profit Quality(5y)147.61%
High Growth Momentum
Growth
EPS 1Y (TTM)19.5%
EPS 3Y20.78%
EPS 5Y22.34%
EPS Q2Q%-1.39%
EPS Next Y13.91%
EPS Next 2Y11.29%
EPS Next 3Y12.29%
EPS Next 5YN/A
Revenue 1Y (TTM)35.72%
Revenue growth 3Y38.76%
Revenue growth 5Y25.75%
Sales Q2Q%-3.73%
Revenue Next Year14.5%
Revenue Next 2Y9.34%
Revenue Next 3Y7.88%
Revenue Next 5Y7.06%
EBIT growth 1Y32.02%
EBIT growth 3Y36.34%
EBIT growth 5Y29.5%
EBIT Next Year44.49%
EBIT Next 3Y17.38%
EBIT Next 5Y12.38%
FCF growth 1Y268.45%
FCF growth 3Y-2.71%
FCF growth 5Y14.32%
OCF growth 1Y291.1%
OCF growth 3Y28.25%
OCF growth 5Y30.4%