RB GLOBAL INC (RBA)
CA74935Q1072 - Common Stock
RBA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. Both the profitability and the financial health of RBA get a neutral evaluation. Nothing too spectacular is happening here. RBA is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RBA was profitable.
In the past year RBA had a positive cash flow from operations.
In the past 5 years RBA has always been profitable.
RBA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RBA (2.85%) is better than 60.71% of its industry peers.
Looking at the Return On Equity, with a value of 5.98%, RBA is in line with its industry, outperforming 58.33% of the companies in the same industry.
With a Return On Invested Capital value of 5.52%, RBA perfoms like the industry average, outperforming 51.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RBA is below the industry average of 9.90%.
| 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
RBA's Profit Margin of 8.14% is fine compared to the rest of the industry. RBA outperforms 79.76% of its industry peers.
In the last couple of years the Profit Margin of RBA has declined.
With an excellent Operating Margin value of 18.28%, RBA belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
RBA's Operating Margin has improved in the last couple of years.
RBA's Gross Margin of 47.37% is amongst the best of the industry. RBA outperforms 84.52% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RBA is destroying value.
Compared to 1 year ago, RBA has more shares outstanding
The number of shares outstanding for RBA has been increased compared to 5 years ago.
RBA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.39 indicates that RBA is not a great score, but indicates only limited risk for bankruptcy at the moment.
RBA's Altman-Z score of 2.39 is in line compared to the rest of the industry. RBA outperforms 52.38% of its industry peers.
The Debt to FCF ratio of RBA is 3.57, which is a good value as it means it would take RBA, 3.57 years of fcf income to pay off 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 70.24% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that RBA is not too dependend on debt financing.
The Debt to Equity ratio of RBA (0.48) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.63
WACC8.81%
2.3 Liquidity
A Current Ratio of 1.28 indicates that RBA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.28, RBA is not doing good in the industry: 66.67% 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's Quick ratio of 1.17 is on the low side compared to the rest of the industry. RBA is outperformed by 60.71% 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 for RBA have decreased by -5.73% in the last year.
RBA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.34% yearly.
The Revenue has grown by 35.72% in the past year. This is a very strong growth!
Measured over the past years, RBA shows a very strong growth in Revenue. The Revenue has been growing by 25.75% on average per year.
EPS 1Y (TTM)-5.73%
EPS 3Y20.78%
EPS 5Y22.34%
EPS Q2Q%21.05%
Revenue 1Y (TTM)35.72%
Revenue growth 3Y38.76%
Revenue growth 5Y25.75%
Sales Q2Q%-3.73%
3.2 Future
The Earnings Per Share is expected to grow by 11.98% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.86% on average over the next years.
EPS Next Y12.71%
EPS Next 2Y11.78%
EPS Next 3Y11.98%
EPS Next 5YN/A
Revenue Next Year15.14%
Revenue Next 2Y9.55%
Revenue Next 3Y8.07%
Revenue Next 5Y5.86%
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.
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 32.21.
The rest of the industry has a similar Price/Earnings ratio as RBA.
RBA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.96.
A Price/Forward Earnings ratio of 25.78 indicates a quite expensive valuation of RBA.
63.10% of the companies in the same industry are more expensive than RBA, based on the Price/Forward Earnings ratio.
RBA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.21 | ||
| Fwd PE | 25.78 |
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.
Based on the Price/Free Cash Flow ratio, RBA is valued a bit cheaper than the industry average as 61.90% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.51 | ||
| EV/EBITDA | 16.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RBA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.53
PEG (5Y)1.44
EPS Next 2Y11.78%
EPS Next 3Y11.98%
5. Dividend
5.1 Amount
RBA has a Yearly Dividend Yield of 1.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.10, RBA pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.13, RBA pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
RBA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP69.25%
EPS Next 2Y11.78%
EPS Next 3Y11.98%
RB GLOBAL INC
NYSE:RBA (11/21/2024, 8:04:00 PM)
After market: 95.34 0 (0%)95.34
+1.6 (+1.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap17.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.21 | ||
| Fwd PE | 25.78 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.53
PEG (5Y)1.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 5.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.28% | ||
| PM (TTM) | 8.14% | ||
| GM | 47.37% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-5.73%
EPS 3Y20.78%
EPS 5Y
EPS Q2Q%
EPS Next Y12.71%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)35.72%
Revenue growth 3Y38.76%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y