RB GLOBAL INC (RBA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RBA - CA74935Q1072 - Common Stock
104.15 USD
-0.27 (-0.26%)
104.15 USD
0 (0%)
Overall RBA gets a fundamental rating of 5 out of 10. We evaluated RBA against 82 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 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.
RBA had a positive operating cash flow in the past year.
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 Return On Assets of 3.20%. This is in the better half of the industry: RBA outperforms 62.20% of its industry peers.
RBA has a Return On Equity (6.56%) which is comparable to the rest of the industry.
RBA's Return On Invested Capital of 5.29% is in line compared to the rest of the industry. RBA outperforms 56.10% of its industry peers.
RBA had an Average Return On Invested Capital over the past 3 years of 7.18%. This is below the industry average of 10.13%.
| 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
The Profit Margin of RBA (8.64%) is better than 82.93% 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 90.24% 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 81.71% of its industry peers.
RBA's Gross Margin has declined in the last couple of years.
| 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.
RBA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RBA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.61 indicates that RBA is not a great score, but indicates only limited risk for bankruptcy at the moment.
RBA has a Altman-Z score of 2.61. This is comparable to the rest of the industry: RBA outperforms 52.44% 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.
The Debt to FCF ratio of RBA (4.97) is better than 69.51% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that RBA is not too dependend on debt financing.
The Debt to Equity ratio of RBA (0.43) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.61 |
ROIC/WACC0.63
WACC8.39%
2.3 Liquidity
A Current Ratio of 1.23 indicates that RBA should not have too much problems paying its short term obligations.
The Current ratio of RBA (1.23) is worse than 65.85% 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.
RBA has a Quick ratio of 1.15. This is in the lower half of the industry: RBA underperforms 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.
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%.
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)8.26%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%11.3%
3.2 Future
RBA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.24% yearly.
RBA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.39% yearly.
EPS Next Y11.97%
EPS Next 2Y11.08%
EPS Next 3Y12.47%
EPS Next 5Y18.24%
Revenue Next Year7.11%
Revenue Next 2Y5.64%
Revenue Next 3Y5.21%
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
Based on the Price/Earnings ratio of 27.12, the valuation of RBA can be described as expensive.
RBA's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.38. RBA is around the same levels.
Based on the Price/Forward Earnings ratio of 24.12, the valuation of RBA can be described as rather expensive.
62.20% of the companies in the same industry are more expensive than RBA, based on the Price/Forward Earnings ratio.
RBA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.12 | ||
| Fwd PE | 24.12 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RBA.
The rest of the industry has a similar Price/Free Cash Flow ratio as RBA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.97 | ||
| EV/EBITDA | 18.89 |
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.
A more expensive valuation may be justified as RBA's earnings are expected to grow with 12.47% in the coming years.
PEG (NY)2.27
PEG (5Y)1.3
EPS Next 2Y11.08%
EPS Next 3Y12.47%
5. Dividend
5.1 Amount
RBA has a Yearly Dividend Yield of 1.16%. Purely for dividend investing, there may be better candidates out there.
RBA's Dividend Yield is a higher than the industry average which is at 0.93.
Compared to the average S&P500 Dividend Yield of 1.87, RBA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
The dividend of RBA is nicely growing with an annual growth rate of 11.54%!
RBA has been paying a dividend for at least 10 years, so it has 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 2Y11.08%
EPS Next 3Y12.47%
104.15
-0.27 (-0.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.23%
Inst Owner Change3.46%
Ins Owners0.09%
Ins Owner Change-0.46%
Market Cap19.34B
Revenue(TTM)4.53B
Net Income(TTM)391.10M
Analysts85.45
Price Target89.15 (-14.4%)
Short Float %4.4%
Short Ratio7.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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)-0.95%
PT rev (3m)-2.35%
EPS NQ rev (1m)-2.12%
EPS NQ rev (3m)-3.99%
EPS NY rev (1m)0.47%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)-0.68%
Revenue NQ rev (3m)-1.76%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.12 | ||
| Fwd PE | 24.12 | ||
| P/S | 4.27 | ||
| P/FCF | 35.97 | ||
| P/OCF | 21.45 | ||
| P/B | 3.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.89 |
EPS(TTM)3.84
EY3.69%
EPS(NY)4.32
Fwd EY4.15%
FCF(TTM)2.9
FCFY2.78%
OCF(TTM)4.85
OCFY4.66%
SpS24.39
BVpS32.13
TBVpS-6.7
PEG (NY)2.27
PEG (5Y)1.3
Graham Number52.68
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 | 2.61 |
F-Score6
WACC8.39%
ROIC/WACC0.63
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 Y11.97%
EPS Next 2Y11.08%
EPS Next 3Y12.47%
EPS Next 5Y18.24%
Revenue 1Y (TTM)8.26%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%11.3%
Revenue Next Year7.11%
Revenue Next 2Y5.64%
Revenue Next 3Y5.21%
Revenue Next 5Y8.39%
EBIT growth 1Y1.03%
EBIT growth 3Y42.86%
EBIT growth 5Y29.02%
EBIT Next Year35.62%
EBIT Next 3Y17.1%
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%.