RB GLOBAL INC (RBA) Stock Fundamental Analysis
NYSE:RBA - New York Stock Exchange, Inc. - CA74935Q1072 - Common Stock - Currency: USD
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 valued too expensively and it also shows a decent growth rate.
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.
RBA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RBA (3.18%) is better than 61.45% of its industry peers.
With a Return On Equity value of 6.56%, RBA perfoms like the industry average, outperforming 59.04% of the companies in the same industry.
RBA has a Return On Invested Capital (5.38%) which is comparable to the rest of the industry.
RBA had an Average Return On Invested Capital over the past 3 years of 7.18%. This is below the industry average of 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 6.56% | ||
| ROIC | 5.38% |
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 better Profit Margin (8.75%) than 79.52% of its industry peers.
RBA's Profit Margin has declined in the last couple of years.
RBA has a Operating Margin of 17.77%. This is amongst the best in the industry. RBA outperforms 85.54% of its industry peers.
RBA's Operating Margin has improved in the last couple of years.
RBA has a Gross Margin of 46.24%. This is in the better half of the industry: RBA outperforms 79.52% of its industry peers.
RBA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.77% | ||
| PM (TTM) | 8.75% | ||
| GM | 46.24% |
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.
Compared to 1 year ago, RBA has an improved debt to assets ratio.
2.2 Solvency
RBA has an Altman-Z score of 2.67. 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.
The Altman-Z score of RBA (2.67) is comparable to the rest of the industry.
The Debt to FCF ratio of RBA is 4.00, which is a neutral value as it means it would take RBA, 4.00 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RBA (4.00) is better than 71.08% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that RBA is not too dependend on debt financing.
RBA's Debt to Equity ratio of 0.47 is in line compared to the rest of the industry. RBA outperforms 51.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.63
WACC8.56%
2.3 Liquidity
RBA has a Current Ratio of 1.31. 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 worse Current ratio (1.31) than 66.27% of its industry peers.
RBA has a Quick Ratio of 1.21. 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 (1.21) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
RBA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.08%.
The Earnings Per Share has been growing by 20.81% on average over the past years. This is a very strong growth
RBA shows a small growth in Revenue. In the last year, the Revenue has grown by 2.27%.
RBA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.58% yearly.
EPS 1Y (TTM)6.08%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%-1.11%
Revenue 1Y (TTM)2.27%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%4.12%
3.2 Future
The Earnings Per Share is expected to grow by 12.16% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.69% on average over the next years.
EPS Next Y9.45%
EPS Next 2Y10.15%
EPS Next 3Y12.16%
EPS Next 5YN/A
Revenue Next Year5.51%
Revenue Next 2Y4.78%
Revenue Next 3Y3.87%
Revenue Next 5Y3.69%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 30.26 indicates a quite expensive valuation of RBA.
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 27.45.
RBA is valuated rather expensively with a Price/Forward Earnings ratio of 24.87.
RBA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RBA is cheaper than 60.24% of the companies in the same industry.
RBA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.26 | ||
| Fwd PE | 24.87 |
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 61.45% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.82 | ||
| EV/EBITDA | 15.72 |
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 12.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.2
PEG (5Y)1.45
EPS Next 2Y10.15%
EPS Next 3Y12.16%
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.
Compared to an average industry Dividend Yield of 2.46, RBA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, RBA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
On average, the dividend of RBA grows each year by 11.54%, which is quite nice.
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
64.60% of the earnings are spent on dividend by RBA. This is not a sustainable payout ratio.
RBA's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP64.6%
EPS Next 2Y10.15%
EPS Next 3Y12.16%
105.61
+0.19 (+0.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.1%
Inst Owner Change-0.47%
Ins Owners0.1%
Ins Owner Change7.48%
Market Cap19.56B
Analysts81.82
Price Target87.85 (-16.82%)
Short Float %4.37%
Short Ratio7.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Yearly Dividend1.31
Dividend Growth(5Y)11.54%
DP64.6%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.87%
Min EPS beat(2)6.38%
Max EPS beat(2)19.36%
EPS beat(4)4
Avg EPS beat(4)10.93%
Min EPS beat(4)6.38%
Max EPS beat(4)19.36%
EPS beat(8)8
Avg EPS beat(8)18.4%
EPS beat(12)11
Avg EPS beat(12)13.33%
EPS beat(16)13
Avg EPS beat(16)44.23%
Revenue beat(2)2
Avg Revenue beat(2)5.49%
Min Revenue beat(2)4.68%
Max Revenue beat(2)6.29%
Revenue beat(4)2
Avg Revenue beat(4)0.44%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)6.29%
Revenue beat(8)5
Avg Revenue beat(8)1.89%
Revenue beat(12)9
Avg Revenue beat(12)5.28%
Revenue beat(16)11
Avg Revenue beat(16)3.85%
PT rev (1m)3.97%
PT rev (3m)6.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.26 | ||
| Fwd PE | 24.87 | ||
| P/S | 4.52 | ||
| P/FCF | 28.82 | ||
| P/OCF | 20.29 | ||
| P/B | 3.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.72 |
EPS(TTM)3.49
EY3.3%
EPS(NY)4.25
Fwd EY4.02%
FCF(TTM)3.66
FCFY3.47%
OCF(TTM)5.21
OCFY4.93%
SpS23.37
BVpS31.13
TBVpS-7.35
PEG (NY)3.2
PEG (5Y)1.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 6.56% | ||
| ROCE | 7.31% | ||
| ROIC | 5.38% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 19.75% | ||
| OM | 17.77% | ||
| PM (TTM) | 8.75% | ||
| GM | 46.24% | ||
| FCFM | 15.68% |
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%
ROICexcg growth 3Y13.17%
ROICexcg 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-Score7
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 47.02% | ||
| Cap/Sales | 6.59% | ||
| Interest Coverage | 3.55 | ||
| Cash Conversion | 70.05% | ||
| Profit Quality | 179.31% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 2.67 |
F-Score7
WACC8.56%
ROIC/WACC0.63
Cap/Depr(3y)60.97%
Cap/Depr(5y)56.72%
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)6.08%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%-1.11%
EPS Next Y9.45%
EPS Next 2Y10.15%
EPS Next 3Y12.16%
EPS Next 5YN/A
Revenue 1Y (TTM)2.27%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%4.12%
Revenue Next Year5.51%
Revenue Next 2Y4.78%
Revenue Next 3Y3.87%
Revenue Next 5Y3.69%
EBIT growth 1Y-2.83%
EBIT growth 3Y42.86%
EBIT growth 5Y29.02%
EBIT Next Year33.95%
EBIT Next 3Y14%
EBIT Next 5Y8.97%
FCF growth 1Y474.94%
FCF growth 3Y33.7%
FCF growth 5Y17.56%
OCF growth 1Y336.95%
OCF growth 3Y43.17%
OCF growth 5Y22.87%