RB GLOBAL INC (RBA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RBA - CA74935Q1072 - Common Stock
109.19 USD
+1.34 (+1.24%)
109.19 USD
0 (0%)
RBA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 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
In the past year RBA was profitable.
RBA had a positive operating cash flow in the past year.
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
RBA's Return On Assets of 3.20% is fine compared to the rest of the industry. RBA outperforms 65.00% of its industry peers.
Looking at the Return On Equity, with a value of 6.56%, RBA is in the better half of the industry, outperforming 61.25% of the companies in the same industry.
RBA has a Return On Invested Capital of 5.29%. This is comparable to the rest of the industry: RBA outperforms 56.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RBA is below the industry average of 10.55%.
| 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 better Profit Margin (8.64%) than 82.50% of its industry peers.
RBA's Profit Margin has declined in the last couple of years.
RBA has a better Operating Margin (17.06%) than 88.75% of its industry peers.
In the last couple of years the Operating Margin of RBA has grown nicely.
RBA's Gross Margin of 45.87% is amongst the best of the industry. RBA outperforms 82.50% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RBA is destroying value.
Compared to 1 year ago, RBA has more shares outstanding
RBA has more shares outstanding than it did 5 years ago.
RBA has a better debt/assets ratio than last year.
2.2 Solvency
RBA has an Altman-Z score of 2.69. 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 (2.69) is comparable to the rest of the industry.
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.
RBA's Debt to FCF ratio of 4.97 is fine compared to the rest of the industry. RBA outperforms 71.25% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that RBA is not too dependend on debt financing.
RBA has a Debt to Equity ratio (0.43) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.69 |
ROIC/WACC0.63
WACC8.43%
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.
The Current ratio of RBA (1.23) is worse than 63.75% 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's Quick ratio of 1.15 is on the low side compared to the rest of the industry. RBA is outperformed by 61.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
RBA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.95%, which is quite good.
Measured over the past years, RBA shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.81% on average per year.
The Revenue has grown by 8.26% in the past year. This is quite good.
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
Based on estimates for the next years, RBA will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.24% on average per year.
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 Year7.27%
Revenue Next 2Y5.63%
Revenue Next 3Y5.24%
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
The Price/Earnings ratio is 28.43, which means the current valuation is very expensive for RBA.
RBA's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of RBA to the average of the S&P500 Index (27.19), we can say RBA is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 25.28, the valuation of RBA can be described as expensive.
Based on the Price/Forward Earnings ratio, RBA is valued a bit cheaper than the industry average as 63.75% 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 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.43 | ||
| Fwd PE | 25.28 |
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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.71 | ||
| EV/EBITDA | 19.68 |
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.
RBA's earnings are expected to grow with 12.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.38
PEG (5Y)1.37
EPS Next 2Y11.08%
EPS Next 3Y12.47%
5. Dividend
5.1 Amount
RBA has a Yearly Dividend Yield of 1.12%.
Compared to an average industry Dividend Yield of 0.88, RBA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, 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 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
64.84% of the earnings are spent on dividend by RBA. This is not a sustainable payout ratio.
RBA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP64.84%
EPS Next 2Y11.08%
EPS Next 3Y12.47%
109.19
+1.34 (+1.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners98.47%
Inst Owner Change0%
Ins Owners0.09%
Ins Owner Change-0.22%
Market Cap20.28B
Revenue(TTM)4.53B
Net Income(TTM)391.10M
Analysts85.45
Price Target92.68 (-15.12%)
Short Float %4.67%
Short Ratio8.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Yearly Dividend1.31
Dividend Growth(5Y)11.54%
DP64.84%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)3.96%
PT rev (3m)2.25%
EPS NQ rev (1m)-0.97%
EPS NQ rev (3m)-4.92%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-2.02%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.43 | ||
| Fwd PE | 25.28 | ||
| P/S | 4.48 | ||
| P/FCF | 37.71 | ||
| P/OCF | 22.49 | ||
| P/B | 3.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.68 |
EPS(TTM)3.84
EY3.52%
EPS(NY)4.32
Fwd EY3.96%
FCF(TTM)2.9
FCFY2.65%
OCF(TTM)4.85
OCFY4.45%
SpS24.39
BVpS32.13
TBVpS-6.7
PEG (NY)2.38
PEG (5Y)1.37
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 | 2.69 |
F-Score6
WACC8.43%
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 Year7.27%
Revenue Next 2Y5.63%
Revenue Next 3Y5.24%
Revenue Next 5Y8.39%
EBIT growth 1Y1.03%
EBIT growth 3Y42.86%
EBIT growth 5Y29.02%
EBIT Next Year35.91%
EBIT Next 3Y17.76%
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.
Can you provide the valuation status for RB GLOBAL INC?
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.
Can you provide the PE and PB ratios for RBA stock?
The Price/Earnings (PE) ratio for RB GLOBAL INC (RBA) is 28.43 and the Price/Book (PB) ratio is 3.4.
What is the expected EPS growth for RB GLOBAL INC (RBA) stock?
The Earnings per Share (EPS) of RB GLOBAL INC (RBA) is expected to grow by 11.97% in the next year.