RB GLOBAL INC (RBA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RBA - CA74935Q1072 - Common Stock
96.22 USD
+0.2 (+0.21%)
96.22 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 expensive, but it does show an excellent growth.
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.
Each year in the past 5 years RBA had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.20%, RBA is doing good in the industry, outperforming 62.20% of the companies in the same industry.
With a Return On Equity value of 6.56%, RBA perfoms like the industry average, outperforming 58.54% of the companies in the same industry.
RBA's Return On Invested Capital of 5.29% is in line compared to the rest of the industry. RBA outperforms 54.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RBA is below the industry average of 10.48%.
| 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's Profit Margin of 8.64% is amongst the best of the industry. RBA outperforms 81.71% of its industry peers.
In the last couple of years the Profit Margin of RBA has declined.
RBA has a Operating Margin of 17.06%. This is amongst the best in the industry. RBA outperforms 90.24% of its industry peers.
RBA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 45.87%, RBA belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RBA 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.
RBA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.46 indicates that RBA is not a great score, but indicates only limited risk for bankruptcy at the moment.
RBA's Altman-Z score of 2.46 is in line compared to the rest of the industry. RBA outperforms 52.44% of its industry peers.
The Debt to FCF ratio of RBA is 4.97, which is a neutral value as it means it would take RBA, 4.97 years of fcf income to pay off all of its debts.
RBA has a Debt to FCF ratio of 4.97. This is in the better half of the industry: RBA outperforms 69.51% of its industry peers.
RBA has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
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 | 2.46 |
ROIC/WACC0.64
WACC8.31%
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.
With a Current ratio value of 1.23, RBA is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
A Quick Ratio of 1.15 indicates that RBA should not have too much problems paying its short term obligations.
RBA has a worse Quick ratio (1.15) than 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%.
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
The Earnings Per Share is expected to grow by 18.24% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.39% on average over the next years. This is quite good.
EPS Next Y11.44%
EPS Next 2Y11.78%
EPS Next 3Y15.86%
EPS Next 5Y18.24%
Revenue Next Year7.67%
Revenue Next 2Y6.18%
Revenue Next 3Y6.42%
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.
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
With a Price/Earnings ratio of 25.06, RBA can be considered very expensive at the moment.
RBA's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.45. RBA is around the same levels.
The Price/Forward Earnings ratio is 22.00, which indicates a rather expensive current valuation of RBA.
Based on the Price/Forward Earnings ratio, RBA is valued a bit cheaper than 62.20% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, RBA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.06 | ||
| Fwd PE | 22 |
4.2 Price Multiples
RBA's Enterprise Value to EBITDA is on the same level as 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 | 33.22 | ||
| EV/EBITDA | 17.5 |
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.
A more expensive valuation may be justified as RBA's earnings are expected to grow with 15.86% in the coming years.
PEG (NY)2.19
PEG (5Y)1.2
EPS Next 2Y11.78%
EPS Next 3Y15.86%
5. Dividend
5.1 Amount
RBA has a Yearly Dividend Yield of 1.18%. 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 2.55.
Compared to an average S&P500 Dividend Yield of 2.45, RBA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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
RBA pays out 64.84% of its income as dividend. 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 2Y11.78%
EPS Next 3Y15.86%
96.22
+0.2 (+0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.23%
Inst Owner Change3.93%
Ins Owners0.09%
Ins Owner Change-1.08%
Market Cap17.86B
Revenue(TTM)4.53B
Net Income(TTM)391.10M
Analysts85.45
Price Target90 (-6.46%)
Short Float %4.74%
Short Ratio7.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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)-0.71%
PT rev (3m)0.64%
EPS NQ rev (1m)-1.92%
EPS NQ rev (3m)-5.54%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)1.81%
Revenue NQ rev (1m)-1.09%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)1.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.06 | ||
| Fwd PE | 22 | ||
| P/S | 3.94 | ||
| P/FCF | 33.22 | ||
| P/OCF | 19.81 | ||
| P/B | 2.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.5 |
EPS(TTM)3.84
EY3.99%
EPS(NY)4.37
Fwd EY4.55%
FCF(TTM)2.9
FCFY3.01%
OCF(TTM)4.86
OCFY5.05%
SpS24.4
BVpS32.14
TBVpS-6.7
PEG (NY)2.19
PEG (5Y)1.2
Graham Number52.7
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 | 2.46 |
F-Score6
WACC8.31%
ROIC/WACC0.64
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 Y11.44%
EPS Next 2Y11.78%
EPS Next 3Y15.86%
EPS Next 5Y18.24%
Revenue 1Y (TTM)8.26%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%11.3%
Revenue Next Year7.67%
Revenue Next 2Y6.18%
Revenue Next 3Y6.42%
Revenue Next 5Y8.39%
EBIT growth 1Y1.03%
EBIT growth 3Y42.86%
EBIT growth 5Y29.02%
EBIT Next Year35.13%
EBIT Next 3Y19.93%
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%.