RB GLOBAL INC (RBA) Stock Fundamental Analysis
NYSE:RBA - New York Stock Exchange, Inc. - CA74935Q1072 - Common Stock - Currency: USD
Overall RBA gets a fundamental rating of 4 out of 10. We evaluated RBA against 84 industry peers in the Commercial Services & Supplies industry. RBA has an average financial health and profitability rating. While showing a medium growth rate, RBA is valued expensive at the moment.
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.
Of the past 5 years RBA 4 years were profitable.
Of the past 5 years RBA 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RBA (2.85%) is better than 62.20% of its industry peers.
Looking at the Return On Equity, with a value of 5.98%, RBA is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
RBA's Return On Invested Capital of 5.52% is in line compared to the rest of the industry. RBA outperforms 48.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RBA is below the industry average of 10.11%.
| 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 has a better Profit Margin (8.14%) than 81.71% of its industry peers.
In the last couple of years the Profit Margin of RBA has declined.
Looking at the Operating Margin, with a value of 18.28%, RBA belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
RBA's Operating Margin has improved in the last couple of years.
RBA has a Gross Margin of 47.37%. This is amongst the best in the industry. RBA outperforms 84.15% 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.
RBA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.56 indicates that RBA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of RBA (2.56) is comparable to the rest of the industry.
RBA has a debt to FCF ratio of 3.57. This is a good value and a sign of high solvency as RBA would need 3.57 years to pay back of 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 71.95% of the companies in the same industry.
RBA has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
RBA has a Debt to Equity ratio of 0.48. This is comparable to the rest of the industry: RBA outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 2.56 |
ROIC/WACC0.62
WACC8.93%
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: 67.07% of the companies in the same industry are doing better.
A Quick Ratio of 1.17 indicates that RBA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.17, RBA is in line with its industry, outperforming 41.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.24% over the past year.
The Earnings Per Share has been growing by 20.81% on average over the past years. This is a very strong growth
EPS 1Y (TTM)18.24%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%15.85%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.67%
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 11.47% on average per year.
Based on estimates for the next years, RBA will show a small growth in Revenue. The Revenue will grow by 5.33% on average per year.
EPS Next Y6.77%
EPS Next 2Y10.45%
EPS Next 3Y11.47%
EPS Next 5YN/A
Revenue Next Year3.63%
Revenue Next 2Y4.84%
Revenue Next 3Y5.51%
Revenue Next 5Y5.33%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.31, the valuation of RBA can be described as expensive.
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 30.30.
RBA is valuated quite expensively with a Price/Forward Earnings ratio of 27.45.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RBA is on the same level as its industry peers.
RBA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.31 | ||
| Fwd PE | 27.45 |
4.2 Price Multiples
RBA's Enterprise Value to EBITDA ratio is in line with the industry average.
RBA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.27 | ||
| EV/EBITDA | 16.15 |
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)4.33
PEG (5Y)1.41
EPS Next 2Y10.45%
EPS Next 3Y11.47%
5. Dividend
5.1 Amount
RBA has a Yearly Dividend Yield of 1.12%. 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 2.14.
With a Dividend Yield of 1.12, RBA pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
5.2 History
The dividend of RBA is nicely growing with an annual growth rate of 26.12%!
RBA has paid a dividend for at least 10 years, which is a reliable track record.
RBA has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of RBA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP69.25%
EPS Next 2Y10.45%
EPS Next 3Y11.47%
102.59
-0.93 (-0.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.51%
Inst Owner Change-0.19%
Ins Owners0.24%
Ins Owner Change-0.62%
Market Cap18.95B
Analysts83.64
Price Target72.76 (-29.08%)
Short Float %1.84%
Short Ratio3.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Yearly Dividend2.24
Dividend Growth(5Y)26.12%
DP69.25%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.99%
Min EPS beat(2)6.51%
Max EPS beat(2)11.46%
EPS beat(4)4
Avg EPS beat(4)15.89%
Min EPS beat(4)6.51%
Max EPS beat(4)29.14%
EPS beat(8)8
Avg EPS beat(8)19.48%
EPS beat(12)10
Avg EPS beat(12)57.44%
EPS beat(16)12
Avg EPS beat(16)43.31%
Revenue beat(2)0
Avg Revenue beat(2)-4.6%
Min Revenue beat(2)-5.69%
Max Revenue beat(2)-3.51%
Revenue beat(4)1
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)6.7%
Revenue beat(8)5
Avg Revenue beat(8)3.58%
Revenue beat(12)8
Avg Revenue beat(12)4.64%
Revenue beat(16)11
Avg Revenue beat(16)3.98%
PT rev (1m)1.24%
PT rev (3m)1.93%
EPS NQ rev (1m)1.03%
EPS NQ rev (3m)-7.11%
EPS NY rev (1m)0.3%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-2.08%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.31 | ||
| Fwd PE | 27.45 | ||
| P/S | 4.53 | ||
| P/FCF | 24.27 | ||
| P/OCF | 17.47 | ||
| P/B | 3.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.15 |
EPS(TTM)3.5
EY3.41%
EPS(NY)3.74
Fwd EY3.64%
FCF(TTM)4.23
FCFY4.12%
OCF(TTM)5.87
OCFY5.72%
SpS22.65
BVpS30.81
TBVpS-8.57
PEG (NY)4.33
PEG (5Y)1.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 5.98% | ||
| ROCE | 7.29% | ||
| ROIC | 5.52% | ||
| ROICexc | 5.88% | ||
| ROICexgc | 22.4% | ||
| OM | 18.28% | ||
| PM (TTM) | 8.14% | ||
| GM | 47.37% | ||
| FCFM | 18.67% |
ROA(3y)5.61%
ROA(5y)6.15%
ROE(3y)14.05%
ROE(5y)15.11%
ROIC(3y)7.73%
ROIC(5y)8.76%
ROICexc(3y)9.29%
ROICexc(5y)10.58%
ROICexgc(3y)35.74%
ROICexgc(5y)37.75%
ROCE(3y)10.28%
ROCE(5y)11.64%
ROICexcg growth 3Y-25.03%
ROICexcg growth 5Y-8.3%
ROICexc growth 3Y-26.5%
ROICexc growth 5Y-12.9%
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%
F-Score6
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.57 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 55.25% | ||
| Cap/Sales | 7.26% | ||
| Interest Coverage | 3.22 | ||
| Cash Conversion | 82.52% | ||
| Profit Quality | 229.37% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 2.56 |
F-Score6
WACC8.93%
ROIC/WACC0.62
Cap/Depr(3y)59.94%
Cap/Depr(5y)59.11%
Cap/Sales(3y)5.54%
Cap/Sales(5y)4.57%
Profit Quality(3y)138.65%
Profit Quality(5y)147.61%
High Growth Momentum
Growth
EPS 1Y (TTM)18.24%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%15.85%
EPS Next Y6.77%
EPS Next 2Y10.45%
EPS Next 3Y11.47%
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.67%
Revenue Next Year3.63%
Revenue Next 2Y4.84%
Revenue Next 3Y5.51%
Revenue Next 5Y5.33%
EBIT growth 1Y32.02%
EBIT growth 3Y36.34%
EBIT growth 5Y29.5%
EBIT Next Year44.49%
EBIT Next 3Y17.38%
EBIT Next 5Y12.38%
FCF growth 1Y268.45%
FCF growth 3Y-2.71%
FCF growth 5Y14.32%
OCF growth 1Y291.1%
OCF growth 3Y28.25%
OCF growth 5Y30.4%