RB GLOBAL INC (RBA) Stock Fundamental Analysis
NYSE:RBA - New York Stock Exchange, Inc. - CA74935Q1072 - Common Stock
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 only an average score on both its financial health and profitability. RBA is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year RBA was profitable.
In the past year RBA had a positive cash flow from operations.
Each year in the past 5 years RBA has been profitable.
RBA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.85%, RBA is doing good in the industry, outperforming 62.20% of the companies in the same industry.
The Return On Equity of RBA (5.98%) is better than 60.98% of its industry peers.
RBA has a Return On Invested Capital (5.52%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RBA is below the industry average of 10.08%.
| 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
Looking at the Profit Margin, with a value of 8.14%, RBA belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
RBA's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 18.28%, RBA belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
In the last couple of years the Operating Margin of RBA has grown nicely.
RBA's Gross Margin of 47.37% is amongst the best of the industry. RBA outperforms 82.93% 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 more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RBA has more shares outstanding
RBA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.31 indicates that RBA is not a great score, but indicates only limited risk for bankruptcy at the moment.
RBA's Altman-Z score of 2.31 is in line compared to the rest of the industry. RBA outperforms 51.22% of its industry peers.
The Debt to FCF ratio of RBA is 3.57, which is a good value as it means it would take RBA, 3.57 years of fcf income to pay off all of its debts.
RBA has a Debt to FCF ratio of 3.57. This is in the better half of the industry: RBA outperforms 70.73% of its industry peers.
RBA has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.48, RBA perfoms like the industry average, outperforming 48.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.61
WACC9.08%
2.3 Liquidity
A Current Ratio of 1.28 indicates that RBA should not have too much problems paying its short term obligations.
The Current ratio of RBA (1.28) is worse than 65.85% of its industry peers.
RBA has a Quick Ratio of 1.17. This is a normal value and indicates that RBA is financially healthy and should not expect problems in meeting its short term obligations.
RBA's Quick ratio of 1.17 is in line compared to the rest of the industry. RBA outperforms 41.46% of its industry peers.
| 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 19.50% over the past year.
RBA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.34% yearly.
The Revenue has grown by 35.72% in the past year. This is a very strong growth!
RBA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.75% yearly.
EPS 1Y (TTM)19.5%
EPS 3Y20.78%
EPS 5Y22.34%
EPS Q2Q%-1.39%
Revenue 1Y (TTM)35.72%
Revenue growth 3Y38.76%
Revenue growth 5Y25.75%
Sales Q2Q%-3.73%
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 12.29% on average per year.
Based on estimates for the next years, RBA will show a small growth in Revenue. The Revenue will grow by 7.06% on average per year.
EPS Next Y13.91%
EPS Next 2Y11.29%
EPS Next 3Y12.29%
EPS Next 5YN/A
Revenue Next Year14.34%
Revenue Next 2Y9.22%
Revenue Next 3Y7.92%
Revenue Next 5Y7.06%
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
Based on the Price/Earnings ratio of 26.96, the valuation of RBA can be described as expensive.
60.98% of the companies in the same industry are more expensive than RBA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.29, RBA is valued at the same level.
Based on the Price/Forward Earnings ratio of 24.78, the valuation of RBA can be described as rather expensive.
Based on the Price/Forward Earnings ratio, RBA is valued a bit cheaper than 64.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, RBA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.96 | ||
| Fwd PE | 24.78 |
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 indicates a somewhat cheap valuation: RBA is cheaper than 65.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.45 | ||
| EV/EBITDA | 15.47 |
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.
RBA's earnings are expected to grow with 12.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.94
PEG (5Y)1.21
EPS Next 2Y11.29%
EPS Next 3Y12.29%
5. Dividend
5.1 Amount
RBA has a Yearly Dividend Yield of 1.13%.
RBA's Dividend Yield is a higher than the industry average which is at 2.09.
Compared to an average S&P500 Dividend Yield of 2.28, RBA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
On average, the dividend of RBA grows each year by 26.12%, which is quite nice.
RBA has been paying a dividend for at least 10 years, so it has 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.
RBA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP69.25%
EPS Next 2Y11.29%
EPS Next 3Y12.29%
RB GLOBAL INC
NYSE:RBA (1/21/2025, 7:19:04 PM)
After market: 90.85 0 (0%)90.85
+1.6 (+1.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.51%
Inst Owner Change-0.08%
Ins Owners0.24%
Ins Owner Change1.48%
Market Cap16.75B
Analysts83.33
Price Target71.87 (-20.89%)
Short Float %2.7%
Short Ratio6.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend2.24
Dividend Growth(5Y)26.12%
DP69.25%
Div Incr Years20
Div Non Decr Years20
Ex-DateN/A
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)-1.52%
PT rev (3m)-1.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.05%
EPS NY rev (1m)0%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.72%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.96 | ||
| Fwd PE | 24.78 | ||
| P/S | 4 | ||
| P/FCF | 21.45 | ||
| P/OCF | 15.44 | ||
| P/B | 2.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.47 |
EPS(TTM)3.37
EY3.71%
EPS(NY)3.67
Fwd EY4.04%
FCF(TTM)4.24
FCFY4.66%
OCF(TTM)5.88
OCFY6.48%
SpS22.69
BVpS30.86
TBVpS-8.58
PEG (NY)1.94
PEG (5Y)1.21
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 | 2.3 | ||
| Cap/Depr | 69.81% | ||
| Cap/Sales | 7.26% | ||
| Interest Coverage | 3.22 | ||
| Cash Conversion | 90.41% | ||
| Profit Quality | 229.37% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 2.31 |
F-Score6
WACC9.08%
ROIC/WACC0.61
Cap/Depr(3y)73.94%
Cap/Depr(5y)67.5%
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)19.5%
EPS 3Y20.78%
EPS 5Y22.34%
EPS Q2Q%-1.39%
EPS Next Y13.91%
EPS Next 2Y11.29%
EPS Next 3Y12.29%
EPS Next 5YN/A
Revenue 1Y (TTM)35.72%
Revenue growth 3Y38.76%
Revenue growth 5Y25.75%
Sales Q2Q%-3.73%
Revenue Next Year14.34%
Revenue Next 2Y9.22%
Revenue Next 3Y7.92%
Revenue Next 5Y7.06%
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%