RB GLOBAL INC (RBA) Stock Fundamental Analysis
USA - NYSE:RBA - CA74935Q1072 - Common Stock
116.74 USD
-0.41 (-0.35%)
116.74 USD
0 (0%)
RBA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. RBA has an average financial health and profitability rating. RBA shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year RBA was profitable.
RBA had a positive operating cash flow in the past year.
RBA had positive earnings in each of the past 5 years.
Each year in the past 5 years RBA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.10%, RBA is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
RBA has a Return On Equity (6.36%) which is comparable to the rest of the industry.
RBA has a Return On Invested Capital (5.31%) 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 10.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 6.36% | ||
| ROIC | 5.31% |
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
Looking at the Profit Margin, with a value of 8.54%, RBA is in the better half of the industry, outperforming 79.76% of the companies in the same industry.
RBA's Profit Margin has declined in the last couple of years.
RBA has a Operating Margin of 17.44%. This is amongst the best in the industry. RBA outperforms 88.10% of its industry peers.
RBA's Operating Margin has improved in the last couple of years.
RBA has a Gross Margin of 45.78%. This is amongst the best in the industry. RBA outperforms 82.14% of its industry peers.
RBA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.44% | ||
| PM (TTM) | 8.54% | ||
| GM | 45.78% |
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.
Compared to 1 year ago, RBA has more shares outstanding
RBA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RBA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.85 indicates that RBA is not a great score, but indicates only limited risk for bankruptcy at the moment.
RBA has a Altman-Z score (2.85) which is comparable to the rest of the industry.
RBA has a debt to FCF ratio of 4.46. This is a neutral value as RBA would need 4.46 years to pay back of all of its debts.
RBA has a better Debt to FCF ratio (4.46) than 70.24% of its industry peers.
RBA has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
RBA's Debt to Equity ratio of 0.44 is in line compared to the rest of the industry. RBA outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.46 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.63
WACC8.38%
2.3 Liquidity
RBA has a Current Ratio of 1.28. 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 Current ratio of 1.28. This is in the lower half of the industry: RBA underperforms 66.67% of its industry peers.
RBA has a Quick Ratio of 1.22. This is a normal value and indicates that RBA is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of RBA (1.22) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
RBA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.10%.
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 a small growth in Revenue. In the last year, the Revenue has grown by 4.65%.
Measured over the past years, RBA shows a very strong growth in Revenue. The Revenue has been growing by 26.58% on average per year.
EPS 1Y (TTM)7.1%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%13.83%
Revenue 1Y (TTM)4.65%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%8.2%
3.2 Future
RBA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.27% yearly.
The Revenue is expected to grow by 8.39% on average over the next years. This is quite good.
EPS Next Y12.05%
EPS Next 2Y11.98%
EPS Next 3Y21.27%
EPS Next 5YN/A
Revenue Next Year7.13%
Revenue Next 2Y6%
Revenue Next 3Y8.76%
Revenue Next 5Y8.39%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 32.25, 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 27.27. RBA is around the same levels.
Based on the Price/Forward Earnings ratio of 26.60, the valuation of RBA can be described as expensive.
RBA's Price/Forward Earnings is on the same level as the industry average.
RBA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.25 | ||
| Fwd PE | 26.6 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RBA.
RBA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.75 | ||
| EV/EBITDA | 17.07 |
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 21.27% in the coming years.
PEG (NY)2.68
PEG (5Y)1.55
EPS Next 2Y11.98%
EPS Next 3Y21.27%
5. Dividend
5.1 Amount
RBA has a Yearly Dividend Yield of 1.02%.
Compared to an average industry Dividend Yield of 2.27, RBA pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.02, RBA pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
5.2 History
The dividend of RBA is nicely growing with an annual growth rate of 11.54%!
RBA has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)11.54%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
RBA pays out 65.92% of its income as dividend. This is not a sustainable payout ratio.
The dividend of RBA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP65.92%
EPS Next 2Y11.98%
EPS Next 3Y21.27%
116.74
-0.41 (-0.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.1%
Inst Owner Change-1.67%
Ins Owners0.1%
Ins Owner Change-3.95%
Market Cap21.67B
Analysts81.82
Price Target91.29 (-21.8%)
Short Float %4.67%
Short Ratio8.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend1.31
Dividend Growth(5Y)11.54%
DP65.92%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.72%
Min EPS beat(2)6.38%
Max EPS beat(2)11.05%
EPS beat(4)4
Avg EPS beat(4)10.83%
Min EPS beat(4)6.38%
Max EPS beat(4)19.36%
EPS beat(8)8
Avg EPS beat(8)18.53%
EPS beat(12)12
Avg EPS beat(12)16.27%
EPS beat(16)14
Avg EPS beat(16)45.64%
Revenue beat(2)2
Avg Revenue beat(2)3.86%
Min Revenue beat(2)3.04%
Max Revenue beat(2)4.68%
Revenue beat(4)3
Avg Revenue beat(4)2.08%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)6.29%
Revenue beat(8)5
Avg Revenue beat(8)1.9%
Revenue beat(12)9
Avg Revenue beat(12)4.64%
Revenue beat(16)12
Avg Revenue beat(16)4.4%
PT rev (1m)2.08%
PT rev (3m)4.15%
EPS NQ rev (1m)-3.53%
EPS NQ rev (3m)-1.8%
EPS NY rev (1m)2.37%
EPS NY rev (3m)2.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)1.34%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.25 | ||
| Fwd PE | 26.6 | ||
| P/S | 4.9 | ||
| P/FCF | 35.75 | ||
| P/OCF | 22.73 | ||
| P/B | 3.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.07 |
EPS(TTM)3.62
EY3.1%
EPS(NY)4.39
Fwd EY3.76%
FCF(TTM)3.27
FCFY2.8%
OCF(TTM)5.14
OCFY4.4%
SpS23.8
BVpS31.98
TBVpS-6.28
PEG (NY)2.68
PEG (5Y)1.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 6.36% | ||
| ROCE | 7.24% | ||
| ROIC | 5.31% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 19.52% | ||
| OM | 17.44% | ||
| PM (TTM) | 8.54% | ||
| GM | 45.78% | ||
| FCFM | 13.72% |
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-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.46 | ||
| Debt/EBITDA | 1.89 | ||
| Cap/Depr | 56.49% | ||
| Cap/Sales | 7.86% | ||
| Interest Coverage | 3.72 | ||
| Cash Conversion | 68.83% | ||
| Profit Quality | 160.64% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 2.85 |
F-Score6
WACC8.38%
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)7.1%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%13.83%
EPS Next Y12.05%
EPS Next 2Y11.98%
EPS Next 3Y21.27%
EPS Next 5YN/A
Revenue 1Y (TTM)4.65%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%8.2%
Revenue Next Year7.13%
Revenue Next 2Y6%
Revenue Next 3Y8.76%
Revenue Next 5Y8.39%
EBIT growth 1Y-0.49%
EBIT growth 3Y42.86%
EBIT growth 5Y29.02%
EBIT Next Year33.95%
EBIT Next 3Y14%
EBIT Next 5Y17.05%
FCF growth 1Y380.48%
FCF growth 3Y33.7%
FCF growth 5Y17.56%
OCF growth 1Y202.67%
OCF growth 3Y43.17%
OCF growth 5Y22.87%