RB GLOBAL INC (RBA.CA) Stock Fundamental Analysis
TSX:RBA - CA74935Q1072 - Common Stock
159.53 CAD
+2.22 (+1.41%)
Taking everything into account, RBA scores 6 out of 10 in our fundamental rating. RBA was compared to 24 industry peers in the Commercial Services & Supplies industry. While RBA has a great profitability rating, there are some minor concerns on its financial health. RBA is valued quite expensively, but it does show have an excellent growth rating. These ratings could make RBA a good candidate for growth investing.
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.
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
RBA has a Return On Assets of 3.10%. This is in the better half of the industry: RBA outperforms 75.00% of its industry peers.
The Return On Equity of RBA (6.36%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 5.31%, RBA is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RBA is in line with the industry average of 6.97%.
| 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
RBA's Profit Margin of 8.54% is amongst the best of the industry. RBA outperforms 87.50% 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 17.44%, RBA belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Operating Margin of RBA has grown nicely.
RBA has a Gross Margin of 45.78%. This is amongst the best in the industry. RBA outperforms 83.33% of its industry peers.
In the last couple of years the Gross Margin of RBA has declined.
| 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.
The number of shares outstanding for RBA has been increased compared to 1 year ago.
The number of shares outstanding for RBA has been increased compared to 5 years ago.
Compared to 1 year ago, RBA has an improved debt to assets ratio.
2.2 Solvency
RBA has an Altman-Z score of 2.82. 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.
RBA's Altman-Z score of 2.82 is fine compared to the rest of the industry. RBA outperforms 70.83% of its industry peers.
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.
The Debt to FCF ratio of RBA (4.46) is better than 70.83% 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.
Looking at the Debt to Equity ratio, with a value of 0.44, RBA is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.46 | ||
| Altman-Z | 2.82 |
ROIC/WACC0.61
WACC8.68%
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 comparable to the rest of the industry.
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.
Looking at the Quick ratio, with a value of 1.22, RBA is in the better half of the industry, outperforming 62.50% of the companies in the same 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%.
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.
Looking at the last year, RBA shows a small growth in Revenue. The Revenue has grown by 4.65% in the last year.
The Revenue has been growing by 26.58% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 21.27% on average over the next years. This is a very strong growth
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.
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 31.97, the valuation of RBA can be described as expensive.
66.67% of the companies in the same industry are more expensive than RBA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of RBA to the average of the S&P500 Index (26.90), we can say RBA is valued inline with the index average.
The Price/Forward Earnings ratio is 26.36, which means the current valuation is very expensive for RBA.
RBA's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.52. RBA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.97 | ||
| Fwd PE | 26.36 |
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 | 35.43 | ||
| EV/EBITDA | 16.88 |
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.
The decent profitability rating of RBA 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)2.65
PEG (5Y)1.54
EPS Next 2Y11.98%
EPS Next 3Y21.27%
5. Dividend
5.1 Amount
RBA has a Yearly Dividend Yield of 1.06%.
RBA's Dividend Yield is a higher than the industry average which is at 2.33.
With a Dividend Yield of 1.06, RBA pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
5.2 History
On average, the dividend of RBA grows each year by 11.54%, which is quite nice.
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
65.92% 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.
DP65.92%
EPS Next 2Y11.98%
EPS Next 3Y21.27%
TSX:RBA (9/2/2025, 7:00:00 PM)
159.53
+2.22 (+1.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.1%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap29.61B
Analysts81.82
Price Target126.23 (-20.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
Yearly Dividend1.8
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)4.87%
PT rev (3m)8.08%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-1.2%
EPS NY rev (1m)2.37%
EPS NY rev (3m)2.37%
Revenue NQ rev (1m)1.34%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)1.34%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.97 | ||
| Fwd PE | 26.36 | ||
| P/S | 4.86 | ||
| P/FCF | 35.43 | ||
| P/OCF | 22.53 | ||
| P/B | 3.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.88 |
EPS(TTM)4.99
EY3.13%
EPS(NY)6.05
Fwd EY3.79%
FCF(TTM)4.5
FCFY2.82%
OCF(TTM)7.08
OCFY4.44%
SpS32.82
BVpS44.08
TBVpS-8.66
PEG (NY)2.65
PEG (5Y)1.54
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 | 2.82 |
F-Score6
WACC8.68%
ROIC/WACC0.61
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%