RB GLOBAL INC (RBA.CA) Stock Fundamental Analysis
TSX:RBA - Toronto Stock Exchange - CA74935Q1072 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to RBA. RBA was compared to 24 industry peers in the Commercial Services & Supplies industry. While RBA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. RBA has a decent growth rate and is not valued too expensively.
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.
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 3.18%, RBA is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Return On Equity of RBA (6.56%) is comparable to the rest of the industry.
RBA has a Return On Invested Capital of 5.38%. This is in the better half of the industry: RBA outperforms 70.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RBA is in line with the industry average of 7.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 6.56% | ||
| ROIC | 5.38% |
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 has a Profit Margin of 8.75%. This is amongst the best in the industry. RBA outperforms 83.33% of its industry peers.
RBA's Profit Margin has declined in the last couple of years.
RBA's Operating Margin of 17.77% is amongst the best of the industry. RBA outperforms 91.67% 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 46.24%, RBA belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Gross Margin of RBA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.77% | ||
| PM (TTM) | 8.75% | ||
| GM | 46.24% |
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.
Compared to 5 years ago, RBA has more shares outstanding
Compared to 1 year ago, RBA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.64 indicates that RBA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of RBA (2.64) is better than 70.83% of its industry peers.
RBA has a debt to FCF ratio of 4.00. This is a neutral value as RBA would need 4.00 years to pay back of all of its debts.
The Debt to FCF ratio of RBA (4.00) is better than 79.17% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that RBA is not too dependend on debt financing.
RBA has a better Debt to Equity ratio (0.47) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.62
WACC8.61%
2.3 Liquidity
RBA has a Current Ratio of 1.31. 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 Current ratio, with a value of 1.31, RBA is in line with its industry, outperforming 54.17% of the companies in the same industry.
A Quick Ratio of 1.21 indicates that RBA should not have too much problems paying its short term obligations.
RBA's Quick ratio of 1.21 is in line compared to the rest of the industry. RBA outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.08% 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
The Revenue has been growing slightly by 2.27% in the past year.
The Revenue has been growing by 26.58% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)6.08%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%-1.11%
Revenue 1Y (TTM)2.27%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%4.12%
3.2 Future
RBA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.16% yearly.
RBA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.52% yearly.
EPS Next Y9.45%
EPS Next 2Y10.15%
EPS Next 3Y12.16%
EPS Next 5YN/A
Revenue Next Year5.51%
Revenue Next 2Y4.78%
Revenue Next 3Y3.87%
Revenue Next 5Y3.52%
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.
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
The Price/Earnings ratio is 30.00, which means the current valuation is very expensive for RBA.
Based on the Price/Earnings ratio, RBA is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
RBA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.25.
A Price/Forward Earnings ratio of 24.63 indicates a rather expensive valuation of RBA.
The rest of the industry has a similar Price/Forward Earnings ratio as RBA.
When comparing the Price/Forward Earnings ratio of RBA to the average of the S&P500 Index (22.15), we can say RBA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30 | ||
| Fwd PE | 24.63 |
4.2 Price Multiples
RBA's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, RBA is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.54 | ||
| EV/EBITDA | 15.46 |
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.
RBA's earnings are expected to grow with 12.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.17
PEG (5Y)1.44
EPS Next 2Y10.15%
EPS Next 3Y12.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.17%, RBA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.38, RBA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, RBA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
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.
RBA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.54%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
64.60% of the earnings are spent on dividend by RBA. This is not a sustainable payout ratio.
The dividend of RBA is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP64.6%
EPS Next 2Y10.15%
EPS Next 3Y12.16%
TSX:RBA (5/30/2025, 7:00:00 PM)
144.59
+1.28 (+0.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners95.69%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap26.78B
Analysts83.64
Price Target116.79 (-19.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.17% |
Yearly Dividend1.8
Dividend Growth(5Y)11.54%
DP64.6%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.87%
Min EPS beat(2)6.38%
Max EPS beat(2)19.36%
EPS beat(4)4
Avg EPS beat(4)10.93%
Min EPS beat(4)6.38%
Max EPS beat(4)19.36%
EPS beat(8)8
Avg EPS beat(8)18.4%
EPS beat(12)11
Avg EPS beat(12)13.33%
EPS beat(16)13
Avg EPS beat(16)44.23%
Revenue beat(2)2
Avg Revenue beat(2)5.49%
Min Revenue beat(2)4.68%
Max Revenue beat(2)6.29%
Revenue beat(4)2
Avg Revenue beat(4)0.44%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)6.29%
Revenue beat(8)5
Avg Revenue beat(8)1.89%
Revenue beat(12)9
Avg Revenue beat(12)5.28%
Revenue beat(16)11
Avg Revenue beat(16)3.85%
PT rev (1m)-0.65%
PT rev (3m)9.31%
EPS NQ rev (1m)-3.12%
EPS NQ rev (3m)-2.13%
EPS NY rev (1m)0%
EPS NY rev (3m)2.51%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)1.47%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30 | ||
| Fwd PE | 24.63 | ||
| P/S | 4.48 | ||
| P/FCF | 28.54 | ||
| P/OCF | 20.09 | ||
| P/B | 3.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.46 |
EPS(TTM)4.82
EY3.33%
EPS(NY)5.87
Fwd EY4.06%
FCF(TTM)5.07
FCFY3.5%
OCF(TTM)7.2
OCFY4.98%
SpS32.31
BVpS43.04
TBVpS-10.16
PEG (NY)3.17
PEG (5Y)1.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 6.56% | ||
| ROCE | 7.31% | ||
| ROIC | 5.38% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 19.75% | ||
| OM | 17.77% | ||
| PM (TTM) | 8.75% | ||
| GM | 46.24% | ||
| FCFM | 15.68% |
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-Score7
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 47.02% | ||
| Cap/Sales | 6.59% | ||
| Interest Coverage | 3.55 | ||
| Cash Conversion | 70.05% | ||
| Profit Quality | 179.31% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 2.64 |
F-Score7
WACC8.61%
ROIC/WACC0.62
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)6.08%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%-1.11%
EPS Next Y9.45%
EPS Next 2Y10.15%
EPS Next 3Y12.16%
EPS Next 5YN/A
Revenue 1Y (TTM)2.27%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%4.12%
Revenue Next Year5.51%
Revenue Next 2Y4.78%
Revenue Next 3Y3.87%
Revenue Next 5Y3.52%
EBIT growth 1Y-2.83%
EBIT growth 3Y42.86%
EBIT growth 5Y29.02%
EBIT Next Year33.95%
EBIT Next 3Y14%
EBIT Next 5Y8.74%
FCF growth 1Y474.94%
FCF growth 3Y33.7%
FCF growth 5Y17.56%
OCF growth 1Y336.95%
OCF growth 3Y43.17%
OCF growth 5Y22.87%