RB GLOBAL INC (RBA.CA) Stock Fundamental Analysis
TSX:RBA - Toronto Stock Exchange - CA74935Q1072 - Common Stock - Currency: CAD
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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. RBA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
RBA had positive earnings in the past year.
In the past year RBA had a positive cash flow from operations.
RBA had positive earnings in each of the past 5 years.
RBA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.18%, RBA is in the better half of 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.
Looking at the Return On Invested Capital, with a value of 5.38%, RBA is in the better half of 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 7.99%.
| 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's Profit Margin of 8.75% is amongst the best of the industry. RBA outperforms 83.33% of its industry peers.
RBA's Profit Margin has declined in the last couple of years.
RBA has a better Operating Margin (17.77%) than 91.67% of its industry peers.
In the last couple of years the Operating Margin of RBA has grown nicely.
The Gross Margin of RBA (46.24%) is better than 87.50% of its industry peers.
RBA's Gross Margin has declined in the last couple of years.
| 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.
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
An Altman-Z score of 2.66 indicates that RBA is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.66, RBA is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
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.
RBA has a Debt to FCF ratio of 4.00. This is in the better half of the industry: RBA outperforms 79.17% of its industry peers.
RBA has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RBA (0.47) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.53
WACC10.06%
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.
RBA has a Current ratio (1.31) which is comparable to the rest of the industry.
RBA has a Quick Ratio of 1.21. 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 1.21, 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 | 1.31 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.08% over the past year.
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 2.27% 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)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
The Earnings Per Share is expected to grow by 12.16% on average over the next years. This is quite good.
Based on estimates for the next years, RBA will show a small growth in Revenue. The Revenue will grow by 3.69% on average per year.
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 5Y3.69%
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
Based on the Price/Earnings ratio of 30.03, the valuation of RBA can be described as expensive.
Based on the Price/Earnings ratio, RBA is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.35, RBA is valued at the same level.
With a Price/Forward Earnings ratio of 24.65, RBA is valued on the expensive side.
RBA's Price/Forward Earnings ratio is in line with the industry average.
RBA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.03 | ||
| Fwd PE | 24.65 |
4.2 Price Multiples
RBA's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, RBA is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.57 | ||
| EV/EBITDA | 15.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of RBA 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)3.18
PEG (5Y)1.44
EPS Next 2Y10.15%
EPS Next 3Y12.16%
5. Dividend
5.1 Amount
RBA has a Yearly Dividend Yield of 1.16%.
Compared to an average industry Dividend Yield of 2.31, RBA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, RBA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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
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 (6/20/2025, 7:00:00 PM)
143.52
-0.42 (-0.29%)
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 Cap26.58B
Analysts81.82
Price Target120.36 (-16.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Yearly Dividend1.79
Dividend Growth(5Y)11.54%
DP64.6%
Div Incr Years0
Div Non Decr Years0
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)3.06%
PT rev (3m)2.39%
EPS NQ rev (1m)-3.12%
EPS NQ rev (3m)-4.08%
EPS NY rev (1m)0%
EPS NY rev (3m)2.51%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.03 | ||
| Fwd PE | 24.65 | ||
| P/S | 4.48 | ||
| P/FCF | 28.57 | ||
| P/OCF | 20.11 | ||
| P/B | 3.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.64 |
EPS(TTM)4.78
EY3.33%
EPS(NY)5.82
Fwd EY4.06%
FCF(TTM)5.02
FCFY3.5%
OCF(TTM)7.14
OCFY4.97%
SpS32.04
BVpS42.68
TBVpS-10.07
PEG (NY)3.18
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 | 2.66 |
F-Score7
WACC10.06%
ROIC/WACC0.53
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 5Y3.69%
EBIT growth 1Y-2.83%
EBIT growth 3Y42.86%
EBIT growth 5Y29.02%
EBIT Next Year33.95%
EBIT Next 3Y14%
EBIT Next 5Y8.97%
FCF growth 1Y474.94%
FCF growth 3Y33.7%
FCF growth 5Y17.56%
OCF growth 1Y336.95%
OCF growth 3Y43.17%
OCF growth 5Y22.87%