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RB GLOBAL INC (RBA.CA) Stock Fundamental Analysis

TSX:RBA - Toronto Stock Exchange - CA74935Q1072 - Common Stock - Currency: CAD

132.43  +1.44 (+1.1%)

Fundamental Rating

6

Taking everything into account, RBA scores 6 out of 10 in our fundamental rating. RBA was compared to 25 industry peers in the Commercial Services & Supplies industry. RBA scores excellent on profitability, but there are some minor concerns on its financial health. RBA is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes RBA very considerable for growth investing!


Dividend Valuation Growth Profitability Health

7

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.
In the past 5 years RBA has always been profitable.
In the past 5 years RBA always reported a positive cash flow from operatings.
RBA.CA Yearly Net Income VS EBIT VS OCF VS FCFRBA.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

1.2 Ratios

RBA's Return On Assets of 2.85% is fine compared to the rest of the industry. RBA outperforms 68.00% of its industry peers.
The Return On Equity of RBA (5.98%) is better than 68.00% of its industry peers.
RBA's Return On Invested Capital of 5.52% is fine compared to the rest of the industry. RBA outperforms 64.00% 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 7.92%.
Industry RankSector 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%
RBA.CA Yearly ROA, ROE, ROICRBA.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

1.3 Margins

RBA has a Profit Margin of 8.14%. This is amongst the best in the industry. RBA outperforms 84.00% of its industry peers.
In the last couple of years the Profit Margin of RBA has declined.
RBA has a Operating Margin of 18.28%. This is amongst the best in the industry. RBA outperforms 92.00% of its industry peers.
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 84.00% of its industry peers.
In the last couple of years the Gross Margin of RBA has declined.
Industry RankSector 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%
RBA.CA Yearly Profit, Operating, Gross MarginsRBA.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60 80

5

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.
RBA has more shares outstanding than it did 5 years ago.
RBA has a worse debt/assets ratio than last year.
RBA.CA Yearly Shares OutstandingRBA.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
RBA.CA Yearly Total Debt VS Total AssetsRBA.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

An Altman-Z score of 2.34 indicates that RBA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of RBA (2.34) is better than 64.00% of its industry peers.
RBA has a debt to FCF ratio of 3.57. This is a good value and a sign of high solvency as RBA would need 3.57 years to pay back of 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 80.00% 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.
Looking at the Debt to Equity ratio, with a value of 0.48, RBA is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 3.57
Altman-Z 2.34
ROIC/WACC0.62
WACC8.87%
RBA.CA Yearly LT Debt VS Equity VS FCFRBA.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.3 Liquidity

A Current Ratio of 1.28 indicates that RBA should not have too much problems paying its short term obligations.
RBA has a Current ratio (1.28) which is in line with 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.
Looking at the Quick ratio, with a value of 1.17, RBA is in line with its industry, outperforming 56.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.28
Quick Ratio 1.17
RBA.CA Yearly Current Assets VS Current LiabilitesRBA.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

7

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 19.50% 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 22.34% on average per year.
RBA shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.72%.
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

RBA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.65% yearly.
The Revenue is expected to grow by 7.06% on average over the next years.
EPS Next Y14.25%
EPS Next 2Y11.55%
EPS Next 3Y12.65%
EPS Next 5YN/A
Revenue Next Year14.2%
Revenue Next 2Y9.14%
Revenue Next 3Y7.89%
Revenue Next 5Y7.06%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
RBA.CA Yearly Revenue VS EstimatesRBA.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B 4B 5B
RBA.CA Yearly EPS VS EstimatesRBA.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3 4

4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 27.36, RBA can be considered very expensive at the moment.
RBA's Price/Earnings ratio is a bit cheaper when compared to the industry. RBA is cheaper than 64.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.12. RBA is around the same levels.
With a Price/Forward Earnings ratio of 25.06, RBA can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RBA is on the same level as its industry peers.
RBA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 94.77.
Industry RankSector Rank
PE 27.36
Fwd PE 25.06
RBA.CA Price Earnings VS Forward Price EarningsRBA.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RBA is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, RBA is valued a bit cheaper than the industry average as 64.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 21.79
EV/EBITDA 15.78
RBA.CA Per share dataRBA.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 30 40

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 12.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.92
PEG (5Y)1.22
EPS Next 2Y11.55%
EPS Next 3Y12.65%

5

5. Dividend

5.1 Amount

RBA has a Yearly Dividend Yield of 1.27%.
RBA's Dividend Yield is a higher than the industry average which is at 2.01.
With a Dividend Yield of 1.27, RBA pays less dividend than the S&P500 average, which is at 2.29.
Industry RankSector Rank
Dividend Yield 1.27%

5.2 History

The dividend of RBA is nicely growing with an annual growth rate of 26.12%!
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 Years19
Div Non Decr Years19
RBA.CA Yearly Dividends per shareRBA.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

69.25% of the earnings are spent on dividend by RBA. This is not a sustainable payout ratio.
The dividend of RBA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP69.25%
EPS Next 2Y11.55%
EPS Next 3Y12.65%
RBA.CA Yearly Income VS Free CF VS DividendRBA.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M
RBA.CA Dividend Payout.RBA.CA Dividend Payout, showing the Payout Ratio.RBA.CA Dividend Payout.PayoutRetained Earnings

RB GLOBAL INC

TSX:RBA (2/7/2025, 7:00:00 PM)

132.43

+1.44 (+1.1%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)11-08 2024-11-08/bmo
Earnings (Next)N/A N/A
Inst Owners97.51%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap24.42B
Analysts83.33
Price Target104.55 (-21.05%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.27%
Yearly Dividend2.24
Dividend Growth(5Y)26.12%
DP69.25%
Div Incr Years19
Div Non Decr Years19
Ex-Date02-06 2025-02-06 (0.29)
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)1.23%
PT rev (3m)6.08%
EPS NQ rev (1m)1.03%
EPS NQ rev (3m)-7.11%
EPS NY rev (1m)0.3%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-2.08%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.82%
Valuation
Industry RankSector Rank
PE 27.36
Fwd PE 25.06
P/S 4.07
P/FCF 21.79
P/OCF 15.69
P/B 2.99
P/tB N/A
EV/EBITDA 15.78
EPS(TTM)4.84
EY3.65%
EPS(NY)5.28
Fwd EY3.99%
FCF(TTM)6.08
FCFY4.59%
OCF(TTM)8.44
OCFY6.37%
SpS32.55
BVpS44.28
TBVpS-12.31
PEG (NY)1.92
PEG (5Y)1.22
Profitability
Industry RankSector 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 RankSector 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 2.34
F-Score6
WACC8.87%
ROIC/WACC0.62
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 Y14.25%
EPS Next 2Y11.55%
EPS Next 3Y12.65%
EPS Next 5YN/A
Revenue 1Y (TTM)35.72%
Revenue growth 3Y38.76%
Revenue growth 5Y25.75%
Sales Q2Q%-3.73%
Revenue Next Year14.2%
Revenue Next 2Y9.14%
Revenue Next 3Y7.89%
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%