RB GLOBAL INC (RBA) Stock Fundamental Analysis
NYSE:RBA - New York Stock Exchange, Inc. - CA74935Q1072 - Common Stock - Currency: USD
Taking everything into account, RBA scores 5 out of 10 in our fundamental rating. RBA was compared to 83 industry peers in the Commercial Services & Supplies industry. RBA has an average financial health and profitability rating. RBA is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years RBA always reported a positive cash flow from operatings.
1.2 Ratios
RBA has a better Return On Assets (3.16%) than 63.86% of its industry peers.
RBA's Return On Equity of 6.53% is fine compared to the rest of the industry. RBA outperforms 61.45% of its industry peers.
RBA has a Return On Invested Capital (5.54%) 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 10.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 6.53% | ||
| ROIC | 5.54% |
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 8.70%. This is amongst the best in the industry. RBA outperforms 81.93% 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 18.36%, RBA belongs to the top of the industry, outperforming 86.75% of the companies in the same industry.
In the last couple of years the Operating Margin of RBA has grown nicely.
RBA's Gross Margin of 46.79% is amongst the best of the industry. RBA outperforms 80.72% of its industry peers.
RBA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.36% | ||
| PM (TTM) | 8.7% | ||
| GM | 46.79% |
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.
RBA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RBA has more shares outstanding
RBA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.57 indicates that RBA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.57, RBA perfoms like the industry average, outperforming 54.22% of the companies in the same industry.
RBA has a debt to FCF ratio of 4.19. This is a neutral value as RBA would need 4.19 years to pay back of all of its debts.
RBA's Debt to FCF ratio of 4.19 is fine compared to the rest of the industry. RBA outperforms 69.88% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that RBA is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.48, RBA perfoms like the industry average, outperforming 49.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.65
WACC8.53%
2.3 Liquidity
A Current Ratio of 1.29 indicates that RBA should not have too much problems paying its short term obligations.
RBA's Current ratio of 1.29 is on the low side compared to the rest of the industry. RBA is outperformed by 66.27% of its industry peers.
RBA has a Quick Ratio of 1.20. 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 1.20, RBA is doing worse than 60.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
RBA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.24%, which is quite good.
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.
RBA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.43%.
The Revenue has been growing by 26.58% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)18.24%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%15.85%
Revenue 1Y (TTM)16.43%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%9.67%
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 Year3.98%
Revenue Next 2Y4.28%
Revenue Next 3Y3.74%
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
Based on the Price/Earnings ratio of 29.29, the valuation of RBA can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of RBA is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.22. RBA is around the same levels.
RBA is valuated quite expensively with a Price/Forward Earnings ratio of 26.76.
Based on the Price/Forward Earnings ratio, RBA is valued a bit cheaper than 60.24% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, RBA is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.29 | ||
| Fwd PE | 26.76 |
4.2 Price Multiples
RBA's Enterprise Value to EBITDA ratio is in line with the industry average.
RBA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.97 | ||
| EV/EBITDA | 14.93 |
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 12.16% in the coming years.
PEG (NY)3.1
PEG (5Y)1.41
EPS Next 2Y10.15%
EPS Next 3Y12.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.21%, RBA has a reasonable but not impressive dividend return.
RBA's Dividend Yield is a higher than the industry average which is at 2.54.
With a Dividend Yield of 1.21, RBA pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
5.2 History
The dividend of RBA is nicely growing with an annual growth rate of 11.54%!
RBA has paid a dividend for at least 10 years, which is a reliable track record.
RBA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.54%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
RBA pays out 64.45% of its income as dividend. This is not a sustainable payout ratio.
RBA's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP64.45%
EPS Next 2Y10.15%
EPS Next 3Y12.16%
102.51
+2.56 (+2.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners95.69%
Inst Owner Change-0.22%
Ins Owners0.24%
Ins Owner Change6.71%
Market Cap18.98B
Analysts83.64
Price Target84.55 (-17.52%)
Short Float %2.77%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Yearly Dividend1.31
Dividend Growth(5Y)11.54%
DP64.45%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.94%
Min EPS beat(2)6.51%
Max EPS beat(2)19.36%
EPS beat(4)4
Avg EPS beat(4)16.62%
Min EPS beat(4)6.51%
Max EPS beat(4)29.14%
EPS beat(8)8
Avg EPS beat(8)19.96%
EPS beat(12)11
Avg EPS beat(12)63.4%
EPS beat(16)13
Avg EPS beat(16)45.39%
Revenue beat(2)1
Avg Revenue beat(2)0.3%
Min Revenue beat(2)-5.69%
Max Revenue beat(2)6.29%
Revenue beat(4)2
Avg Revenue beat(4)0.95%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)6.7%
Revenue beat(8)5
Avg Revenue beat(8)3.52%
Revenue beat(12)9
Avg Revenue beat(12)5.94%
Revenue beat(16)11
Avg Revenue beat(16)4.32%
PT rev (1m)3.96%
PT rev (3m)17.65%
EPS NQ rev (1m)1.61%
EPS NQ rev (3m)-11.23%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)4.49%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)-2.13%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.29 | ||
| Fwd PE | 26.76 | ||
| P/S | 4.43 | ||
| P/FCF | 28.97 | ||
| P/OCF | 20.36 | ||
| P/B | 3.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.93 |
EPS(TTM)3.5
EY3.41%
EPS(NY)3.83
Fwd EY3.74%
FCF(TTM)3.54
FCFY3.45%
OCF(TTM)5.03
OCFY4.91%
SpS23.14
BVpS30.82
TBVpS-7.97
PEG (NY)3.1
PEG (5Y)1.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 6.53% | ||
| ROCE | 7.51% | ||
| ROIC | 5.54% | ||
| ROICexc | 5.84% | ||
| ROICexgc | 20.86% | ||
| OM | 18.36% | ||
| PM (TTM) | 8.7% | ||
| GM | 46.79% | ||
| FCFM | 15.29% |
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 | 0.48 | ||
| Debt/FCF | 4.19 | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 46.24% | ||
| Cap/Sales | 6.46% | ||
| Interest Coverage | 3.44 | ||
| Cash Conversion | 67.28% | ||
| Profit Quality | 175.77% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 2.57 |
F-Score6
WACC8.53%
ROIC/WACC0.65
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)18.24%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%15.85%
EPS Next Y9.45%
EPS Next 2Y10.15%
EPS Next 3Y12.16%
EPS Next 5YN/A
Revenue 1Y (TTM)16.43%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%9.67%
Revenue Next Year3.98%
Revenue Next 2Y4.28%
Revenue Next 3Y3.74%
Revenue Next 5Y3.52%
EBIT growth 1Y15.22%
EBIT growth 3Y42.86%
EBIT growth 5Y29.02%
EBIT Next Year32.58%
EBIT Next 3Y13.8%
EBIT Next 5Y8.74%
FCF growth 1Y231.19%
FCF growth 3Y33.7%
FCF growth 5Y17.56%
OCF growth 1Y71.32%
OCF growth 3Y43.17%
OCF growth 5Y22.87%