RB GLOBAL INC (RBA) Stock Fundamental Analysis
NYSE:RBA - New York Stock Exchange, Inc. - CA74935Q1072 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to RBA. 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
RBA had positive earnings in the past year.
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
The Return On Assets of RBA (3.16%) is better than 61.45% of its industry peers.
Looking at the Return On Equity, with a value of 6.53%, RBA is in line with its industry, outperforming 59.04% of the companies in the same industry.
RBA has a Return On Invested Capital (5.54%) which is in line with its industry peers.
RBA had an Average Return On Invested Capital over the past 3 years of 7.18%. This is below the industry average of 10.89%.
| 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 better Profit Margin (8.70%) than 80.72% of its industry peers.
In the last couple of years the Profit Margin of RBA has declined.
The Operating Margin of RBA (18.36%) is better than 87.95% of its industry peers.
RBA's Operating Margin has improved in the last couple of years.
RBA's Gross Margin of 46.79% is amongst the best of the industry. RBA outperforms 81.93% of its industry peers.
In the last couple of years the Gross Margin of RBA has declined.
| 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
RBA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, RBA has more shares outstanding
RBA has more shares outstanding than it did 5 years ago.
RBA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.73 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 2.73, RBA perfoms like the industry average, outperforming 56.63% of the companies in the same industry.
The Debt to FCF ratio of RBA is 4.19, which is a neutral value as it means it would take RBA, 4.19 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RBA (4.19) is better than 73.49% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that RBA is not too dependend on debt financing.
RBA's Debt to Equity ratio of 0.48 is in line compared to the rest of the industry. RBA outperforms 49.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 2.73 |
ROIC/WACC0.64
WACC8.71%
2.3 Liquidity
A Current Ratio of 1.29 indicates that RBA should not have too much problems paying its short term obligations.
The Current ratio of RBA (1.29) is worse than 65.06% of its industry peers.
A Quick Ratio of 1.20 indicates that RBA should not have too much problems paying its short term obligations.
RBA's Quick ratio of 1.20 is in line compared to the rest of the industry. RBA outperforms 42.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.08% over the past year.
RBA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.81% yearly.
Looking at the last year, RBA shows a quite strong growth in Revenue. The Revenue has grown by 16.43% in the last year.
Measured over the past years, RBA shows a very strong growth in Revenue. The Revenue has been growing by 26.58% on average per year.
EPS 1Y (TTM)6.08%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%-1.11%
Revenue 1Y (TTM)16.43%
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.
Based on estimates for the next years, RBA will show a small growth in Revenue. The Revenue will grow by 3.52% 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 5Y3.52%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 30.71, RBA can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as RBA.
The average S&P500 Price/Earnings ratio is at 25.82. RBA is around the same levels.
The Price/Forward Earnings ratio is 25.24, which means the current valuation is very expensive for RBA.
RBA's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, RBA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.71 | ||
| Fwd PE | 25.24 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as RBA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.29 | ||
| EV/EBITDA | 16.08 |
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)3.25
PEG (5Y)1.48
EPS Next 2Y10.15%
EPS Next 3Y12.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.11%, RBA has a reasonable but not impressive dividend return.
RBA's Dividend Yield is a higher than the industry average which is at 2.47.
With a Dividend Yield of 1.11, RBA pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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.
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%
107.18
-1.36 (-1.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners95.69%
Inst Owner Change-0.5%
Ins Owners0.24%
Ins Owner Change7.62%
Market Cap19.85B
Analysts83.64
Price Target84.49 (-21.17%)
Short Float %3.31%
Short Ratio5.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.11% |
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)3.5%
PT rev (3m)16.12%
EPS NQ rev (1m)-2.57%
EPS NQ rev (3m)-11.89%
EPS NY rev (1m)0%
EPS NY rev (3m)4.01%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)1.27%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.71 | ||
| Fwd PE | 25.24 | ||
| P/S | 4.63 | ||
| P/FCF | 30.29 | ||
| P/OCF | 21.29 | ||
| P/B | 3.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.08 |
EPS(TTM)3.49
EY3.26%
EPS(NY)4.25
Fwd EY3.96%
FCF(TTM)3.54
FCFY3.3%
OCF(TTM)5.03
OCFY4.7%
SpS23.14
BVpS30.82
TBVpS-7.97
PEG (NY)3.25
PEG (5Y)1.48
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 | 2.73 |
F-Score6
WACC8.71%
ROIC/WACC0.64
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)16.43%
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 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%