RB GLOBAL INC (RBA) Stock Fundamental Analysis
USA - NYSE:RBA - CA74935Q1072 - Common Stock
100.4 USD
+4.19 (+4.36%)
100.4 USD
0 (0%)
RBA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Commercial Services & Supplies industry. Both the profitability and the financial health of RBA get a neutral evaluation. Nothing too spectacular is happening here. RBA is valued quite expensively, but it does show have an excellent growth rating.
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.
In the past 5 years RBA has always been profitable.
Each year in the past 5 years RBA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RBA (3.10%) is better than 62.65% of its industry peers.
RBA has a Return On Equity (6.36%) which is in line with its industry peers.
The Return On Invested Capital of RBA (5.31%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for RBA is below the industry average of 10.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 6.36% | ||
| ROIC | 5.31% |
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
With an excellent Profit Margin value of 8.54%, RBA belongs to the best of the industry, outperforming 80.72% of the companies in the same industry.
RBA's Profit Margin has declined in the last couple of years.
RBA has a better Operating Margin (17.44%) than 90.36% of its industry peers.
RBA's Operating Margin has improved in the last couple of years.
RBA has a better Gross Margin (45.78%) than 83.13% of its industry peers.
RBA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.44% | ||
| PM (TTM) | 8.54% | ||
| GM | 45.78% |
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.
The number of shares outstanding for RBA has been increased compared to 1 year ago.
RBA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RBA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.55 indicates that RBA is not a great score, but indicates only limited risk for bankruptcy at the moment.
RBA has a Altman-Z score (2.55) which is in line with its industry peers.
RBA has a debt to FCF ratio of 4.46. This is a neutral value as RBA would need 4.46 years to pay back of all of its debts.
The Debt to FCF ratio of RBA (4.46) is better than 71.08% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that RBA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.44, RBA is in line with its industry, outperforming 55.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.46 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.64
WACC8.34%
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 of 1.28. This is in the lower half of the industry: RBA underperforms 63.86% of its industry peers.
RBA has a Quick Ratio of 1.22. This is a normal value and indicates that RBA is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.22, RBA perfoms like the industry average, outperforming 43.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
RBA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.95%, 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)13.95%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%30.99%
Revenue 1Y (TTM)16.43%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%11.3%
3.2 Future
The Earnings Per Share is expected to grow by 18.24% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.39% on average over the next years. This is quite good.
EPS Next Y11.44%
EPS Next 2Y11.78%
EPS Next 3Y15.86%
EPS Next 5Y18.24%
Revenue Next Year7.67%
Revenue Next 2Y6.18%
Revenue Next 3Y6.42%
Revenue Next 5Y8.39%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.15, the valuation of RBA can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as RBA.
The average S&P500 Price/Earnings ratio is at 26.06. RBA is around the same levels.
With a Price/Forward Earnings ratio of 22.96, RBA is valued on the expensive side.
Based on the Price/Forward Earnings ratio, RBA is valued a bit cheaper than 61.45% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RBA to the average of the S&P500 Index (32.73), we can say RBA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.15 | ||
| Fwd PE | 22.96 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RBA.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RBA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.74 | ||
| EV/EBITDA | 17.82 |
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.
A more expensive valuation may be justified as RBA's earnings are expected to grow with 15.86% in the coming years.
PEG (NY)2.29
PEG (5Y)1.26
EPS Next 2Y11.78%
EPS Next 3Y15.86%
5. Dividend
5.1 Amount
RBA has a Yearly Dividend Yield of 1.23%.
RBA's Dividend Yield is a higher than the industry average which is at 2.54.
With a Dividend Yield of 1.23, RBA pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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
RBA pays out 65.92% of its income as dividend. This is not a sustainable payout ratio.
RBA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP65.92%
EPS Next 2Y11.78%
EPS Next 3Y15.86%
100.4
+4.19 (+4.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.23%
Inst Owner Change-0.17%
Ins Owners0.09%
Ins Owner Change-1.85%
Market Cap18.63B
Revenue(TTM)4.28B
Net Income(TTM)377.30M
Analysts85.45
Price Target90.54 (-9.82%)
Short Float %4.81%
Short Ratio8.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Yearly Dividend1.31
Dividend Growth(5Y)11.54%
DP65.92%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.72%
Min EPS beat(2)6.38%
Max EPS beat(2)11.05%
EPS beat(4)4
Avg EPS beat(4)10.83%
Min EPS beat(4)6.38%
Max EPS beat(4)19.36%
EPS beat(8)8
Avg EPS beat(8)18.53%
EPS beat(12)12
Avg EPS beat(12)16.27%
EPS beat(16)14
Avg EPS beat(16)45.64%
Revenue beat(2)2
Avg Revenue beat(2)3.86%
Min Revenue beat(2)3.04%
Max Revenue beat(2)4.68%
Revenue beat(4)3
Avg Revenue beat(4)2.08%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)6.29%
Revenue beat(8)5
Avg Revenue beat(8)1.9%
Revenue beat(12)9
Avg Revenue beat(12)4.64%
Revenue beat(16)12
Avg Revenue beat(16)4.4%
PT rev (1m)-0.11%
PT rev (3m)1.25%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-0.97%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)1.81%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)1.72%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)1.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.15 | ||
| Fwd PE | 22.96 | ||
| P/S | 4.22 | ||
| P/FCF | 30.74 | ||
| P/OCF | 19.55 | ||
| P/B | 3.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.82 |
EPS(TTM)3.84
EY3.82%
EPS(NY)4.37
Fwd EY4.36%
FCF(TTM)3.27
FCFY3.25%
OCF(TTM)5.14
OCFY5.12%
SpS23.8
BVpS31.98
TBVpS-6.28
PEG (NY)2.29
PEG (5Y)1.26
Graham Number52.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 6.36% | ||
| ROCE | 7.24% | ||
| ROIC | 5.31% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 19.52% | ||
| OM | 17.44% | ||
| PM (TTM) | 8.54% | ||
| GM | 45.78% | ||
| FCFM | 13.72% |
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%
ROICexgc growth 3Y13.17%
ROICexgc 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 | 0.44 | ||
| Debt/FCF | 4.46 | ||
| Debt/EBITDA | 2.27 | ||
| Cap/Depr | 90.91% | ||
| Cap/Sales | 7.86% | ||
| Interest Coverage | 3.72 | ||
| Cash Conversion | 82.73% | ||
| Profit Quality | 160.64% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 2.55 |
F-Score6
WACC8.34%
ROIC/WACC0.64
Cap/Depr(3y)78.22%
Cap/Depr(5y)67.07%
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)13.95%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%30.99%
EPS Next Y11.44%
EPS Next 2Y11.78%
EPS Next 3Y15.86%
EPS Next 5Y18.24%
Revenue 1Y (TTM)16.43%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%11.3%
Revenue Next Year7.67%
Revenue Next 2Y6.18%
Revenue Next 3Y6.42%
Revenue Next 5Y8.39%
EBIT growth 1Y-0.49%
EBIT growth 3Y42.86%
EBIT growth 5Y29.02%
EBIT Next Year35.13%
EBIT Next 3Y19.93%
EBIT Next 5Y17.05%
FCF growth 1Y380.48%
FCF growth 3Y33.7%
FCF growth 5Y17.56%
OCF growth 1Y202.67%
OCF growth 3Y43.17%
OCF growth 5Y22.87%
RB GLOBAL INC / RBA FAQ
What is the ChartMill fundamental rating of RB GLOBAL INC (RBA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to RBA.
What is the valuation status of RB GLOBAL INC (RBA) stock?
ChartMill assigns a valuation rating of 3 / 10 to RB GLOBAL INC (RBA). This can be considered as Overvalued.
How profitable is RB GLOBAL INC (RBA) stock?
RB GLOBAL INC (RBA) has a profitability rating of 6 / 10.
What is the financial health of RB GLOBAL INC (RBA) stock?
The financial health rating of RB GLOBAL INC (RBA) is 4 / 10.
Can you provide the dividend sustainability for RBA stock?
The dividend rating of RB GLOBAL INC (RBA) is 5 / 10 and the dividend payout ratio is 65.92%.