RB GLOBAL INC (RBA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RBA - CA74935Q1072 - Common Stock
102.87 USD
-1.86 (-1.78%)
102.86 USD
-0.01 (-0.01%)
RBA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 81 industry peers in the Commercial Services & Supplies industry. RBA has an average financial health and profitability rating. RBA is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year RBA was profitable.
RBA had a positive operating cash flow in the past year.
Each year in the past 5 years RBA has been profitable.
Each year in the past 5 years RBA had a positive operating cash flow.
1.2 Ratios
RBA has a better Return On Assets (3.20%) than 65.43% of its industry peers.
RBA's Return On Equity of 6.56% is fine compared to the rest of the industry. RBA outperforms 62.96% of its industry peers.
RBA has a Return On Invested Capital (5.29%) which 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 10.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 6.56% | ||
| ROIC | 5.29% |
ROA(3y)5.26%
ROA(5y)5.45%
ROE(3y)11.5%
ROE(5y)13.11%
ROIC(3y)7.18%
ROIC(5y)7.77%
1.3 Margins
With an excellent Profit Margin value of 8.64%, RBA belongs to the best of the industry, outperforming 82.72% of the companies in the same industry.
RBA's Profit Margin has declined in the last couple of years.
RBA has a Operating Margin of 17.06%. This is amongst the best in the industry. RBA outperforms 90.12% of its industry peers.
RBA's Operating Margin has improved in the last couple of years.
RBA has a Gross Margin of 45.87%. This is amongst the best in the industry. RBA outperforms 81.48% of its industry peers.
In the last couple of years the Gross Margin of RBA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.06% | ||
| PM (TTM) | 8.64% | ||
| GM | 45.87% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RBA is destroying value.
Compared to 1 year ago, RBA has more shares outstanding
RBA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RBA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.58 indicates that RBA is not a great score, but indicates only limited risk for bankruptcy at the moment.
RBA has a Altman-Z score (2.58) which is comparable to the rest of the industry.
The Debt to FCF ratio of RBA is 4.97, which is a neutral value as it means it would take RBA, 4.97 years of fcf income to pay off all of its debts.
RBA's Debt to FCF ratio of 4.97 is fine compared to the rest of the industry. RBA outperforms 70.37% of its industry peers.
RBA has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.43, RBA is in line with its industry, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.63
WACC8.41%
2.3 Liquidity
RBA has a Current Ratio of 1.23. This is a normal value and indicates that RBA is financially healthy and should not expect problems in meeting its short term obligations.
RBA's Current ratio of 1.23 is on the low side compared to the rest of the industry. RBA is outperformed by 61.73% of its industry peers.
A Quick Ratio of 1.15 indicates that RBA should not have too much problems paying its short term obligations.
RBA's Quick ratio of 1.15 is on the low side compared to the rest of the industry. RBA is outperformed by 60.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.95% 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 quite strong growth in Revenue. The Revenue has grown by 8.26% 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)13.95%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%30.99%
Revenue 1Y (TTM)8.26%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%11.3%
3.2 Future
Based on estimates for the next years, RBA will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.24% on average per year.
RBA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.39% yearly.
EPS Next Y11.97%
EPS Next 2Y11.08%
EPS Next 3Y12.47%
EPS Next 5Y18.24%
Revenue Next Year7.27%
Revenue Next 2Y5.63%
Revenue Next 3Y5.24%
Revenue Next 5Y8.39%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 26.79, 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 26.51. RBA is around the same levels.
Based on the Price/Forward Earnings ratio of 23.82, the valuation of RBA can be described as rather expensive.
Based on the Price/Forward Earnings ratio, RBA is valued a bit cheaper than the industry average as 62.96% of the companies are valued more expensively.
RBA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.79 | ||
| Fwd PE | 23.82 |
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.
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 | 35.53 | ||
| EV/EBITDA | 18.64 |
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 12.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.24
PEG (5Y)1.29
EPS Next 2Y11.08%
EPS Next 3Y12.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.16%, RBA has a reasonable but not impressive dividend return.
RBA's Dividend Yield is a higher than the industry average which is at 0.89.
Compared to an average S&P500 Dividend Yield of 2.00, RBA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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.
Dividend Growth(5Y)11.54%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
RBA pays out 64.84% 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.
DP64.84%
EPS Next 2Y11.08%
EPS Next 3Y12.47%
102.87
-1.86 (-1.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.23%
Inst Owner Change3.44%
Ins Owners0.09%
Ins Owner Change-0.22%
Market Cap19.10B
Revenue(TTM)4.53B
Net Income(TTM)391.10M
Analysts85.45
Price Target92.68 (-9.91%)
Short Float %4.67%
Short Ratio8.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Yearly Dividend1.31
Dividend Growth(5Y)11.54%
DP64.84%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.81%
Min EPS beat(2)11.05%
Max EPS beat(2)12.57%
EPS beat(4)4
Avg EPS beat(4)12.34%
Min EPS beat(4)6.38%
Max EPS beat(4)19.36%
EPS beat(8)8
Avg EPS beat(8)14.12%
EPS beat(12)12
Avg EPS beat(12)17.1%
EPS beat(16)14
Avg EPS beat(16)46.17%
Revenue beat(2)2
Avg Revenue beat(2)2.87%
Min Revenue beat(2)2.7%
Max Revenue beat(2)3.04%
Revenue beat(4)4
Avg Revenue beat(4)4.18%
Min Revenue beat(4)2.7%
Max Revenue beat(4)6.29%
Revenue beat(8)5
Avg Revenue beat(8)1.66%
Revenue beat(12)9
Avg Revenue beat(12)3.78%
Revenue beat(16)12
Avg Revenue beat(16)4.53%
PT rev (1m)4.5%
PT rev (3m)1.52%
EPS NQ rev (1m)-0.97%
EPS NQ rev (3m)-4.92%
EPS NY rev (1m)0.47%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-2.02%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.79 | ||
| Fwd PE | 23.82 | ||
| P/S | 4.22 | ||
| P/FCF | 35.53 | ||
| P/OCF | 21.19 | ||
| P/B | 3.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.64 |
EPS(TTM)3.84
EY3.73%
EPS(NY)4.32
Fwd EY4.2%
FCF(TTM)2.9
FCFY2.81%
OCF(TTM)4.85
OCFY4.72%
SpS24.39
BVpS32.13
TBVpS-6.7
PEG (NY)2.24
PEG (5Y)1.29
Graham Number52.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 6.56% | ||
| ROCE | 7.2% | ||
| ROIC | 5.29% | ||
| ROICexc | 5.65% | ||
| ROICexgc | 19.62% | ||
| OM | 17.06% | ||
| PM (TTM) | 8.64% | ||
| GM | 45.87% | ||
| FCFM | 11.87% |
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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 4.97 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 102.31% | ||
| Cap/Sales | 8.04% | ||
| Interest Coverage | 3.95 | ||
| Cash Conversion | 79.9% | ||
| Profit Quality | 137.46% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.58 |
F-Score6
WACC8.41%
ROIC/WACC0.63
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 Y11.97%
EPS Next 2Y11.08%
EPS Next 3Y12.47%
EPS Next 5Y18.24%
Revenue 1Y (TTM)8.26%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%11.3%
Revenue Next Year7.27%
Revenue Next 2Y5.63%
Revenue Next 3Y5.24%
Revenue Next 5Y8.39%
EBIT growth 1Y1.03%
EBIT growth 3Y42.86%
EBIT growth 5Y29.02%
EBIT Next Year35.91%
EBIT Next 3Y17.76%
EBIT Next 5Y17.05%
FCF growth 1Y254.81%
FCF growth 3Y33.7%
FCF growth 5Y17.56%
OCF growth 1Y122.13%
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.
Can you provide the valuation status for RB GLOBAL INC?
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.
Can you provide the PE and PB ratios for RBA stock?
The Price/Earnings (PE) ratio for RB GLOBAL INC (RBA) is 26.79 and the Price/Book (PB) ratio is 3.2.
What is the expected EPS growth for RB GLOBAL INC (RBA) stock?
The Earnings per Share (EPS) of RB GLOBAL INC (RBA) is expected to grow by 11.97% in the next year.