RB GLOBAL INC (RBA) Stock Fundamental Analysis
NYSE:RBA - New York Stock Exchange, Inc. - CA74935Q1072 - Common Stock - Currency: USD
RBA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. RBA has only an average score on both its financial health and profitability. While showing a medium growth rate, RBA is valued expensive at the moment.
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.
Each year in the past 5 years RBA has been profitable.
In the past 5 years RBA always reported a positive cash flow from operatings.
1.2 Ratios
RBA's Return On Assets of 3.18% is fine compared to the rest of the industry. RBA outperforms 61.45% of its industry peers.
RBA's Return On Equity of 6.56% is in line compared to the rest of the industry. RBA outperforms 59.04% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.38%, RBA is in line with its industry, outperforming 53.01% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RBA is below the industry average of 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 6.56% | ||
| ROIC | 5.38% |
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 8.75%. This is in the better half of the industry: RBA outperforms 79.52% 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 17.77%, RBA belongs to the top of the industry, outperforming 85.54% 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 46.24% is fine compared to the rest of the industry. RBA outperforms 79.52% of its industry peers.
In the last couple of years the Gross Margin of RBA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.77% | ||
| PM (TTM) | 8.75% | ||
| GM | 46.24% |
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.
The number of shares outstanding for RBA has been increased compared to 5 years ago.
The debt/assets ratio for RBA has been reduced compared to a year ago.
2.2 Solvency
RBA has an Altman-Z score of 2.68. This is not the best score and indicates that RBA is in the grey zone with still only limited risk for bankruptcy at the moment.
RBA's Altman-Z score of 2.68 is in line compared to the rest of the industry. RBA outperforms 54.22% of its industry peers.
RBA has a debt to FCF ratio of 4.00. This is a neutral value as RBA would need 4.00 years to pay back of all of its debts.
The Debt to FCF ratio of RBA (4.00) is better than 71.08% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that RBA is not too dependend on debt financing.
The Debt to Equity ratio of RBA (0.47) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.53
WACC10.12%
2.3 Liquidity
RBA has a Current Ratio of 1.31. This is a normal value and indicates that RBA is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of RBA (1.31) is worse than 66.27% of its industry peers.
RBA has a Quick Ratio of 1.21. 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 Quick ratio of 1.21 is in line compared to the rest of the industry. RBA outperforms 40.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.08% 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.
RBA shows a small growth in Revenue. In the last year, the Revenue has grown by 2.27%.
RBA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.58% yearly.
EPS 1Y (TTM)6.08%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%-1.11%
Revenue 1Y (TTM)2.27%
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.
The Revenue is expected to grow by 3.69% on average over the next years.
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 5Y3.69%
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
A Price/Earnings ratio of 30.46 indicates a quite expensive valuation of RBA.
RBA's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. RBA is around the same levels.
Based on the Price/Forward Earnings ratio of 25.03, the valuation of RBA can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as RBA.
RBA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.46 | ||
| Fwd PE | 25.03 |
4.2 Price Multiples
RBA's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 29.01 | ||
| EV/EBITDA | 15.81 |
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)3.22
PEG (5Y)1.46
EPS Next 2Y10.15%
EPS Next 3Y12.16%
5. Dividend
5.1 Amount
RBA has a Yearly Dividend Yield of 1.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.57, RBA pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.14, RBA pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
5.2 History
On average, the dividend of RBA grows each year by 11.54%, which is quite nice.
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 64.60% 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.
DP64.6%
EPS Next 2Y10.15%
EPS Next 3Y12.16%
106.3
-1.03 (-0.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.1%
Inst Owner Change-0.47%
Ins Owners0.1%
Ins Owner Change7.47%
Market Cap19.69B
Analysts81.82
Price Target87.65 (-17.54%)
Short Float %4.19%
Short Ratio6.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend1.31
Dividend Growth(5Y)11.54%
DP64.6%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.87%
Min EPS beat(2)6.38%
Max EPS beat(2)19.36%
EPS beat(4)4
Avg EPS beat(4)10.93%
Min EPS beat(4)6.38%
Max EPS beat(4)19.36%
EPS beat(8)8
Avg EPS beat(8)18.4%
EPS beat(12)11
Avg EPS beat(12)13.33%
EPS beat(16)13
Avg EPS beat(16)44.23%
Revenue beat(2)2
Avg Revenue beat(2)5.49%
Min Revenue beat(2)4.68%
Max Revenue beat(2)6.29%
Revenue beat(4)2
Avg Revenue beat(4)0.44%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)6.29%
Revenue beat(8)5
Avg Revenue beat(8)1.89%
Revenue beat(12)9
Avg Revenue beat(12)5.28%
Revenue beat(16)11
Avg Revenue beat(16)3.85%
PT rev (1m)3.74%
PT rev (3m)7.78%
EPS NQ rev (1m)-3.12%
EPS NQ rev (3m)-4.08%
EPS NY rev (1m)0%
EPS NY rev (3m)2.51%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.46 | ||
| Fwd PE | 25.03 | ||
| P/S | 4.55 | ||
| P/FCF | 29.01 | ||
| P/OCF | 20.42 | ||
| P/B | 3.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.81 |
EPS(TTM)3.49
EY3.28%
EPS(NY)4.25
Fwd EY3.99%
FCF(TTM)3.66
FCFY3.45%
OCF(TTM)5.21
OCFY4.9%
SpS23.37
BVpS31.13
TBVpS-7.35
PEG (NY)3.22
PEG (5Y)1.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.18% | ||
| ROE | 6.56% | ||
| ROCE | 7.31% | ||
| ROIC | 5.38% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 19.75% | ||
| OM | 17.77% | ||
| PM (TTM) | 8.75% | ||
| GM | 46.24% | ||
| FCFM | 15.68% |
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-Score7
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 47.02% | ||
| Cap/Sales | 6.59% | ||
| Interest Coverage | 3.55 | ||
| Cash Conversion | 70.05% | ||
| Profit Quality | 179.31% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 2.68 |
F-Score7
WACC10.12%
ROIC/WACC0.53
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)2.27%
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 5Y3.69%
EBIT growth 1Y-2.83%
EBIT growth 3Y42.86%
EBIT growth 5Y29.02%
EBIT Next Year33.95%
EBIT Next 3Y14%
EBIT Next 5Y8.97%
FCF growth 1Y474.94%
FCF growth 3Y33.7%
FCF growth 5Y17.56%
OCF growth 1Y336.95%
OCF growth 3Y43.17%
OCF growth 5Y22.87%