RB GLOBAL INC (RBA) Stock Fundamental Analysis
NYSE:RBA - CA74935Q1072 - Common Stock
114.54 USD
-0.09 (-0.08%)
114.54 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to RBA. RBA was compared to 84 industry peers in the Commercial Services & Supplies industry. RBA has only an average score on both its financial health and profitability. RBA shows excellent growth, but is valued quite expensive already.
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.
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
The Return On Assets of RBA (3.10%) is better than 61.90% of its industry peers.
The Return On Equity of RBA (6.36%) is comparable to the rest of the industry.
RBA has a Return On Invested Capital (5.31%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for RBA is below the industry average of 10.65%.
| 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 a decent Profit Margin value of 8.54%, RBA is doing good in the industry, outperforming 79.76% of the companies in the same industry.
RBA's Profit Margin has declined in the last couple of years.
The Operating Margin of RBA (17.44%) is better than 88.10% of its industry peers.
In the last couple of years the Operating Margin of RBA has grown nicely.
The Gross Margin of RBA (45.78%) is better than 82.14% of its industry peers.
In the last couple of years the Gross Margin of RBA has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RBA 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.
RBA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.80 indicates that RBA is not a great score, but indicates only limited risk for bankruptcy at the moment.
RBA has a Altman-Z score of 2.80. This is comparable to the rest of the industry: RBA outperforms 54.76% of its industry peers.
The Debt to FCF ratio of RBA is 4.46, which is a neutral value as it means it would take RBA, 4.46 years of fcf income to pay off all of its debts.
RBA has a better Debt to FCF ratio (4.46) than 70.24% of its industry peers.
RBA has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.44, RBA perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 4.46 | ||
| Altman-Z | 2.8 |
ROIC/WACC0.61
WACC8.69%
2.3 Liquidity
RBA has a Current Ratio of 1.28. 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 Current ratio value of 1.28, RBA is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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.
RBA has a Quick ratio (1.22) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.10% 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.
The Revenue has been growing slightly by 4.65% in the past year.
The Revenue has been growing by 26.58% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)7.1%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%13.83%
Revenue 1Y (TTM)4.65%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%8.2%
3.2 Future
RBA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.27% yearly.
Based on estimates for the next years, RBA will show a quite strong growth in Revenue. The Revenue will grow by 8.39% on average per year.
EPS Next Y12.05%
EPS Next 2Y11.98%
EPS Next 3Y21.27%
EPS Next 5YN/A
Revenue Next Year7.13%
Revenue Next 2Y6%
Revenue Next 3Y8.76%
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.
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 31.64 indicates a quite expensive valuation of RBA.
Compared to the rest of the industry, the Price/Earnings ratio of RBA is on the same level as its industry peers.
RBA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.13.
RBA is valuated quite expensively with a Price/Forward Earnings ratio of 26.10.
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 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.64 | ||
| Fwd PE | 26.1 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RBA.
RBA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.07 | ||
| EV/EBITDA | 16.72 |
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.
RBA's earnings are expected to grow with 21.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.63
PEG (5Y)1.52
EPS Next 2Y11.98%
EPS Next 3Y21.27%
5. Dividend
5.1 Amount
RBA has a Yearly Dividend Yield of 1.06%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.26, RBA pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.06, RBA pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
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
65.92% of the earnings are spent on dividend by RBA. 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 2Y11.98%
EPS Next 3Y21.27%
114.54
-0.09 (-0.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.1%
Inst Owner Change-1.67%
Ins Owners0.1%
Ins Owner Change7.22%
Market Cap21.26B
Analysts81.82
Price Target90.99 (-20.56%)
Short Float %4.17%
Short Ratio7.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
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)3.79%
PT rev (3m)7.69%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-1.2%
EPS NY rev (1m)2.37%
EPS NY rev (3m)2.37%
Revenue NQ rev (1m)1.34%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)1.34%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.64 | ||
| Fwd PE | 26.1 | ||
| P/S | 4.81 | ||
| P/FCF | 35.07 | ||
| P/OCF | 22.3 | ||
| P/B | 3.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.72 |
EPS(TTM)3.62
EY3.16%
EPS(NY)4.39
Fwd EY3.83%
FCF(TTM)3.27
FCFY2.85%
OCF(TTM)5.14
OCFY4.48%
SpS23.8
BVpS31.98
TBVpS-6.28
PEG (NY)2.63
PEG (5Y)1.52
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%
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 | 0.44 | ||
| Debt/FCF | 4.46 | ||
| Debt/EBITDA | 1.89 | ||
| Cap/Depr | 56.49% | ||
| Cap/Sales | 7.86% | ||
| Interest Coverage | 3.72 | ||
| Cash Conversion | 68.83% | ||
| Profit Quality | 160.64% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 2.8 |
F-Score6
WACC8.69%
ROIC/WACC0.61
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)7.1%
EPS 3Y34.45%
EPS 5Y20.81%
EPS Q2Q%13.83%
EPS Next Y12.05%
EPS Next 2Y11.98%
EPS Next 3Y21.27%
EPS Next 5YN/A
Revenue 1Y (TTM)4.65%
Revenue growth 3Y44.6%
Revenue growth 5Y26.58%
Sales Q2Q%8.2%
Revenue Next Year7.13%
Revenue Next 2Y6%
Revenue Next 3Y8.76%
Revenue Next 5Y8.39%
EBIT growth 1Y-0.49%
EBIT growth 3Y42.86%
EBIT growth 5Y29.02%
EBIT Next Year33.95%
EBIT Next 3Y14%
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%