RB GLOBAL INC (RBA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RBA - CA74935Q1072 - Common Stock
99.63 USD
+1.5 (+1.53%)
99.63 USD
0 (0%)
Taking everything into account, RBA scores 5 out of 10 in our fundamental rating. RBA was compared to 82 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
In the past year RBA was profitable.
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
With a decent Return On Assets value of 3.20%, RBA is doing good in the industry, outperforming 60.98% of the companies in the same industry.
With a Return On Equity value of 6.56%, RBA perfoms like the industry average, outperforming 58.54% of the companies in the same industry.
The Return On Invested Capital of RBA (5.29%) is comparable to the rest of the industry.
RBA had an Average Return On Invested Capital over the past 3 years of 7.18%. This is below the industry average of 10.51%.
| 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 82.93% of the companies in the same industry.
In the last couple of years the Profit Margin of RBA has declined.
The Operating Margin of RBA (17.06%) is better than 90.24% 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 81.71% 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
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 2.52. 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.
Looking at the Altman-Z score, with a value of 2.52, RBA is in line with its industry, outperforming 52.44% of the companies in the same 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 has a better Debt to FCF ratio (4.97) than 68.29% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that RBA is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.43, RBA perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 4.97 | ||
| Altman-Z | 2.52 |
ROIC/WACC0.63
WACC8.36%
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 65.85% 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 has a Quick ratio of 1.15. This is in the lower half of the industry: RBA underperforms 62.20% 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.
The Earnings Per Share has been growing by 20.81% on average over the past years. This is a very strong growth
The Revenue has grown by 8.26% in the past year. This is quite good.
RBA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.58% yearly.
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
RBA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.24% yearly.
The Revenue is expected to grow by 8.39% on average over the next years. This is quite good.
EPS Next Y11.97%
EPS Next 2Y11.08%
EPS Next 3Y12.47%
EPS Next 5Y18.24%
Revenue Next Year7.11%
Revenue Next 2Y5.64%
Revenue Next 3Y5.21%
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
With a Price/Earnings ratio of 25.95, RBA can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of RBA is on the same level as its industry peers.
When comparing the Price/Earnings ratio of RBA to the average of the S&P500 Index (26.46), we can say RBA is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 23.07, the valuation of RBA can be described as rather expensive.
Based on the Price/Forward Earnings ratio, RBA is valued a bit cheaper than 63.41% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, RBA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.95 | ||
| Fwd PE | 23.07 |
4.2 Price Multiples
RBA's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as RBA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.41 | ||
| EV/EBITDA | 18.1 |
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 12.47% in the coming years.
PEG (NY)2.17
PEG (5Y)1.25
EPS Next 2Y11.08%
EPS Next 3Y12.47%
5. Dividend
5.1 Amount
RBA has a Yearly Dividend Yield of 1.22%.
Compared to an average industry Dividend Yield of 2.46, RBA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, RBA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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
64.84% 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.
DP64.84%
EPS Next 2Y11.08%
EPS Next 3Y12.47%
99.63
+1.5 (+1.53%)
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-0.61%
Market Cap18.50B
Revenue(TTM)4.53B
Net Income(TTM)391.10M
Analysts85.45
Price Target89.15 (-10.52%)
Short Float %4.64%
Short Ratio7.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend1.31
Dividend Growth(5Y)11.54%
DP64.84%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-1.54%
PT rev (3m)-2.03%
EPS NQ rev (1m)-2.12%
EPS NQ rev (3m)-3.99%
EPS NY rev (1m)0.47%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)-0.68%
Revenue NQ rev (3m)-1.76%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.95 | ||
| Fwd PE | 23.07 | ||
| P/S | 4.08 | ||
| P/FCF | 34.41 | ||
| P/OCF | 20.52 | ||
| P/B | 3.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.1 |
EPS(TTM)3.84
EY3.85%
EPS(NY)4.32
Fwd EY4.33%
FCF(TTM)2.9
FCFY2.91%
OCF(TTM)4.85
OCFY4.87%
SpS24.39
BVpS32.13
TBVpS-6.7
PEG (NY)2.17
PEG (5Y)1.25
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 | 2.52 |
F-Score6
WACC8.36%
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 Year7.11%
Revenue Next 2Y5.64%
Revenue Next 3Y5.21%
Revenue Next 5Y8.39%
EBIT growth 1Y1.03%
EBIT growth 3Y42.86%
EBIT growth 5Y29.02%
EBIT Next Year35.62%
EBIT Next 3Y17.1%
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.
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 64.84%.