RB Global (RBA) AI Stock Analysis

• Market Cap: C$25.09B
• Dividend Yield: 1.26%
• Average Volume (3M): 247.88K
• Price to Earnings (P/E): 49.2
• Beta (1Y): 1.01
• Revenue Growth: 18.26%
• EPS Growth: 141.71%
• Country: CA
• Employees: 7,800
• Sector: Industrials
• Sector Strength: 61
• Industry: Specialty Business Services
• EPS (TTM): 2.76
• Shares Outstanding: 185,122,970
• 10 Day Avg. Volume: 238,331
• 30 Day Avg. Volume: 247,879
• PEG Ratio: 0.35
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.34
• Price to Cash Flow (P/CF): 15.90
• P/FCF Ratio: 17.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$159.39
• Price Target Upside: 24.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

Ritchie Bros demonstrates strong financial performance with robust revenue and cash flow growth. Technical indicators show positive momentum, and while the valuation suggests a potential overvaluation risk, the company’s strategic initiatives and positive corporate events provide a solid foundation for future growth. However, challenges in the CC&T sector and economic uncertainty could pose risks.

Positive Factors

Financial performance

Q4/24 results were better than consensus expectations with higher revenue and adjusted EBITDA than anticipated.

Operational improvements

Management has put a strong focus on operational and technological improvements towards IAA, which should help drive incremental GTV growth.

Negative Factors

Economic uncertainty

The CCT sector is being challenged by macro uncertainty as equipment owners have adopted a wait and see approach to their equipment disposition needs.

Market challenges

Consignors continue to be hesitant to bring used equipment to auction preferring to take a wait and see attitude due to sluggish select segments of the economy and the implementation of potential tariffs.

RB Global Business Overview & Revenue Model

Company Description

Ritchie Bros. Auctioneers (RBA) is a global leader in asset management and disposition, specializing in industrial equipment auctions. The company operates in sectors such as construction, transportation, agriculture, energy, and mining, providing a platform for buying and selling used heavy equipment and trucks. Ritchie Bros. offers live unreserved auctions, online marketplaces, and a range of value-added services to facilitate the disposition and acquisition of assets.

How the Company Makes Money

Ritchie Bros. generates revenue through commissions earned on the sale of equipment in its auctions and online marketplaces. The company conducts live auctions with both on-site and online bidding, as well as operates an online-only auction platform known as IronPlanet. Ritchie Bros. also offers ancillary services such as equipment financing, appraisals, inspections, refurbishing, and logistics, providing additional revenue streams. Key partnerships with equipment manufacturers, brokers, and dealers further support their business model, enhancing their ability to attract a wide array of sellers and buyers, which bolsters auction attendance and increases transaction volume.

RB Global Financial Statement Overview

Summary

Ritchie Bros exhibits strong financial health with robust revenue growth, efficient cost management, and strong cash flow generation. The company maintains a stable balance sheet with reasonable leverage and effective equity utilization.

Income Statement

Ritchie Bros demonstrated strong revenue growth with a significant increase of 16.4% from the previous year. Gross profit margin is healthy at 46.8%, and net profit margin improved to 9.6%. The EBIT and EBITDA margins also showed improvement, indicating effective cost management and operational efficiency.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.75, indicating reasonable leverage. The return on equity is robust at 7.2%, reflecting efficient use of equity to generate profits. The equity ratio stands at 48.3%, highlighting a strong equity base relative to total assets.

Cash Flow

Cash flow analysis reveals a remarkable free cash flow growth rate of 231.1%, supported by strong operating cash flow. The operating cash flow to net income ratio of 2.26 signals efficient cash generation relative to profits. The free cash flow to net income ratio is 1.59, indicating sound cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.28B	3.68B	1.73B	1.42B	1.38B
	Gross Profit
2.00B	1.78B	957.11M	822.19M	761.67M
	EBIT
761.20M	471.30M	328.08M	240.15M	263.16M
	EBITDA
1.38B	958.30M	444.61M	343.00M	358.62M
	Net Income Common Stockholders
413.10M	206.50M	319.70M	119.14M	170.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
533.90M	576.20M	494.32M	326.11M	278.77M
	Total Assets
11.81B	12.04B	2.86B	3.59B	2.35B
	Total Debt
4.29B	4.64B	610.62M	1.74B	665.79M
	Net Debt
3.75B	4.06B	116.29M	1.42B	387.03M
	Total Liabilities
6.09B	6.53B	1.57B	2.52B	1.34B
	Stockholders Equity
5.71B	5.50B	1.29B	1.07B	1.01B
Cash Flow		Free Cash Flow
655.10M	197.80M	391.12M	274.10M	214.74M
	Operating Cash Flow
932.00M	544.00M	463.06M	317.59M	257.87M
	Investing Cash Flow
-301.60M	-3.11B	77.33M	-214.07M	-276.72M
	Financing Cash Flow
-645.50M	2.68B	-1.26B	960.91M	-111.46M

RB Global Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 127.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RBA, the sentiment is Negative. The current price of 127.76 is below the 20-day moving average (MA) of 139.55, below the 50-day MA of 138.97, and above the 200-day MA of 123.54, indicating a neutral trend. The MACD of 0.92 indicates Positive momentum. The RSI at 56.75 is Neutral, neither overbought nor oversold. The STOCH value of 66.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RBA.

RB Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RBA	76 Outperform	C$25.09B	49.17	7.71%	1.26%	18.26%	141.71%
MTL	73 Outperform	C$1.08B	9.61	11.27%	6.61%	-0.27%	-15.99%
PKI	66 Neutral	C$5.71B	45.11	4.00%	4.51%	-12.79%	-72.79%
Sector *	62 Neutral	$7.67B	13.25	3.04%	3.47%	3.63%	-13.99%
ACQ	57 Neutral	C$377.78M	―	7.01%	―	-16.86%	-236.70%

RB Global Corporate Events

RB Global Reports Strong 2024 Financial Results, Sets Positive Outlook for 2025

RB Global reported positive fourth-quarter and full-year 2024 financial results, with total revenue increasing by 10% and net income rising by 41% year over year. The company emphasized its strategic focus on enhancing operational efficiency and reducing leverage, setting a foundation for continued growth in 2025.

RB Global Adjusts Record Date for Quarterly Dividend

RB Global, Inc. has changed the record date for its quarterly cash dividend from February 6, 2025, to February 14, 2025, while keeping the payment date unchanged at March 3, 2025. This amendment in the dividend record date is significant for stakeholders as it affects eligibility for the dividend, potentially impacting investment strategies and tax considerations for shareholders.

RB Global Declares Quarterly Dividend, Reinforcing Market Strength

RB Global, Inc. announced a quarterly cash dividend of $0.29 per common share, payable on March 3, 2025, to shareholders of record as of February 6, 2025. This decision reflects the company’s ongoing commitment to delivering shareholder value and maintaining its strong market position in the commercial asset and vehicle auction industry.