TSX:RBA

Stock Analysis Report

Ritchie Bros. Auctioneers

Executive Summary

Ritchie Bros. Auctioneers Incorporated, an asset management and disposition company, sells industrial equipment and other durable assets through its unreserved live on site auctions, online marketplaces, listing services, and private brokerage services.

Snowflake

Fundamentals

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Ritchie Bros. Auctioneers's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

TSX:RBA

-2.8%

CA Commercial Services

-0.9%

CA Market


1 Year Return

4.5%

TSX:RBA

-31.9%

CA Commercial Services

-6.1%

CA Market

RBA outperformed the Commercial Services industry which returned -31.9% over the past year.

RBA outperformed the Market in Canada which returned -6.1% over the past year.


Share holder returns

RBAIndustryMarket
7 Day0.8%-2.8%-0.9%
30 Day11.5%-6.0%-3.4%
90 Day14.5%-2.1%-3.1%
1 Year6.6%4.5%-29.5%-31.9%-2.8%-6.1%
3 Year49.6%40.4%-3.0%-10.7%13.2%3.1%
5 Year123.1%101.3%-33.0%-45.4%10.8%-4.7%

Price Volatility Vs. Market

How volatile is Ritchie Bros. Auctioneers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ritchie Bros. Auctioneers undervalued based on future cash flows and its price relative to the stock market?

2%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Ritchie Bros. Auctioneers's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Ritchie Bros. Auctioneers's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Ritchie Bros. Auctioneers is overvalued based on earnings compared to the CA Commercial Services industry average.

Ritchie Bros. Auctioneers is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

Ritchie Bros. Auctioneers is poor value based on expected growth next year.


Price Based on Value of Assets

Ritchie Bros. Auctioneers is overvalued based on assets compared to the CA Commercial Services industry average.


Next Steps

Future Growth

How is Ritchie Bros. Auctioneers expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ritchie Bros. Auctioneers's revenue is expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).

Ritchie Bros. Auctioneers's earnings are expected to grow by 14% yearly, however this is not considered high growth (20% yearly).

Ritchie Bros. Auctioneers's revenue growth is expected to exceed the Canada market average.

Ritchie Bros. Auctioneers's earnings growth is expected to exceed the Canada market average.

Ritchie Bros. Auctioneers's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Ritchie Bros. Auctioneers is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Ritchie Bros. Auctioneers performed over the past 5 years?

0.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ritchie Bros. Auctioneers's year on year earnings growth rate has been positive over the past 5 years.

Ritchie Bros. Auctioneers's 1-year earnings growth exceeds its 5-year average (19.1% vs 0.4%)

Ritchie Bros. Auctioneers's earnings growth has exceeded the CA Commercial Services industry average in the past year (19.1% vs 0.9%).


Return on Equity

Ritchie Bros. Auctioneers has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Ritchie Bros. Auctioneers used its assets more efficiently than the CA Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

Ritchie Bros. Auctioneers's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ritchie Bros. Auctioneers's financial position?


Financial Position Analysis

Ritchie Bros. Auctioneers is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Ritchie Bros. Auctioneers's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Ritchie Bros. Auctioneers's level of debt (85.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (22.5% vs 85.3% today).

Debt is well covered by operating cash flow (27.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.2x debt.


Next Steps

Dividend

What is Ritchie Bros. Auctioneers's current dividend yield, its reliability and sustainability?

2.03%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Ritchie Bros. Auctioneers before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Ritchie Bros. Auctioneers's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.03%).

Ritchie Bros. Auctioneers's dividend is below the markets top 25% of dividend payers in Canada (5.93%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2x coverage).


Next Steps

Management

What is the CEO of Ritchie Bros. Auctioneers's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Ravi Saligram (62yo)

5.1yrs

Tenure

US$5,041,489

Compensation

Mr. Ravichandra K. Saligram, also known as Ravi, has been the Chief Executive Officer and Non-Independent Director of Ritchie Bros. Auctioneers, Inc. since July 7, 2014. Mr. Saligram served as an Interim P ...


CEO Compensation Analysis

Ravi's remuneration is higher than average for companies of similar size in Canada.

Ravi's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

4.3yrs

Average Tenure

57yo

Average Age

The tenure for the Ritchie Bros. Auctioneers management team is about average.


Board Age and Tenure

5.1yrs

Average Tenure

62yo

Average Age

The tenure for the Ritchie Bros. Auctioneers board of directors is about average.


Insider Trading

Ritchie Bros. Auctioneers individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$105,65621 Aug 19
Todd Wohler
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares2,000
Max PriceUS$52.83
SellUS$104,97420 Aug 19
Todd Wohler
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares2,000
Max PriceUS$52.49
SellUS$10214 Aug 19
Todd Wohler
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares2
Max PriceUS$50.75
BuyUS$2,77915 Nov 18
Edward Pitoniak
EntityIndividual
Shares60
Max PriceUS$46.32
BuyUS$762,66613 Sep 18
Ravichandra Saligram
EntityIndividual
Role
Chief Executive Officer
CEO & Non-Independent Director
Shares17,124
Max PriceUS$44.54

Ownership Breakdown


Management Team

  • Jeff Jeter (60yo)

    President of Upstream & Emerging Businesses - North America

    • Tenure: 2.2yrs
    • Compensation: US$1.10m
  • Dave Ritchie

    Founder and Chairman Emeritus

    • Tenure: 12.8yrs
    • Compensation: US$142.50k
  • Doug Feick (54yo)

    Senior Vice President of New Business & Corporate Development

    • Tenure: 0.0yrs
  • Ravi Saligram (62yo)

    CEO & Non-Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$5.04m
  • Curt Hinkelman

    Senior Vice President of Sales - Eastern USA

    • Tenure: 0.0yrs
  • Karl Werner (54yo)

    President of International

    • Tenure: 2.6yrs
    • Compensation: US$1.18m
  • Sharon Driscoll (57yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
    • Compensation: US$1.67m
  • Darren Watt (47yo)

    Senior VP

    • Tenure: 6.6yrs
  • Todd Wohler (60yo)

    Chief Human Resources Officer

    • Tenure: 4.6yrs
    • Compensation: US$1.21m
  • Zaheed Mawani

    Vice President of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Sarah Raiss (62yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$215.34k
  • Dave Ritchie

    Founder and Chairman Emeritus

    • Tenure: 12.8yrs
    • Compensation: US$142.50k
  • Chris Zimmerman (59yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$204.03k
  • Ravi Saligram (62yo)

    CEO & Non-Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$5.04m
  • Bob Elton (67yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$223.31k
  • J. Fennell (62yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$193.78k
  • Bev Briscoe (64yo)

    Chair of the Board

    • Tenure: 5.2yrs
    • Compensation: US$362.27k
  • Erik Olsson (57yo)

    Vice Chairman

    • Tenure: 0.0yrs
    • Compensation: US$206.04k
  • Sharon Driscoll (57yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
    • Compensation: US$1.67m
  • Amy Shenkan (54yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$194.53k

Company Information

Ritchie Bros. Auctioneers Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ritchie Bros. Auctioneers Incorporated
  • Ticker: RBA
  • Exchange: TSX
  • Founded: 1958
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: US$4.216b
  • Listing Market Cap: US$5.608b
  • Shares outstanding: 107.85m
  • Website: https://www.rbauction.com

Number of Employees


Location

  • Ritchie Bros. Auctioneers Incorporated
  • 9500 Glenlyon Parkway
  • Burnaby
  • British Columbia
  • V5J 0C6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RBANYSE (New York Stock Exchange)YesCommon SharesUSUSDMar 1998
RBATSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 1998
2R8DB (Deutsche Boerse AG)YesCommon SharesDEEURMar 1998

Biography

Ritchie Bros. Auctioneers Incorporated, an asset management and disposition company, sells industrial equipment and other durable assets through its unreserved live on site auctions, online marketplaces, l ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 23:58
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.