TSX:RBA

Stock Analysis Report

Ritchie Bros. Auctioneers

Executive Summary

Ritchie Bros. Auctioneers Incorporated and its subsidiaries provide asset management and disposition services.


Snowflake Analysis

Solid track record average dividend payer.


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

Stable Share Price: RBA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

8.7%

RBA

-1.8%

CA Commercial Services

3.7%

CA Market


1 Year Return

5.0%

RBA

-13.9%

CA Commercial Services

-23.7%

CA Market

Return vs Industry: RBA exceeded the Canadian Commercial Services industry which returned -13.9% over the past year.

Return vs Market: RBA exceeded the Canadian Market which returned -23.7% over the past year.


Shareholder returns

RBAIndustryMarket
7 Day8.7%-1.8%3.7%
30 Day-8.7%-29.9%-19.7%
90 Day-13.6%-27.9%-24.3%
1 Year7.1%5.0%-12.2%-13.9%-21.2%-23.7%
3 Year18.6%11.3%2.9%-3.8%-13.3%-21.4%
5 Year67.8%50.8%21.5%4.6%-0.8%-15.5%

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 compared to its fair value and its price relative to the market?

18.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RBA (CA$48.2) is trading below our estimate of fair value (CA$59.2)

Significantly Below Fair Value: RBA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RBA is poor value based on its PE Ratio (24.9x) compared to the Commercial Services industry average (16.6x).

PE vs Market: RBA is poor value based on its PE Ratio (24.9x) compared to the Canadian market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: RBA is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: RBA is overvalued based on its PB Ratio (4.1x) compared to the CA Commercial Services industry average (0.9x).


Next Steps

Future Growth

How is Ritchie Bros. Auctioneers forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RBA's forecast earnings growth (11% per year) is above the savings rate (1.4%).

Earnings vs Market: RBA's earnings (11% per year) are forecast to grow faster than the Canadian market (7.1% per year).

High Growth Earnings: RBA's earnings are forecast to grow, but not significantly.

Revenue vs Market: RBA's revenue (4.7% per year) is forecast to grow faster than the Canadian market (3.7% per year).

High Growth Revenue: RBA's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RBA's Return on Equity is forecast to be low in 3 years time (18.4%).


Next Steps

Past Performance

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

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RBA has high quality earnings.

Growing Profit Margin: RBA's current net profit margins (11.3%) are higher than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: RBA's earnings have grown by 3.2% per year over the past 5 years.

Accelerating Growth: RBA's earnings growth over the past year (22.7%) exceeds its 5-year average (3.2% per year).

Earnings vs Industry: RBA earnings growth over the past year (22.7%) exceeded the Commercial Services industry -19.4%.


Return on Equity

High ROE: RBA's Return on Equity (16.4%) is considered low.


Next Steps

Financial Health

How is Ritchie Bros. Auctioneers's financial position?


Financial Position Analysis

Short Term Liabilities: RBA's short term assets ($679.6M) exceed its short term liabilities ($501.3M).

Long Term Liabilities: RBA's short term assets ($679.6M) do not cover its long term liabilities ($821.2M).


Debt to Equity History and Analysis

Debt Level: RBA's debt to equity ratio (71.7%) is considered high.

Reducing Debt: RBA's debt to equity ratio has increased from 16.7% to 71.7% over the past 5 years.

Debt Coverage: RBA's debt is well covered by operating cash flow (51.2%).

Interest Coverage: RBA's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet

Inventory Level: RBA has a high level of physical assets or inventory.

Debt Coverage by Assets: RBA's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

2.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RBA's dividend (2.34%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.69%).

High Dividend: RBA's dividend (2.34%) is low compared to the top 25% of dividend payers in the Canadian market (8.66%).


Stability and Growth of Payments

Stable Dividend: RBA's dividends per share have been stable in the past 10 years.

Growing Dividend: RBA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.8%), RBA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RBA's dividends in 3 years are forecast to be covered by earnings (54% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Ann Fandozzi (48yo)

0.25

Tenure

Ms. Ann M. Fandozzi serves as Chief Executive Officer & Director at Ritchie Bros. Auctioneers Incorporated since January 6, 2020. She has been the President of ABRA Auto Body & Glass LP since October 10, 2 ...


Leadership Team

NamePositionTenureCompensationOwnership
Sharon Driscoll
Chief Financial Officer4.75yrsUS$1.80m0.024% $1.3m
Todd Wohler
Chief Human Resources Officer5.25yrsUS$1.06m0.013% $686.5k
Karl Werner
President of International0.25yrUS$1.25m0.050% $2.6m
James Jeter
President of Upstream & Emerging Businesses - North America2.83yrsUS$1.26m0.035% $1.9m
Ann Fandozzi
CEO & Director0.25yrno datano data
David Ritchie
Founder and Chairman Emeritus13.42yrsUS$142.50kno data
Zaheed Mawani
Vice President of Investor Relationsno datano datano data
Darren Watt
Senior VP7.25yrsno data0.012% $637.6k
Matthew Ackley
Chief Marketing Officer1.25yrsno datano data
Curtis Hinkelman
Senior Vice President of Sales - Eastern USAno datano datano data

2.8yrs

Average Tenure

54yo

Average Age

Experienced Management: RBA's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ann Fandozzi
CEO & Director0.25yrno datano data
David Ritchie
Founder and Chairman Emeritus13.42yrsUS$142.50kno data
Sarah Raiss
Independent Director3.75yrsUS$221.15kno data
Christopher Zimmerman
Independent Director12yrsUS$215.22k0.0063% $332.4k
Robert Elton
Independent Director8yrsUS$234.43kno data
J. Fennell
Independent Director2.75yrsUS$203.87kno data
Beverley Briscoe
Independent Chair of the Board5.75yrsUS$372.50k0.020% $1.1m
Erik Olsson
Independent Vice Chairman0.58yrUS$231.50kno data
Amy Shenkan
Independent Director2.75yrsUS$203.87kno data

3.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: RBA's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$3.746b
  • Listing Market Cap: US$5.309b
  • Shares outstanding: 109.58m
  • 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 and its subsidiaries provide asset management and disposition services. It offers customers end-to-end solutions for buying and selling used industrial equipment and other durable assets. The company sells a range of used and unused equipment, including earthmoving equipment, truck trailers, government surplus, oil and gas equipment, and other industrial assets. It also offers live auction events with online bidding. The company sells used equipment to its customers through live, unreserved auctions at 40 auction sites, online marketplaces, listing services, and private brokerage services. It serves customers that include construction companies, equipment dealers, original equipment manufacturers, and other equipment owners, such as rental companies and government bodies; and participate in various sectors, such as heavy construction, transportation, agriculture, energy, and mining. The company operates in the United States, Canada, Australia, the United Arab Emirates, the Netherlands, and internationally. Ritchie Bros. Auctioneers Incorporated was founded in 1958 and is headquartered in Burnaby, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 05:01
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.