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Ritchie Bros. Auctioneers

DB:2R8
Snowflake Description

Established dividend payer with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2R8
DB
$4B
Market Cap
  1. Home
  2. DE
  3. Commercial Services
Company description

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. The last earnings update was 55 days ago. More info.


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2R8 Share Price and Events
7 Day Returns
2.1%
DB:2R8
1.8%
DE Commercial Services
1%
DE Market
1 Year Returns
15.1%
DB:2R8
-6.6%
DE Commercial Services
-5.6%
DE Market
2R8 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ritchie Bros. Auctioneers (2R8) 2.1% 4.7% -2.6% 15.1% 20.4% 73%
DE Commercial Services 1.8% 3.4% 11.6% -6.6% 4.2% -41.3%
DE Market 1% 6.1% 8.4% -5.6% 10.9% 13.8%
1 Year Return vs Industry and Market
  • 2R8 outperformed the Commercial Services industry which returned -6.6% over the past year.
  • 2R8 outperformed the Market in Germany which returned -5.6% over the past year.
Price Volatility
2R8
Industry
5yr Volatility vs Market
Related Companies

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ritchie Bros. Auctioneers to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ritchie Bros. Auctioneers.

DB:2R8 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.6%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:2R8
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.74
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.735 (1 + (1- 26.5%) (19.67%))
0.894
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.89
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.894 * 5.96%)
5.55%

Discounted Cash Flow Calculation for DB:2R8 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ritchie Bros. Auctioneers is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:2R8 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 5.55%)
2019 241.33 Analyst x3 228.63
2020 225.00 Analyst x4 201.94
2021 221.00 Analyst x1 187.92
2022 218.37 Est @ -1.19% 175.91
2023 216.71 Est @ -0.76% 165.39
2024 215.70 Est @ -0.47% 155.95
2025 215.14 Est @ -0.26% 147.37
2026 214.90 Est @ -0.11% 139.46
2027 214.88 Est @ -0.01% 132.11
2028 215.01 Est @ 0.06% 125.23
Present value of next 10 years cash flows $1,659.91
DB:2R8 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $215.01 × (1 + 0.23%) ÷ (5.55% – 0.23%)
$4,046.16
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,046.16 ÷ (1 + 5.55%)10
$2,356.64
DB:2R8 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,659.91 + $2,356.64
$4,016.55
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,016.55 / 108.95
$36.87
DB:2R8 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:2R8 represents 0.88059x of NYSE:RBA
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88059x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 36.87 x 0.88059
€32.46
Value per share (EUR) From above. €32.46
Current discount Discount to share price of €30.72
= -1 x (€30.72 - €32.46) / €32.46
5.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Ritchie Bros. Auctioneers is available for.
Intrinsic value
5%
Share price is €30.72 vs Future cash flow value of €32.46
Current Discount Checks
For Ritchie Bros. Auctioneers to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ritchie Bros. Auctioneers's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ritchie Bros. Auctioneers's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:2R8 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.12
NYSE:RBA Share Price ** NYSE (2019-04-24) in USD $34.88
Europe Commercial Services Industry PE Ratio Median Figure of 105 Publicly-Listed Commercial Services Companies 16.84x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 19.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ritchie Bros. Auctioneers.

DB:2R8 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:RBA Share Price ÷ EPS (both in USD)

= 34.88 ÷ 1.12

31.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ritchie Bros. Auctioneers is overvalued based on earnings compared to the Europe Commercial Services industry average.
  • Ritchie Bros. Auctioneers is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Ritchie Bros. Auctioneers's expected growth come at a high price?
Raw Data
DB:2R8 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 31.03x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
12.9%per year
Europe Commercial Services Industry PEG Ratio Median Figure of 53 Publicly-Listed Commercial Services Companies 1.39x
Germany Market PEG Ratio Median Figure of 269 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

DB:2R8 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 31.03x ÷ 12.9%

2.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ritchie Bros. Auctioneers is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Ritchie Bros. Auctioneers's assets?
Raw Data
DB:2R8 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $7.64
NYSE:RBA Share Price * NYSE (2019-04-24) in USD $34.88
Germany Commercial Services Industry PB Ratio Median Figure of 8 Publicly-Listed Commercial Services Companies 2.04x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.87x
DB:2R8 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:RBA Share Price ÷ Book Value per Share (both in USD)

= 34.88 ÷ 7.64

4.56x

* Primary Listing of Ritchie Bros. Auctioneers.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ritchie Bros. Auctioneers is overvalued based on assets compared to the DE Commercial Services industry average.
X
Value checks
We assess Ritchie Bros. Auctioneers's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. Ritchie Bros. Auctioneers has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ritchie Bros. Auctioneers expected to grow at an attractive rate?
  • Ritchie Bros. Auctioneers's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Ritchie Bros. Auctioneers's earnings growth is expected to exceed the Germany market average.
  • Ritchie Bros. Auctioneers's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:2R8 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:2R8 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 12.9%
DB:2R8 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 6.4%
Germany Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 31.3%
Germany Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 3.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.6%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:2R8 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:2R8 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,433 231 168 2
2020-12-31 1,330 253 163 8
2019-12-31 1,249 295 138 8
DB:2R8 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 1,170 144 121
2018-09-30 745 145 123
2018-06-30 727 138 110
2018-03-31 671 79 82
2017-12-31 971 148 75
2017-09-30 826 115 66
2017-06-30 728 145 51
2017-03-31 634 146 73
2016-12-31 1,127 178 92
2016-09-30 555 199 111
2016-06-30 536 211 136
2016-03-31 532 252 142

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ritchie Bros. Auctioneers's earnings are expected to grow by 12.9% yearly, however this is not considered high growth (20% yearly).
  • Ritchie Bros. Auctioneers's revenue is expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:2R8 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Ritchie Bros. Auctioneers Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:2R8 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.50 1.50 1.50 1.00
2020-12-31 1.49 1.68 1.35 5.00
2019-12-31 1.25 1.40 1.15 5.00
DB:2R8 Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.12
2018-09-30 1.14
2018-06-30 1.02
2018-03-31 0.76
2017-12-31 0.70
2017-09-30 0.62
2017-06-30 0.47
2017-03-31 0.68
2016-12-31 0.86
2016-09-30 1.04
2016-06-30 1.28
2016-03-31 1.33

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Ritchie Bros. Auctioneers is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Ritchie Bros. Auctioneers's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ritchie Bros. Auctioneers has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ritchie Bros. Auctioneers's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ritchie Bros. Auctioneers's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Ritchie Bros. Auctioneers's 1-year earnings growth exceeds its 5-year average (61.9% vs -1.3%)
  • Ritchie Bros. Auctioneers's earnings growth has exceeded the Europe Commercial Services industry average in the past year (61.9% vs 15.1%).
Earnings and Revenue History
Ritchie Bros. Auctioneers's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ritchie Bros. Auctioneers Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:2R8 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,170.03 121.48 382.68
2018-09-30 745.13 122.75 380.04
2018-06-30 727.19 109.87 377.05
2018-03-31 671.27 81.79 350.17
2017-12-31 971.19 75.03 323.27
2017-09-30 826.21 66.13 304.42
2017-06-30 727.69 50.73 287.38
2017-03-31 633.88 72.80 286.99
2016-12-31 1,126.98 91.83 283.53
2016-09-30 555.09 110.51 276.62
2016-06-30 535.53 136.47 266.50
2016-03-31 532.20 141.84 257.74
2015-12-31 515.88 136.21 254.39
2015-09-30 518.87 118.46 247.71
2015-06-30 511.77 106.98 248.10
2015-03-31 498.13 100.50 244.37
2014-12-31 481.10 90.98 242.69
2014-09-30 473.86 95.95 240.32
2014-06-30 477.45 102.91 239.46
2014-03-31 463.93 94.09 238.36
2013-12-31 467.40 93.64 239.14
2013-09-30 453.32 82.19 239.44
2013-06-30 439.85 74.06 235.01
2013-03-31 438.74 75.57 232.13
2012-12-31 437.96 79.55 224.96
2012-09-30 434.22 84.21 215.12
2012-06-30 421.60 82.57 211.51

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Ritchie Bros. Auctioneers has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Ritchie Bros. Auctioneers used its assets more efficiently than the Europe Commercial Services industry average last year based on Return on Assets.
  • Ritchie Bros. Auctioneers's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ritchie Bros. Auctioneers's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ritchie Bros. Auctioneers has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ritchie Bros. Auctioneers's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ritchie Bros. Auctioneers's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Ritchie Bros. Auctioneers's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ritchie Bros. Auctioneers Company Filings, last reported 3 months ago.

DB:2R8 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 835.71 741.34 237.74
2018-09-30 820.61 771.05 228.76
2018-06-30 791.50 762.24 210.57
2018-03-31 757.45 793.29 278.94
2017-12-31 744.75 827.79 267.91
2017-09-30 719.71 826.45 224.47
2017-06-30 716.55 828.42 254.10
2017-03-31 696.17 621.05 236.89
2016-12-31 691.83 622.90 207.87
2016-09-30 694.35 140.60 230.98
2016-06-30 757.87 125.17 166.50
2016-03-31 722.70 144.78 294.07
2015-12-31 732.14 110.27 210.15
2015-09-30 704.38 110.34 345.77
2015-06-30 709.39 118.98 365.25
2015-03-31 646.76 111.65 300.93
2014-12-31 709.22 118.69 139.82
2014-09-30 703.21 158.40 236.47
2014-06-30 730.75 164.17 281.26
2014-03-31 696.56 152.50 288.89
2013-12-31 694.55 181.63 234.36
2013-09-30 675.65 218.58 197.92
2013-06-30 661.56 238.38 272.75
2013-03-31 652.06 227.93 298.87
2012-12-31 656.53 240.23 178.05
2012-09-30 646.19 247.98 228.70
2012-06-30 641.83 244.27 203.14
  • Ritchie Bros. Auctioneers's level of debt (88.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (26.1% vs 88.7% today).
  • Debt is not well covered by operating cash flow (19.5%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.2x coverage).
X
Financial health checks
We assess Ritchie Bros. Auctioneers's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ritchie Bros. Auctioneers has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.06%
Current annual income from Ritchie Bros. Auctioneers dividends. Estimated to be 2.22% next year.
If you bought €2,000 of Ritchie Bros. Auctioneers shares you are expected to receive €41 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Ritchie Bros. Auctioneers's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.44%).
  • Ritchie Bros. Auctioneers's dividend is below the markets top 25% of dividend payers in Germany (3.7%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:2R8 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Germany Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 3.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:2R8 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.72 1.00
2020-12-31 0.81 5.00
2019-12-31 0.75 5.00
DB:2R8 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-28 0.720 2.058
2018-11-08 0.720 2.120
2018-08-09 0.720 2.015
2018-05-10 0.680 2.002
2018-01-29 0.680 2.105
2017-11-09 0.680 2.371
2017-08-08 0.680 2.332
2017-05-04 0.680 2.299
2017-01-23 0.680 2.126
2016-11-09 0.680 1.889
2016-08-08 0.680 2.059
2016-05-09 0.640 1.935
2016-01-25 0.640 2.520
2015-11-05 0.640 2.613
2015-08-06 0.640 2.393
2015-05-07 0.560 2.001
2015-01-12 0.560 2.201
2014-11-04 0.560 2.179
2014-08-05 0.560 2.403
2014-05-05 0.520 2.171
2014-01-21 0.520 2.232
2013-11-05 0.520 2.406
2013-08-06 0.520 2.679
2013-04-30 0.490 2.464
2013-01-22 0.490 2.329
2012-10-31 0.490 2.287
2012-08-02 0.490 2.495
2012-05-03 0.450 2.199
2012-01-23 0.450 1.946
2011-11-01 0.450 2.162
2011-08-05 0.450 2.156
2011-05-03 0.420 1.550
2011-01-24 0.420 1.585
2010-11-02 0.420 1.940
2010-08-06 0.420 2.161
2010-05-04 0.400 2.029
2010-01-25 0.400 1.868
2009-11-03 0.400 1.712
2009-08-07 0.400 1.649
2009-05-05 0.360 1.519

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Ritchie Bros. Auctioneers's earnings are paid to the shareholders as a dividend.
  • 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 (2.3x coverage).
X
Income/ dividend checks
We assess Ritchie Bros. Auctioneers's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ritchie Bros. Auctioneers afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ritchie Bros. Auctioneers has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ravi Saligram
COMPENSATION $5,041,489
AGE 61
TENURE AS CEO 4.8 years
CEO Bio

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 President for the United States and Latin America of Ritchie Bros. Auctioneers Incorporated since December 31, 2016. Mr. Saligram served as the Chief Executive Officer and President of OfficeMax Incorporated since November 8, 2010 to 2013. He served as a Co-Chief Executive Officer at Office Depot, Inc. from November 2010 to November 13, 2013. From 2003 through November 2010, Mr. Saligram served in executive management positions with ARAMARK Corporation. He served as the Principal Executive Officer and President of Aramark Japan Inc., Aramark Asia Management LLC and Aramark India Holdings LLC. He was responsible for all of ARAMARK's businesses outside the United States and Canada. He served as President of ARAMARK International at ARAMARK Corporation from November 2004 to November 2010 and served as its Executive Vice President from November 2006 to November 2010. He served as Chief Globalization Officer of ARAMARK Corporation until November 5, 2010. He served as a Senior Vice President of ARAMARK Corporation from November 8, 2004 to December 2006 and joined it in 2003. He has more than 20 years of general management experience at ARAMARK, Intercontinental Hotels Group and SC Johnson. He has a range of international experience and a strong background in consumer services. From 1994 to 2002, he served in various capacities for the InterContinental Hotels Group including as President of Brands & Franchise, North America for the InterContinental Hotels Group from October 2000 to July 2002. He served as InterContinental Hotels Group's Chief Marketing Officer & Managing Director, Global Strategy from August 1999 to September 2000 and President, International and President, Asia Pacific from June 1998 to July 1999. Mr. Saligram served in various general and brand management positions with S. C. Johnson & Son, Inc., (SC Johnson Wax) in the United States and overseas. He started his career in account management with Leo Burnett Company based in Chicago. He has business, leadership and management experience, including expertise in the omnichannel provision of products, services and solutions. Mr. Saligram has been an Independent Director of Church & Dwight Co. Inc. since August 9, 2006. He serves as a Director of Aim Service Co. Ltd. He serves as a Trustee of the Eisenhower Fellowships. Mr. Saligram served as a Director of OfficeMax Inc. since November 8, 2010 until 2013. He is a Board Member and Vice Chairman of the World Affairs Council of Philadelphia and Dean's Advisory Council at the College of Arts & Sciences of New York University. He served as a Director of Office Depot, Inc. since November 2013. Mr. Saligram holds a Bachelor of Science degree in Electrical Engineering from Bangalore University in India and holds a Masters of Business Administration degree from the University of Michigan.

CEO Compensation
  • Ravi's compensation has increased by more than 20% in the past year.
  • Ravi's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Ritchie Bros. Auctioneers management team in years:

4
Average Tenure
56
Average Age
  • The tenure for the Ritchie Bros. Auctioneers management team is about average.
Management Team

Ravi Saligram

TITLE
CEO & Non-Independent Director
COMPENSATION
$5M
AGE
61
TENURE
4.8 yrs

Sharon Driscoll

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
56
TENURE
3.8 yrs

Todd Wohler

TITLE
Chief Human Resources Officer
COMPENSATION
$1M
AGE
59
TENURE
4.3 yrs

Jeff Jeter

TITLE
President of Sales - U.S.
COMPENSATION
$1M
AGE
59
TENURE
1.8 yrs

Karl Werner

TITLE
President of International
COMPENSATION
$1M
AGE
53
TENURE
2.3 yrs

Dave Ritchie

TITLE
Founder and Chairman Emeritus
COMPENSATION
$143K

Zaheed Mawani

TITLE
Vice President of Investor Relations

Darren Watt

TITLE
Senior VP
AGE
46
TENURE
6.3 yrs

Doug Feick

TITLE
Senior Vice President of New Business & Corporate Development
AGE
53

Curt Hinkelman

TITLE
Senior Vice President of Sales - Eastern USA
Board of Directors Tenure

Average tenure and age of the Ritchie Bros. Auctioneers board of directors in years:

5.3
Average Tenure
61
Average Age
  • The tenure for the Ritchie Bros. Auctioneers board of directors is about average.
Board of Directors

Bev Briscoe

TITLE
Chair of the Board
COMPENSATION
$362K
AGE
63
TENURE
4.8 yrs

Ravi Saligram

TITLE
CEO & Non-Independent Director
COMPENSATION
$5M
AGE
61
TENURE
4.8 yrs

Dave Ritchie

TITLE
Founder and Chairman Emeritus
COMPENSATION
$143K
TENURE
12.4 yrs

Ed Pitoniak

TITLE
Independent Director
COMPENSATION
$218K
AGE
62
TENURE
12.8 yrs

Bob Elton

TITLE
Independent Director
COMPENSATION
$223K
AGE
66
TENURE
7 yrs

Sarah Raiss

TITLE
Independent Director
COMPENSATION
$215K
AGE
61
TENURE
2.8 yrs

Chris Zimmerman

TITLE
Independent Director
COMPENSATION
$204K
AGE
58
TENURE
11 yrs

Erik Olsson

TITLE
Independent Director
COMPENSATION
$206K
AGE
56
TENURE
5.8 yrs

J. Fennell

TITLE
Independent Director
COMPENSATION
$194K
AGE
61
TENURE
1.8 yrs

Amy Shenkan

TITLE
Independent Director
COMPENSATION
$195K
AGE
53
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
15. Nov 18 Buy Edward Pitoniak Individual 13. Nov 18 13. Nov 18 60 €31.03 €1,862
13. Sep 18 Buy Ravichandra Saligram Individual 11. Sep 18 11. Sep 18 17,124 €29.25 €500,917
12. Jun 18 Sell Karl Werner Individual 08. Jun 18 08. Jun 18 -3,390 €30.18 €-102,301
23. May 18 Sell Darren Watt Individual 22. May 18 22. May 18 -604 €28.04 €-16,934
23. May 18 Sell Karl Werner Individual 22. May 18 22. May 18 -7,664 €28.04 €-214,867
X
Management checks
We assess Ritchie Bros. Auctioneers's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ritchie Bros. Auctioneers has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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. 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, as well as construction and heavy machinery. 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 worldwide. It serves construction, transportation, agriculture, energy, oil and gas, mining, and forestry sectors. 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.

Details
Name: Ritchie Bros. Auctioneers Incorporated
2R8
Exchange: DB
Founded: 1958
$3,368,238,572
108,951,243
Website: http://www.rbauction.com
Address: Ritchie Bros. Auctioneers Incorporated
9500 Glenlyon Parkway,
Burnaby,
British Columbia, V5J 0C6,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE RBA Common Shares New York Stock Exchange US USD 10. Mar 1998
DB 2R8 Common Shares Deutsche Boerse AG DE EUR 10. Mar 1998
TSX RBA Common Shares The Toronto Stock Exchange CA CAD 10. Mar 1998
Number of employees
Current staff
Staff numbers
2,200
Ritchie Bros. Auctioneers employees.
Industry
Diversified Support Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 22:00
End of day share price update: 2019/04/24 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.