NYSE:RBA

Stock Analysis Report

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

1.2%

RBA

1.7%

US Commercial Services

0.4%

US Market


1 Year Return

20.8%

RBA

18.4%

US Commercial Services

6.9%

US Market

Return vs Industry: RBA exceeded the US Commercial Services industry which returned 18.4% over the past year.

Return vs Market: RBA exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

RBAIndustryMarket
7 Day1.2%1.7%0.4%
30 Day4.0%3.2%-1.2%
90 Day10.2%2.8%-0.4%
1 Year23.3%20.8%22.9%18.4%9.3%6.9%
3 Year20.3%12.9%73.8%61.9%45.8%36.4%
5 Year87.4%68.2%103.9%83.4%62.9%45.1%

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?

33.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: RBA ($39.87) is trading above our estimate of fair value ($39.12)

Significantly Undervalued: RBA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RBA is poor value based on its PE Ratio (33.1x) compared to the Commercial Services industry average (25.5x).

PE vs Market: RBA is poor value based on its PE Ratio (33.1x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low 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 (5.2x) compared to the US Commercial Services industry average (1.8x).


Next Steps

Future Growth

How is Ritchie Bros. Auctioneers forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RBA's forecast earnings growth (14.3% per year) is above the savings rate (2.7%).

Earnings vs Market: RBA's earnings (14.3% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: RBA's revenue (5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: RBA's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if RBA's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: RBA's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: RBA's earnings growth over the past year (19.1%) exceeds its 5-year average (0.4% per year).

Earnings vs Industry: RBA earnings growth over the past year (19.1%) exceeded the Commercial Services industry -2.4%.


Return on Equity

High ROE: RBA's Return on Equity (15.7%) is considered low.


Return on Assets

ROA vs Industry: RBA has a higher Return on Assets than the Commercial Services industry average last year.


Return on Capital Employed

ROCE Improving: RBA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Ritchie Bros. Auctioneers's financial position?


Financial Position Analysis

Short Term Liabilities: RBA's short term assets ($827.3M) exceeds its short term liabilities ($665.5M)

Long Term Liabilities: RBA's short term assets (827.3M) do not cover its long term liabilities (873.8M)


Debt to Equity History and Analysis

Debt Level: RBA's debt to equity ratio (85.3%) is considered high

Reducing Debt: RBA's debt to equity ratio has increased from 22.5% to 85.3% over the past 5 years.

Debt Coverage: RBA's debt is well covered by operating cash flow (27.6%).

Interest Coverage: RBA's interest payments on its debt are well covered by EBIT (4.6x 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 1.160350x debt).


Next Steps

Dividend

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

2.01%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Years2.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RBA's dividend (2.01%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: RBA's dividend (2.01%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (61.4%), 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 (53.5% payout ratio).


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?

2.4yrs

Average management tenure


CEO

Karl Werner (54yo)

0yrs

Tenure

US$1,182,177

Compensation

Mr. Karl W. Werner has been President of International at Ritchie Bros. Auctioneers Incorporated January 2017 and is its Interim Co-Chief Executive Officer since October 1, 2019. Mr. Werner oversees sales  ...


CEO Compensation Analysis

Compensation vs. Market: Karl has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Karl's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.4yrs

Average Tenure

55.5yo

Average Age

Experienced Management: RBA's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: RBA's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: RBA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$96,63406 Sep 19
Todd Wohler
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares2,428
Max PriceUS$39.80
SellUS$79,60021 Aug 19
Todd Wohler
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares2,000
Max PriceUS$39.80
SellUS$79,00020 Aug 19
Todd Wohler
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares2,000
Max PriceUS$39.50
SellUS$7714 Aug 19
Todd Wohler
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares2
Max PriceUS$38.34
BuyUS$2,10115 Nov 18
Edward Pitoniak
EntityIndividual
Shares60
Max PriceUS$35.02

Ownership Breakdown


Management Team

  • Jeff Jeter (60yo)

    President of Upstream & Emerging Businesses - North America

    • Tenure: 2.3yrs
    • Compensation: US$1.10m
  • Matt Ackley (51yo)

    Chief Marketing Officer

    • Tenure: 0.8yrs
  • Dave Ritchie

    Founder and Chairman Emeritus

    • Tenure: 12.9yrs
    • Compensation: US$142.50k
  • Curt Hinkelman

    Senior Vice President of Sales - Eastern USA

    • Tenure: 0yrs
  • Karl Werner (54yo)

    Interim Co-CEO & President of International

    • Tenure: 0yrs
    • Compensation: US$1.18m
  • Sharon Driscoll (57yo)

    Interim Co-CEO & CFO

    • Tenure: 2.5yrs
    • Compensation: US$1.67m
  • Brian Glenn

    Senior VP & Head of Canada Sales

    • Tenure: 2.4yrs
  • Darren Watt (47yo)

    Senior VP

    • Tenure: 6.8yrs
  • Todd Wohler (60yo)

    Chief Human Resources Officer

    • Tenure: 4.8yrs
    • Compensation: US$1.21m
  • Zaheed Mawani

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Sarah Raiss (62yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$215.34k
  • Dave Ritchie

    Founder and Chairman Emeritus

    • Tenure: 12.9yrs
    • Compensation: US$142.50k
  • Chris Zimmerman (59yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$204.03k
  • Bob Elton (67yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$223.31k
  • J. Fennell (62yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$193.78k
  • Bev Briscoe (64yo)

    Chair of the Board

    • Tenure: 5.3yrs
    • Compensation: US$362.27k
  • Erik Olsson (57yo)

    Independent Vice Chairman

    • Tenure: 0.2yrs
    • Compensation: US$206.04k
  • Sharon Driscoll (57yo)

    Interim Co-CEO & CFO

    • Tenure: 2.5yrs
    • Compensation: US$1.67m
  • Amy Shenkan (54yo)

    Independent Director

    • Tenure: 2.3yrs
    • 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: NYSE
  • Founded: 1958
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: US$4.300b
  • 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 Analysis2019/10/19 23:38
End of Day Share Price2019/10/18 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.