NYSE:RBA

Stock Analysis Report

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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. More Details


Snowflake Analysis

Solid track record with adequate balance sheet.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.9%

RBA

-2.1%

US Commercial Services

-1.4%

US Market


1 Year Return

53.3%

RBA

6.9%

US Commercial Services

17.8%

US Market

Return vs Industry: RBA exceeded the US Commercial Services industry which returned 7.3% over the past year.

Return vs Market: RBA exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

RBAIndustryMarket
7 Day-2.9%-2.1%-1.4%
30 Day7.4%3.1%4.7%
90 Day39.8%10.1%8.2%
1 Year56.1%53.3%8.5%6.9%20.5%17.8%
3 Year130.7%117.2%48.3%38.8%42.2%32.7%
5 Year163.7%137.6%108.5%87.2%83.4%62.7%

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

43.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RBA ($61.59) is trading above our estimate of fair value ($32.84)

Significantly Below Fair Value: 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 (43.8x) compared to the US Commercial Services industry average (27.3x).

PE vs Market: RBA is poor value based on its PE Ratio (43.8x) compared to the US market (19x).


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 (7.4x) compared to the US Commercial Services industry average (1.6x).


Next Steps

Future Growth

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

18.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RBA's forecast earnings growth (18.9% per year) is above the savings rate (2.2%).

Earnings vs Market: RBA's earnings (18.9% per year) are forecast to grow slower than the US market (22.2% per year).

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

Revenue vs Market: RBA's revenue (7.1% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: RBA's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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?

5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RBA has high quality earnings.

Growing Profit Margin: RBA's current net profit margins (11.9%) are higher than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: RBA's earnings have grown by 5.7% per year over the past 5 years.

Accelerating Growth: RBA's earnings growth over the past year (16.7%) exceeds its 5-year average (5.7% per year).

Earnings vs Industry: RBA earnings growth over the past year (16.7%) exceeded the Commercial Services industry -9.7%.


Return on Equity

High ROE: RBA's Return on Equity (16.9%) 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 ($962.5M) exceed its short term liabilities ($768.0M).

Long Term Liabilities: RBA's short term assets ($962.5M) exceed its long term liabilities ($806.2M).


Debt to Equity History and Analysis

Debt Level: RBA's debt to equity ratio (72.3%) is considered high.

Reducing Debt: RBA's debt to equity ratio has increased from 16.7% to 72.3% over the past 5 years.

Debt Coverage: RBA's debt is well covered by operating cash flow (56.7%).

Interest Coverage: RBA's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RBA's dividend (1.43%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: RBA's dividend (1.43%) is low compared to the top 25% of dividend payers in the US market (4.68%).


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 (58.3%), RBA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Ann Fandozzi (49 yo)

0.75

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 Officer5.25yrsUS$1.80m0.011%
$ 705.1k
Karl Werner
President of International0.75yrUS$1.25m0.027%
$ 1.8m
James Jeter
President of Upstream & Emerging Businesses - North America3.33yrsUS$1.26m0.0013%
$ 83.8k
Kari Taylor
President of North America Sales1.25yrsUS$1.20mno data
Ann Fandozzi
CEO & Director0.75yrno datano data
David Ritchie
Founder and Chairman Emeritus13.92yrsUS$142.50kno data
James Kessler
Chief Operating Officer0.42yrno datano data
Baron Concors
Chief Information Officer0.50yrno datano data
Zaheed Mawani
Vice President of Investor Relationsno datano datano data
Darren Watt
Senior VP7.75yrsno data0.0088%
$ 588.5k
Ian Malinski
Media Relations Managerno datano datano data
Matthew Ackley
Chief Marketing Officer1.75yrsno data0.0050%
$ 337.8k

1.3yrs

Average Tenure

52yo

Average Age

Experienced Management: RBA's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ann Fandozzi
CEO & Director0.75yrno datano data
David Ritchie
Founder and Chairman Emeritus13.92yrsUS$142.50kno data
Sarah Raiss
Independent Director4.25yrsUS$221.15kno data
Christopher Zimmerman
Independent Director12.5yrsUS$215.22k0.0063%
$ 422.3k
Robert Elton
Independent Director8.5yrsUS$234.43kno data
J. Fennell
Independent Director3.25yrsUS$203.87kno data
Beverley Briscoe
Independent Chair of the Board6.25yrsUS$372.50k0.020%
$ 1.4m
Erik Olsson
Independent Vice Chairman1.08yrsUS$231.50kno data
Amy Shenkan
Independent Director3.25yrsUS$203.87kno data
Adam Dewitt
Independent Director0.42yrno datano data

3.8yrs

Average Tenure

60yo

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: RBA insiders have only sold shares 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: NYSE
  • Founded: 1958
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: US$6.703b
  • Shares outstanding: 108.82m
  • Website: https://www.ritchiebros.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 Analysis2020/10/22 00:54
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
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.