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RBA

Ritchie Bros. Auctioneers NYSE:RBA Stock Report

Last Price

US$62.48

Market Cap

US$6.9b

7D

-0.4%

1Y

1.4%

Updated

01 Oct, 2022

Data

Company Financials +
RBA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends5/6

RBA Stock Overview

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

Ritchie Bros. Auctioneers Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ritchie Bros. Auctioneers
Historical stock prices
Current Share PriceUS$62.48
52 Week HighUS$76.18
52 Week LowUS$48.65
Beta1.01
1 Month Change-10.96%
3 Month Change-7.42%
1 Year Change1.44%
3 Year Change59.59%
5 Year Change110.73%
Change since IPO1,674.66%

Recent News & Updates

Sep 10
Investors Will Want Ritchie Bros. Auctioneers' (NYSE:RBA) Growth In ROCE To Persist

Investors Will Want Ritchie Bros. Auctioneers' (NYSE:RBA) Growth In ROCE To Persist

There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try and...

Aug 22

Ritchie Bros Auctioneers goes ex-dividend tomorrow

Ritchie Bros Auctioneers (NYSE:RBA) had declared $0.27/share quarterly dividend, 8% increase from prior dividend of $0.25. Payable Sept. 14; for shareholders of record Aug. 24; ex-div Aug. 23. See RBA Dividend Scorecard, Yield Chart, & Dividend Growth.

Aug 19
Is It Time To Consider Buying Ritchie Bros. Auctioneers Incorporated (NYSE:RBA)?

Is It Time To Consider Buying Ritchie Bros. Auctioneers Incorporated (NYSE:RBA)?

Ritchie Bros. Auctioneers Incorporated ( NYSE:RBA ), is not the largest company out there, but it led the NYSE gainers...

Shareholder Returns

RBAUS Commercial ServicesUS Market
7D-0.4%-2.4%-2.5%
1Y1.4%-9.7%-23.2%

Return vs Industry: RBA exceeded the US Commercial Services industry which returned -9.7% over the past year.

Return vs Market: RBA exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is RBA's price volatile compared to industry and market?
RBA volatility
RBA Average Weekly Movement5.3%
Commercial Services Industry Average Movement7.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

Stable Share Price: RBA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: RBA's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19582,700Ann Fandozzihttps://www.ritchiebros.com

Ritchie Bros. Auctioneers Incorporated, an asset management and disposition company, sells industrial equipment and other durable assets through its unreserved auctions, online marketplaces, listing services, and private brokerage services. It sells a range of used and unused commercial assets, including earthmoving equipment, truck tractors and trailers, government surplus, oil and gas equipment, and other industrial assets, as well as construction and heavy machinery. The company also offers live auction events with online bidding.

Ritchie Bros. Auctioneers Fundamentals Summary

How do Ritchie Bros. Auctioneers's earnings and revenue compare to its market cap?
RBA fundamental statistics
Market CapUS$6.92b
Earnings (TTM)US$294.39m
Revenue (TTM)US$1.57b

23.5x

P/E Ratio

4.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RBA income statement (TTM)
RevenueUS$1.57b
Cost of RevenueUS$665.65m
Gross ProfitUS$901.87m
Other ExpensesUS$607.48m
EarningsUS$294.39m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.66
Gross Margin57.53%
Net Profit Margin18.78%
Debt/Equity Ratio52.5%

How did RBA perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

38%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is RBA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RBA?

Other financial metrics that can be useful for relative valuation.

RBA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.7x
Enterprise Value/EBITDA20.8x
PEG Ratio11.8x

Price to Earnings Ratio vs Peers

How does RBA's PE Ratio compare to its peers?

RBA PE Ratio vs Peers
The above table shows the PE ratio for RBA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average24.2x
IAA IAA
14.1x-1.8%US$4.3b
UNF UniFirst
28.2x21.9%US$3.1b
CPRT Copart
23.2x9.1%US$25.3b
CTAS Cintas
31.5x2.9%US$39.4b
RBA Ritchie Bros. Auctioneers
23.5x2.0%US$6.9b

Price-To-Earnings vs Peers: RBA is good value based on its Price-To-Earnings Ratio (23.5x) compared to the peer average (24.2x).


Price to Earnings Ratio vs Industry

How does RBA's PE Ratio compare vs other companies in the US Commercial Services Industry?

Price-To-Earnings vs Industry: RBA is expensive based on its Price-To-Earnings Ratio (23.5x) compared to the US Commercial Services industry average (17.2x)


Price to Earnings Ratio vs Fair Ratio

What is RBA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RBA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.5x
Fair PE Ratio20.1x

Price-To-Earnings vs Fair Ratio: RBA is expensive based on its Price-To-Earnings Ratio (23.5x) compared to the estimated Fair Price-To-Earnings Ratio (20.1x).


Share Price vs Fair Value

What is the Fair Price of RBA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RBA ($62.48) is trading below our estimate of fair value ($90.33)

Significantly Below Fair Value: RBA is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


2.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RBA's forecast earnings growth (2% per year) is above the savings rate (1.9%).

Earnings vs Market: RBA's earnings (2% per year) are forecast to grow slower than the US market (14.8% per year).

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

Revenue vs Market: RBA's revenue (3.8% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: RBA's revenue (3.8% 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 (19.8%).


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Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


24.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RBA has a large one-off gain of $134.1M impacting its June 30 2022 financial results.

Growing Profit Margin: RBA's current net profit margins (18.8%) are higher than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: RBA's earnings have grown significantly by 24.4% per year over the past 5 years.

Accelerating Growth: RBA's earnings growth over the past year (60.7%) exceeds its 5-year average (24.4% per year).

Earnings vs Industry: RBA earnings growth over the past year (60.7%) exceeded the Commercial Services industry 26.9%.


Return on Equity

High ROE: RBA's Return on Equity (23.7%) is considered high.


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Financial Health

How is Ritchie Bros. Auctioneers's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: RBA's short term assets ($996.8M) exceed its short term liabilities ($792.8M).

Long Term Liabilities: RBA's short term assets ($996.8M) exceed its long term liabilities ($857.1M).


Debt to Equity History and Analysis

Debt Level: RBA's net debt to equity ratio (23%) is considered satisfactory.

Reducing Debt: RBA's debt to equity ratio has reduced from 114.8% to 52.5% over the past 5 years.

Debt Coverage: RBA's debt is well covered by operating cash flow (46.6%).

Interest Coverage: RBA's interest payments on its debt are well covered by EBIT (5.1x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.73%

Current Dividend Yield

Dividend Yield vs Market

Ritchie Bros. Auctioneers Dividend Yield vs Market
How does Ritchie Bros. Auctioneers dividend yield compare to the market?
SegmentDividend Yield
Company (Ritchie Bros. Auctioneers)1.7%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Commercial Services)1.5%
Analyst forecast in 3 Years (Ritchie Bros. Auctioneers)1.8%

Notable Dividend: RBA's dividend (1.73%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: RBA's dividend (1.73%) is low compared to the top 25% of dividend payers in the US market (4.73%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (38.3%), RBA's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (45.6%), RBA's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

2.4yrs

Average management tenure


CEO

Ann Fandozzi (51 yo)

2.67yrs

Tenure

US$10,381,730

Compensation

Ms. Ann M. Fandozzi has been Independent Director of Trimble Inc. since August 16, 2021. She has been the Chief Executive Officer and Director at Ritchie Brothers. Auctioneers Incorporated since January 6,...


CEO Compensation Analysis

Ann Fandozzi's Compensation vs Ritchie Bros. Auctioneers Earnings
How has Ann Fandozzi's remuneration changed compared to Ritchie Bros. Auctioneers's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$294m

Mar 31 2022n/an/a

US$302m

Dec 31 2021US$10mUS$900k

US$152m

Sep 30 2021n/an/a

US$170m

Jun 30 2021n/an/a

US$183m

Mar 31 2021n/an/a

US$175m

Dec 31 2020US$7mUS$890k

US$170m

Compensation vs Market: Ann's total compensation ($USD10.38M) is about average for companies of similar size in the US market ($USD8.67M).

Compensation vs Earnings: Ann's compensation has increased by more than 20% in the past year.


Leadership Team

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


Board Members

Experienced Board: RBA's board of directors are considered experienced (4.4 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

NYSE:RBA Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
13 May 22SellUS$129,633James JeterIndividual2,100US$61.73
12 May 22SellUS$23,284Darren WattIndividual400US$58.21
28 Feb 22BuyUS$499,484Ann FandozziIndividual9,560US$52.25
28 Feb 22BuyUS$499,484Ann FandozziIndividual9,560US$52.25
21 Dec 21SellUS$121,980James JeterIndividual2,000US$60.99

Ownership Breakdown

What is the ownership structure of RBA?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders88,0510.08%
General Public14,964,19913.5%
Institutions95,757,34186.4%

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


Top Shareholders

Top 25 shareholders own 63.63% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
6.75%
Massachusetts Financial Services Company
7,484,991$467.7m-13.67%0.13%
5.39%
Beutel Goodman & Company Ltd.
5,973,349$373.2m8.76%2.22%
3.91%
Janus Henderson Group plc
4,333,850$270.8m-21.12%0.16%
3.64%
Riverbridge Partners, LLC
4,037,387$252.3m-15.91%4.03%
3.47%
Invesco Ltd.
3,842,424$240.1m-13.26%0.09%
3.43%
ArrowMark Colorado Holdings, LLC
3,803,930$237.7m-3.45%2.89%
3.4%
The Vanguard Group, Inc.
3,771,367$235.6m1.83%0.01%
3.12%
Fidelity International Ltd
3,459,002$216.1m140.89%0.12%
2.93%
Eagle Asset Management, Inc.
3,248,394$203.0m-1.15%1.33%
2.48%
Baillie Gifford & Co.
2,749,414$171.8m0.2%0.09%
2.42%
Jarislowsky, Fraser Limited
2,680,267$167.5m27.6%1.03%
2.3%
Fiera Capital Corporation
2,546,557$159.1m13.28%0.23%
2.23%
Independent Franchise Partners, LLP
2,471,604$154.4m-6.98%1.38%
2.17%
Champlain Investment Partners, LLC
2,406,730$150.4m4.61%1.02%
2.03%
William Blair Investment Management, LLC
2,245,952$140.3m-31.29%0.27%
1.93%
Columbia Management Investment Advisers, LLC
2,143,774$133.9m-10.39%0.04%
1.85%
Vontobel Asset Management, Inc.
2,047,496$127.9m1.5%0.47%
1.52%
J.P. Morgan Asset Management, Inc.
1,682,260$105.1m-9.41%0.02%
1.52%
GW&K Investment Management, LLC
1,679,672$104.9m-1.87%1.17%
1.49%
BMO Asset Management Corp.
1,650,183$103.1m-2.72%0.07%
1.39%
Capital Research and Management Company
1,540,727$96.3m0%0.01%
1.27%
Luxor Capital Group, LP
1,408,741$88.0m0%4.59%
1.02%
Marathon Asset Management Limited
1,131,356$70.7m-2.8%0.45%
1.01%
Managed Account Advisors LLC
1,122,235$70.1m-16.05%0.02%
0.95%
Norges Bank Investment Management
1,050,088$65.6m0%0.01%

Company Information

Ritchie Bros. Auctioneers Incorporated's 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
  • Implied Market Cap: US$6.923b
  • Shares outstanding: 110.81m
  • 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
RBA NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNMar 1998

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.