RB Global, Inc. (RBA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Yellow Pages Ltd.

RB Global, Inc.

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LifeSpeak, Inc.

Totally Hip Technologies, Inc.

Why is RB Global, Inc. ?

High Management Efficiency with a high ROCE of 12.15%

Healthy long term growth as Net Sales has grown by an annual rate of 27.95% and Operating profit at 25.18%

With a growth in Net Profit of 14.23%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 6 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CAD 1,449.25 MM
INVENTORY TURNOVER RATIO(HY) Highest at 23.46 times
INTEREST COVERAGE RATIO(Q) Highest at 891.82

With ROE of 8.42%, it has a expensive valuation with a 3.29 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 8.97%, its profits have risen by 17.8% ; the PEG ratio of the company is 2.2

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

The stock has generated a return of 8.97% in the last 1 year, much lower than market (S&P/TSX 60) returns of 29.62%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to RB Global, Inc. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is RB Global, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

RB Global, Inc.

8.97%

10.63

26.17%

S&P/TSX 60

29.62%

2.31

12.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

27.95%

EBIT Growth (5y)

25.18%

EBIT to Interest (avg)

5.33

Debt to EBITDA (avg)

2.54

Net Debt to Equity (avg)

0.52

Sales to Capital Employed (avg)

0.50

Tax Ratio

24.27%

Dividend Payout Ratio

58.58%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

12.15%

ROE (avg)

13.31%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.29

EV to EBIT

26.62

EV to EBITDA

14.88

EV to Capital Employed

2.75

EV to Sales

4.71

PEG Ratio

2.24

Dividend Yield

ROCE (Latest)

10.32%

ROE (Latest)

8.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 1,449.25 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 23.46 times

INTEREST COVERAGE RATIO(Q)

Highest at 891.82

RAW MATERIAL COST(Y)

Fallen by 1.46% (YoY

CASH AND EQV(HY)

Highest at CAD 2,151.73 MM

DEBT-EQUITY RATIO (HY)

Lowest at 55.47 %

DIVIDEND PER SHARE(HY)

Highest at CAD 5.29

NET SALES(Q)

Highest at CAD 1,693.51 MM

EPS(Q)

Highest at CAD 0.91

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for RB Global, Inc.

Operating Cash Flow

Highest at CAD 1,449.25 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Interest Coverage Ratio

Highest at 891.82

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Inventory Turnover Ratio

Highest at 23.46 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at CAD 1,693.51 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

EPS

Highest at CAD 0.91

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Cash and Eqv

Highest at CAD 2,151.73 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 55.47 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at CAD 5.29

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost

Fallen by 1.46% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales