Ritchie Bros. Auctioneers Stock Analysis (NYSE:RBA)

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$39.43 $1.49 (3.93%) RBA stock closing price Dec 07, 2016 (Closing)
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Ritchie Bros. Auctioneers
Updated on : Dec 07, 2016
previous close
RBA 39.4 (0%)
S&P 500 2241.4 (0%)
Closing Price On: Dec 07, 2016
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Auction Valuation services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2016-Q3
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
7.6%
Compared to the industry
Operating Profit
Operating Margin:
27.6%
Sector Average:
9.1%
5 Quarter Net Profit
Net Margins
2016-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
140.6M
Debt/Equity Ratio:
 0.2
Compared to the industry
Cash Flow
Operating cash flow:
$125.9M
Net Income:
-$5.1M
Dividend Yield
RBA dividend yield:
1.65%
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Low Debt Burden
ROIC
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
RBA PS :
7.6
Industry PS :
1.8
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
22.7%
Return on Equity:
15.8%
Free Cash Flow Margin:
93.2%
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Ritchie Bros. Auctioneers Analysis Video

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View Ritchie Bros. Auctioneers stock analysis video. This is our RBA analyst opinion covering the buy and sell arguments for RBA stock.

Ritchie Bros. Auctioneers (USA) Stock Rating (3.4/5)

Our Ritchie Bros. Auctioneers stock opinion is based on fundamentals of the company. This Ritchie Bros. Auctioneers stock analysis is based on latest Q3 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy RBA stock?

  • Ritchie Bros. Auctioneers's revenue growth came in at 17.9% in 2016 Q3.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 7.6%.
  • The TTM operating margin was good at 27.6% for Ritchie Bros. Auctioneers.
  • Net margins came in at average 19.9% for Ritchie Bros. Auctioneers over the last twelve months.
  • With its debt/equity ratio of  0.2, Ritchie Bros. Auctioneers has a lower debt burden when compared to the Business Services average.
  • Ritchie Bros. Auctioneers has an attractive ROIC (Return on Invested Capital) of 22.7%
  • Ritchie Bros. Auctioneers has a good Return On Equity (ROE) of 15.8%.
  • The company has a good Free Cash Flow (FCF) margin of 93.2%.

Should you sell RBA stock?

  • RBA stock is trading at a PE ratio of 34.9, which is worse than the industry average multiple of 21.7.
  • The company is trading at a price to sales multiple of 7.6, which is overvalued in comparison to the Auction Valuation services industry average multiple of 1.8.

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