Ritchie Bros. Auctioneers Stock Analysis (NYSE:RBA)

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$34 $0.35 (1.04%) RBA stock closing price Feb 24, 2017 (Closing)
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Ritchie Bros. Auctioneers
Updated on : Feb 24, 2017
previous close
RBA 34 (0%)
S&P 500 2367.3 (0%)
Closing Price On: Feb 24, 2017
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:
8.4%
Operating Profit
Operating Margin:
27.6%
Sector Average:
10.1%
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:
1.91%
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 :
6.5
Industry PS :
1.6
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 (3.6/5)

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?

  • The Year Over Year (YoY) revenue growth for Ritchie Bros. Auctioneers was 17.9% in 2016 Q3.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 8.4%.
  • Ritchie Bros. Auctioneers's average operating margin of 27.6% was exceptional.
  • Net margins stood at a healthy 19.9% (average) for Ritchie Bros. Auctioneers in the Trailing Twelve Months.
  • Ritchie Bros. Auctioneers has a lower debt burden than its peers in the Business Services sector, with a debt/equity ratio of  0.2.
  • Ritchie Bros. Auctioneers's return on invested capital of 22.7% is good.
  • Ritchie Bros. Auctioneers has a good Return On Equity (ROE) of 15.8%.
  • Ritchie Bros. Auctioneers has a healthy FCF (Free Cash Flow) margin of 93.2%.

Should you sell RBA stock?

  • Trading at a PE ratio of 30.1, RBA stock is overvalued in comparison to industry average multiple of 22.5.
  • The company is trading at a price to sales multiple of 6.5, which is higher in comparison to the Auction Valuation services industry average of 1.6, making RBA stock expensive.

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