Ritchie Bros. Auctioneers Stock Analysis (NYSE:RBA)

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$32.25 $0.09 (0.28%) RBA stock closing price Mar 24, 2017 (Closing)
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Ritchie Bros. Auctioneers
Updated on : Mar 24, 2017
previous close
RBA 32.3 (0%)
S&P 500 2344 (0%)
Closing Price On: Mar 24, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Auction Valuation services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2016-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
7.4%
Operating Profit
Operating Margin:
24%
Sector Average:
11.8%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
619.6M
Debt/Equity Ratio:
 0.89
Compared to the industry
Cash Flow
Operating cash flow:
$14.1M
Net Income:
$27.9M
Dividend Yield
RBA dividend yield:
2.05%
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
ROIC
High Debt Burden
Cash Flow
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
RBA PS :
6.1
Industry PS :
1.7
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
15.3%
Return on Equity:
13.1%
Free Cash Flow Margin:
7.7%
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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 Q4 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 8.3% in 2016 Q4.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 7.4%.
  • The TTM operating margin was good at 24% for Ritchie Bros. Auctioneers.
  • Net margins stood at a healthy 16.2% (average) for Ritchie Bros. Auctioneers in the Trailing Twelve Months.
  • Ritchie Bros. Auctioneers generates a high return on invested capital of 15.3%.

Should you sell RBA stock?

  • Ritchie Bros. Auctioneers is debt laden and has a high debt/equity ratio of  0.89.
  • Cash flow from operations is 0.5 times net income which is a negative signal.
  • Trading at a PE ratio of 28.3, RBA stock is overvalued in comparison to industry average multiple of 21.9.
  • RBA stock is trading at a PS multiple of 6.1, which is a negative when compared to the Auction Valuation services industry average multiple of 1.7.

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