Ritchie Bros. Auctioneers Stock Analysis, Valuation (NYSE:RBA)
Take a look at Amigobulls Ritchie Bros. Auctioneers stock analysis video. This video puts forward our latest analysis highlighting the pros and cons for RBA stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Ritchie Bros. Auctioneers (USA) Stock Rating 3/5
Amigobulls RBA stock analysis relies on business fundamentals such as Ritchie Bros. Auctioneers revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. Ritchie Bros. Auctioneers valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Our Ritchie Bros. Auctioneers stock rating is based on company's fundamentals like balance sheet risk and cash flow position.
Should you buy RBA stock?
- The Year Over Year (YoY) revenue growth for Ritchie Bros. Auctioneers was 109% in 2018-03.
- Long term revenue growth has been strong with a 5 year compounded annual growth of 11.2.
- The TTM operating margin was good at 15.64 for Ritchie Bros. Auctioneers.
- Net margins stood at a healthy 11% (average) for Ritchie Bros. Auctioneers in the Trailing Twelve Months.
- Ritchie Bros. Auctioneers's return on invested capital of 9.8 is good.
- The company has a healthy free cash flow margin of 25.3.
Should you sell RBA stock?
- With a debt/equity ratio of 1.04, Ritchie Bros. Auctioneers is highly leveraged in comparison to Business Services peers.
- The RBA stock currently trades at a PE of 40.8, which is expensive, compared to the sector average of 23.7.
- The company is trading at a price to sales multiple of 4.6, which is higher in comparison to the Business Services sector average of 1.6, making RBA stock expensive.
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Investors can use Amigobulls Ritchie Bros. Auctioneers stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.
Among the financials of the company, Ritchie Bros. Auctioneers revenue growth along with the profit or net income give a clear picture of the financial health. One can also combine technical analysis and fundamental analysis to get a holistic picture about RBA stock.