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Ritchie Bros Auctioneers Inc RBA

Rating as of

Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Ritchie Bros' First-Quarter Results Feature Strong Top- and Bottom-Line Growth

Analyst Note

| Brian Bernard, CFA, CPA |

Narrow-moat rated Ritchie Bros turned in a good first-quarter performance that saw revenue and earnings growth top FactSet consensus estimates. Total revenue increased 21% year over year to $332 million (about 11.5% above consensus) and EPS grew 19% to $0.25, beating FactSet consensus by $0.01. Gross transaction volume increased 11% (8% at constant currency) year over year to $1.3 billion driven by stronger demand and pricing and a 7% increase in auction days compared with the year-ago quarter. Auctions and marketplaces service revenue as a percentage of total GTV held relatively steady compared with the prior-year period at 13.4%. However, inventory revenue surged 39% year over year driven by strong performance in Texas and from the GovPlanet business in the United States, two large construction deals in Canada, and easy sales comparisons outside of North America due in part to the pandemic's effect on prior-year results.

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Company Profile

Business Description

British Columbia-based Ritchie Bros. operates the world's leading marketplace for heavy equipment. Started in 1958 as a live auctioneer of industrial equipment, it has greatly expanded its operations to include the sale of construction, agricultural, oilfield, and transportation equipment in a variety of venues. It now operates over 40 live auction sites in more than 12 countries, along with online marketplaces, including IronPlanet, Marketplace-E, and GovPlanet. Its agricultural auctions are frequently much smaller venues and can include liquidations of single farms. In 2020, the company held 315 auctions, selling over $5 billion worth of equipment.

Contact
9500 Glenlyon Parkway
Burnaby, BC, V5J 0C6, Canada
T +1 778 331-5500
Sector Industrials
Industry Specialty Business Services
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2020
Stock Type
Employees 2,600

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