RB Global reported solid third-quarter earnings, but the loss of customers at IAA led us to temper our near-term sales expectations. As a result, we lowered our fair value estimate to $55 from $57. Management commented that the customer loss made up roughly 4% of total gross transaction value annually and approximately 5% of total unit volumes.
Increasing construction activity could lead equipment owners to buy new machines and sell their used equipment through RB Global's auctions, substantially boosting revenue growth.
Equipment owners could continue to hold back on putting their assets up for sale, which would result in RB Global’s auction liquidity being constrained.
|
Metric
|
RBA
|
EBAY
|
HRI
|
|---|---|---|---|
Price/Earnings (Normalized) | 23.37 | 9.84 | 13.25 |
Price/Book Value | 2.45 | 3.68 | 3.10 |
Price/Sales | 3.24 | 2.23 | 1.18 |
Price/Cash Flow | 18.31 | 8.56 | 3.35 |
|
Metric
|
RBA
|
EBAY
|
HRI
|
|---|---|---|---|
Quick Ratio | 0.98 | 2.05 | 1.24 |
Current Ratio | 1.31 | 2.16 | 1.36 |
Interest Coverage | 2.30 | 20.50 | 3.25 |
|
Metric
|
RBA
|
EBAY
|
HRI
|
|---|---|---|---|
Return on Assets (Normalized) | 5.15% | 11.28% | 5.76% |
Return on Equity (Normalized) | 12.41% | 42.94% | 32.51% |
Return on Invested Capital (Normalized) | 7.80% | 17.12% | 10.26% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|
RLXXF
| RELX PLC | Gxfgw | $73.0 Bil | |
RELX
| RELX PLC ADR | Cgh | $73.0 Bil | |
TRI
| Thomson Reuters Corp | Sypwp | $63.8 Bil | |
CTAS
| Cintas Corp | Pffv | $56.9 Bil | |
CPRT
| Copart Inc | Tzk | $48.1 Bil | |
WTKWY
| Wolters Kluwer NV ADR | Rrwfc | $33.8 Bil | |
WOLTF
| Wolters Kluwer NV | Wxj | $33.8 Bil | |
GPN
| Global Payments Inc | Qsrlgbc | $31.2 Bil | |
RTO
| Rentokil Initial PLC ADR | Wcvqf | $13.7 Bil | |
RBA
| RB Global Inc | Nxqyvv | $12.0 Bil |
:quality(80)/s3.amazonaws.com/arc-authors/morningstar/411a77b3-4050-4eee-b00d-eeb6e9c3eb22.jpg)