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RB Global (TSE:RBA)
TSX:RBA
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RB Global
(TSX:RBA)
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Rating:70Outperform
Price Target:
C$156.00
â–²(4.35% Upside)
RB Global's overall stock score reflects strong financial performance and positive earnings call highlights, including strategic expansions and operational efficiencies. However, technical analysis indicates potential resistance, and valuation metrics suggest the stock may be overvalued. The company's strategic initiatives and acquisitions provide a positive outlook, but recent cash flow declines and market challenges in certain sectors pose risks.
Positive Factors
Revenue Growth
Consistent revenue growth indicates a strong market position and effective business model, enhancing long-term financial stability.
Strategic Partnerships
Expanding partnerships with major entities like the GSA enhances market reach and transaction volumes, supporting sustainable growth.
Operational Efficiency
High operational efficiency reduces costs and improves service quality, strengthening competitive advantage and profitability.
Negative Factors
Cash Flow Decline
Declining cash flow can limit investment in growth initiatives and strain financial flexibility, posing a risk to long-term operations.
Market Challenges
Declining automotive pricing pressures could impact revenue and margins, challenging profitability in a key business segment.
Investor Sentiment
Exiting of positions by major investors may reflect concerns over future performance, potentially affecting market perception and stock stability.
RB Global (RBA) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$27.76B
Dividend Yield1.16%
Average Volume (3M)177.32K
Price to Earnings (P/E)51.8
Beta (1Y)0.89
Revenue Growth11.26%
EPS Growth17.45%
CountryCA
Employees7,900
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)1.31
Shares Outstanding185,692,000
10 Day Avg. Volume150,023
30 Day Avg. Volume177,321
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)2.91
Price to Sales (P/S)3.87
P/FCF Ratio25.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$176.42Price Target Upside18.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
RB Global Business Overview & Revenue Model
Company DescriptionRB Global, Inc., an omnichannel marketplace, provides insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Its marketplace brands include Ritchie Bros., an auctioneer of commercial assets and vehicles offering online bidding; IAA, a digital marketplace connecting vehicle buyers and sellers; Rouse Services, which provides asset management, data-driven intelligence, and performance benchmarking system; SmartEquip, a technology platform that supports customers' management of the equipment lifecycle; Xcira that provides live simulcast auction technologies; and Veritread, an online marketplace for heavy haul transport solution. The company serves customers across various asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, energy, mining, and agriculture. RB Global, Inc. was founded in 1958 and is headquartered in Westchester, Illinois.
How the Company Makes MoneyRB Global generates revenue primarily through transaction fees collected from vehicle sales facilitated on its platforms. This includes fees from both sellers who list their vehicles for auction and buyers who purchase them. Additionally, RBA earns income from subscription services that provide dealerships and other businesses with access to its data analytics and inventory management tools. Significant partnerships with automotive manufacturers, dealerships, and financial institutions further enhance its revenue streams by broadening the customer base and increasing transaction volumes. Furthermore, RBA may benefit from ancillary services such as vehicle inspections, shipping logistics, and financing options, which contribute additional sources of income.
RB Global Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Positive
The earnings call presented strong financial results with significant growth in EBITDA and GTV, expansion of strategic partnerships, and operational efficiencies. Despite some challenges in the automotive pricing and the impact of the Yellow Corporation bankruptcy, the company's strategic initiatives and acquisitions indicate a positive outlook.Q3-2025 Updates
Positive Updates
Strong Financial Performance
Adjusted EBITDA increased by 16% on a 7% increase in gross transactional value. This performance was driven by a 9% increase in unit volume in the automotive sector and a 14% year-over-year growth in the commercial construction and transportation sector.
Expansion of GSA Partnership
The partnership with the U.S. General Services Administration (GSA) has been expanded to provide disposition services for approximately 35,000 remarketed vehicles annually, marking a comprehensive service offering for the GSA.
Operational Efficiency Enhancements
Operational improvements led to on-time tow and total performance rates of 99.7% and 99.8%, respectively. The company has also increased yard capacity by approximately 25% through process improvements.
Strategic Acquisition in Australia
A definitive agreement to acquire Smith Broughton Auctioneers and Allied Equipment Sales for approximately $38 million enhances RB Global’s geographic footprint in Western Australia.
New Operating Model
A new operating model is expected to generate over $25 million in total run rate savings by the second quarter of 2026, focusing on clarity, efficiency, and strategic oversight.
Negative Updates
Market Challenges in Automotive Pricing
While U.S. insurance ASP increased by approximately 2.5%, the average price per lot sold in automotive declined due to a higher proportion of remarketed vehicles.
Impact of Yellow Corporation Bankruptcy
The commercial construction and transportation sector experienced a 15% decline in lot volumes, though this was partially offset by a 14% year-over-year GTV growth excluding the Yellow Corporation bankruptcy.
Divestiture of DDI Technologies
DDI Technologies is being divested in the fourth quarter as part of strategic pruning to simplify the organization.
Company Guidance
During the RB Global Third Quarter 2025 Earnings Conference Call, the company announced a significant expansion of its partnership with the U.S. General Services Administration (GSA), expecting to provide disposition services for approximately 35,000 remarketed vehicles annually by the second quarter of 2026. The call highlighted a 16% increase in adjusted EBITDA on a 7% increase in gross transactional value (GTV), with the automotive sector's unit volume rising by 9% year-over-year. The commercial construction and transportation sector saw a 14% year-over-year GTV growth, excluding impacts from the Yellow Corporation bankruptcy. The company also announced a definitive agreement to acquire Smith Broughton Auctioneers and Allied Equipment Sales for $38 million, enhancing its geographic footprint in Western Australia. Operational efficiencies were underscored by a 99.7% on-time tow performance and a 99.8% total performance. The new operating model is expected to generate over $25 million in total run rate savings by the second quarter of 2026. The company raised its full-year 2025 adjusted EBITDA guidance to $1.35 billion to $1.38 billion, noting strong operational discipline and a favorable macro environment for salvage volumes.RB Global Financial Statement Overview
Summary
RB Global demonstrates solid financial health with consistent revenue growth and strong operational margins. The balance sheet shows a stable financial position, but the decline in free cash flow growth could pose a risk if not addressed. Overall, the company is performing well but should focus on enhancing profitability and cash flow generation.Income Statement
RB Global shows a consistent revenue growth trend, with a TTM revenue increase of 2.08%. The gross profit margin remains strong at 46.24%, indicating efficient cost management. However, the net profit margin is relatively modest at 9.68%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are healthy, reflecting solid operational performance.Balance Sheet
The company's debt-to-equity ratio of 0.74 indicates a balanced approach to leveraging, though slightly higher than ideal. The return on equity is moderate at 7.35%, suggesting a stable but not exceptional return on shareholder investments. The equity ratio of 48.82% reflects a solid equity base, providing financial stability.Cash Flow
Operating cash flow is strong, covering net income adequately with a ratio of 0.71. However, the free cash flow growth rate has declined by 10.70%, which could be a concern for future liquidity. The free cash flow to net income ratio of 0.70 indicates efficient cash generation relative to earnings.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.42B | 4.28B | 3.68B | 1.73B | 1.42B | 1.38B |
| Gross Profit | 2.03B | 2.02B | 1.79B | 967.00M | 822.70M | 754.44M |
| EBITDA | 1.23B | 1.23B | 1.03B | 417.20M | 357.70M | 344.15M |
| Net Income | 417.80M | 413.10M | 206.50M | 319.70M | 151.90M | 170.09M |
Balance Sheet | ||||||
| Total Assets | 12.16B | 11.81B | 12.04B | 2.86B | 3.59B | 2.35B |
| Cash, Cash Equivalents and Short-Term Investments | 710.20M | 533.90M | 576.20M | 494.30M | 326.11M | 278.77M |
| Total Debt | 4.40B | 4.56B | 4.77B | 759.80M | 1.87B | 795.72M |
| Total Liabilities | 6.21B | 6.09B | 6.53B | 1.57B | 2.52B | 1.34B |
| Stockholders Equity | 5.93B | 5.71B | 5.50B | 1.29B | 1.07B | 1.01B |
Cash Flow | ||||||
| Free Cash Flow | 726.37M | 727.60M | 447.74M | 430.80M | 302.60M | 260.39M |
| Operating Cash Flow | 959.05M | 886.97M | 679.34M | 461.82M | 312.25M | 275.37M |
| Investing Cash Flow | -397.70M | -287.12M | -3.16B | 75.03M | -210.47M | -295.18M |
| Financing Cash Flow | -453.08M | -614.22M | 2.72B | -1.22B | 944.77M | -117.11M |
RB Global Technical Analysis
Positive
149.49
Price Trends
140.39
Positive
146.83
Positive
145.16
Positive
Market Momentum
1.78
Negative
66.64
Neutral
88.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RBA, the sentiment is Positive. The current price of 149.49 is above the 20-day moving average (MA) of 143.76, above the 50-day MA of 140.39, and above the 200-day MA of 145.16, indicating a bullish trend. The MACD of 1.78 indicates Negative momentum. The RSI at 66.64 is Neutral, neither overbought nor oversold. The STOCH value of 88.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RBA.
RB Global Risk Analysis
RB Global disclosed 56 risk factors in its most recent earnings report. RB Global reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
RB Global Peers Comparison
UnderperformOutperform
Sector (63)
TSE:RBA
RB Global
149.49
22.34
17.57%
TSE:TRI
Thomson Reuters
179.29
-40.68
-18.49%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.