RB Global (RBA) AI Stock Analysis

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RB Global

(TSX:RBA)

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Outperform 73 (OpenAI - 4o)

Rating:73Outperform

Price Target:

C$177.00

▲(8.04% Upside)

RB Global's stock score is driven by strong technical analysis and solid financial performance. The company's strategic expansions and positive momentum in the automotive sector contribute positively. However, the high P/E ratio suggests potential overvaluation, and challenges in certain sectors could impact future growth.

Positive Factors

Negative Factors

RB Global (RBA) vs. iShares MSCI Canada ETF (EWC)

Market Cap

$30.41B

Dividend Yield1.01%

Average Volume (3M)313.50K

Price to Earnings (P/E)57.4

Beta (1Y)0.95

Revenue Growth7.80%

EPS Growth17.65%

CountryCA

Employees7,900

SectorIndustrials

Sector Strength72

IndustrySpecialty Business Services

Share Statistics

EPS (TTM)1.47

Shares Outstanding185,599,380

10 Day Avg. Volume319,612

30 Day Avg. Volume313,505

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.06

Enterprise Value/Revenue7.31

Enterprise Value/Gross Profit15.97

Enterprise Value/Ebitda23.53

Forecast

1Y Price Target

$175.26

Price Target Upside6.97% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering6

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 auction fees charged to sellers and buyers during the auction process. The company earns a commission on each sale, which is a percentage of the final sale price of the vehicles or equipment. Additionally, RB Global offers subscription services for dealers and businesses that provide access to premium features and enhanced visibility in auctions. Revenue also comes from ancillary services such as vehicle transportation, reconditioning, and financing solutions. Strategic partnerships with automotive manufacturers and financial institutions further bolster its revenue streams, allowing for the integration of services and increased market reach.

RB Global Earnings Call Summary

Earnings Call Date:Aug 06, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 07, 2025

Earnings Call Sentiment Neutral

The earnings call presented a balanced perspective with several achievements in the automotive sector and strategic expansions, offset by challenges in the commercial construction and transportation sector, and financial impacts from a joint venture and previous year's bankruptcy-related benefits.

Q2-2025 Updates

Positive Updates

Automotive Sector Growth

Unit volume increased by 9% year-over-year, and U.S. insurance average selling prices increased approximately 1% year-over-year.

Strategic Expansion and Partnerships

RB Global welcomed 2 new alliance partners, extended their global footprint, and announced a new joint venture in the U.K. with LKQ Corporation.

J.M. Wood Acquisition

Successfully closed the acquisition of J.M. Wood, enhancing the footprint in Alabama and the broader Southeast United States.

Service Revenue and EBITDA Increase

Service revenue increased 3%, and adjusted EBITDA increased 7% on GTV growth and expansion in the service revenue take rate.

Increased Quarterly Dividend

Increased quarterly dividend approximately 7% to $0.31 per quarter from $0.29 per quarter.

Negative Updates

Decline in Commercial Construction and Transportation Sector

GTV in the commercial construction and transportation sector decreased by 6%, driven by an 18% decline in lot volumes.

Impact of Yellow Corporation Bankruptcy

The prior year's performance benefited significantly from the Yellow Corporation bankruptcy, affecting current year comparisons.

Onetime Loss Due to Joint Venture

A onetime loss on deconsolidation of $15.5 million and an additional charge of $4.2 million were incurred, totaling a loss of $19.7 million.

Guidance at Lower End of Range

GTV growth is expected to be at the lower end of the guidance range.

Company Guidance

During the RB Global Second Quarter 2025 Earnings Conference Call, the company provided several key metrics and guidance updates. The company reported a 2% increase in total gross transactional value (GTV) and a significant 7% rise in adjusted EBITDA. The automotive sector saw an 8% increase in GTV, supported by a 9% rise in unit volumes, while U.S. insurance average selling prices (ASP) increased by 1% year-over-year. The commercial construction and transportation sector experienced a 6% decline in GTV, primarily due to an 18% drop in lot volumes. However, the average price per lot sold increased, driven by an improved asset mix. The service revenue increased by 3%, with a service revenue take rate rising by approximately 20 basis points to 21.1%. Looking ahead, RB Global revised its adjusted EBITDA guidance to a range of $1.34 billion to $1.37 billion and raised its quarterly dividend by 7% to $0.31 per share. The company remains cautiously optimistic about the second half of the year, despite macroeconomic uncertainties, and is not factoring in contributions from cat-related GTV due to the unpredictability of extreme weather events.

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

Positive

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

Positive

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

Positive

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	2.02B	2.00B	1.78B	957.11M	822.19M	761.67M
EBITDA	1.37B	1.38B	958.30M	444.61M	343.00M	358.62M
Net Income	417.80M	413.10M	206.50M	319.70M	119.14M	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	494.32M	326.11M	278.77M
Total Debt	4.25B	4.29B	4.64B	610.62M	1.74B	665.79M
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	606.10M	655.10M	197.80M	391.12M	274.10M	214.74M
Operating Cash Flow	953.20M	932.00M	544.00M	463.06M	317.59M	257.87M
Investing Cash Flow	-397.80M	-301.60M	-3.11B	77.33M	-214.07M	-276.72M
Financing Cash Flow	-454.00M	-645.50M	2.68B	-1.26B	960.91M	-111.46M

RB Global Technical Analysis

Technical Analysis Sentiment

Positive

Last Price163.83

Price Trends

50DMA

155.74

Positive

100DMA

149.92

Positive

200DMA

142.42

Positive

Market Momentum

MACD

1.98

Positive

RSI

63.65

Neutral

STOCH

78.93

Neutral

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 163.83 is above the 20-day moving average (MA) of 160.55, above the 50-day MA of 155.74, and above the 200-day MA of 142.42, indicating a bullish trend. The MACD of 1.98 indicates Positive momentum. The RSI at 63.65 is Neutral, neither overbought nor oversold. The STOCH value of 78.93 is Neutral, 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

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCL.B	75 Outperform	1.64B	9.37	6.35%	9.68%	-2.90%	57.43%
RBA	73 Outperform	$30.41B	57.44	7.88%	1.01%	7.80%	17.65%
TRI	70 Outperform	100.95B	44.17	12.96%	1.45%	7.18%	-28.51%
TCL.A	68 Neutral	1.64B	9.39	6.35%	9.66%	-2.90%	57.43%
CGY	66 Neutral	575.16M	-933.52	-0.22%	2.21%	1.44%	-103.80%
GDI	63 Neutral	650.00M	18.54	6.45%	―	-0.87%	117.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

TSE:RBA

RB Global

163.83

51.20

45.45%

TRI

Thomson Reuters

162.51

-6.92

-4.08%

TSE:CGY

Calian Group

50.69

4.32

9.32%

TSE:GDI

GDI Integrated

27.59

-6.76

-19.68%

TSE:TCL.A

Transcontinental

19.66

4.36

28.50%

TSE:TCL.B

Transcontinental Inc. Class B

19.62

5.60

39.94%

RB Global Corporate Events

M&A TransactionsBusiness Operations and Strategy

RB Global Completes Strategic Acquisition of J.M. Wood Auction Co.

Positive

Jul 14, 2025

RB Global, Inc.’s subsidiary, Ritchie Bros. Auctioneers, has completed the acquisition of J.M. Wood Auction Co., enhancing its service offerings in Alabama and nearby states. This strategic move combines J.M. Wood’s regional expertise and customer relationships with Ritchie Bros.’ global network and technology, aiming to create more opportunities and value for customers while maintaining J.M. Wood’s operational independence and legacy.

The most recent analyst rating on (TSE:RBA) stock is a Buy with a C$98.00 price target. To see the full list of analyst forecasts on RB Global stock, see the TSE:RBA Stock Forecast page.

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.Date of analysis: Aug 20, 2025