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1. Company Snapshot

1.a. Company Description

Ritchie Bros.Auctioneers Incorporated, an asset management and disposition company, sells industrial equipment and other durable assets through its unreserved auctions, online marketplaces, listing services, and private brokerage services.It sells a range of used and unused commercial assets, including earthmoving equipment, truck tractors and trailers, government surplus, oil and gas equipment, and other industrial assets, as well as construction and heavy machinery.


The company also offers live auction events with online bidding.It sells used equipment to its customers through live unreserved auctions at 40 auction sites worldwide.The company serves construction, transportation, agriculture, energy, oil and gas, mining, and forestry sectors.


It operates in the United States, Canada, Australia, the United Arab Emirates, the Netherlands, Europe, the Middle East, Asia, and internationally.Ritchie Bros.Auctioneers Incorporated was founded in 1958 and is headquartered in Burnaby, Canada.

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1.b. Last Insights on RBA

Recent positive drivers behind Ritchie Bros. Auctioneers Incorporated's performance include: * Acquisition of IAA, which has boosted adjusted EBITDA and EPS despite lower revenue, setting the stage for future profitable growth. * Operational efficiencies, which have improved margins and supported a one-year price target 10.36% above the current price. * Strong Q3 earnings, beating the Zacks Consensus Estimate of $0.62 per share, with earnings of $0.71 per share. * Growing optimism about its earnings prospects, reflected by its upgrade to a Zacks Rank #1 (Strong Buy). * Momentum from its strong Q3 earnings and acquisition-driven growth, making it a great stock pick for momentum investors.

1.c. Company Highlights

2. RB Global's Strong Q3 Earnings Driven by Operational Excellence

RB Global reported a robust third quarter, with adjusted EBITDA growing 16% on a 7% increase in gross transactional value (GTV). The company's automotive sector continued to outperform, with a 9% year-over-year unit volume increase, driven by market share gains across salvage and remarketed vehicles. Earnings per share (EPS) came in at $0.93, beating estimates of $0.82. Revenue growth was supported by a 6% increase in automotive GTV, driven by the 9% unit volume growth. The company's adjusted EBITDA margin expanded, driven by GTV growth, expansion in service revenue take rate, and a higher inventory return, as noted by Eric Guerin, "Adjusted EBITDA increased 16% on GTV growth, expansion in our service revenue take rate, and a higher inventory return."

Publication Date: Nov -09

📋 Highlights
  • Adjusted EBITDA Growth:: 16% increase driven by 7% GTV growth, service revenue take rate expansion, and higher inventory returns.
  • Automotive Unit Volume Growth:: 9% year-over-year rise, outpacing the market for the third consecutive quarter.
  • GSA Partnership Expansion:: Secured $35,000 annualized run rate for vehicle disposition services with the U.S. General Services Administration.
  • Full-Year 2025 Adjusted EBITDA Guidance Raised:: Updated range of $1.35B to $1.38B, reflecting operational discipline and cost management.
  • New Operating Model Savings:: $25M in annual run rate savings targeted by Q2 2026 through organizational realignment and efficiency initiatives.

Segment Performance

The automotive business was a key driver of growth, with unit volumes increasing 9% year-over-year. The company's focus on operational excellence and commitment to service level targets has enabled it to deepen engagement with existing partners and expand into adjacent opportunities. The recent agreement with the U.S. General Services Administration (GSA) to provide disposition services for approximately 35,000 remarketed vehicles on an annualized run rate basis is expected to drive future growth.

Valuation and Outlook

RB Global's valuation metrics indicate a premium valuation, with a Price-to-Earnings (P/E) ratio of 42.62 and an Enterprise Value-to-EBITDA (EV/EBITDA) ratio of 17.73. Analysts estimate revenue growth at 4.0% for next year. The company's strong operational performance and growth prospects are expected to drive future returns. The return on equity (ROE) stands at 7.8%, indicating a relatively healthy profitability profile. The Net Debt-to-EBITDA ratio is 2.83, suggesting a manageable debt burden.

Guidance and Future Prospects

RB Global has raised its full-year 2025 adjusted EBITDA guidance range to $1.35 billion to $1.38 billion, reflecting continued operational discipline. The company expects full-year 2025 GTV growth to range between 0% and 1%. The new operating model is expected to drive $25 million in run rate savings by the second quarter of 2026, providing a further boost to profitability. With a strong track record of execution and a focus on creating clarity and focus, RB Global is well-positioned to capitalize on future opportunities.

3. NewsRoom

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EVTC or RBA: Which Is the Better Value Stock Right Now?

Dec -03

Source: zacks.com

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RB Global, Inc. $RBA Shares Purchased by Bank of Nova Scotia Trust Co.

Nov -28

Source: defenseworld.net

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Is the Options Market Predicting a Spike in RB Global Stock?

Nov -26

Source: zacks.com

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Aviso Financial Inc. Acquires 3,450 Shares of RB Global, Inc. $RBA

Nov -25

Source: defenseworld.net

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These Analysts Revise Their Forecasts On RB Global Following Q3 Results

Nov -07

Source: benzinga.com

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RB Global (RBA) Q3 Earnings and Revenues Beat Estimates

Nov -07

Source: zacks.com

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RB Global, Inc. (RBA) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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RB Global Reports Third Quarter 2025 Results

Nov -06

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.96%)

6. Segments

Buyer Fees

Expected Growth: 0.8%

Ritchie Bros. Auctioneers' 0.8% growth in Buyer Fees is driven by increasing online auction participation, expansion into new markets, and a rise in average selling prices. Additionally, the company's strategic investments in digital platforms and services have improved the buyer experience, leading to higher transaction volumes and fees.

Inventory Sales

Expected Growth: 1.2%

Ritchie Bros. Auctioneers' 1.2% inventory sales growth is driven by increasing demand for used heavy equipment and trucks, expansion into new markets, and strategic acquisitions. Additionally, the company's online platform and data analytics capabilities have improved customer experience, leading to higher sales volumes and prices. Furthermore, a strong brand reputation and extensive network of buyers and sellers have contributed to the growth.

Commissions

Expected Growth: 0.9%

Commissions from Ritchie Bros. Auctioneers Incorporated grew 0.9% driven by increased auction volumes, higher equipment prices, and expansion into new markets. Additionally, the company's strategic partnerships and investments in digital platforms contributed to the growth, enhancing the customer experience and increasing online bidding activity.

Marketplace Services

Expected Growth: 1.1%

Ritchie Bros. Auctioneers' Marketplace Services growth of 1.1% is driven by increasing online adoption, expansion of equipment listings, and growing demand for used heavy equipment and trucks. Additionally, the company's strategic partnerships, investments in digital platforms, and enhanced customer experience contribute to the segment's growth.

7. Detailed Products

Live Auctions

Ritchie Bros. conducts live auctions at its permanent auction sites and temporary auction sites, featuring a wide range of equipment and trucks.

Timed Auctions

Ritchie Bros. offers timed auctions, which allow buyers to bid on equipment and trucks over a set period of time.

IronPlanet

IronPlanet is an online marketplace that provides a platform for buying and selling of used equipment and trucks.

Marketplace-E

Marketplace-E is an online platform that allows buyers and sellers to negotiate prices and terms of equipment and truck sales.

Ritchie Bros. Asset Solutions

Ritchie Bros. Asset Solutions provides a range of services, including asset valuation, consulting, and disposition, to help companies manage their equipment and truck fleets.

8. Ritchie Bros. Auctioneers Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is low for Ritchie Bros. Auctioneers Incorporated because the company has a strong brand presence and a large customer base, making it difficult for substitutes to enter the market.

Bargaining Power Of Customers

The bargaining power of customers is medium for Ritchie Bros. Auctioneers Incorporated because while customers have some negotiating power, the company's strong brand and large market share limit their ability to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low for Ritchie Bros. Auctioneers Incorporated because the company has a diverse supplier base and is not heavily reliant on any one supplier, giving it negotiating power.

Threat Of New Entrants

The threat of new entrants is low for Ritchie Bros. Auctioneers Incorporated because the company has a strong brand presence and a large market share, making it difficult for new entrants to gain traction.

Intensity Of Rivalry

The intensity of rivalry is high for Ritchie Bros. Auctioneers Incorporated because the company operates in a competitive industry with several established players, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 37.94%
Debt Cost 6.39%
Equity Weight 62.06%
Equity Cost 8.34%
WACC 7.60%
Leverage 61.12%

11. Quality Control: Ritchie Bros. Auctioneers Incorporated passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Ritchie Bros Auctioneers

A-Score: 6.1/10

Value: 2.6

Growth: 7.6

Quality: 5.7

Yield: 3.0

Momentum: 8.5

Volatility: 9.3

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Secure Energy Services

A-Score: 5.8/10

Value: 4.9

Growth: 8.4

Quality: 4.2

Yield: 2.0

Momentum: 8.5

Volatility: 6.7

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ABM Industries

A-Score: 4.9/10

Value: 5.6

Growth: 4.1

Quality: 5.2

Yield: 4.0

Momentum: 2.5

Volatility: 8.0

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Aramark

A-Score: 4.6/10

Value: 4.3

Growth: 4.3

Quality: 3.4

Yield: 2.0

Momentum: 5.0

Volatility: 8.7

1-Year Total Return ->

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UniFirst

A-Score: 4.6/10

Value: 5.8

Growth: 4.6

Quality: 6.2

Yield: 1.0

Momentum: 3.0

Volatility: 7.0

1-Year Total Return ->

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CBIZ

A-Score: 3.6/10

Value: 3.2

Growth: 5.2

Quality: 5.3

Yield: 0.0

Momentum: 2.5

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

99.63$

Current Price

99.63$

Potential

-0.00%

Expected Cash-Flows