Even during a down period for the markets, RB Global has gone against the grain, climbing to $89.83. Its shares have yielded a 11.2% return over the last six months, beating the S&P 500 by 25%. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move.
Is now still a good time to buy RBA? Or are investors being too optimistic? Find out in our full research report, it’s free.
Why Is RBA a Good Business?
Born from the 1958 founding of Ritchie Bros. Auctioneers and rebranded in 2023, RB Global (NYSE: RBA) operates global marketplaces that connect buyers and sellers of commercial assets, vehicles, and equipment across multiple industries.
1. Skyrocketing Revenue Shows Strong Momentum
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Luckily, RB Global’s sales grew at an incredible 26.6% compounded annual growth rate over the last five years. Its growth surpassed the average business services company and shows its offerings resonate with customers. 
2. Outstanding Long-Term EPS Growth
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
RB Global’s EPS grew at an astounding 21.4% compounded annual growth rate over the last five years. This performance was better than most business services businesses.
3. Excellent Free Cash Flow Margin Boosts Reinvestment Potential
Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
RB Global has shown terrific cash profitability, enabling it to reinvest, return capital to investors, and stay ahead of the competition while maintaining an ample cushion. The company’s free cash flow margin was among the best in the business services sector, averaging 16.3% over the last five years.
Final Judgment
These are just a few reasons why we think RB Global is a great business, and with its shares topping the market in recent months, the stock trades at 24.6× forward price-to-earnings (or $89.83 per share). Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More Than RB Global
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
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