Skip to main content

2 Reasons to Like RBA and 1 to Stay Skeptical

RBA Cover Image

RB Global has had an impressive run over the past six months. While the S&P 500 has been flat, the stock has returned 13.1% and now trades at $107.33. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move.

Following the strength, is RBA a buy right now? Or is the market overestimating its value? Find out in our full research report, it’s free.

Why Does RBA Stock Spark Debate?

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.

Two Things to Like:

1. Skyrocketing Revenue Shows Strong Momentum

Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, RB Global’s 27.4% annualized revenue growth over the last five years was incredible. Its growth surpassed the average business services company and shows its offerings resonate with customers. RB Global Quarterly Revenue

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 20.6% compounded annual growth rate over the last five years. This performance was better than most business services businesses.

RB Global Trailing 12-Month EPS (Non-GAAP)

One Reason to be Careful:

New Investments Fail to Bear Fruit as ROIC Declines

ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity).

We like to invest in businesses with high returns, but the trend in a company’s ROIC is what often surprises the market and moves the stock price. Over the last few years, RB Global’s ROIC has unfortunately decreased significantly. If its returns keep falling, it could suggest its profitable growth opportunities are drying up. We’ll keep a close eye.

RB Global Trailing 12-Month Return On Invested Capital

Final Judgment

RB Global has huge potential even though it has some open questions, and with its shares outperforming the market lately, the stock trades at 28.5× forward P/E (or $107.33 per share). Is now a good time to initiate a position? See for yourself in our full 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.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.