Is it a good company at a reasonable price? I did stock price testing in US$ because financials are reported in US$ and dividend is paid in US$. The stock price is close to recent highs that the stock price cannot seem to break through. This company has done very well for its shareholders. My testing is suggesting a Hold rating. However, this is a growth stock and it is harder to judge. A number of my good tests, such as the P/GP Ratio test says the stock price is reasonable and below the median. I do like the dividend yield tests and they say it is expensive. Time will tell.
I do not own this stock of RB Global Inc (TSX-RBA, NYSE-RBA). This was a stock suggestion I got and also it was a dividend growth stock found in the Canadian All Star List. See site.
When I was updating my spreadsheet, I noticed that this company is doing very well. Look at growth in things like revenue and earnings for the past 5 and 10 years. In the chart below, I am showing 5 and 10 year total growth and per year growth in columns 3 and 4. Column 5 shows growth over past 12 months to the first quarter in 2026 and expected growth over this year.
| Yr | Item | Tot. Growth | Per Year | Gwth | Coverage |
|---|---|---|---|---|---|
| 5 | Revenue Growth US$ | 233.32% | 27.23% | 51.04% | <-12 mths |
| 5 | AEPS Growth | 138.10% | 18.95% | 3.00% | <-12 mths |
| 5 | Net Income Growth | 124.70% | 17.58% | 5.68% | <-12 mths |
| 5 | Cash Flow Growth | 279.34% | 30.56% | 6.88% | <-12 mths |
| 5 | Dividend Growth | 42.86% | 7.39% | 3.33% | <-12 mths |
| 5 | Stock Price Growth | 46.25% | 7.90% | 1.57% | <-12 mths |
| 10 | Revenue Growth US$ | 789.89% | 24.43% | 6.39% | <-this year |
| 10 | AEPS Growth | 253.98% | 13.47% | 10.75% | <-this year |
| 10 | Net Income Growth | 180.59% | 10.87% | 47.44% | <-this year |
| 10 | Cash Flow Growth | 398.17% | 17.42% | 45.82% | <-this year |
| 10 | Dividend Growth | 100.00% | 7.18% | 7.92% | <-this year |
| 10 | Stock Price Growth | 326.67% | 15.61% | 1.57% | <-this year |
If you had invested in this company in December 2015, for $1,000.20 you would have bought 26 shares at $33.34 per share. In December 2025, after 10 years you would have received $403.93 in dividends. The stock would be worth $4,239.30. Your total return would have been $4,643.23. This would be a total return of 17.57% per year with 15.54% from capital gain and 2.03% from dividends. This is in CDN$.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $33.34 | $1,000.20 | 30 | 10 | $403.93 | $4,239.30 | $4,643.23 |
The current dividend yield is low with dividend growth low. The current dividend yield is low (below 2%) at 1.15%. The 5, 10 and historical dividend yields are also low at 1.50%, 1.75% and 1.75%. The dividend increases are low (below 8% per year) at 7.4% per year over the past 5 years. The last dividend increase was 2025 and it was for 6.9%.
The Dividend Payout Ratios (DPR) are good. The DPR for 2025 for Earnings per Share (EPS) is high at 59% with 5 year coverage at 69%, but the one for AEPS is more important. The DPR for 2025 for Adjusted Earnings per Share (AEPS) is good at 30% with 5 year coverage at 37%. The DPR for 2025 for Cash Flow per Share (CFPS) is good at 14% with 5 year coverage at 14%. The DPR for 2025 for Free Cash Flow (FCF) is good at 34% with 5 year coverage at 45%. I have two values for FCF for 2025 and they are $719M and $738M. I am using $738M. They do not vary much.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 58.82% | 69.39% |
| AEPS | 30.00% | 37.96% |
| CFPS | 26.49% | 33.45% |
| FCF | 34.93% | 44.98% |
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2025 is good at 0.12 and currently at 0.12. The Liquidity Ratio for 2025 is low at 1.10 and 1.14 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.83 and currently at 1.79. The Debt Ratio for 2025 is good at 2.00 and 1.97 currently. The Leverage and Debt/Equity Ratios for 2025 are fine at 2.18 and 1.09 and currently at 2.21 and 1.12.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term | 0.12 | 0.12 |
| Intang/GW | 0.37 | 0.36 |
| Liquidity | 1.10 | 1.14 |
| Liq. + CF | 1.83 | 1.79 |
| Debt Ratio | 2.00 | 1.97 |
| Leverage | 2.18 | 2.21 |
| D/E Ratio | 1.09 | 1.12 |
The Total Return per year is shown below for years of 5 to 27 to the end of 2025 in CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 8.99% | 11.44% | 9.82% | 1.63% |
| 2015 | 10 | 7.07% | 17.57% | 15.54% | 2.03% |
| 2010 | 15 | 9.74% | 14.68% | 12.85% | 1.83% |
| 2005 | 20 | 10.45% | 13.04% | 11.37% | 1.68% |
| 2000 | 25 | 12.26% | 16.08% | 14.13% | 1.96% |
| 1998 | 27 | 13.24% | 11.85% | 1.39% |
The Total Return per year is shown below for years of 5 to 27 to the end of 2025 in US$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 7.39% | 9.47% | 7.90% | 1.57% |
| 2015 | 10 | 7.18% | 17.74% | 15.61% | 2.12% |
| 2010 | 15 | 1.44% | 12.18% | 10.49% | 1.69% |
| 2005 | 20 | 9.56% | 12.21% | 10.45% | 1.76% |
| 2000 | 25 | 11.96% | 16.92% | 14.53% | 2.39% |
| 1998 | 27 | 13.97% | 12.30% | 1.68% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 37.59, 46.18, and 54.77. The corresponding 10 year ratios are 28.94, 37.89 and 48.92. The corresponding historical ratios are 24.21, 28.64 and 32.35. The current ratio is 37.44 based on a stock price of $107.99 and EPS estimate for 2026 of $2.88. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$ and you will get a similar result in CDN$.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 20.95, 25.55 and 29.73. The corresponding 10 year ratios are 21.54, 27.62 and 33.63. The corresponding historical ratios are 21.99, 26.81 and 32.09. The current ratio is 24.38 based on a stock price of $107.99 and AEPS estimate for 2026 of $4.43. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$ and you will get a similar result in CDN$.
I get a Graham Price of $54.83. The 10-year low, median, and high median Price/Graham Price Ratios are 1.86, 2.44 and 2.86. The current P/GP Ratio is 1.97 based on a stock price of $107.99. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$ and you will get a similar result in CDN$.
I get a 10-year median Price/Book Value per Share Ratio of 4.56. The current ratio is 3.58 based on a Book Value of $5,619M, Book Value per Share of $30.16 and a stock price of $107.99. The current ratio is 22% below the 10 yar median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$ and you will get a similar result in CDN$.
I get a 10-year median Price/Cash Flow per Share Ratio of 19.90. The current ratio is 14.07 based on Cash Flow per Share estimate for 2026 of $7.67, Cash Flow of $1,429M and a stock price of $107.99. The current ratio is 29% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$ and you will get a similar result in CDN$.
I get an historical median dividend yield of 1.75. The current dividend yield is 1.15% based on dividends of $1.24 and a stock price of $107.99. The current dividend yield is 34% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will get a similar result in CDN$.
I get a 10 year median dividend yield of 1.75. The current dividend yield is 1.15% based on dividends of $1.24 and a stock price of $107.99. The current dividend yield is 34% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will get a similar result in CDN$.
The 10-year median Price/Sales (Revenue) Ratio is 4.01. The current ratio is 4.12 based on a stock price of $107.99, Revenue estimate for 2026 of $4,884M, Revenue per Share of $26.22 and a stock price of $107.99. The current ratio is 3% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$ and you will get a similar result in CDN$.
Results of stock price testing is that the stock price is showing that it could be on the expensive side. This dividend yields are pointing that way. The dividend increases certainly has not kept pace with the stock price increases. The dividend yield testing is saying that the stock price is on the expensive side. However, it is only the dividend yield testing that is saying that the stock price is expensive. The rest of the testing is showing cheap to reasonable.
When I look at analysts’ recommendations, I find Strong Buy (5), Buy (5), and Hold (2). The consensus is a Strong Buy. The 12 month stock price consensus is $178.73 ($127.73 US$), with a High of $209.90 ($150.00 US$) and low of $144.13 ($103.00 US$). The consensus stock price of $178.73 implies a total return of 66.86% with 65.71% from capital gains and 1.15% from dividends based on a current stock price of $150.92 CDN$.
An analyst in 2026 on Stock Chase says it is currently a buy. It is not much followed on Stock Chase, but in 2024 analysts said Do Not Buy. They thought price was too high. Amy Legate-Wolfe on Motley Fool thinks this is a good time to buy this stock. Adam Othman on Motley Fool review this stock in 2024 and thought Canadian Industrial stocks offered safety, dividend and growth combinations. The company put out a Press Release about its fourth quarter of 2025 results. The company put out a Press Release about their first quarter of 2026.
Simply Wall Street via Yahoo Financial reviews this stock. They think that on a cash flow basis the stock is undervalued. However, when they look at P/E they said it is overvalued because P/E is 48.20 compared to peer average of 32.53. However, this stock also gives a P/AEPS Ratio and that is 23.59. I think that the P/AEPS is more valid for this company.
RB Global has evolved into a leading global marketplace that connects buyers and sellers of commercial assets and vehicles. Its activities are international, though skewing approximately two-thirds to North America. Its web site is here RB Global Inc.
The last stock I wrote about was about was Reitmans (Canada) Ltd (TSXV-RET.A, OTC-RTMAF) ... learn more. The next stock I will write about will be IA Financial Corp (TSX-IAG, OTC-IDLLF) ... learn more on Monday, June 15, 2026 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
No comments:
Post a Comment