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Ritchie Bros. Auctioneers

TSX:RBA
Snowflake Description

Proven track record average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RBA
TSX
$5B
Market Cap
  1. Home
  2. CA
  3. Commercial Services
Company description

Ritchie Bros. Auctioneers Incorporated, an asset management and disposition company, sells industrial equipment and other durable assets through its unreserved live on site auctions, online marketplaces, listing services, and private brokerage services. The last earnings update was 6 days ago. More info.


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RBA Share Price and Events
7 Day Returns
1.4%
TSX:RBA
1.6%
CA Commercial Services
1.1%
CA Market
1 Year Returns
21.8%
TSX:RBA
-6.3%
CA Commercial Services
6.6%
CA Market
RBA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ritchie Bros. Auctioneers (RBA) 1.4% 6.7% 8.8% 21.8% 11.1% 91.3%
CA Commercial Services 1.6% 5.5% 0.9% -6.3% 3.2% -27.7%
CA Market 1.1% 2.5% 2.8% 6.6% 8.7% 8.7%
1 Year Return vs Industry and Market
  • RBA outperformed the Commercial Services industry which returned -6.3% over the past year.
  • RBA outperformed the Market in Canada which returned 6.6% over the past year.
Price Volatility
RBA
Industry
5yr Volatility vs Market
Related Companies

RBA Value

 Is Ritchie Bros. Auctioneers undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ritchie Bros. Auctioneers to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ritchie Bros. Auctioneers.

TSX:RBA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.9%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:RBA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.66
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.66 (1 + (1- 26.5%) (18.51%))
0.833
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.83
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.833 * 5.96%)
6.91%

Discounted Cash Flow Calculation for TSX:RBA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ritchie Bros. Auctioneers is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:RBA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.91%)
2020 232.67 Analyst x3 217.63
2021 256.00 Analyst x1 223.98
2022 241.10 Est @ -5.82% 197.31
2023 232.69 Est @ -3.49% 178.12
2024 228.36 Est @ -1.86% 163.51
2025 226.72 Est @ -0.72% 151.85
2026 226.91 Est @ 0.08% 142.15
2027 228.36 Est @ 0.64% 133.81
2028 230.72 Est @ 1.03% 126.46
2029 233.74 Est @ 1.31% 119.83
Present value of next 10 years cash flows $1,654.00
TSX:RBA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $233.74 × (1 + 1.95%) ÷ (6.91% – 1.95%)
$4,802.07
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,802.07 ÷ (1 + 6.91%)10
$2,461.93
TSX:RBA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,654.00 + $2,461.93
$4,115.93
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,115.93 / 108.24
$38.03
TSX:RBA Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in TSX:RBA represents 1.32466x of NYSE:RBA
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.32466x
Value per Share
(Listing Adjusted, CAD)
= Value per Share (USD) x Listing Adjustment Factor
= $ 38.03 x 1.32466
CA$50.37
Value per share (CAD) From above. CA$50.37
Current discount Discount to share price of CA$55.49
= -1 x (CA$55.49 - CA$50.37) / CA$50.37
-10.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Ritchie Bros. Auctioneers is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ritchie Bros. Auctioneers's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ritchie Bros. Auctioneers's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:RBA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $1.22
NYSE:RBA Share Price ** NYSE (2019-11-12) in USD $41.89
Canada Commercial Services Industry PE Ratio Median Figure of 9 Publicly-Listed Commercial Services Companies 12.92x
Canada Market PE Ratio Median Figure of 515 Publicly-Listed Companies 14.64x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ritchie Bros. Auctioneers.

TSX:RBA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:RBA Share Price ÷ EPS (both in USD)

= 41.89 ÷ 1.22

34.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ritchie Bros. Auctioneers is overvalued based on earnings compared to the CA Commercial Services industry average.
  • Ritchie Bros. Auctioneers is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Ritchie Bros. Auctioneers's expected growth come at a high price?
Raw Data
TSX:RBA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 34.2x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
17.1%per year
North America Commercial Services Industry PEG Ratio Median Figure of 37 Publicly-Listed Commercial Services Companies 1.39x
Canada Market PEG Ratio Median Figure of 232 Publicly-Listed Companies 1.05x

*Line of best fit is calculated by linear regression .

TSX:RBA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 34.2x ÷ 17.1%

1.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ritchie Bros. Auctioneers is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Ritchie Bros. Auctioneers's assets?
Raw Data
TSX:RBA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $7.75
NYSE:RBA Share Price * NYSE (2019-11-12) in USD $41.89
Canada Commercial Services Industry PB Ratio Median Figure of 21 Publicly-Listed Commercial Services Companies 0.85x
Canada Market PB Ratio Median Figure of 2,291 Publicly-Listed Companies 1.27x
TSX:RBA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:RBA Share Price ÷ Book Value per Share (both in USD)

= 41.89 ÷ 7.75

5.41x

* Primary Listing of Ritchie Bros. Auctioneers.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ritchie Bros. Auctioneers is overvalued based on assets compared to the CA Commercial Services industry average.
X
Value checks
We assess Ritchie Bros. Auctioneers's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. Ritchie Bros. Auctioneers has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

RBA Future Performance

 How is Ritchie Bros. Auctioneers expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ritchie Bros. Auctioneers expected to grow at an attractive rate?
  • Ritchie Bros. Auctioneers's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Ritchie Bros. Auctioneers's earnings growth is expected to exceed the Canada market average.
  • Ritchie Bros. Auctioneers's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:RBA Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:RBA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 17.1%
TSX:RBA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 4.1%
Canada Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 59.7%
Canada Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 10%
Canada Market Earnings Growth Rate Market Cap Weighted Average 11.2%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:RBA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:RBA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,486 308 2
2020-12-31 1,397 271 166 8
2019-12-31 1,355 295 142 7
2019-11-13
TSX:RBA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 1,342 356 133
2019-06-30 1,298 197 131
2019-03-31 1,213 149 123
2018-12-31 1,170 144 121
2018-09-30 1,106 146 123
2018-06-30 1,088 139 110
2018-03-31 1,032 80 82
2017-12-31 971 148 75
2017-09-30 826 115 66
2017-06-30 728 145 51
2017-03-31 634 146 73
2016-12-31 1,127 178 92

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ritchie Bros. Auctioneers's earnings are expected to grow by 17.1% yearly, however this is not considered high growth (20% yearly).
  • Ritchie Bros. Auctioneers's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:RBA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Ritchie Bros. Auctioneers Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:RBA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.76 1.76 1.76 1.00
2020-12-31 1.51 1.61 1.42 9.00
2019-12-31 1.29 1.35 1.20 8.00
2019-11-13
TSX:RBA Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 1.22
2019-06-30 1.20
2019-03-31 1.13
2018-12-31 1.12
2018-09-30 1.14
2018-06-30 1.02
2018-03-31 0.76
2017-12-31 0.70
2017-09-30 0.62
2017-06-30 0.47
2017-03-31 0.68
2016-12-31 0.86

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Ritchie Bros. Auctioneers will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Ritchie Bros. Auctioneers's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ritchie Bros. Auctioneers has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

RBA Past Performance

  How has Ritchie Bros. Auctioneers performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ritchie Bros. Auctioneers's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ritchie Bros. Auctioneers's year on year earnings growth rate has been positive over the past 5 years.
  • Ritchie Bros. Auctioneers's 1-year earnings growth exceeds its 5-year average (8.3% vs 1.7%)
  • Ritchie Bros. Auctioneers's earnings growth has exceeded the CA Commercial Services industry average in the past year (8.3% vs -2.1%).
Earnings and Revenue History
Ritchie Bros. Auctioneers's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ritchie Bros. Auctioneers Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:RBA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 1,342.42 132.95 382.21
2019-06-30 1,297.97 130.82 376.85
2019-03-31 1,213.28 122.51 380.39
2018-12-31 1,170.03 121.48 382.68
2018-09-30 1,105.80 122.75 380.04
2018-06-30 1,087.86 109.87 377.05
2018-03-31 1,031.94 81.79 350.17
2017-12-31 971.19 75.03 323.27
2017-09-30 826.21 66.13 304.42
2017-06-30 727.69 50.73 287.38
2017-03-31 633.88 72.80 286.99
2016-12-31 1,126.98 91.83 283.53
2016-09-30 555.09 110.51 276.62
2016-06-30 535.53 136.47 266.50
2016-03-31 532.20 141.84 257.74
2015-12-31 515.88 136.21 254.39
2015-09-30 518.87 118.46 247.71
2015-06-30 511.77 106.98 248.10
2015-03-31 498.13 100.50 244.37
2014-12-31 481.10 90.98 242.69
2014-09-30 473.86 95.95 240.32
2014-06-30 477.45 102.91 239.46
2014-03-31 463.93 94.09 238.36
2013-12-31 467.40 93.64 239.14
2013-09-30 453.32 82.19 239.44
2013-06-30 439.85 74.06 235.01
2013-03-31 438.74 75.57 232.13
2012-12-31 437.96 79.55 224.96

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Ritchie Bros. Auctioneers has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Ritchie Bros. Auctioneers used its assets more efficiently than the CA Commercial Services industry average last year based on Return on Assets.
  • Ritchie Bros. Auctioneers's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ritchie Bros. Auctioneers's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ritchie Bros. Auctioneers has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

RBA Health

 How is Ritchie Bros. Auctioneers's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ritchie Bros. Auctioneers's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ritchie Bros. Auctioneers is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ritchie Bros. Auctioneers's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Ritchie Bros. Auctioneers's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ritchie Bros. Auctioneers Company Filings, last reported 1 month ago.

TSX:RBA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 843.31 695.13 309.56
2019-06-30 835.85 712.94 210.43
2019-03-31 833.13 712.02 266.49
2018-12-31 835.71 731.19 237.74
2018-09-30 820.61 762.31 228.76
2018-06-30 791.50 754.42 210.57
2018-03-31 757.45 786.16 278.94
2017-12-31 744.75 819.91 267.91
2017-09-30 719.71 826.45 224.47
2017-06-30 716.55 828.42 254.10
2017-03-31 696.17 621.05 236.89
2016-12-31 691.83 619.62 207.87
2016-09-30 694.35 140.60 230.98
2016-06-30 757.87 125.17 166.50
2016-03-31 722.70 144.78 294.07
2015-12-31 732.14 110.27 210.15
2015-09-30 704.38 110.34 345.77
2015-06-30 709.39 118.98 365.25
2015-03-31 646.76 111.65 300.93
2014-12-31 709.22 118.69 139.82
2014-09-30 703.21 158.40 236.47
2014-06-30 730.75 164.17 281.26
2014-03-31 696.56 152.50 288.89
2013-12-31 694.55 181.63 234.36
2013-09-30 675.65 218.58 197.92
2013-06-30 661.56 238.38 272.75
2013-03-31 652.06 227.93 298.87
2012-12-31 656.53 240.23 178.05
  • Ritchie Bros. Auctioneers's level of debt (82.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (22.5% vs 82.4% today).
  • Debt is well covered by operating cash flow (51.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.8x coverage).
X
Financial health checks
We assess Ritchie Bros. Auctioneers's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ritchie Bros. Auctioneers has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

RBA Dividends

 What is Ritchie Bros. Auctioneers's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.91%
Current annual income from Ritchie Bros. Auctioneers dividends. Estimated to be 1.92% next year.
If you bought CA$2,000 of Ritchie Bros. Auctioneers shares you are expected to receive CA$38 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Ritchie Bros. Auctioneers's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.02%).
  • Ritchie Bros. Auctioneers's dividend is below the markets top 25% of dividend payers in Canada (5.72%).
Upcoming dividend payment

Purchase Ritchie Bros. Auctioneers before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:RBA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
North America Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 43 Stocks 1.7%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:RBA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.88 1.00
2020-12-31 0.82 4.00
2019-12-31 0.76 3.00
2019-11-13
TSX:RBA Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-11-07 0.800 1.919
2019-08-08 0.800 2.036
2019-05-09 0.720 2.090
2019-01-28 0.720 2.062
2018-11-08 0.720 2.120
2018-08-09 0.720 2.015
2018-05-10 0.680 2.002
2018-01-29 0.680 2.105
2017-11-09 0.680 2.371
2017-08-08 0.680 2.332
2017-05-04 0.680 2.299
2017-01-23 0.680 2.126
2016-11-09 0.680 1.889
2016-08-08 0.680 2.059
2016-05-09 0.640 1.935
2016-01-25 0.640 2.520
2015-11-05 0.640 2.613
2015-08-06 0.640 2.393
2015-05-07 0.560 2.001
2015-01-12 0.560 2.201
2014-11-04 0.560 2.179
2014-08-05 0.560 2.403
2014-05-05 0.520 2.171
2014-01-21 0.520 2.232
2013-11-05 0.520 2.406
2013-08-06 0.520 2.679
2013-04-30 0.490 2.464
2013-01-22 0.490 2.329
2012-10-31 0.490 2.287
2012-08-02 0.490 2.495
2012-05-03 0.450 2.199
2012-01-23 0.450 1.946
2011-11-01 0.450 2.162
2011-08-05 0.450 2.156
2011-05-03 0.420 1.550
2011-01-24 0.420 1.585
2010-11-02 0.420 1.940
2010-08-06 0.420 2.161
2010-05-04 0.400 2.029
2010-01-25 0.400 1.868
2009-11-03 0.400 1.712
2009-08-07 0.400 1.649
2009-05-05 0.360 1.519
2009-02-13 0.360 1.954

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Ritchie Bros. Auctioneers's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Ritchie Bros. Auctioneers's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ritchie Bros. Auctioneers afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ritchie Bros. Auctioneers has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

RBA Management

 What is the CEO of Ritchie Bros. Auctioneers's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Karl Werner
COMPENSATION $1,182,177
AGE 54
TENURE AS CEO 0.1 years
CEO Bio

Mr. Karl W. Werner has been President of International at Ritchie Bros. Auctioneers Incorporated January 2017 and is its Interim Co-Chief Executive Officer since October 1, 2019. Mr. Werner oversees sales and business operations in Europe, the Middle East, Africa and India, Latin America, Australia and Asia. He served as Chief Operational Support & Development Officer at Ritchie Bros. Auctioneers Incorporated from November 4, 2014 to April 1, 2017 and its Interim Managing Director of Middle East from November 4, 2014 to April 1, 2017. He joined Ritchie Bros. Auctioneers Incorporated in 1996 as Territory Manager for the Olympic Peninsula and Alaska. In 1999 he was appointed to Regional Manager for the Northwest US and in 2004 transferred to the Company’s corporate head office as Senior Manager, Strategic Projects. In 2005 he was appointed to Divisional Manager, Auction Operations. Mr. Werner served as Chief Auction Operations Officer of Ritchie Bros. Auctioneers Incorporated from October 2013 to November 4, 2014 and its Senior Vice President of Auction Operations and also served as its Vice President of Auction Operations from 2008 to October 2013. In 2014, he took on the additional responsibilities of Managing Director for the Middle East, Africa and India. Mr. Werner came to Ritchie Bros. after 10 years of operating a heavy-haul transport company. He has a strong background in real estate development and operations management. Mr. Werner sits on advisory boards for various strategic partners.

CEO Compensation
  • Karl's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Karl's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Ritchie Bros. Auctioneers management team in years:

2.4
Average Tenure
55.5
Average Age
  • The tenure for the Ritchie Bros. Auctioneers management team is about average.
Management Team

Karl Werner

TITLE
Interim Co-CEO & President of International
COMPENSATION
$1M
AGE
54
TENURE
0.1 yrs

Sharon Driscoll

TITLE
Interim Co-CEO & CFO
COMPENSATION
$2M
AGE
57
TENURE
0.1 yrs

Todd Wohler

TITLE
Chief Human Resources Officer
COMPENSATION
$1M
AGE
60
TENURE
4.8 yrs

Jeff Jeter

TITLE
President of Upstream & Emerging Businesses - North America
COMPENSATION
$1M
AGE
60
TENURE
2.4 yrs

Dave Ritchie

TITLE
Founder and Chairman Emeritus
COMPENSATION
$143K

Zaheed Mawani

TITLE
Vice President of Investor Relations

Darren Watt

TITLE
Senior VP
AGE
47
TENURE
6.8 yrs

Matt Ackley

TITLE
Chief Marketing Officer
AGE
51
TENURE
0.8 yrs

Curt Hinkelman

TITLE
Senior Vice President of Sales - Eastern USA

Brian Glenn

TITLE
Senior VP & Head of Canada Sales
TENURE
2.5 yrs
Board of Directors Tenure

Average tenure and age of the Ritchie Bros. Auctioneers board of directors in years:

3.3
Average Tenure
60.5
Average Age
  • The tenure for the Ritchie Bros. Auctioneers board of directors is about average.
Board of Directors

Bev Briscoe

TITLE
Chair of the Board
COMPENSATION
$362K
AGE
64
TENURE
5.4 yrs

Sharon Driscoll

TITLE
Interim Co-CEO & CFO
COMPENSATION
$2M
AGE
57
TENURE
2.6 yrs

Erik Olsson

TITLE
Independent Vice Chairman
COMPENSATION
$206K
AGE
57
TENURE
0.3 yrs

Dave Ritchie

TITLE
Founder and Chairman Emeritus
COMPENSATION
$143K
TENURE
13 yrs

Bob Elton

TITLE
Independent Director
COMPENSATION
$223K
AGE
67
TENURE
7.6 yrs

Sarah Raiss

TITLE
Independent Director
COMPENSATION
$215K
AGE
62
TENURE
3.3 yrs

Chris Zimmerman

TITLE
Independent Director
COMPENSATION
$204K
AGE
59
TENURE
11.6 yrs

J. Fennell

TITLE
Independent Director
COMPENSATION
$194K
AGE
62
TENURE
2.3 yrs

Amy Shenkan

TITLE
Independent Director
COMPENSATION
$195K
AGE
54
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • Ritchie Bros. Auctioneers individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
06. Sep 19 Sell Todd Wohler Individual 05. Sep 19 05. Sep 19 -2,428 CA$52.68 CA$-127,899
21. Aug 19 Sell Todd Wohler Individual 21. Aug 19 21. Aug 19 -2,000 CA$52.83 CA$-105,656
20. Aug 19 Sell Todd Wohler Individual 19. Aug 19 19. Aug 19 -2,000 CA$52.49 CA$-104,974
14. Aug 19 Sell Todd Wohler Individual 13. Aug 19 13. Aug 19 -2 CA$50.75 CA$-102
X
Management checks
We assess Ritchie Bros. Auctioneers's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ritchie Bros. Auctioneers has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

RBA News

Simply Wall St News

RBA Company Info

Description

Ritchie Bros. Auctioneers Incorporated, an asset management and disposition company, sells industrial equipment and other durable assets through its unreserved live on site auctions, online marketplaces, listing services, and private brokerage services. The company sells a range of used and unused equipment, including earthmoving equipment, truck trailers, government surplus, oil and gas equipment, and other industrial assets, as well as construction and heavy machinery. It also offers live auction events with online bidding. The company sells used equipment to its customers through live, unreserved auctions at 40 auction sites worldwide. It serves construction, transportation, agriculture, energy, oil and gas, mining, and forestry sectors. The company operates in the United States, Canada, Australia, the United Arab Emirates, the Netherlands, and internationally. Ritchie Bros. Auctioneers Incorporated was founded in 1958 and is headquartered in Burnaby, Canada.

Details
Name: Ritchie Bros. Auctioneers Incorporated
RBA
Exchange: TSX
Founded: 1958
$5,999,176,120
108,240,199
Website: http://www.rbauction.com
Address: Ritchie Bros. Auctioneers Incorporated
9500 Glenlyon Parkway,
Burnaby,
British Columbia, V5J 0C6,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE RBA Common Shares New York Stock Exchange US USD 10. Mar 1998
DB 2R8 Common Shares Deutsche Boerse AG DE EUR 10. Mar 1998
TSX RBA Common Shares The Toronto Stock Exchange CA CAD 10. Mar 1998
Number of employees
Current staff
Staff numbers
2,300
Ritchie Bros. Auctioneers employees.
Industry
Diversified Support Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/13 00:04
End of day share price update: 2019/11/12 00:00
Last estimates confirmation: 2019/11/12
Last earnings filing: 2019/11/07
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.