
TSE:RBA
This summary was created by AI, based on 2 opinions in the last 12 months.
RB Global, Inc. (RBA-T) is seen as a prominent player in the mergers and acquisitions (M&A) landscape, thriving especially in the current K-shaped economy where struggling businesses are selling and thriving businesses are seizing opportunities to acquire assets at lower prices. The stock has demonstrated strong long-term performance since its IPO 14-15 years ago, although it exhibits considerable volatility. Experts note that it has the potential for good returns over the next few years, particularly for investors who can tolerate its cyclical nature. Historically, it has achieved a compounded return of 10-12% since its IPO 20 years ago, and successful integration of acquisitions has been a consistent part of its strategy. Overall, it is a name that investors keen on the M&A front might consider adding to their portfolios.
They do a lot of auctions of mining and forestry equipment. Scores high on price momentum and valuation. They beat on their last quarter. The balance sheet is in great shape. A little expensive on a free cash flow basis. The downturns in the industrial sector can actually be good for this company. Dividend yield of 2.4%.
This one has gone sideways for about the past 5 years. Although there are no barriers to entrance into their business, they are the largest auctioneer of industrial equipment globally. Thinks they are larger than the next 50 competitors combined. There is about $200 billion of used equipment that transacts every year but they only have about a 2% market share. This gives them a tremendous run way for growth. Just finished a CapX program to build a lot more permanent auction sites so they can now focus on filling those sites and he can see double digit earnings, cash flow and dividend growth. Yield of 2.47%.
(Market Call Minute) He is watching it. It is a good business and will benefit from a weaker or stronger economy.