Ritchie Bros. Auctioneers (USA) ($RBA) Confident Investor Rating: Poor

Company name Ritchie Bros. Auctioneers (USA)
Stock ticker RBA
Live stock price [stckqut]RBA[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Poor
P/E growth Poor
EBIT growth Poor

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $13.77
Target stock price (averages with growth) $19.71
Target stock price (averages with no growth) $19.25
Target stock price (manual assumptions) $15.75

The following company description is from Google Finance: http://www.google.com/finance?q=rba

Ritchie Bros. Auctioneers Incorporated and its subsidiaries sells industrial equipment and other assets for the construction, transportation, material handling, mining, forestry, petroleum, marine, real estate, and agricultural industries at its unreserved auctions worldwide. The Company’s principal business activity is the sale of industrial equipment and other assets at auctions. Its customers are both buyers and sellers of equipment, trucks and other industrial assets. The majority of its buyers are end users of equipment (retail buyers), such as contractors, with the remainder being primarily truck and equipment dealers, rental companies and brokers (wholesale buyers). Consignors to its auctions represent a mix of equipment owners, the majority being end users of equipment, with the balance being finance companies, truck and equipment dealers and equipment rental companies, among others. On May 15, 2012, the Company acquired AssetNation LLC.

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in this stock.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

 

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