| RBA Stock | | | CAD 138.34 0.78 0.57% |
Based on Ritchie Bros' profitability indicators, Ritchie Bros Auctioneers may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Ritchie Bros' ability to earn profits and add value for shareholders. At this time, Ritchie Bros'
Price To Sales Ratio is very stable compared to the past year. As of the 29th of November 2024,
EV To Sales is likely to grow to 6.77, while
Days Sales Outstanding is likely to drop 37.23. At this time, Ritchie Bros'
Income Quality is very stable compared to the past year.
For Ritchie Bros profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ritchie Bros to generate income relative to revenue, assets, operating costs, and current equity. These
fundamental indicators attest to how well Ritchie Bros Auctioneers utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ritchie Bros's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ritchie Bros Auctioneers over time as well as its relative position and ranking within its peers.
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Please note, there is a significant difference between Ritchie Bros' value and its price as these two are different measures arrived at by different means. Investors typically determine if Ritchie Bros is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ritchie Bros' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Ritchie Bros Auctioneers EBITDA vs. Shares Outstanding Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Ritchie Bros's current stock value. Our valuation model uses many indicators to compare Ritchie Bros value to that of its competitors to determine the firm's financial worth.
Ritchie Bros Auctioneers is currently regarded as top stock in shares outstanding category among its peers. It is rated
fourth in ebitda category among its peers totaling about
5.20 of EBITDA per Shares Outstanding. At this time, Ritchie Bros'
EBITDA is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Ritchie Bros by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Ritchie Bros' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.
Ritchie EBITDA vs. Shares Outstanding
Outstanding Shares are shares of common stock of a public company that were purchased by investors after they were authorized and issued by the company to the public. Outstanding Shares are typically reported on fully diluted basis, including exotic instruments such as options, or convertibles bonds.
Ritchie Bros | Shares Outstanding | = | Public Shares | - | Repurchased |
| = | 184.42 M |
Outstanding shares that are stated on company Balance Sheet are used when calculating many important valuation and performance indicators including Return on Equity, Market Cap, EPS and many others.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Ritchie Bros | EBITDA | = | Revenue | - | Basic Expenses |
| = | 958.3 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Ritchie EBITDA Comparison
Ritchie Bros is currently under evaluation in ebitda category among its peers.
Ritchie Bros Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Ritchie Bros, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ritchie Bros will eventually generate negative long term returns. The profitability progress is the general direction of Ritchie Bros' change in net profit over the period of time. It can combine
multiple indicators of Ritchie Bros, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Ritchie Profitability Driver Comparison
Profitability drivers are factors that can directly affect your
investment outlook on Ritchie Bros. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Ritchie Bros position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Ritchie Bros' important profitability drivers and their relationship over time.
Use Ritchie Bros in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Ritchie Bros position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ritchie Bros will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Ritchie Bros could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ritchie Bros when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ritchie Bros - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ritchie Bros Auctioneers to buy it.
The correlation of Ritchie Bros is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ritchie Bros moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ritchie Bros Auctioneers moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Ritchie Bros can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Use Investing Themes to Complement your Ritchie Bros position
In addition to having Ritchie Bros in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.
Health Management
Major hospitals and healthcare providers. The Health Management theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can
partner with us for reliable portfolio optimization as you plan to utilize
Health Management Theme or any other
thematic opportunities.
Other Information on Investing in Ritchie Stock
To fully project Ritchie Bros'
future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the
financial position of Ritchie Bros Auctioneers at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Ritchie Bros' income statement, its balance sheet, and the statement of cash flows.
Potential Ritchie Bros investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Ritchie Bros investors may work on each financial statement separately, they are all related. The changes in Ritchie Bros's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ritchie Bros's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
