Thoughts on RBA

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Just wondering what your general thoughts are on Ritchie Bro’s Auctioneers?
Thanks

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Asked on February 22, 2021 8:59 am
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Expectations are for some pretty strong earnings growth through the next couple years. However, I think much of that is already priced in.

Company has been falling since it reported earnings late last week, as it missed estimates on both the top and bottom line. The company has been consolidating for a while, but the miss on earnings accelerated the sell off.

Even with this dip, it's still trading at nearly 30 times trailing earnings and 23 times forward earnings. In its earnings release, it reported earnings growth of 11% year over year. This is a pretty high price to pay in my opinion for a company who, considering the environment (bankruptcy, foreclosure auctions etc) should have done better.

Strong company, just a little pricey in my opinion. I'd be monitoring it.

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Posted by Dan Kent
Answered on February 22, 2021 9:32 am