Ritchie Bros Auctioneers Inc Net Income surged on 49.7% in 2015 and Revenue increased on 7.2%
25.02.2016 • About Ritchie Bros Auctioneers Inc (
$RBA) • By InTwits
Ritchie Bros Auctioneers Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ritchie Bros Auctioneers Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.1%. At the same time it's in pair with industry average of 8.6%.
- CAPEX is quite volatile: 22.1 in 2015, 25.0 in 2014, 38.1 in 2013, 58.7 in 2012, 77.1 in 2011
- The company has highly profitable business model: ROIC is at 18.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ritchie Bros Auctioneers Inc ($RBA) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 396.1 | 438.0 | 467.4 | 481.1 | 515.9 | 7.2% |
| Gross Profit | 348.1 | 388.3 | 413.4 | 423.2 | 459.8 | 8.7% |
| SG&A | 244.3 | 268.2 | 287.0 | 248.2 | 255.0 | 2.7% |
| EBITDA | 146.1 | 161.2 | 169.7 | 175.0 | 204.9 | 17.1% |
| Net Income | 76.6 | 79.5 | 93.8 | 91.0 | 136.2 | 49.7% |
Balance Sheet
|
|---|
| Cash | 109.3 | 178.1 | 234.4 | 139.8 | 210.1 | 50.3% |
| Short Term Debt | 12.6 | 39.5 | 34.4 | 7.8 | 55.7 | 610.5% |
| Long Term Debt | 133.9 | 200.7 | 147.2 | 110.8 | 54.6 | -50.8% |
Cash flow
|
|---|
| Capex | 77.1 | 58.7 | 38.1 | 25.0 | 22.1 | -11.7% |
Ratios
|
|---|
| Revenue growth | 10.8% | 10.6% | 6.7% | 2.9% | 7.2% | |
| EBITDA growth | 13.0% | 10.3% | 5.3% | 3.1% | 17.1% | |
| Gross Margin | 87.9% | 88.7% | 88.4% | 88.0% | 89.1% | 1.2% |
| EBITDA Margin | 36.9% | 36.8% | 36.3% | 36.4% | 39.7% | 3.3% |
| Net Income Margin | 19.3% | 18.2% | 20.1% | 18.9% | 26.4% | 7.5% |
| SG&A, % of revenue | 61.7% | 61.2% | 61.4% | 51.6% | 49.4% | -2.2% |
| CAPEX, % of revenue | 19.5% | 13.4% | 8.1% | 5.2% | 4.3% | -0.9% |
| ROIC | 13.7% | 14.1% | 13.9% | 14.8% | 18.8% | 4.0% |
| ROE | 12.8% | 12.5% | 13.9% | 13.1% | 19.5% | 6.4% |
| Net Debt/EBITDA | 0.3x | 0.4x | -0.3x | -0.1x | -0.5x | -0.4x |
Revenue and profitability
Ritchie Bros Auctioneers Inc's Revenue increased on 7.2% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.3 pp from 36.4% to 39.7% in 2015.
Gross Margin increased slightly on 1.2 pp from 88.0% to 89.1% in 2015. SG&A as a % of Revenue decreased on 2.2 pp from 51.6% to 49.4% in 2015.
Net Income marign increased on 7.5 pp from 18.9% to 26.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 4.3%. CAPEX/Revenue decreased on 9.1 pp from 13.4% in 2012 to 4.3% in 2015. It's average CAPEX/Revenue for the last three years was 5.9%.
Return on investment
The company operates at good ROIC (18.77%) and ROE (19.53%). ROIC increased on 4.0 pp from 14.8% to 18.8% in 2015. ROE increased on 6.4 pp from 13.1% to 19.5% in 2015.
Leverage (Debt)
Debt level is -0.5x Net Debt / EBITDA and 0.5x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from -0.1x to -0.5x in 2015. Debt decreased on 7.1% in 2015 while cash jumped on 50.3% in 2015.
Management team
Ritchie Bros Auctioneers Inc's CEO Ravichandra K Saligram "Ravi" is a founder and has spent 4 years at the company. Ritchie Bros Auctioneers Inc's CFO is Sharon Driscoll. Sharon Driscoll has 3 years tenure at the company.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Ritchie Bros Auctioneers Inc benchmarking against other companies in Consumer, Non-cyclical industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| GDI Integrated Facility Services Inc ($GDI) | 43.8% | -38.8% | -72.9% | 218,969.1% | |
| Cardiome Pharma Corp ($COM) | -97.7% | -47.6% | 471.7% | 566.0% | |
| Patient Home Monitoring Corp ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| Family Memorials Inc ($FAM) | -13.6% | 54.7% | 22.9% | 245.3% | |
| Nobilis Health Corp ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| |
|---|
| Median (86 companies) | 17.4% | 8.1% | 5.3% | 13.2% | 9.0% |
|---|
| Ritchie Bros Auctioneers Inc ($RBA) | | 10.6% | 6.7% | 2.9% | 7.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nobilis Health Corp ($NHC) | | | | 99.8% | |
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | 92.7% |
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| Merus Labs International Inc ($MSL) | | 88.6% | 91.4% | 82.8% | 84.6% |
| |
|---|
| Median (74 companies) | 34.5% | 36.1% | 35.9% | 35.1% | 34.5% |
|---|
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | 89.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | -50.0% | 40.6% | 71.4% | 63.7% | 12.8% |
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | 61.5% |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | |
| EnerCare Inc ($ECI) | 59.0% | 52.8% | 51.0% | 45.5% | |
| Information Services Corp ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (85 companies) | 7.7% | 7.4% | 8.7% | 10.6% | 10.9% |
|---|
| Ritchie Bros Auctioneers Inc ($RBA) | 36.9% | 36.8% | 36.3% | 36.4% | 39.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | 6.0% | 4.7% | 73.6% | 84.6% | 119.0% |
| CanaDream Corp ($CDN) | 68.6% | 43.3% | 38.1% | 70.4% | 63.4% |
| Ceapro Inc ($CZO) | 2.2% | 3.9% | 35.3% | 52.0% | |
| Feronia Inc/Canada ($FRN) | 129.0% | 191.4% | 117.4% | 42.4% | |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.4% | 2.6% | 2.4% | 2.5% | 2.1% |
|---|
| Ritchie Bros Auctioneers Inc ($RBA) | 19.5% | 13.4% | 8.1% | 5.2% | 4.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | |
| Information Services Corp ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | |
| Covalon Technologies Ltd ($COV) | -49.6% | -75.8% | -30.1% | 50.6% | -12.4% |
| Cipher Pharmaceuticals Inc ($CPH) | -22.9% | 21.8% | 81.4% | 44.6% | -0.1% |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (86 companies) | 7.4% | 6.3% | 6.7% | 6.7% | 7.2% |
|---|
| Ritchie Bros Auctioneers Inc ($RBA) | 13.7% | 14.1% | 13.9% | 14.8% | 18.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Iron Inc ($NIR) | | 25.5x | 12.9x | 227.3x | |
| Family Memorials Inc ($FAM) | | | | 15.2x | |
| Amica Mature Lifestyles Inc ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | 12.3x |
| Cott Corp ($BCB) | 2.6x | 2.0x | 2.2x | 13.4x | 4.9x |
| CRH Medical Corp ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | 1.3x |
| |
|---|
| Median (70 companies) | 1.9x | 2.8x | 2.2x | 2.7x | 1.6x |
|---|
| Ritchie Bros Auctioneers Inc ($RBA) | 0.3x | 0.4x | -0.3x | -0.1x | -0.5x |
