Updated 3/13/25
RB Global has roots in auctioning heavy equipment, but it’s evolved into something much bigger—an international asset management platform that connects buyers and sellers across a range of industries.
Over time, RB Global has built a solid moat through scale, relationships, and a growing ecosystem of services. With the acquisition of IAA now in the rearview, the business has become a broader platform for asset disposition, stretching from industrial equipment to salvaged vehicles. That kind of diversification bodes well for long-term stability, especially for dividend-focused investors.
Recent Events
RB Global’s biggest recent move was acquiring IAA, a strategic play that opened up a whole new segment: vehicle remarketing. This move has nearly doubled the company’s revenue base, which now tops $4 billion annually. While the merger brought in more debt, it also deepened recurring revenue potential and broadened RBA’s market reach.
In the latest quarter, the company posted strong results—earnings were up over 40% year-over-year, and revenue grew nearly 10%. Those kinds of numbers give the company room to breathe, especially when you’re trying to maintain or grow a dividend. The stock itself has been strong too, up more than 30% over the past year, easily outpacing broader indexes.
Key Dividend Metrics
📈 Forward Yield: 1.16%
💵 Annual Dividend: $1.16 per share
📊 Payout Ratio: 55.72%
📆 Ex-Dividend Date: February 14, 2025
🧾 Recent Dividend Payment: March 3, 2025
📉 5-Year Average Yield: 1.56%
Dividend Overview
RB Global’s dividend isn’t going to be the highest-yielding option on the board, but it’s solid. The forward yield sits at 1.16%, which is slightly below its five-year average. Still, what you get here is consistency. The company has a track record of paying regularly and keeping the payout stable—even during years when major acquisitions are happening behind the scenes.
The current payout ratio is just under 56%. That strikes a comfortable balance: the dividend is meaningful, but not so high that it looks vulnerable if things get tight. For long-haul investors, that kind of balance often beats chasing higher but riskier payouts.
Dividend Growth and Safety
RB Global has steadily grown its dividend over time. It’s not a rapid grower, but it moves in the right direction. The company tends to lean conservative with its capital allocation, which is a positive for anyone who cares about dividend reliability.
After the IAA acquisition, many investors naturally looked at debt levels and wondered whether the dividend would take a hit. So far, the answer is no. Free cash flow remains strong—well over $600 million on a trailing basis—and operating cash flow is north of $900 million. That’s plenty of fuel to keep the dividend running, even with interest payments and integration costs on the table.
The company’s track record shows that management sees the dividend as a core part of its value proposition. And with healthy margins and a growing top line, the payout looks secure for the foreseeable future.
Chart Analysis
Current Trend Structure
Looking at the chart for RBA, the price action over the past year shows a clear and consistent uptrend, supported by both the 50-day and 200-day moving averages. Price has been respecting the 50-day line as dynamic support through much of the move. There were a few consolidation phases between August and November, but the pullbacks were relatively shallow, suggesting strong demand under the surface.
More recently, the stock surged to a new high above the $100 level before pulling back modestly toward the $97.60 mark. Even with that pullback, the price remains above both key moving averages, signaling that the broader uptrend remains intact for now.
Volume and Participation
Volume has been fairly steady through the year, with a few noticeable spikes. The highest volume bar appears around July, possibly linked to an event or earnings. That spike was followed by further upward momentum, showing the buying pressure had some real conviction behind it.
More recently, volume hasn’t spiked as price dipped from the highs, which suggests that the current retracement isn’t panic-driven. In other words, this doesn’t look like the start of a major reversal, just profit-taking or digestion after a strong run.
RSI and Momentum
The RSI (Relative Strength Index) spent a lot of time in the mid to upper 60s throughout the trend, briefly pushing into overbought territory above 70 in February. That rally cooled off since then, with RSI now easing down, but still hovering well above oversold territory.
This cooling in momentum isn’t surprising after a strong leg higher. RSI is declining in parallel with price, but not rapidly—again, suggesting a healthy pullback rather than a breakdown.
Candle Structure: Last 5 Sessions
Focusing on the last five candles, there’s a slight shift. We’ve got a small series of lower highs and lower lows forming, which reflects short-term selling pressure. The wicks on a few of these candles show intraday buying attempts, but each rally has been met with some resistance.
Notably, the most recent candle had a tight body with a bit of a lower wick, meaning buyers stepped in a little near the day’s low, but weren’t able to push the price much higher. This type of action is common during a cooling phase, especially after hitting a psychological level like $100.
The current price of $97.60 is still holding above prior resistance-turned-support zones in the $94 to $95 area, which will be a key region to watch going forward.
Analyst Ratings
📈 As of mid-February 2025, BMO Capital Markets reaffirmed their “Outperform” rating on RB Global and bumped their price target from $116.00 to $120.00. That kind of upward revision signals growing confidence in the company’s trajectory, especially following solid earnings and continued integration progress with IAA.
🚀 Raymond James echoed that sentiment, also maintaining their “Outperform” stance while lifting their target from $110.00 to $118.00. It’s clear they’re seeing strength in the business model and expect further upside as synergies from the IAA acquisition continue to unfold.
📊 RBC Capital joined the party with an upgrade in their outlook, adjusting their price target from $107.00 to $116.00 while keeping an “Outperform” rating intact. Across the board, analysts are leaning bullish, with many pointing to improved operating margins, solid revenue growth, and healthy cash flow generation as key drivers behind the upward momentum.
💬 The average consensus across the analyst community is currently a “Moderate Buy” with a consensus price target of $107.64. That’s a fair bit above current trading levels, implying that Wall Street sees room for continued appreciation.
📉 That said, there’s a bit of caution around the company’s increased leverage. The debt load rose following the IAA acquisition, and while free cash flow remains strong, a few analysts have noted that it’s something to keep on the radar. It’s not dampening the overall sentiment, but it’s a detail that isn’t being overlooked.
Overall, analysts seem encouraged by how RB Global has executed over the past year. The upgrades reflect confidence in management’s ability to drive value and scale the business without sacrificing financial discipline.
Earning Report Summary
RB Global wrapped up 2024 on a strong note, showing real momentum across the board in its latest earnings update. The company posted solid growth in both its top and bottom lines, giving investors plenty to feel optimistic about heading into the new year.
Gross transaction value came in at $4.1 billion for the fourth quarter, which was a modest 2 percent bump from the same time last year. While that’s not a blowout number, it does show consistent demand flowing through their marketplace.
Revenue was a brighter spot, climbing 10 percent year-over-year to hit $1.1 billion. That growth was fueled by both their services and inventory sales. Service revenue was up 8 percent, pulling in around $875 million, while inventory sales jumped 15 percent to about $266 million. Clearly, both sides of the business are pulling their weight.
On the earnings front, the company delivered a strong performance. Net income jumped 41 percent year-over-year to $118 million. What really stood out, though, was the 44 percent increase in net income available to common shareholders, which came in at nearly $108 million. Earnings per share moved up to 58 cents from 41 cents last year—a healthy boost by any standard.
Adjusted numbers looked just as solid. Adjusted EBITDA was up 13 percent for the quarter, hitting $346 million. Adjusted EPS also rose 16 percent to 95 cents. These adjusted figures help smooth out some of the noise and give a clearer view of how the core business is doing—and it’s doing well.
Zooming out to the full-year results, the company delivered $15.9 billion in gross transaction value, up 14 percent from 2023. Revenue for the year reached $4.28 billion, which marked a 16 percent increase. Full-year net income available to shareholders more than doubled, landing at $372 million. Adjusted EBITDA followed suit with a 26 percent jump to $1.3 billion.
All in all, the numbers suggest RB Global is executing well. They’re growing steadily, integrating their acquisitions efficiently, and doing it all while expanding margins. Not many companies can say that in this environment.
Financial Health and Stability
Let’s talk about the balance sheet. Debt has grown—now sitting at about $4.56 billion—and the debt-to-equity ratio has climbed to just under 80%. That’s definitely higher than it used to be, but not surprising given the size of the IAA deal. What matters more is whether the company can handle it, and the numbers say yes.
EBITDA is over $1.2 billion, and there’s more than half a billion dollars in cash on the books. The current ratio is 1.29, which means the company’s near-term obligations are covered. And even after the merger, margins remain strong: operating margin is close to 19%, and net profit margin sits just under 10%.
Return on equity at 7.35% and return on assets at 4.12% aren’t flashy, but they’re steady—especially for a capital-heavy business like this. RBA isn’t trying to be a tech company; it’s focused on execution, efficiency, and long-term value creation.
Valuation and Stock Performance
Right now, RBA trades at a forward P/E of just over 26. That may feel a bit expensive, but it’s coming down quickly from a trailing P/E near 50, which was inflated by acquisition-related charges and temporary earnings compression.
Price-to-book is around 3.5, which is on the higher side, but reflects the market’s confidence in the company’s recurring revenue and margin stability. It’s also worth noting that the stock is trading close to its 52-week high of $106.90, having risen over 32% in the past year. That’s a strong run and suggests investor sentiment is upbeat.
Compared to broader indexes, RB Global has outperformed significantly. It’s also been trading above both its 50-day and 200-day moving averages, indicating solid upward momentum.
Risks and Considerations
There are a few risks that income investors should keep in mind. The first is leverage. While current cash flows can support the debt load, interest expenses are real, and rising rates could make refinancing more expensive in the future.
Second, RBA operates in cyclical sectors. If the industrial equipment market or salvage vehicle demand cools off, that could impact transaction volumes and reduce service fees. While the company’s diversification helps, it’s still exposed to economic slowdowns.
Another thing to note is insider ownership. At just 0.3%, insiders hold a relatively small piece of the pie. That’s not necessarily a red flag, but it does mean management and board alignment with shareholders isn’t as tight as in some smaller, founder-led firms.
Finally, the yield is modest. At 1.16%, RBA’s dividend is more of a steady drip than a gusher. If you’re looking for higher income in the current rate environment, you might need to pair this with other holdings to hit your yield targets.
Final Thoughts
RB Global isn’t going to be the centerpiece of a high-yield portfolio, but it’s a reliable piece of the puzzle. The dividend is stable, covered by healthy cash flows, and managed with care. Add to that a growing business, strong recent performance, and a clear strategy for scaling its platform—and you’ve got a company that fits well into a long-term income strategy.
This is the kind of business that rewards patience. It won’t blow you away with big headline numbers, but it’s steady, consistent, and built to last. For investors who care more about staying power than short-term flash, RBA offers a compelling story.