Ritchie Bros. Auctioneers Inc. Stock Upgraded (RBA)

NEW YORK ( TheStreet) -- Ritchie Bros. Auctioneers (NYSE: RBA) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 1.4%. Since the same quarter one year prior, revenues rose by 28.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for RITCHIE BROS AUCTIONEERS INC is currently very high, coming in at 88.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 23.60% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 68.01% to -$22.45 million when compared to the same quarter last year. In addition, RITCHIE BROS AUCTIONEERS INC has also vastly surpassed the industry average cash flow growth rate of -0.45%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 98.0% when compared to the same quarter one year prior, rising from $13.52 million to $26.77 million.
  • RITCHIE BROS AUCTIONEERS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, RITCHIE BROS AUCTIONEERS INC increased its bottom line by earning $0.72 versus $0.63 in the prior year.
.

Ritchie Bros. Auctioneers Incorporated, an industrial auctioneer, sells various equipment to on-site and online bidders worldwide. The company has a P/E ratio of 32.6, below the average diversified services industry P/E ratio of 39.2 and above the S&P 500 P/E ratio of 17.7. Ritchie Bros. Auctioneers has a market cap of $2.5 billion and is part of the services sector and diversified services industry. Shares are up 5.8% year to date as of the close of trading on Thursday.

You can view the full Ritchie Bros. Auctioneers Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff
null

If you liked this article you might like

Ritchie Bros. (RBA) Price Target Raised at Baird on IronPlanet Acquisition

Ritchie Bros. (RBA) Stock Pops, Oppenheimer: $758 Million IronPlanet Deal 'Logical'

Ritchie Bros. (RBA) Stock Surges on $758 Million IronPlanet Deal

Analysts' Actions -- American Eagle, Best Buy, Sony, Valeant and More

Analysts' Actions -- Chipotle, Nvidia, Qualcomm, Teva and More