Latest news with #RBGlobal
Yahoo
3 days ago
- Automotive
- Yahoo
1 No-Brainer S&P 500 Stock Down 20% to Buy on the Dip
Copart is the leader in the salvaged vehicle industry, and it has a wide moat. As cars become more complex and expensive to repair, Copart should benefit. A recent sell-off has made its valuation more reasonable. 10 stocks we like better than Copart › One of my favorite -- and possibly simplest -- investing strategies is to "buy the dip" on steady Eddie stocks that have long track records of stomping the market. While past performance doesn't guarantee future returns, looking among previously "winning" stocks that have sold off over what appear to be short-term worries can be a great way to find excellent investments at fair prices. A perfect example of a stock fitting this mold today is Copart (NASDAQ: CPRT), operator of the leading online auction platform for (mostly) totaled vehicles. Copart has been a 341-bagger since its initial public offering in 1994. But the stock's path has not been straight up. Over the past three decades, the company has offered investors more than a dozen buy-the-dip opportunities at least as significant as its recent 20% decline. With its share price down (temporarily, I expect) again, here's why I think Copart is a no-brainer S&P 500 stock to buy on the dip. Copart owns more than 250 salvage yards, most of them spread across North America (though it operates in 11 countries total), and processes more than 3 million vehicle sales annually via its online auction platform. With a market share of about 45%, the company is the leader in its niche, headlining a virtual duopoly with RB Global, which bought IAA. The two combine for roughly 80% of the total salvage vehicle industry. Copart's most common types of transactions involve insurance companies selling totaled vehicles on its virtual platform to dismantlers, car repair shops, used car dealers, exporters, recyclers, or even the general public. Sales of cars from insurance companies accounted for 81% of Copart's business in 2024. Whether it's the auction, or the towing, storage, inspections, merchandising, title processing, and logistics (including pickup and delivery) of the vehicle itself, the company is a one-stop shop for all the services needed to move such transactions along. However, what makes Copart a fantastic long-term investment is its wide moat. Since its properties are primarily salvage yards, Copart benefits from the power of NIMBY (not in my back yard) sentiment. In most locations, residents will fight against anyone who tries to get zoning approval for a new junkyard. That somewhat insulates Copart from the threat of new competition. In addition to this wide moat, the technological density and complexity of vehicles continue to skyrocket, which could provide a decades-long tailwind for the company as more cars are declared "totaled." Since complex car parts are more expensive to replace, the threshold for an insurer to deem a car "totaled" rather than foot the bill for repairs continues to skew further into Copart's favor over time. Copart's duopoly partner, IAA, was acquired by commercial construction and transportation auction platform RB Global for $7 billion in 2023. Though this created a powerhouse auction platform for all types of vehicles, I'd argue that Copart remains the more efficient of the two. Over the last two decades, Copart's average free cash flow (FCF) margin and cash return on invested capital (ROIC) have been higher than those of its primary peer. While bringing IAA into the fold could help boost these figures for RB Global, it is worth noting that IAA leases the majority of its salvage yards. By contrast, Copart owns most of its properties. These added costs erode RB Global's overall efficiency and margins, prompting me to take a more cautious approach to its stock as it continues to integrate IAA. Furthermore, despite owning nearly all of its properties, Copart is debt-free and holds $4.4 billion in cash on its balance sheet, equivalent to approximately 9% of its market capitalization of $49 billion. As for RB Global, it has a net debt balance of $2.1 billion compared to a market cap of $19 billion. I'm not saying that RB Global is at risk of going out of business. I just want to emphasize that Copart is well equipped to buy more property, repurchase its own shares, or merely ride out an increasingly turbulent market. Lastly, Copart's partnership with Purple Wave (a heavy equipment auctioneer similar to RB Global) and its BlueCar business (which serves rental car companies, fleet partners, and banks) offers both potential growth options and diversification. Following the sell-off that took place after it reported its fiscal 2025 Q3 earnings in May, Copart now trades at 28 times cash from operations (CFO). That's its lowest valuation by that metric in over two years, but close to the company's average over the last decade. While its P/CFO ratio remains above RB Global's mark of 20, its relative premium may be justified: Copart has grown its sales by 10% over the last year, compared to its peer's 2% growth. Since Copart delivered revenue growth of 8% in the last quarter and sold off -- but RB Global grew sales by 4% and rallied -- now seems like a perfect "buy the dip" opportunity for investors looking at Copart. Yes, the company still trades at a slight premium to the market and its peers. However, Copart: Is the leader in a duopoly. Enjoys a wide moat thanks to its geographic presence. Should benefit as vehicles become harder to fix. Maintains better profitability and has a better balance sheet than its primary peer. Is down 20% from its highs -- a somewhat rare occurrence. I look forward to buying the dip on this no-brainer S&P 500 stock soon. Before you buy stock in Copart, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Copart wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor's total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Josh Kohn-Lindquist has positions in Copart. The Motley Fool has positions in and recommends Copart. The Motley Fool has a disclosure policy. 1 No-Brainer S&P 500 Stock Down 20% to Buy on the Dip was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
National Post
27-05-2025
- Automotive
- National Post
RB Global Announces Early Termination of Hart-Scott-Rodino Waiting Period
Article content WESTCHESTER, Ill. — RB Global, Inc. (NYSE: RBA) (TSX: RBA), the trusted global marketplace for insights, services and transaction solutions for commercial assets and vehicles, today announced that on May 22, 2025, the U.S. Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the 'HSR Act') with respect to the pending acquisition of JM Wood Auction Co., Inc. by Ritchie Bros Auctioneers (America), Inc., which is a wholly owned subsidiary of RB Global. Article content Article content The termination of the waiting period under the HSR Act satisfies one of the conditions to the closing of the pending acquisition, which is expected to be completed in the second or early third quarter of 2025, but which remains subject to other customary closing conditions. Article content About RB Global Article content RB Global, Inc. (NYSE: RBA) (TSX: RBA) is a leading, omnichannel marketplace and trusted provider of value-added insights, services and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Through its global network of auction sites and digital platform, RB Global serves customers worldwide across a variety of asset classes, including automotive, construction, commercial transportation, government surplus, lifting and material handling, energy, mining and agriculture. The company's end-to-end marketplace solutions include Ritchie Bros., IAA, Rouse Services, SmartEquip and VeriTread. For more information about RB Global, visit Article content Certain statements contained in this release include 'forward-looking statements' within the meaning of U.S. federal securities laws and 'forward-looking information' within the meaning of Canadian securities laws (collectively, 'forward-looking statements'). Forward-looking statements herein include, in particular, statements relating to the anticipated closing of the JM Wood acquisition, and other subjects of this release that are not historical facts. Forward-looking statements are typically identified by such words as 'aim', 'anticipate', 'believe', 'could', 'continue', 'estimate', 'expect', 'intend', 'may', 'ongoing', 'plan', 'potential', 'predict', 'will', 'should', 'would', 'could', 'likely', 'generally', 'future', 'long-term', or the negative of these terms, and similar expressions intended to identify forward-looking statements. It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on the results of operations and financial condition of RB Global's common shares. Therefore, you should not place undue reliance on any such forward-looking statements and caution must be exercised in relying on forward-looking statements. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties that may cause actual results to differ materially, including but not limited to risks and uncertainties relating to: our ability to drive shareholder value; potential growth and market opportunities; the level of participation in our auctions and the success of our online marketplaces; our ability to grow our businesses, acquire new customers, enhance our sector reach, drive geographic depth, and scale our operations; the impact of our initiatives, services, investments, and acquisitions on us and our customers; the acquisition or disposition of properties; potential future mergers and acquisitions; our ability to integrate acquisitions; our future capital expenditures and returns on those expenditures; our ability to add new business and information solutions, including, among others, our ability to maximize and integrate technology to enhance our existing services and support additional value-added service offerings; the supply trend of equipment and vehicles in the market and the anticipated price environment, as well as the resulting effect on our business and Gross Transaction Value ('GTV'); our compliance with laws, rules, regulations, and requirements that affect our business; effects of various economic, financial, industry, and market conditions or policies, including inflation, the supply and demand for property, equipment, or natural resources; the behavior of commercial assets and vehicle pricing; the relative percentage of GTV represented by straight commission or underwritten (guarantee and inventory) contracts, and its impact on revenues and profitability; our future capital expenditures and returns on those expenditures; the effect of any currency exchange and interest rate fluctuations on our results of operations; the effect of any tariffs on our results of operations; the grant and satisfaction of equity awards pursuant to our compensation plans; any future declaration and payment of dividends, including the tax treatment of any such dividends; financing available to us from our credit facilities or other sources, our ability to refinance borrowings, and the sufficiency of our working capital to meet our financial needs; our ability to satisfy our present operating requirements and fund future growth through existing working capital, credit facilities and debt; misappropriation of data or cybersecurity incidents; and, failure to comply with privacy and data protection laws. Other risks that could cause actual results to differ materially from those described in the forward-looking statements are included in 'Part I, Item 1A: Risk Factors', and the section titled 'Summary of Risk Factors', in our Annual Report on Form 10-K for the year ended December 31, 2024, as such risk factors may be amended, supplemented or superseded from time to time by other reports we file with the Securities and Exchange Commission, including subsequent Quarterly Reports on Form 10-Q The forward-looking statements included in this release are made only as of the date hereof. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Many of these risk factors are outside of our control, and as such, they involve risks which are not currently known that could cause actual results to differ materially from those discussed or implied herein. RB Global does not undertake any obligation to update any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made, except as required by law. Article content Article content Article content Article content Contacts Article content RB Global Contacts Media Inquiries: Val Alitovska | RB Global, Inc. Director, Corporate Communications (312) 505-9900 valitovska@ Article content Article content
Business Wire
27-05-2025
- Automotive
- Business Wire
RB Global Announces Early Termination of Hart-Scott-Rodino Waiting Period
WESTCHESTER, Ill.--(BUSINESS WIRE)--RB Global, Inc. (NYSE: RBA) (TSX: RBA), the trusted global marketplace for insights, services and transaction solutions for commercial assets and vehicles, today announced that on May 22, 2025, the U.S. Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the 'HSR Act') with respect to the pending acquisition of JM Wood Auction Co., Inc. by Ritchie Bros Auctioneers (America), Inc., which is a wholly owned subsidiary of RB Global. The termination of the waiting period under the HSR Act satisfies one of the conditions to the closing of the pending acquisition, which is expected to be completed in the second or early third quarter of 2025, but which remains subject to other customary closing conditions. About RB Global RB Global, Inc. (NYSE: RBA) (TSX: RBA) is a leading, omnichannel marketplace and trusted provider of value-added insights, services and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Through its global network of auction sites and digital platform, RB Global serves customers worldwide across a variety of asset classes, including automotive, construction, commercial transportation, government surplus, lifting and material handling, energy, mining and agriculture. The company's end-to-end marketplace solutions include Ritchie Bros., IAA, Rouse Services, SmartEquip and VeriTread. For more information about RB Global, visit Forward-Looking Statements Certain statements contained in this release include 'forward-looking statements' within the meaning of U.S. federal securities laws and 'forward-looking information' within the meaning of Canadian securities laws (collectively, "forward-looking statements"). Forward-looking statements herein include, in particular, statements relating to the anticipated closing of the JM Wood acquisition, and other subjects of this release that are not historical facts. Forward-looking statements are typically identified by such words as 'aim', 'anticipate', 'believe', 'could', 'continue', 'estimate', 'expect', 'intend', 'may', 'ongoing', 'plan', 'potential', 'predict', 'will', 'should', 'would', 'could', 'likely', 'generally', 'future', 'long-term', or the negative of these terms, and similar expressions intended to identify forward-looking statements. It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on the results of operations and financial condition of RB Global's common shares. Therefore, you should not place undue reliance on any such forward-looking statements and caution must be exercised in relying on forward-looking statements. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties that may cause actual results to differ materially, including but not limited to risks and uncertainties relating to: our ability to drive shareholder value; potential growth and market opportunities; the level of participation in our auctions and the success of our online marketplaces; our ability to grow our businesses, acquire new customers, enhance our sector reach, drive geographic depth, and scale our operations; the impact of our initiatives, services, investments, and acquisitions on us and our customers; the acquisition or disposition of properties; potential future mergers and acquisitions; our ability to integrate acquisitions; our future capital expenditures and returns on those expenditures; our ability to add new business and information solutions, including, among others, our ability to maximize and integrate technology to enhance our existing services and support additional value-added service offerings; the supply trend of equipment and vehicles in the market and the anticipated price environment, as well as the resulting effect on our business and Gross Transaction Value ('GTV'); our compliance with laws, rules, regulations, and requirements that affect our business; effects of various economic, financial, industry, and market conditions or policies, including inflation, the supply and demand for property, equipment, or natural resources; the behavior of commercial assets and vehicle pricing; the relative percentage of GTV represented by straight commission or underwritten (guarantee and inventory) contracts, and its impact on revenues and profitability; our future capital expenditures and returns on those expenditures; the effect of any currency exchange and interest rate fluctuations on our results of operations; the effect of any tariffs on our results of operations; the grant and satisfaction of equity awards pursuant to our compensation plans; any future declaration and payment of dividends, including the tax treatment of any such dividends; financing available to us from our credit facilities or other sources, our ability to refinance borrowings, and the sufficiency of our working capital to meet our financial needs; our ability to satisfy our present operating requirements and fund future growth through existing working capital, credit facilities and debt; misappropriation of data or cybersecurity incidents; and, failure to comply with privacy and data protection laws. Other risks that could cause actual results to differ materially from those described in the forward-looking statements are included in 'Part I, Item 1A: Risk Factors', and the section titled "Summary of Risk Factors", in our Annual Report on Form 10-K for the year ended December 31, 2024, as such risk factors may be amended, supplemented or superseded from time to time by other reports we file with the Securities and Exchange Commission, including subsequent Quarterly Reports on Form 10-Q The forward-looking statements included in this release are made only as of the date hereof. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Many of these risk factors are outside of our control, and as such, they involve risks which are not currently known that could cause actual results to differ materially from those discussed or implied herein. RB Global does not undertake any obligation to update any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made, except as required by law.
Yahoo
21-05-2025
- Business
- Yahoo
Copart (CPRT) Q1 Earnings: What To Expect
Online vehicle auction company Copart (NASDAQ:CPRT) will be announcing earnings results tomorrow after market close. Here's what you need to know. Copart beat analysts' revenue expectations by 4.2% last quarter, reporting revenues of $1.16 billion, up 14% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts' EPS estimates. Is Copart a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Copart's revenue to grow 8.6% year on year to $1.22 billion, slowing from the 10.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.42 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Copart has missed Wall Street's revenue estimates four times over the last two years. Looking at Copart's peers in the business services & supplies segment, some have already reported their Q1 results, giving us a hint as to what we can expect. RB Global delivered year-on-year revenue growth of 4.1%, beating analysts' expectations by 6.9%, and OPENLANE reported revenues up 7%, topping estimates by 1.4%. RB Global traded up 2.5% following the results while OPENLANE was also up 13.6%. Read our full analysis of RB Global's results here and OPENLANE's results here. There has been positive sentiment among investors in the business services & supplies segment, with share prices up 14.5% on average over the last month. Copart is up 1.3% during the same time and is heading into earnings with an average analyst price target of $61.89 (compared to the current share price of $61.22). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Sign in to access your portfolio
Yahoo
14-05-2025
- Business
- Yahoo
The Top TSX Stock to Buy Now as Canadians Shift Cash Back Home
Written by Amy Legate-Wolfe at The Motley Fool Canada Canadians are beginning to bring their money back home. After years of favouring big-name U.S. stocks, the trend is shifting. With market uncertainty, interest rate changes, and a stronger Canadian dollar, investors are taking a second look at the TSX. One name worth spotlighting during this shift is RB Global (TSX:RBA). Formerly known as Ritchie Bros., this Vancouver-based powerhouse is quietly becoming one of the top TSX stocks to consider right now. RB Global runs a global marketplace for buying and selling heavy equipment, trucks, and industrial assets. It blends massive on-site auctions with a growing online presence. The TSX stock serves customers in construction, transportation, mining, and agriculture, industries that never really sleep. What makes RB Global unique is that it's not tied to any one commodity or cyclical sector. Instead, it benefits from activity across a broad range of industries, which helps stabilize earnings and build long-term value. In the first quarter of 2025, RB Global reported revenue of US$1.1 billion. That's a solid 4% jump from the same period last year. Net income came in at US$102.9 million, up 6%, and earnings per share (EPS) rose to US$0.55. These numbers show a company with real staying power, even in a slower economic environment. Much of this performance was driven by better efficiency. Its service revenue take rate improved by 150 basis points to 22.3%. That might sound like a small bump, but it makes a big difference to margins. The business is squeezing more profitability out of every transaction, which is exactly what long-term investors want to see. Gross transaction value (GTV) dipped slightly to US$3.8 billion, but that's not the red flag it might seem. Lower GTV was offset by the improved take rate, and the company has been shifting toward more profitable services. Instead of chasing sheer volume, RB Global is focusing on quality revenue streams that bring more to the bottom line. That's a smart move in a market where costs are rising, and investors want lean, disciplined operations. RB Global isn't standing still, either. It continues to grow through smart acquisitions. In early 2025, the TSX stock announced it was acquiring J.M. Wood Auction Co., a respected regional player in the U.S. Southeast. That deal strengthens its North American presence and brings in new customer relationships, technology, and scale. These kinds of bolt-on acquisitions add value without overextending the balance sheet. It's slow and steady, but it's strategic. On the dividend side, RB Global offers a little something extra for income-focused investors. The TSX stock currently pays an annual dividend of $1.68 per share. That works out to a yield of around 1.18% at today's share price. It's not a jaw-dropper, but it's dependable. And more importantly, it's backed by consistent earnings. With rising free cash flow and strong balance sheet management, the dividend looks safe, and there's potential for growth over time. So, what does all this mean for Canadian investors with cash to deploy? It means RB Global is more than just a stable TSX stock; it's a bet on activity. Infrastructure projects, equipment upgrades, and fleet renewals all flow through this marketplace. Whether the economy is booming or muddling through, there's always someone buying or selling equipment. And with more businesses shifting operations online, RB Global's digital tools and analytics give it an edge. At the end of the day, RB Global combines the best of both worlds. It offers stability through recurring revenue and diversification, and growth through digital innovation and strategic expansion. For Canadians looking to invest closer to home, this TSX stock checks a lot of boxes. Whether you're planning to hold for five years or 15, it's the kind of company that fits nicely in a long-term portfolio. The post The Top TSX Stock to Buy Now as Canadians Shift Cash Back Home appeared first on The Motley Fool Canada. Before you buy stock in Ritchie Bros. Auctioneers, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Ritchie Bros. Auctioneers wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,345.77!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
