Ritchie Bros. Auctioneers

Ritchie Bros. Auctioneers Incorporated (RBA) - Snapshot Report stock price has had a great year, moving from below $55 per share to its current location of over $80, an impressive 60% gain. Within the last 30 days three of seven covering analyst have increased their next-year estimates for the company, driving the consensus estimate higher by five cents.

Full Analysis

Ritchie Bros. Auctioneers Incorporated operates as an auctioneer of industrial equipment. It sells, through unreserved public auctions, a range of industrial equipments, trucks, and other assets used in the construction, transportation and mining business. The company also offers rbauctionBid-Live services that enables to bid live and in real-time over the Internet. As of February 21, 2007, it operated 33 auction sites. The company serves contractors, and truck and equipment dealers and brokers. It operates in North, South, and Central America; Europe; Asia; Australia; Africa; and the Middle East. Ritchie Bros was founded in 1963 and is headquartered in Richmond, Canada.

On Oct 30, Ritchie Bros. reported a record performance for the first nine months of 2007, with its earnings coming in 24% ahead of 2006 figures. Net income was $59 million, producing earnings of 42 cents per share, well ahead of analyst projections of 26 cents. Revenue was $232 million, representing a 22% increased compared to last year.

Gross auction proceeds, commonly refereed to as gross auction sales, climbed to $2.31 billion, a 17% increase over last year, and the largest number for the first fiscal nine months in the company's history. Within the past 30 days three covering analysts have increased current-year estimates while three others have increased next-year projections. This has pushed the next-year consensus estimate five cents higher to its current reading of $2.56 per share.

The company also boasts a very strong balance sheet, with very little debt on its books. Its ROE stands out at 16.78%, and its net profit margin is an impressive 7.09% when compared to the industry average of 5.99%.

As previously mentioned, the company's stock price has had an awesome year, gaining close to 60% in value. And the great part is, the ride higher has been very smooth with no serious setbacks along the way.

The current trend began from the low of Aug 16 and continues to support current prices. Look for this trend to stay in tact and continue to apply upward pressure. This stock has recently retreated from its 52-week high just a pinch above the $84 level. Look for prices to rebound on the trend line and once again gain steam and head higher. The stochastic is delivering a beautiful signal that this stock is trading close to oversold territory and should have plenty of room to stretch out.

Read the full analyst report on RBA