Morningstar Rating

Stock Research and Analysis

by Adam Fleck, CFA

Bulls Say

Some 60% of buyers at Ritchie auctions are from outside the auction's region, evidence of the company's wide geographic breadth.
The firm has historically generated strong ROICs, and this metric should improve as capital spending needs fall over the next few years.
Ritchie focuses on providing truly independent, unreserved auctions; to bolster this trust with buyers, it will actually repossess equipment from sellers that have been found buying back their own assets at auction. Read more 

Bears Say

A dearth of new construction equipment manufactured during the 2008-09 downturn has led to a negative mix shift toward older equipment at Ritchie auctions.
Ritchie has hired new sales employees and invested in updated tools, but has faced increasing SG&A costs as a result. Training new employees and improving sales productivity will probably remain a risk for the next several quarters.
The at-risk business makes up one fourth to one third of Ritchie's total auction proceeds and could create headwinds if mismanaged. Read more 

Management

Our Stewardship Rating for Ritchie is Standard. After more than 20 years with the firm, CEO Peter Blake will retire in 2014. We applaud Blake's pursuit of growth through an increased number of physical auction sites and an expanded online presence,   Read more 

Profile

With more than 40 auction sites in 14 countries, Ritchie Bros. Auctioneers is the world's largest auctioneer of industrial and agricultural equipment. The company focuses   Read more 

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