In this article we will dive into RBC BEARINGS INC (NYSE:RBC) as a possible candidate for quality investing. Investors should always do their own research, but we noticed RBC BEARINGS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.
Some of the quality metrics of NYSE:RBC highlighted
Over the past 5 years, RBC BEARINGS INC has experienced impressive revenue growth, with 17.3% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
RBC BEARINGS INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 26.17% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
RBC BEARINGS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 4.96, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
RBC BEARINGS INC demonstrates consistent Profit Quality over the past 5 years, with a strong 171.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
The 5-year EBIT growth of RBC BEARINGS INC has been remarkable, with 18.35% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
With EBIT 5-year growth outpacing its Revenue 5-year growth, RBC BEARINGS INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.
Fundamental Analysis Observations
Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.
Taking everything into account, RBC scores 5 out of 10 in our fundamental rating. RBC was compared to 130 industry peers in the Machinery industry. RBC has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, RBC is valued expensive at the moment.
This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.