Is RBC BEARINGS INC (NYSE:RBC) suited for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if RBC BEARINGS INC (NYSE:RBC) is suited for quality investing. Investors should of course do their own research, but we spotted RBC BEARINGS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Why RBC may be interesting for quality investors.

• The 5-year revenue growth of RBC has been remarkable, with 17.3% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• RBC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 26.64% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• RBC maintains a healthy Debt/Free Cash Flow Ratio of 3.89, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a favorable Profit Quality (5-year) ratio of 171.0%, RBC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• With a robust 5-year EBIT growth of 18.35%, RBC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• RBC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

How does the complete fundamental picture look for RBC?

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

RBC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. While RBC has a great profitability rating, there are some minor concerns on its financial health. RBC is valied quite expensively at the moment, while it does show a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of RBC

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

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.