RBC BEARINGS INC (RBC) Stock Fundamental Analysis
NYSE:RBC - New York Stock Exchange, Inc. - US75524B1044 - Common Stock - Currency: USD
Taking everything into account, RBC scores 5 out of 10 in our fundamental rating. RBC was compared to 128 industry peers in the Machinery industry. While RBC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, RBC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year RBC was profitable.
In the past year RBC had a positive cash flow from operations.
In the past 5 years RBC has always been profitable.
Each year in the past 5 years RBC had a positive operating cash flow.
1.2 Ratios
RBC has a Return On Assets (4.99%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 7.71%, RBC is in line with its industry, outperforming 44.53% of the companies in the same industry.
RBC's Return On Invested Capital of 6.76% is in line compared to the rest of the industry. RBC outperforms 46.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RBC is below the industry average of 10.71%.
The 3 year average ROIC (6.19%) for RBC is below the current ROIC(6.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.99% | ||
| ROE | 7.71% | ||
| ROIC | 6.76% |
ROA(3y)4.02%
ROA(5y)3.84%
ROE(3y)6.72%
ROE(5y)5.86%
ROIC(3y)6.19%
ROIC(5y)5.66%
1.3 Margins
With an excellent Profit Margin value of 14.29%, RBC belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
RBC's Profit Margin has declined in the last couple of years.
RBC has a Operating Margin of 22.69%. This is amongst the best in the industry. RBC outperforms 93.75% of its industry peers.
In the last couple of years the Operating Margin of RBC has remained more or less at the same level.
Looking at the Gross Margin, with a value of 44.37%, RBC belongs to the top of the industry, outperforming 82.03% of the companies in the same industry.
RBC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.69% | ||
| PM (TTM) | 14.29% | ||
| GM | 44.37% |
OM growth 3Y11.81%
OM growth 5Y0.94%
PM growth 3Y46.67%
PM growth 5Y-3.77%
GM growth 3Y5.42%
GM growth 5Y2.23%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RBC is destroying value.
Compared to 1 year ago, RBC has more shares outstanding
RBC has more shares outstanding than it did 5 years ago.
RBC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.66 indicates that RBC is not in any danger for bankruptcy at the moment.
RBC has a better Altman-Z score (5.66) than 79.69% of its industry peers.
RBC has a debt to FCF ratio of 3.80. This is a good value and a sign of high solvency as RBC would need 3.80 years to pay back of all of its debts.
RBC has a Debt to FCF ratio (3.80) which is in line with its industry peers.
RBC has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
RBC's Debt to Equity ratio of 0.30 is fine compared to the rest of the industry. RBC outperforms 63.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 5.66 |
ROIC/WACC0.69
WACC9.76%
2.3 Liquidity
RBC has a Current Ratio of 3.26. This indicates that RBC is financially healthy and has no problem in meeting its short term obligations.
RBC's Current ratio of 3.26 is amongst the best of the industry. RBC outperforms 80.47% of its industry peers.
A Quick Ratio of 1.18 indicates that RBC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.18, RBC perfoms like the industry average, outperforming 44.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.26 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.01% over the past year.
RBC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.51% yearly.
The Revenue has been growing slightly by 4.87% in the past year.
The Revenue has been growing by 17.60% on average over the past years. This is quite good.
EPS 1Y (TTM)16.01%
EPS 3Y36.99%
EPS 5Y14.51%
EPS Q2Q%14.57%
Revenue 1Y (TTM)4.87%
Revenue growth 3Y20.17%
Revenue growth 5Y17.6%
Sales Q2Q%5.81%
3.2 Future
Based on estimates for the next years, RBC will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.34% on average per year.
The Revenue is expected to grow by 7.86% on average over the next years.
EPS Next Y14.35%
EPS Next 2Y12.3%
EPS Next 3Y10.34%
EPS Next 5YN/A
Revenue Next Year7.61%
Revenue Next 2Y7.76%
Revenue Next 3Y7.86%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 38.86, RBC can be considered very expensive at the moment.
RBC's Price/Earnings ratio is a bit more expensive when compared to the industry. RBC is more expensive than 65.63% of the companies in the same industry.
RBC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 33.98, RBC can be considered very expensive at the moment.
RBC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RBC is more expensive than 67.97% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, RBC is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.86 | ||
| Fwd PE | 33.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RBC is valued a bit more expensive than the industry average as 71.88% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, RBC is valued a bit more expensive than the industry average as 65.63% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.18 | ||
| EV/EBITDA | 26.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RBC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.71
PEG (5Y)2.68
EPS Next 2Y12.3%
EPS Next 3Y10.34%
5. Dividend
5.1 Amount
RBC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
388.59
+5.46 (+1.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.84%
Inst Owner Change1.4%
Ins Owners1.64%
Ins Owner Change-2.93%
Market Cap12.23B
Analysts76.36
Price Target411.26 (5.83%)
Short Float %1.4%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.56
Dividend Growth(5Y)N/A
DP7.36%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.48%
Min EPS beat(2)3.72%
Max EPS beat(2)5.24%
EPS beat(4)3
Avg EPS beat(4)3.18%
Min EPS beat(4)-1.24%
Max EPS beat(4)5.24%
EPS beat(8)6
Avg EPS beat(8)2.76%
EPS beat(12)9
Avg EPS beat(12)4.19%
EPS beat(16)12
Avg EPS beat(16)4.44%
Revenue beat(2)0
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-1.57%
Max Revenue beat(2)-0.63%
Revenue beat(4)0
Avg Revenue beat(4)-2.08%
Min Revenue beat(4)-3.51%
Max Revenue beat(4)-0.63%
Revenue beat(8)0
Avg Revenue beat(8)-1.86%
Revenue beat(12)2
Avg Revenue beat(12)-1.49%
Revenue beat(16)4
Avg Revenue beat(16)-1.02%
PT rev (1m)5.83%
PT rev (3m)3.92%
EPS NQ rev (1m)-0.79%
EPS NQ rev (3m)-1.62%
EPS NY rev (1m)1.67%
EPS NY rev (3m)1.6%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.86 | ||
| Fwd PE | 33.98 | ||
| P/S | 7.48 | ||
| P/FCF | 50.18 | ||
| P/OCF | 41.66 | ||
| P/B | 4.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.71 |
EPS(TTM)10
EY2.57%
EPS(NY)11.43
Fwd EY2.94%
FCF(TTM)7.74
FCFY1.99%
OCF(TTM)9.33
OCFY2.4%
SpS51.98
BVpS96.3
TBVpS-5.27
PEG (NY)2.71
PEG (5Y)2.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.99% | ||
| ROE | 7.71% | ||
| ROCE | 8.5% | ||
| ROIC | 6.76% | ||
| ROICexc | 6.82% | ||
| ROICexgc | 26.01% | ||
| OM | 22.69% | ||
| PM (TTM) | 14.29% | ||
| GM | 44.37% | ||
| FCFM | 14.9% |
ROA(3y)4.02%
ROA(5y)3.84%
ROE(3y)6.72%
ROE(5y)5.86%
ROIC(3y)6.19%
ROIC(5y)5.66%
ROICexc(3y)6.27%
ROICexc(5y)6.03%
ROICexgc(3y)25.51%
ROICexgc(5y)20.72%
ROCE(3y)7.78%
ROCE(5y)7.11%
ROICexcg growth 3Y25.95%
ROICexcg growth 5Y6.95%
ROICexc growth 3Y34.53%
ROICexc growth 5Y-9.52%
OM growth 3Y11.81%
OM growth 5Y0.94%
PM growth 3Y46.67%
PM growth 5Y-3.77%
GM growth 3Y5.42%
GM growth 5Y2.23%
F-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.8 | ||
| Debt/EBITDA | 1.87 | ||
| Cap/Depr | 41.5% | ||
| Cap/Sales | 3.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.76% | ||
| Profit Quality | 104.28% | ||
| Current Ratio | 3.26 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 5.66 |
F-Score7
WACC9.76%
ROIC/WACC0.69
Cap/Depr(3y)35.24%
Cap/Depr(5y)37.46%
Cap/Sales(3y)2.68%
Cap/Sales(5y)2.63%
Profit Quality(3y)119.23%
Profit Quality(5y)173.26%
High Growth Momentum
Growth
EPS 1Y (TTM)16.01%
EPS 3Y36.99%
EPS 5Y14.51%
EPS Q2Q%14.57%
EPS Next Y14.35%
EPS Next 2Y12.3%
EPS Next 3Y10.34%
EPS Next 5YN/A
Revenue 1Y (TTM)4.87%
Revenue growth 3Y20.17%
Revenue growth 5Y17.6%
Sales Q2Q%5.81%
Revenue Next Year7.61%
Revenue Next 2Y7.76%
Revenue Next 3Y7.86%
Revenue Next 5YN/A
EBIT growth 1Y7.47%
EBIT growth 3Y34.37%
EBIT growth 5Y18.7%
EBIT Next Year48.63%
EBIT Next 3Y22.36%
EBIT Next 5YN/A
FCF growth 1Y0.95%
FCF growth 3Y17.44%
FCF growth 5Y15.56%
OCF growth 1Y6.88%
OCF growth 3Y17.65%
OCF growth 5Y13.54%