RBC BEARINGS INC (RBC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RBC - US75524B1044 - Common Stock
430 USD
+3.84 (+0.9%)
429.99 USD
-0.01 (0%)
Overall RBC gets a fundamental rating of 5 out of 10. We evaluated RBC against 130 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
RBC had positive earnings in the past year.
In the past year RBC had a positive cash flow from operations.
RBC had positive earnings in each of the past 5 years.
RBC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RBC (5.05%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 8.10%, RBC is in line with its industry, outperforming 53.08% of the companies in the same industry.
RBC has a Return On Invested Capital (6.57%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RBC is below the industry average of 10.34%.
The last Return On Invested Capital (6.57%) for RBC is above the 3 year average (6.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 8.1% | ||
| ROIC | 6.57% |
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 14.98%, RBC belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
RBC's Profit Margin has declined in the last couple of years.
RBC's Operating Margin of 22.68% is amongst the best of the industry. RBC outperforms 96.15% of its industry peers.
RBC's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 44.34%, RBC belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
In the last couple of years the Gross Margin of RBC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.68% | ||
| PM (TTM) | 14.98% | ||
| GM | 44.34% |
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.
The number of shares outstanding for RBC has been increased compared to 1 year ago.
RBC has more shares outstanding than it did 5 years ago.
RBC has a better debt/assets ratio than last year.
2.2 Solvency
RBC has an Altman-Z score of 5.45. This indicates that RBC is financially healthy and has little risk of bankruptcy at the moment.
RBC's Altman-Z score of 5.45 is amongst the best of the industry. RBC outperforms 81.54% of its industry peers.
RBC has a debt to FCF ratio of 3.54. This is a good value and a sign of high solvency as RBC would need 3.54 years to pay back of all of its debts.
RBC has a better Debt to FCF ratio (3.54) than 66.15% of its industry peers.
RBC has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
RBC has a Debt to Equity ratio of 0.34. This is in the better half of the industry: RBC outperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.54 | ||
| Altman-Z | 5.45 |
ROIC/WACC0.71
WACC9.28%
2.3 Liquidity
RBC has a Current Ratio of 3.18. This indicates that RBC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of RBC (3.18) is better than 79.23% of its industry peers.
RBC has a Quick Ratio of 1.13. This is a normal value and indicates that RBC is financially healthy and should not expect problems in meeting its short term obligations.
RBC has a Quick ratio (1.13) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.18 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.02% over the past year.
The Earnings Per Share has been growing by 14.51% on average over the past years. This is quite good.
RBC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.27%.
Measured over the past years, RBC shows a quite strong growth in Revenue. The Revenue has been growing by 17.60% on average per year.
EPS 1Y (TTM)19.02%
EPS 3Y36.99%
EPS 5Y14.51%
EPS Q2Q%25.76%
Revenue 1Y (TTM)8.27%
Revenue growth 3Y20.17%
Revenue growth 5Y17.6%
Sales Q2Q%14.43%
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 14.43% on average per year.
RBC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.33% yearly.
EPS Next Y17.16%
EPS Next 2Y15.73%
EPS Next 3Y14.43%
EPS Next 5YN/A
Revenue Next Year12.92%
Revenue Next 2Y11.88%
Revenue Next 3Y10.33%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
RBC is valuated quite expensively with a Price/Earnings ratio of 39.49.
66.15% of the companies in the same industry are cheaper than RBC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of RBC to the average of the S&P500 Index (25.65), we can say RBC is valued expensively.
Based on the Price/Forward Earnings ratio of 32.11, the valuation of RBC can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RBC indicates a slightly more expensive valuation: RBC is more expensive than 68.46% of the companies listed in the same industry.
RBC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.45, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.49 | ||
| Fwd PE | 32.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RBC indicates a slightly more expensive valuation: RBC is more expensive than 72.31% of the companies listed in the same industry.
RBC's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. RBC is more expensive than 62.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.55 | ||
| EV/EBITDA | 28.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RBC does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of RBC may justify a higher PE ratio.
RBC's earnings are expected to grow with 14.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.3
PEG (5Y)2.72
EPS Next 2Y15.73%
EPS Next 3Y14.43%
5. Dividend
5.1 Amount
RBC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
430
+3.84 (+0.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners102.55%
Inst Owner Change4.14%
Ins Owners1.63%
Ins Owner Change-0.09%
Market Cap13.57B
Revenue(TTM)1.72B
Net Income(TTM)258.10M
Analysts76.36
Price Target493.68 (14.81%)
Short Float %1.03%
Short Ratio1.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.56
Dividend Growth(5Y)N/A
DP2.21%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.39%
Min EPS beat(2)2.5%
Max EPS beat(2)4.29%
EPS beat(4)4
Avg EPS beat(4)3.94%
Min EPS beat(4)2.5%
Max EPS beat(4)5.24%
EPS beat(8)6
Avg EPS beat(8)2.05%
EPS beat(12)9
Avg EPS beat(12)2.55%
EPS beat(16)13
Avg EPS beat(16)5.56%
Revenue beat(2)1
Avg Revenue beat(2)0%
Min Revenue beat(2)-0.11%
Max Revenue beat(2)0.11%
Revenue beat(4)1
Avg Revenue beat(4)-0.55%
Min Revenue beat(4)-1.57%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-1.37%
Revenue beat(12)2
Avg Revenue beat(12)-1.31%
Revenue beat(16)5
Avg Revenue beat(16)-0.84%
PT rev (1m)8.32%
PT rev (3m)8.32%
EPS NQ rev (1m)2.16%
EPS NQ rev (3m)2.12%
EPS NY rev (1m)0.66%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.49 | ||
| Fwd PE | 32.11 | ||
| P/S | 7.87 | ||
| P/FCF | 44.55 | ||
| P/OCF | 37.53 | ||
| P/B | 4.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.36 |
EPS(TTM)10.89
EY2.53%
EPS(NY)13.39
Fwd EY3.11%
FCF(TTM)9.65
FCFY2.24%
OCF(TTM)11.46
OCFY2.66%
SpS54.61
BVpS100.99
TBVpS-6.73
PEG (NY)2.3
PEG (5Y)2.72
Graham Number157.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 8.1% | ||
| ROCE | 8.25% | ||
| ROIC | 6.57% | ||
| ROICexc | 6.7% | ||
| ROICexgc | 24.98% | ||
| OM | 22.68% | ||
| PM (TTM) | 14.98% | ||
| GM | 44.34% | ||
| FCFM | 17.67% |
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%
ROICexgc growth 3Y25.95%
ROICexgc 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-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.54 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 46.61% | ||
| Cap/Sales | 3.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.46% | ||
| Profit Quality | 118.02% | ||
| Current Ratio | 3.18 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 5.45 |
F-Score6
WACC9.28%
ROIC/WACC0.71
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)19.02%
EPS 3Y36.99%
EPS 5Y14.51%
EPS Q2Q%25.76%
EPS Next Y17.16%
EPS Next 2Y15.73%
EPS Next 3Y14.43%
EPS Next 5YN/A
Revenue 1Y (TTM)8.27%
Revenue growth 3Y20.17%
Revenue growth 5Y17.6%
Sales Q2Q%14.43%
Revenue Next Year12.92%
Revenue Next 2Y11.88%
Revenue Next 3Y10.33%
Revenue Next 5YN/A
EBIT growth 1Y9.65%
EBIT growth 3Y34.37%
EBIT growth 5Y18.7%
EBIT Next Year54.45%
EBIT Next 3Y25.01%
EBIT Next 5YN/A
FCF growth 1Y42.4%
FCF growth 3Y17.44%
FCF growth 5Y15.56%
OCF growth 1Y46.4%
OCF growth 3Y17.65%
OCF growth 5Y13.54%
RBC BEARINGS INC / RBC FAQ
Can you provide the ChartMill fundamental rating for RBC BEARINGS INC?
ChartMill assigns a fundamental rating of 5 / 10 to RBC.
Can you provide the valuation status for RBC BEARINGS INC?
ChartMill assigns a valuation rating of 1 / 10 to RBC BEARINGS INC (RBC). This can be considered as Overvalued.
What is the profitability of RBC stock?
RBC BEARINGS INC (RBC) has a profitability rating of 7 / 10.
What is the valuation of RBC BEARINGS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for RBC BEARINGS INC (RBC) is 39.49 and the Price/Book (PB) ratio is 4.26.
Can you provide the financial health for RBC stock?
The financial health rating of RBC BEARINGS INC (RBC) is 6 / 10.