RBC BEARINGS INC (RBC) Stock Fundamental Analysis
USA - NYSE:RBC - US75524B1044 - Common Stock
378.73 USD
-3.54 (-0.93%)
378.73 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to RBC. RBC was compared to 128 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making RBC a very profitable company, without any liquidiy or solvency issues. RBC is quite expensive at the moment. It does show a decent growth rate. These ratings would make RBC suitable for quality investing!
1. Profitability
1.1 Basic Checks
RBC had positive earnings in the past year.
RBC had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 5.15%, RBC is in line with its industry, outperforming 56.25% of the companies in the same industry.
With a Return On Equity value of 7.91%, RBC perfoms like the industry average, outperforming 49.22% of the companies in the same industry.
RBC has a Return On Invested Capital (6.73%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for RBC is below the industry average of 10.02%.
The last Return On Invested Capital (6.73%) for RBC is above the 3 year average (6.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.15% | ||
| ROE | 7.91% | ||
| ROIC | 6.73% |
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
RBC has a better Profit Margin (14.80%) than 88.28% of its industry peers.
In the last couple of years the Profit Margin of RBC has declined.
The Operating Margin of RBC (22.58%) is better than 96.09% of its industry peers.
RBC's Operating Margin has been stable in the last couple of years.
RBC has a better Gross Margin (44.26%) than 82.03% of its industry peers.
RBC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.58% | ||
| PM (TTM) | 14.8% | ||
| GM | 44.26% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RBC is destroying value.
The number of shares outstanding for RBC has been increased compared to 1 year ago.
Compared to 5 years ago, RBC has more shares outstanding
The debt/assets ratio for RBC has been reduced compared to a year ago.
2.2 Solvency
RBC has an Altman-Z score of 5.58. This indicates that RBC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RBC (5.58) is better than 81.25% of its industry peers.
The Debt to FCF ratio of RBC is 3.55, which is a good value as it means it would take RBC, 3.55 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.55, RBC is doing good in the industry, outperforming 62.50% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that RBC is not too dependend on debt financing.
RBC has a better Debt to Equity ratio (0.29) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 5.58 |
ROIC/WACC0.69
WACC9.82%
2.3 Liquidity
A Current Ratio of 3.33 indicates that RBC has no problem at all paying its short term obligations.
RBC's Current ratio of 3.33 is amongst the best of the industry. RBC outperforms 81.25% of its industry peers.
RBC has a Quick Ratio of 1.33. This is a normal value and indicates that RBC is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.33, RBC perfoms like the industry average, outperforming 57.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
RBC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.06%, which is quite good.
RBC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.51% yearly.
RBC shows a small growth in Revenue. In the last year, the Revenue has grown by 5.48%.
The Revenue has been growing by 17.60% on average over the past years. This is quite good.
EPS 1Y (TTM)14.06%
EPS 3Y36.99%
EPS 5Y14.51%
EPS Q2Q%11.81%
Revenue 1Y (TTM)5.48%
Revenue growth 3Y20.17%
Revenue growth 5Y17.6%
Sales Q2Q%7.31%
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 14.27% on average per year.
Based on estimates for the next years, RBC will show a quite strong growth in Revenue. The Revenue will grow by 10.18% on average per year.
EPS Next Y16.2%
EPS Next 2Y15.29%
EPS Next 3Y14.27%
EPS Next 5YN/A
Revenue Next Year12.68%
Revenue Next 2Y11.56%
Revenue Next 3Y10.18%
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
A Price/Earnings ratio of 36.77 indicates a quite expensive valuation of RBC.
Based on the Price/Earnings ratio, RBC is valued a bit more expensive than 67.19% of the companies in the same industry.
RBC is valuated rather expensively when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 28.49, the valuation of RBC can be described as expensive.
Based on the Price/Forward Earnings ratio, RBC is valued a bit more expensive than 64.84% of the companies in the same industry.
RBC's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.77 | ||
| Fwd PE | 28.49 |
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 71.88% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RBC indicates a slightly more expensive valuation: RBC is more expensive than 67.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.03 | ||
| EV/EBITDA | 25.92 |
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.
A more expensive valuation may be justified as RBC's earnings are expected to grow with 14.27% in the coming years.
PEG (NY)2.27
PEG (5Y)2.53
EPS Next 2Y15.29%
EPS Next 3Y14.27%
5. Dividend
5.1 Amount
No dividends for RBC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
378.73
-3.54 (-0.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.58%
Inst Owner Change3.47%
Ins Owners1.63%
Ins Owner Change-0.38%
Market Cap11.95B
Analysts75
Price Target455.77 (20.34%)
Short Float %1.16%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.56
Dividend Growth(5Y)N/A
DP4.66%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.11%
Min EPS beat(2)2.5%
Max EPS beat(2)3.72%
EPS beat(4)3
Avg EPS beat(4)2.56%
Min EPS beat(4)-1.24%
Max EPS beat(4)5.24%
EPS beat(8)6
Avg EPS beat(8)2.14%
EPS beat(12)9
Avg EPS beat(12)2.71%
EPS beat(16)12
Avg EPS beat(16)4.38%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-1.57%
Max Revenue beat(2)-0.11%
Revenue beat(4)0
Avg Revenue beat(4)-1.23%
Min Revenue beat(4)-2.6%
Max Revenue beat(4)-0.11%
Revenue beat(8)0
Avg Revenue beat(8)-1.67%
Revenue beat(12)2
Avg Revenue beat(12)-1.23%
Revenue beat(16)4
Avg Revenue beat(16)-0.86%
PT rev (1m)2.09%
PT rev (3m)12.27%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)0.54%
EPS NY rev (1m)1.62%
EPS NY rev (3m)3.32%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)4.21%
Revenue NY rev (1m)3.61%
Revenue NY rev (3m)4.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.77 | ||
| Fwd PE | 28.49 | ||
| P/S | 7.17 | ||
| P/FCF | 46.03 | ||
| P/OCF | 37.8 | ||
| P/B | 3.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.92 |
EPS(TTM)10.3
EY2.72%
EPS(NY)13.29
Fwd EY3.51%
FCF(TTM)8.23
FCFY2.17%
OCF(TTM)10.02
OCFY2.65%
SpS52.79
BVpS98.75
TBVpS-2.24
PEG (NY)2.27
PEG (5Y)2.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.15% | ||
| ROE | 7.91% | ||
| ROCE | 8.46% | ||
| ROIC | 6.73% | ||
| ROICexc | 6.94% | ||
| ROICexgc | 26.53% | ||
| OM | 22.58% | ||
| PM (TTM) | 14.8% | ||
| GM | 44.26% | ||
| FCFM | 15.59% |
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-Score8
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.55 | ||
| Debt/EBITDA | 1.84 | ||
| Cap/Depr | 47.24% | ||
| Cap/Sales | 3.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.78% | ||
| Profit Quality | 105.31% | ||
| Current Ratio | 3.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 5.58 |
F-Score8
WACC9.82%
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)14.06%
EPS 3Y36.99%
EPS 5Y14.51%
EPS Q2Q%11.81%
EPS Next Y16.2%
EPS Next 2Y15.29%
EPS Next 3Y14.27%
EPS Next 5YN/A
Revenue 1Y (TTM)5.48%
Revenue growth 3Y20.17%
Revenue growth 5Y17.6%
Sales Q2Q%7.31%
Revenue Next Year12.68%
Revenue Next 2Y11.56%
Revenue Next 3Y10.18%
Revenue Next 5YN/A
EBIT growth 1Y5.08%
EBIT growth 3Y34.37%
EBIT growth 5Y18.7%
EBIT Next Year53.72%
EBIT Next 3Y24.99%
EBIT Next 5YN/A
FCF growth 1Y42.3%
FCF growth 3Y17.44%
FCF growth 5Y15.56%
OCF growth 1Y41.6%
OCF growth 3Y17.65%
OCF growth 5Y13.54%