RBC BEARINGS INC (RBC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RBC - US75524B1044 - Common Stock
460.17 USD
+2.02 (+0.44%)
460.17 USD
0 (0%)
Overall RBC gets a fundamental rating of 5 out of 10. We evaluated RBC against 130 industry peers in the Machinery industry. RBC has an excellent profitability rating, but there are some minor concerns on its financial health. RBC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RBC was profitable.
RBC had a positive operating cash flow in the past year.
Each year in the past 5 years RBC has been profitable.
In the past 5 years RBC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RBC (5.05%) is comparable to the rest of the industry.
RBC has a Return On Equity (8.10%) which is comparable to the rest of the industry.
RBC has a Return On Invested Capital (6.57%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for RBC is below the industry average of 10.46%.
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
RBC has a better Profit Margin (14.98%) than 86.15% of its industry peers.
In the last couple of years the Profit Margin of RBC has declined.
The Operating Margin of RBC (22.68%) is better than 96.15% of its industry peers.
In the last couple of years the Operating Margin of RBC has remained more or less at the same level.
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.
RBC's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RBC is destroying value.
Compared to 1 year ago, RBC has more shares outstanding
The number of shares outstanding for RBC has been increased compared to 5 years ago.
Compared to 1 year ago, RBC has an improved debt to assets ratio.
2.2 Solvency
RBC has an Altman-Z score of 5.73. This indicates that RBC is financially healthy and has little risk of bankruptcy at the moment.
RBC's Altman-Z score of 5.73 is amongst the best of the industry. RBC outperforms 82.31% of its industry peers.
The Debt to FCF ratio of RBC is 3.54, which is a good value as it means it would take RBC, 3.54 years of fcf income to pay off all of its debts.
RBC's Debt to FCF ratio of 3.54 is fine compared to the rest of the industry. RBC outperforms 63.85% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that RBC is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.34, RBC perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.54 | ||
| Altman-Z | 5.73 |
ROIC/WACC0.69
WACC9.5%
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.
Looking at the Current ratio, with a value of 3.18, RBC is in the better half of the industry, outperforming 79.23% of the companies in the same industry.
A Quick Ratio of 1.13 indicates that RBC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.13, RBC perfoms like the industry average, outperforming 45.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.18 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
RBC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.02%, which is quite good.
Measured over the past years, RBC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.51% on average per year.
Looking at the last year, RBC shows a quite strong growth in Revenue. The Revenue has grown by 8.27% in the last year.
The Revenue has been growing by 17.60% on average over the past years. This is quite good.
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 14.80% 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 10.79% on average per year.
EPS Next Y17.23%
EPS Next 2Y16.18%
EPS Next 3Y14.8%
EPS Next 5YN/A
Revenue Next Year13.29%
Revenue Next 2Y12.07%
Revenue Next 3Y10.79%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 42.26, RBC can be considered very expensive at the moment.
65.38% of the companies in the same industry are cheaper than RBC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.54, RBC is valued quite expensively.
Based on the Price/Forward Earnings ratio of 34.09, the valuation of RBC can be described as expensive.
RBC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RBC is more expensive than 65.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, RBC is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.26 | ||
| Fwd PE | 34.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RBC is valued a bit more expensive than the industry average as 72.31% 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 62.31% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.75 | ||
| EV/EBITDA | 30.14 |
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.
RBC's earnings are expected to grow with 14.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.45
PEG (5Y)2.91
EPS Next 2Y16.18%
EPS Next 3Y14.8%
5. Dividend
5.1 Amount
No dividends for RBC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
460.17
+2.02 (+0.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners102.34%
Inst Owner Change4.14%
Ins Owners1.63%
Ins Owner Change-1.65%
Market Cap14.55B
Revenue(TTM)1.72B
Net Income(TTM)258.10M
Analysts80
Price Target493.68 (7.28%)
Short Float %1.14%
Short Ratio1.67
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)8.2%
PT rev (3m)8.32%
EPS NQ rev (1m)0.87%
EPS NQ rev (3m)2.28%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.26 | ||
| Fwd PE | 34.09 | ||
| P/S | 8.44 | ||
| P/FCF | 47.75 | ||
| P/OCF | 40.23 | ||
| P/B | 4.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.14 |
EPS(TTM)10.89
EY2.37%
EPS(NY)13.5
Fwd EY2.93%
FCF(TTM)9.64
FCFY2.09%
OCF(TTM)11.44
OCFY2.49%
SpS54.52
BVpS100.83
TBVpS-6.72
PEG (NY)2.45
PEG (5Y)2.91
Graham Number157.18
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 | 5.73 |
F-Score6
WACC9.5%
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)19.02%
EPS 3Y36.99%
EPS 5Y14.51%
EPS Q2Q%25.76%
EPS Next Y17.23%
EPS Next 2Y16.18%
EPS Next 3Y14.8%
EPS Next 5YN/A
Revenue 1Y (TTM)8.27%
Revenue growth 3Y20.17%
Revenue growth 5Y17.6%
Sales Q2Q%14.43%
Revenue Next Year13.29%
Revenue Next 2Y12.07%
Revenue Next 3Y10.79%
Revenue Next 5YN/A
EBIT growth 1Y9.65%
EBIT growth 3Y34.37%
EBIT growth 5Y18.7%
EBIT Next Year56.03%
EBIT Next 3Y24.91%
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 42.26 and the Price/Book (PB) ratio is 4.56.
Can you provide the financial health for RBC stock?
The financial health rating of RBC BEARINGS INC (RBC) is 6 / 10.