RBC BEARINGS INC (RBC) Stock Fundamental Analysis
USA - NYSE:RBC - US75524B1044 - Common Stock
432.04 USD
+0.49 (+0.11%)
432.55 USD
+0.51 (+0.12%)
RBC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. RBC scores excellent on profitability, but 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.
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
RBC's Return On Assets of 5.05% is in line compared to the rest of the industry. RBC outperforms 57.69% of its industry peers.
RBC's Return On Equity of 8.10% is in line compared to the rest of the industry. RBC outperforms 51.54% of its industry peers.
RBC has a Return On Invested Capital (6.57%) 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 10.25%.
The 3 year average ROIC (6.19%) for RBC is below the current ROIC(6.57%), indicating increased profibility in the last year.
| 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 88.46% of its industry peers.
In the last couple of years the Profit Margin of RBC has declined.
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.
RBC has a Gross Margin of 44.34%. This is amongst the best in the industry. RBC outperforms 82.31% of its industry peers.
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
Compared to 5 years ago, RBC has more shares outstanding
Compared to 1 year ago, RBC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.47 indicates that RBC is not in any danger for bankruptcy at the moment.
The Altman-Z score of RBC (5.47) is better than 83.08% 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 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.
With a decent Debt to Equity ratio value of 0.34, RBC is doing good in the industry, outperforming 60.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.54 | ||
| Altman-Z | 5.47 |
ROIC/WACC0.69
WACC9.52%
2.3 Liquidity
A Current Ratio of 3.18 indicates that RBC has no problem at all paying 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 80.00% 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 43.85% of the companies in the same industry.
| 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.
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.
RBC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.27%.
RBC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.60% yearly.
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
The Earnings Per Share is expected to grow by 14.43% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.33% on average over the next years. This is quite good.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 39.67 indicates a quite expensive valuation of RBC.
Based on the Price/Earnings ratio, RBC is valued a bit more expensive than the industry average as 65.38% of the companies are valued more cheaply.
RBC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.89.
With a Price/Forward Earnings ratio of 32.26, 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 66.92% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RBC to the average of the S&P500 Index (34.59), we can say RBC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.67 | ||
| Fwd PE | 32.26 |
4.2 Price Multiples
72.31% of the companies in the same industry are cheaper than RBC, based on the Enterprise Value to EBITDA ratio.
RBC's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. RBC is more expensive than 63.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.76 | ||
| EV/EBITDA | 28.49 |
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.
RBC has a very decent profitability rating, which 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)2.31
PEG (5Y)2.73
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 |
432.04
+0.49 (+0.11%)
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-0.79%
Market Cap13.64B
Revenue(TTM)1.72B
Net Income(TTM)258.10M
Analysts76.36
Price Target456.28 (5.61%)
Short Float %1.06%
Short Ratio1.58
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)0.11%
PT rev (3m)2.21%
EPS NQ rev (1m)1.4%
EPS NQ rev (3m)1.36%
EPS NY rev (1m)0.71%
EPS NY rev (3m)2.46%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)3.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.67 | ||
| Fwd PE | 32.26 | ||
| P/S | 7.91 | ||
| P/FCF | 44.76 | ||
| P/OCF | 37.71 | ||
| P/B | 4.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.49 |
EPS(TTM)10.89
EY2.52%
EPS(NY)13.39
Fwd EY3.1%
FCF(TTM)9.65
FCFY2.23%
OCF(TTM)11.46
OCFY2.65%
SpS54.61
BVpS100.99
TBVpS-6.73
PEG (NY)2.31
PEG (5Y)2.73
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 | 5.47 |
F-Score6
WACC9.52%
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 Y17.16%
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 39.67 and the Price/Book (PB) ratio is 4.28.
Can you provide the financial health for RBC stock?
The financial health rating of RBC BEARINGS INC (RBC) is 6 / 10.