RBC BEARINGS INC (RBC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RBC - US75524B1044 - Common Stock
440.04 USD
-1.72 (-0.39%)
440.53 USD
+0.49 (+0.11%)
Overall RBC gets a fundamental rating of 5 out of 10. We evaluated RBC against 130 industry peers in the Machinery industry. While RBC has a great profitability rating, 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.
RBC had a positive operating cash flow in the past year.
Each year in the past 5 years RBC has been profitable.
Each year in the past 5 years RBC had a positive operating cash flow.
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 of 6.57%. This is comparable to the rest of the industry: RBC outperforms 51.54% of its industry peers.
RBC had an Average Return On Invested Capital over the past 3 years of 6.19%. This is below the industry average of 10.39%.
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
The Profit Margin of RBC (14.98%) is better 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.
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 44.34%, RBC belongs to the top 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.
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 5.55 indicates that RBC is not in any danger for bankruptcy at the moment.
The Altman-Z score of RBC (5.55) is better than 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 Debt to FCF ratio of 3.54. This is in the better half of the industry: RBC outperforms 66.15% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that RBC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.34, RBC is in the better half of 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 | 5.55 |
ROIC/WACC0.7
WACC9.32%
2.3 Liquidity
A Current Ratio of 3.18 indicates that RBC has no problem at all paying its short term obligations.
RBC has a Current ratio of 3.18. This is in the better half of the industry: RBC outperforms 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's Quick ratio of 1.13 is in line compared to the rest of the industry. RBC outperforms 44.62% of 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.
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%.
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
The Earnings Per Share is expected to grow by 15.08% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.63% on average over the next years. This is quite good.
EPS Next Y17.16%
EPS Next 2Y15.73%
EPS Next 3Y15.08%
EPS Next 5YN/A
Revenue Next Year12.92%
Revenue Next 2Y11.88%
Revenue Next 3Y10.63%
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
Based on the Price/Earnings ratio of 40.41, the valuation of RBC can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of RBC indicates a slightly more expensive valuation: RBC is more expensive than 65.38% of the companies listed in the same industry.
RBC is valuated expensively when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 32.86 indicates a quite expensive valuation of RBC.
Based on the Price/Forward Earnings ratio, RBC is valued a bit more expensive than the industry average as 68.46% of the companies are valued more cheaply.
RBC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.41 | ||
| Fwd PE | 32.86 |
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.
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 63.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.67 | ||
| EV/EBITDA | 29.02 |
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.
A more expensive valuation may be justified as RBC's earnings are expected to grow with 15.08% in the coming years.
PEG (NY)2.35
PEG (5Y)2.79
EPS Next 2Y15.73%
EPS Next 3Y15.08%
5. Dividend
5.1 Amount
No dividends for RBC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
440.04
-1.72 (-0.39%)
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-3.19%
Market Cap13.91B
Revenue(TTM)1.72B
Net Income(TTM)258.10M
Analysts76.36
Price Target493.68 (12.19%)
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)8.32%
PT rev (3m)8.32%
EPS NQ rev (1m)2.16%
EPS NQ rev (3m)2.16%
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 | 40.41 | ||
| Fwd PE | 32.86 | ||
| P/S | 8.07 | ||
| P/FCF | 45.67 | ||
| P/OCF | 38.47 | ||
| P/B | 4.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.02 |
EPS(TTM)10.89
EY2.47%
EPS(NY)13.39
Fwd EY3.04%
FCF(TTM)9.64
FCFY2.19%
OCF(TTM)11.44
OCFY2.6%
SpS54.52
BVpS100.83
TBVpS-6.72
PEG (NY)2.35
PEG (5Y)2.79
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 | 5.55 |
F-Score6
WACC9.32%
ROIC/WACC0.7
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 3Y15.08%
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 3Y10.63%
Revenue Next 5YN/A
EBIT growth 1Y9.65%
EBIT growth 3Y34.37%
EBIT growth 5Y18.7%
EBIT Next Year54.45%
EBIT Next 3Y25.37%
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 40.41 and the Price/Book (PB) ratio is 4.36.
Can you provide the financial health for RBC stock?
The financial health rating of RBC BEARINGS INC (RBC) is 6 / 10.