RBC BEARINGS INC (RBC) Stock Fundamental Analysis
NYSE:RBC - New York Stock Exchange, Inc. - US75524B1044 - Common Stock - Currency: USD
Overall RBC gets a fundamental rating of 5 out of 10. We evaluated RBC against 128 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.
In the past year RBC had a positive cash flow from operations.
In the past 5 years RBC has always been profitable.
Each year in the past 5 years RBC had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 4.65%, RBC perfoms like the industry average, outperforming 51.56% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.38%, RBC is in line with its industry, outperforming 46.88% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.70%, RBC is in line with its industry, outperforming 47.66% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RBC is significantly below the industry average of 10.67%.
The 3 year average ROIC (4.85%) for RBC is below the current ROIC(6.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.65% | ||
| ROE | 7.38% | ||
| ROIC | 6.7% |
ROA(3y)2.65%
ROA(5y)4.75%
ROE(3y)4.75%
ROE(5y)6.57%
ROIC(3y)4.85%
ROIC(5y)6.38%
1.3 Margins
RBC has a better Profit Margin (13.46%) than 85.16% of its industry peers.
RBC's Profit Margin has declined in the last couple of years.
RBC has a Operating Margin of 22.75%. This is amongst the best in the industry. RBC outperforms 93.75% of its industry peers.
In the last couple of years the Operating Margin of RBC has remained more or less at the same level.
The Gross Margin of RBC (44.10%) is better than 80.47% of its industry peers.
In the last couple of years the Gross Margin of RBC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.75% | ||
| PM (TTM) | 13.46% | ||
| GM | 44.1% |
OM growth 3Y4.35%
OM growth 5Y0.9%
PM growth 3Y-6.8%
PM growth 5Y-4.37%
GM growth 3Y3.79%
GM growth 5Y1.76%
2. Health
2.1 Basic Checks
RBC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 4.72. This indicates that RBC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.72, RBC is in the better half of the industry, outperforming 77.34% of the companies in the same industry.
RBC has a debt to FCF ratio of 3.89. This is a good value and a sign of high solvency as RBC would need 3.89 years to pay back of all of its debts.
RBC has a Debt to FCF ratio (3.89) which is in line with 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 (0.34) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.89 | ||
| Altman-Z | 4.72 |
ROIC/WACC0.67
WACC10.01%
2.3 Liquidity
RBC has a Current Ratio of 3.43. 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 3.43, RBC belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
RBC has a Quick Ratio of 1.18. This is a normal value and indicates that RBC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.18, RBC is in line with its industry, outperforming 46.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.43 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
RBC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.43%, 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 12.19% on average per year.
Looking at the last year, RBC shows a small growth in Revenue. The Revenue has grown by 4.63% in the last year.
The Revenue has been growing by 17.30% on average over the past years. This is quite good.
EPS 1Y (TTM)16.43%
EPS 3Y30.71%
EPS 5Y12.19%
EPS Q2Q%26.49%
Revenue 1Y (TTM)4.63%
Revenue growth 3Y36.83%
Revenue growth 5Y17.3%
Sales Q2Q%5.48%
3.2 Future
RBC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.24% yearly.
Based on estimates for the next years, RBC will show a small growth in Revenue. The Revenue will grow by 6.86% on average per year.
EPS Next Y15.55%
EPS Next 2Y14.26%
EPS Next 3Y13.24%
EPS Next 5YN/A
Revenue Next Year5.14%
Revenue Next 2Y6.58%
Revenue Next 3Y6.86%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.37, which means the current valuation is very expensive for RBC.
Based on the Price/Earnings ratio, RBC is valued a bit more expensive than 70.31% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, RBC is valued at the same level.
Based on the Price/Forward Earnings ratio of 28.58, 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 61.72% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.08. RBC is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.37 | ||
| Fwd PE | 28.58 |
4.2 Price Multiples
RBC's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RBC is more expensive than 68.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RBC is valued a bit more expensive than the industry average as 63.28% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.08 | ||
| EV/EBITDA | 22.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 13.24% in the coming years.
PEG (NY)2.15
PEG (5Y)2.74
EPS Next 2Y14.26%
EPS Next 3Y13.24%
5. Dividend
5.1 Amount
No dividends for RBC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
321.68
+1.71 (+0.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.33%
Inst Owner Change0%
Ins Owners1.67%
Ins Owner Change-2.41%
Market Cap10.11B
Analysts76.36
Price Target395.76 (23.03%)
Short Float %1.66%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.79
Dividend Growth(5Y)-16.49%
DP10.55%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2%
Min EPS beat(2)-1.24%
Max EPS beat(2)5.24%
EPS beat(4)3
Avg EPS beat(4)3.12%
Min EPS beat(4)-1.24%
Max EPS beat(4)5.24%
EPS beat(8)6
Avg EPS beat(8)3.06%
EPS beat(12)9
Avg EPS beat(12)4.67%
EPS beat(16)12
Avg EPS beat(16)4.33%
Revenue beat(2)0
Avg Revenue beat(2)-1.61%
Min Revenue beat(2)-2.6%
Max Revenue beat(2)-0.63%
Revenue beat(4)0
Avg Revenue beat(4)-1.92%
Min Revenue beat(4)-3.51%
Max Revenue beat(4)-0.63%
Revenue beat(8)1
Avg Revenue beat(8)-1.37%
Revenue beat(12)3
Avg Revenue beat(12)-1.23%
Revenue beat(16)4
Avg Revenue beat(16)-0.92%
PT rev (1m)0%
PT rev (3m)14.01%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)1.06%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)1.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.37 | ||
| Fwd PE | 28.58 | ||
| P/S | 6.27 | ||
| P/FCF | 39.08 | ||
| P/OCF | 33.28 | ||
| P/B | 3.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.74 |
EPS(TTM)9.64
EY3%
EPS(NY)11.25
Fwd EY3.5%
FCF(TTM)8.23
FCFY2.56%
OCF(TTM)9.67
OCFY3%
SpS51.28
BVpS93.49
TBVpS-8.72
PEG (NY)2.15
PEG (5Y)2.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.65% | ||
| ROE | 7.38% | ||
| ROCE | 8.39% | ||
| ROIC | 6.7% | ||
| ROICexc | 6.79% | ||
| ROICexgc | 26.64% | ||
| OM | 22.75% | ||
| PM (TTM) | 13.46% | ||
| GM | 44.1% | ||
| FCFM | 16.05% |
ROA(3y)2.65%
ROA(5y)4.75%
ROE(3y)4.75%
ROE(5y)6.57%
ROIC(3y)4.85%
ROIC(5y)6.38%
ROICexc(3y)4.95%
ROICexc(5y)6.94%
ROICexgc(3y)21.25%
ROICexgc(5y)19.3%
ROCE(3y)6.07%
ROCE(5y)8%
ROICexcg growth 3Y22.94%
ROICexcg growth 5Y6.11%
ROICexc growth 3Y-9.38%
ROICexc growth 5Y-11.2%
OM growth 3Y4.35%
OM growth 5Y0.9%
PM growth 3Y-6.8%
PM growth 5Y-4.37%
GM growth 3Y3.79%
GM growth 5Y1.76%
F-Score8
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.89 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 37.71% | ||
| Cap/Sales | 2.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.48% | ||
| Profit Quality | 119.26% | ||
| Current Ratio | 3.43 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 4.72 |
F-Score8
WACC10.01%
ROIC/WACC0.67
Cap/Depr(3y)36.57%
Cap/Depr(5y)52.92%
Cap/Sales(3y)2.72%
Cap/Sales(5y)3.04%
Profit Quality(3y)201.96%
Profit Quality(5y)171.18%
High Growth Momentum
Growth
EPS 1Y (TTM)16.43%
EPS 3Y30.71%
EPS 5Y12.19%
EPS Q2Q%26.49%
EPS Next Y15.55%
EPS Next 2Y14.26%
EPS Next 3Y13.24%
EPS Next 5YN/A
Revenue 1Y (TTM)4.63%
Revenue growth 3Y36.83%
Revenue growth 5Y17.3%
Sales Q2Q%5.48%
Revenue Next Year5.14%
Revenue Next 2Y6.58%
Revenue Next 3Y6.86%
Revenue Next 5YN/A
EBIT growth 1Y8.75%
EBIT growth 3Y42.78%
EBIT growth 5Y18.35%
EBIT Next Year50.15%
EBIT Next 3Y21.54%
EBIT Next 5YN/A
FCF growth 1Y63.18%
FCF growth 3Y19.73%
FCF growth 5Y29.15%
OCF growth 1Y54.89%
OCF growth 3Y21.67%
OCF growth 5Y20.42%