We assign a fundamental rating of 5 out of 10 to RBC. RBC was compared to 132 industry peers in the Machinery industry. While RBC has a great profitability rating, 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.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
RBC had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

RBC has a Return On Assets (5.05%) which is comparable to the rest of the industry.
RBC's Return On Equity of 8.10% is in line compared to the rest of the industry. RBC outperforms 55.30% of its industry peers.
The Return On Invested Capital of RBC (6.57%) is comparable to the rest of the industry.
RBC had an Average Return On Invested Capital over the past 3 years of 6.19%. This is below the industry average of 10.24%.
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 87.12% 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 96.21% of its industry peers.
RBC's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 44.34%, RBC belongs to the best of the industry, outperforming 84.85% 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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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.
The number of shares outstanding for RBC has been increased compared to 5 years ago.
The debt/assets ratio for RBC has been reduced compared to a year ago.

2.2 Solvency

RBC has an Altman-Z score of 6.18. This indicates that RBC is financially healthy and has little risk of bankruptcy at the moment.
RBC has a Altman-Z score of 6.18. This is amongst the best in the industry. RBC outperforms 83.33% 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.
Looking at the Debt to FCF ratio, with a value of 3.54, RBC is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that RBC is not too dependend on debt financing.
RBC has a better Debt to Equity ratio (0.34) than 60.61% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.34
Debt/FCF	3.54
Altman-Z	6.18

ROIC/WACC0.69

WACC9.55%

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.
RBC has a Current ratio of 3.18. This is in the better half of the industry: RBC outperforms 79.55% of its industry peers.
A Quick Ratio of 1.13 indicates that RBC should not have too much problems paying its short term obligations.
RBC has a Quick ratio of 1.13. This is comparable to the rest of the industry: RBC outperforms 45.45% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.18
Quick Ratio	1.13

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

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.
The Earnings Per Share has been growing by 14.51% on average over the past years. This is quite good.
The Revenue has grown by 8.27% in the past year. This is quite good.
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

RBC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.46% yearly.
The Revenue is expected to grow by 10.99% on average over the next years. This is quite good.

EPS Next Y20.07%

EPS Next 2Y16.56%

EPS Next 3Y15.46%

EPS Next 5YN/A

Revenue Next Year13.35%

Revenue Next 2Y12.18%

Revenue Next 3Y10.99%

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 46.29, RBC can be considered very expensive at the moment.
Based on the Price/Earnings ratio, RBC is valued a bit more expensive than the industry average as 65.91% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.21, RBC is valued quite expensively.
With a Price/Forward Earnings ratio of 37.10, RBC can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, RBC is valued a bit more expensive than 65.91% of the companies in the same industry.
RBC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	46.29
Fwd PE	37.1

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, RBC is valued a bit more expensive than the industry average as 72.73% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, RBC is valued a bit more expensive than 63.64% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	52.31
EV/EBITDA	32.97

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 15.46% in the coming years.