RBC BEARINGS INC (RBC) Stock Fundamental Analysis
USA - NYSE:RBC - US75524B1044 - Common Stock
407.3 USD
+13.42 (+3.41%)
407.3 USD
0 (0%)
Taking everything into account, RBC scores 5 out of 10 in our fundamental rating. RBC was compared to 130 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making RBC a very profitable company, without any liquidiy or solvency issues. RBC is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, RBC could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year RBC was profitable.
RBC had a positive operating cash flow in the past year.
RBC had positive earnings in each of the past 5 years.
RBC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 5.15%, RBC perfoms like the industry average, outperforming 56.92% of the companies in the same industry.
The Return On Equity of RBC (7.91%) is comparable to the rest of the industry.
RBC's Return On Invested Capital of 6.73% is in line compared to the rest of the industry. RBC outperforms 50.77% 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 10.00%.
The last Return On Invested Capital (6.73%) for RBC is above the 3 year average (6.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.15% | ||
| ROE | 7.91% | ||
| ROIC | 6.73% |
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
Looking at the Profit Margin, with a value of 14.80%, RBC belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
RBC's Profit Margin has declined in the last couple of years.
RBC has a Operating Margin of 22.58%. This is amongst the best in the industry. RBC outperforms 95.38% of its industry peers.
In the last couple of years the Operating Margin of RBC has remained more or less at the same level.
RBC's Gross Margin of 44.26% is amongst the best of the industry. RBC outperforms 82.31% of its industry peers.
In the last couple of years the Gross Margin of RBC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.58% | ||
| PM (TTM) | 14.8% | ||
| GM | 44.26% |
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
RBC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, RBC has more shares outstanding
RBC has more shares outstanding than it did 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 5.71. This indicates that RBC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RBC (5.71) is better than 83.08% of its industry peers.
The Debt to FCF ratio of RBC is 3.55, which is a good value as it means it would take RBC, 3.55 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RBC (3.55) is better than 64.62% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that RBC is not too dependend on debt financing.
The Debt to Equity ratio of RBC (0.29) is better than 62.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 5.71 |
ROIC/WACC0.72
WACC9.29%
2.3 Liquidity
A Current Ratio of 3.33 indicates that RBC has no problem at all paying its short term obligations.
RBC has a Current ratio of 3.33. This is amongst the best in the industry. RBC outperforms 82.31% of its industry peers.
RBC has a Quick Ratio of 1.33. 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 1.33 is in line compared to the rest of the industry. RBC outperforms 56.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.06% over the past year.
The Earnings Per Share has been growing by 14.51% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.48% in the past year.
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)14.06%
EPS 3Y36.99%
EPS 5Y14.51%
EPS Q2Q%11.81%
Revenue 1Y (TTM)5.48%
Revenue growth 3Y20.17%
Revenue growth 5Y17.6%
Sales Q2Q%7.31%
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 14.27% yearly.
Based on estimates for the next years, RBC will show a quite strong growth in Revenue. The Revenue will grow by 10.18% on average per year.
EPS Next Y16.34%
EPS Next 2Y15.29%
EPS Next 3Y14.27%
EPS Next 5YN/A
Revenue Next Year12.68%
Revenue Next 2Y11.56%
Revenue Next 3Y10.18%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 39.54, the valuation of RBC can be described as expensive.
RBC's Price/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.
RBC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.67.
Based on the Price/Forward Earnings ratio of 30.64, the valuation of RBC can be described as expensive.
Based on the Price/Forward Earnings ratio, RBC is valued a bit more expensive than the industry average as 66.15% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 23.33. RBC is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.54 | ||
| Fwd PE | 30.64 |
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 70.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RBC is valued a bit more expensive than 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.5 | ||
| EV/EBITDA | 26.66 |
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 14.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.42
PEG (5Y)2.73
EPS Next 2Y15.29%
EPS Next 3Y14.27%
5. Dividend
5.1 Amount
RBC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
407.3
+13.42 (+3.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners102.55%
Inst Owner Change-0.16%
Ins Owners1.63%
Ins Owner Change-0.39%
Market Cap12.85B
Revenue(TTM)1.67B
Net Income(TTM)246.60M
Analysts76.36
Price Target455.77 (11.9%)
Short Float %1.18%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.56
Dividend Growth(5Y)N/A
DP4.66%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.11%
Min EPS beat(2)2.5%
Max EPS beat(2)3.72%
EPS beat(4)3
Avg EPS beat(4)2.56%
Min EPS beat(4)-1.24%
Max EPS beat(4)5.24%
EPS beat(8)6
Avg EPS beat(8)2.14%
EPS beat(12)9
Avg EPS beat(12)2.71%
EPS beat(16)12
Avg EPS beat(16)4.38%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-1.57%
Max Revenue beat(2)-0.11%
Revenue beat(4)0
Avg Revenue beat(4)-1.23%
Min Revenue beat(4)-2.6%
Max Revenue beat(4)-0.11%
Revenue beat(8)0
Avg Revenue beat(8)-1.67%
Revenue beat(12)2
Avg Revenue beat(12)-1.23%
Revenue beat(16)4
Avg Revenue beat(16)-0.86%
PT rev (1m)0%
PT rev (3m)3.83%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)0.75%
EPS NY rev (1m)0.12%
EPS NY rev (3m)1.74%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)5.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.54 | ||
| Fwd PE | 30.64 | ||
| P/S | 7.72 | ||
| P/FCF | 49.5 | ||
| P/OCF | 40.65 | ||
| P/B | 4.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.66 |
EPS(TTM)10.3
EY2.53%
EPS(NY)13.29
Fwd EY3.26%
FCF(TTM)8.23
FCFY2.02%
OCF(TTM)10.02
OCFY2.46%
SpS52.79
BVpS98.75
TBVpS-2.24
PEG (NY)2.42
PEG (5Y)2.73
Graham Number151.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.15% | ||
| ROE | 7.91% | ||
| ROCE | 8.46% | ||
| ROIC | 6.73% | ||
| ROICexc | 6.94% | ||
| ROICexgc | 26.53% | ||
| OM | 22.58% | ||
| PM (TTM) | 14.8% | ||
| GM | 44.26% | ||
| FCFM | 15.59% |
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-Score8
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.55 | ||
| Debt/EBITDA | 1.84 | ||
| Cap/Depr | 47.24% | ||
| Cap/Sales | 3.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.78% | ||
| Profit Quality | 105.31% | ||
| Current Ratio | 3.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 5.71 |
F-Score8
WACC9.29%
ROIC/WACC0.72
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)14.06%
EPS 3Y36.99%
EPS 5Y14.51%
EPS Q2Q%11.81%
EPS Next Y16.34%
EPS Next 2Y15.29%
EPS Next 3Y14.27%
EPS Next 5YN/A
Revenue 1Y (TTM)5.48%
Revenue growth 3Y20.17%
Revenue growth 5Y17.6%
Sales Q2Q%7.31%
Revenue Next Year12.68%
Revenue Next 2Y11.56%
Revenue Next 3Y10.18%
Revenue Next 5YN/A
EBIT growth 1Y5.08%
EBIT growth 3Y34.37%
EBIT growth 5Y18.7%
EBIT Next Year54.45%
EBIT Next 3Y24.99%
EBIT Next 5YN/A
FCF growth 1Y42.3%
FCF growth 3Y17.44%
FCF growth 5Y15.56%
OCF growth 1Y41.6%
OCF growth 3Y17.65%
OCF growth 5Y13.54%