RBC BEARINGS INC (RBC) Stock Fundamental Analysis
USA - NYSE:RBC - US75524B1044 - Common Stock
375.1 USD
-9.98 (-2.59%)
375.1 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to RBC. RBC was compared to 128 industry peers in the Machinery industry. RBC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, RBC is valued expensive at the moment. These ratings could make RBC a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
RBC had positive earnings in the past year.
In the past year RBC had a positive cash flow from operations.
In the past 5 years RBC has always been profitable.
In the past 5 years RBC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RBC (5.15%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 7.91%, RBC is in line with its industry, outperforming 49.22% of the companies in the same industry.
RBC has a Return On Invested Capital (6.73%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RBC is below the industry average of 10.02%.
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
RBC's Profit Margin of 14.80% is amongst the best of the industry. RBC outperforms 88.28% of its industry peers.
In the last couple of years the Profit Margin of RBC has declined.
The Operating Margin of RBC (22.58%) is better than 96.09% 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 has a better Gross Margin (44.26%) than 82.03% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RBC is destroying value.
RBC has more shares outstanding than it did 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
An Altman-Z score of 5.49 indicates that RBC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.49, RBC belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
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 62.50% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that RBC is not too dependend on debt financing.
RBC has a Debt to Equity ratio of 0.29. This is in the better half of the industry: RBC outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 5.49 |
ROIC/WACC0.68
WACC9.86%
2.3 Liquidity
RBC has a Current Ratio of 3.33. 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 3.33, RBC belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
A Quick Ratio of 1.33 indicates that RBC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.33, RBC perfoms like the industry average, outperforming 57.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
RBC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.06%, which is quite good.
RBC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.51% yearly.
Looking at the last year, RBC shows a small growth in Revenue. The Revenue has grown by 5.48% in the last year.
The Revenue has been growing by 17.60% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 10.18% on average over the next years. This is quite good.
EPS Next Y16.2%
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
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
With a Price/Earnings ratio of 36.42, RBC can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of RBC indicates a slightly more expensive valuation: RBC is more expensive than 67.97% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RBC to the average of the S&P500 Index (27.30), we can say RBC is valued slightly more expensively.
RBC is valuated quite expensively with a Price/Forward Earnings ratio of 28.22.
Based on the Price/Forward Earnings ratio, RBC is valued a bit more expensive than the industry average as 64.84% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, RBC is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.42 | ||
| Fwd PE | 28.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RBC is valued a bit more expensive than 71.88% of the companies in the same industry.
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 67.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.58 | ||
| EV/EBITDA | 25.47 |
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.
RBC's earnings are expected to grow with 14.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.25
PEG (5Y)2.51
EPS Next 2Y15.29%
EPS Next 3Y14.27%
5. Dividend
5.1 Amount
No dividends for RBC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
375.1
-9.98 (-2.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.58%
Inst Owner Change3.47%
Ins Owners1.63%
Ins Owner Change-0.38%
Market Cap11.84B
Analysts75
Price Target455.77 (21.51%)
Short Float %1.09%
Short Ratio1.89
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)2.09%
PT rev (3m)12.27%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)0.54%
EPS NY rev (1m)1.62%
EPS NY rev (3m)3.32%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)4.21%
Revenue NY rev (1m)3.61%
Revenue NY rev (3m)4.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.42 | ||
| Fwd PE | 28.22 | ||
| P/S | 7.11 | ||
| P/FCF | 45.58 | ||
| P/OCF | 37.44 | ||
| P/B | 3.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.47 |
EPS(TTM)10.3
EY2.75%
EPS(NY)13.29
Fwd EY3.54%
FCF(TTM)8.23
FCFY2.19%
OCF(TTM)10.02
OCFY2.67%
SpS52.79
BVpS98.75
TBVpS-2.24
PEG (NY)2.25
PEG (5Y)2.51
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%
ROICexcg growth 3Y25.95%
ROICexcg 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 | 5.49 |
F-Score8
WACC9.86%
ROIC/WACC0.68
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 Y16.2%
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 Year53.72%
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%