RBC BEARINGS INC (RBC) Stock Fundamental Analysis
NYSE:RBC - New York Stock Exchange, Inc. - US75524B1044 - Common Stock - Currency: USD
Taking everything into account, RBC scores 5 out of 10 in our fundamental rating. RBC was compared to 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.
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
RBC has a Return On Assets (4.99%) which is in line with its industry peers.
The Return On Equity of RBC (7.71%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 6.76%, RBC is in line with its industry, outperforming 46.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RBC is below the industry average of 10.69%.
The last Return On Invested Capital (6.76%) for RBC is above the 3 year average (6.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.99% | ||
| ROE | 7.71% | ||
| ROIC | 6.76% |
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 has a Profit Margin of 14.29%. This is amongst the best in the industry. RBC outperforms 84.38% of its industry peers.
RBC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 22.69%, RBC belongs to the best of the industry, outperforming 92.97% of the companies in the same industry.
RBC's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 44.37%, RBC belongs to the best of the industry, outperforming 82.03% 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 | 22.69% | ||
| PM (TTM) | 14.29% | ||
| GM | 44.37% |
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
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 5.46 indicates that RBC is not in any danger for bankruptcy at the moment.
RBC's Altman-Z score of 5.46 is fine compared to the rest of the industry. RBC outperforms 78.91% of its industry peers.
RBC has a debt to FCF ratio of 3.80. This is a good value and a sign of high solvency as RBC would need 3.80 years to pay back of all of its debts.
RBC has a Debt to FCF ratio (3.80) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.30 indicates that RBC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.30, RBC is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 5.46 |
ROIC/WACC0.68
WACC10.01%
2.3 Liquidity
A Current Ratio of 3.26 indicates that RBC has no problem at all paying its short term obligations.
RBC's Current ratio of 3.26 is amongst the best of the industry. RBC outperforms 80.47% of its industry peers.
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.
RBC has a Quick ratio (1.18) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.26 | ||
| 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 16.01%, 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.
The Revenue has been growing slightly by 4.87% in the past year.
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)16.01%
EPS 3Y36.99%
EPS 5Y14.51%
EPS Q2Q%14.57%
Revenue 1Y (TTM)4.87%
Revenue growth 3Y20.17%
Revenue growth 5Y17.6%
Sales Q2Q%5.81%
3.2 Future
The Earnings Per Share is expected to grow by 10.34% on average over the next years. This is quite good.
RBC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.83% yearly.
EPS Next Y12.47%
EPS Next 2Y11.88%
EPS Next 3Y10.34%
EPS Next 5YN/A
Revenue Next Year7.61%
Revenue Next 2Y7.76%
Revenue Next 3Y7.83%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
RBC is valuated quite expensively with a Price/Earnings ratio of 37.05.
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.
The average S&P500 Price/Earnings ratio is at 26.32. RBC is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 32.95, RBC can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward 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.
RBC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.06 | ||
| Fwd PE | 32.95 |
4.2 Price Multiples
70.31% of the companies in the same industry are cheaper than RBC, based on the Enterprise Value to EBITDA ratio.
RBC's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. RBC is more expensive than 67.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.85 | ||
| EV/EBITDA | 25.55 |
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.
PEG (NY)2.97
PEG (5Y)2.55
EPS Next 2Y11.88%
EPS Next 3Y10.34%
5. Dividend
5.1 Amount
No dividends for RBC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
370.55
-1.2 (-0.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.84%
Inst Owner Change1.4%
Ins Owners1.64%
Ins Owner Change-2.94%
Market Cap11.66B
Analysts76.36
Price Target405.96 (9.56%)
Short Float %1.66%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.56
Dividend Growth(5Y)N/A
DP7.36%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.48%
Min EPS beat(2)3.72%
Max EPS beat(2)5.24%
EPS beat(4)3
Avg EPS beat(4)3.18%
Min EPS beat(4)-1.24%
Max EPS beat(4)5.24%
EPS beat(8)6
Avg EPS beat(8)2.76%
EPS beat(12)9
Avg EPS beat(12)4.19%
EPS beat(16)12
Avg EPS beat(16)4.44%
Revenue beat(2)0
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-1.57%
Max Revenue beat(2)-0.63%
Revenue beat(4)0
Avg Revenue beat(4)-2.08%
Min Revenue beat(4)-3.51%
Max Revenue beat(4)-0.63%
Revenue beat(8)0
Avg Revenue beat(8)-1.86%
Revenue beat(12)2
Avg Revenue beat(12)-1.49%
Revenue beat(16)4
Avg Revenue beat(16)-1.02%
PT rev (1m)4.46%
PT rev (3m)2.58%
EPS NQ rev (1m)-1.62%
EPS NQ rev (3m)-1.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-0.01%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.06 | ||
| Fwd PE | 32.95 | ||
| P/S | 7.13 | ||
| P/FCF | 47.85 | ||
| P/OCF | 39.73 | ||
| P/B | 3.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.55 |
EPS(TTM)10
EY2.7%
EPS(NY)11.25
Fwd EY3.04%
FCF(TTM)7.74
FCFY2.09%
OCF(TTM)9.33
OCFY2.52%
SpS51.98
BVpS96.3
TBVpS-5.27
PEG (NY)2.97
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.99% | ||
| ROE | 7.71% | ||
| ROCE | 8.5% | ||
| ROIC | 6.76% | ||
| ROICexc | 6.82% | ||
| ROICexgc | 26.01% | ||
| OM | 22.69% | ||
| PM (TTM) | 14.29% | ||
| GM | 44.37% | ||
| FCFM | 14.9% |
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-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.8 | ||
| Debt/EBITDA | 1.87 | ||
| Cap/Depr | 41.5% | ||
| Cap/Sales | 3.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.76% | ||
| Profit Quality | 104.28% | ||
| Current Ratio | 3.26 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 5.46 |
F-Score7
WACC10.01%
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)16.01%
EPS 3Y36.99%
EPS 5Y14.51%
EPS Q2Q%14.57%
EPS Next Y12.47%
EPS Next 2Y11.88%
EPS Next 3Y10.34%
EPS Next 5YN/A
Revenue 1Y (TTM)4.87%
Revenue growth 3Y20.17%
Revenue growth 5Y17.6%
Sales Q2Q%5.81%
Revenue Next Year7.61%
Revenue Next 2Y7.76%
Revenue Next 3Y7.83%
Revenue Next 5YN/A
EBIT growth 1Y7.47%
EBIT growth 3Y34.37%
EBIT growth 5Y18.7%
EBIT Next Year48.63%
EBIT Next 3Y22.36%
EBIT Next 5YN/A
FCF growth 1Y0.95%
FCF growth 3Y17.44%
FCF growth 5Y15.56%
OCF growth 1Y6.88%
OCF growth 3Y17.65%
OCF growth 5Y13.54%