RBC BEARINGS INC (RBC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RBC - US75524B1044 - Common Stock
460.17 USD
+2.02 (+0.44%)
460.17 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to RBC. RBC was compared to 130 industry peers in the Machinery industry. RBC scores excellent on profitability, but there are some minor concerns on its financial health. RBC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
RBC had positive earnings in the past year.
RBC had a positive operating cash flow in the past year.
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
RBC has a Return On Assets of 5.05%. This is comparable to the rest of the industry: RBC outperforms 59.23% of its industry peers.
RBC's Return On Equity of 8.10% is in line compared to the rest of the industry. RBC outperforms 55.38% of its industry peers.
With a Return On Invested Capital value of 6.57%, RBC perfoms like the industry average, outperforming 50.77% of the companies in the same industry.
RBC had an Average Return On Invested Capital over the past 3 years of 6.19%. This is below the industry average of 10.46%.
The 3 year average ROIC (6.19%) for RBC is below the current ROIC(6.57%), indicating increased profibility in the last year.
| 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
RBC's Profit Margin of 14.98% is amongst the best of the industry. RBC outperforms 86.15% of its industry peers.
RBC's Profit Margin has declined in the last couple of years.
RBC has a better Operating Margin (22.68%) than 96.15% 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 (44.34%) is better than 83.08% of its industry peers.
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%
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.
RBC has more shares outstanding than it did 1 year ago.
RBC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RBC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.75 indicates that RBC is not in any danger for bankruptcy at the moment.
RBC has a better Altman-Z score (5.75) than 82.31% of its industry peers.
RBC has a debt to FCF ratio of 3.54. This is a good value and a sign of high solvency as RBC would need 3.54 years to pay back of all of its debts.
The Debt to FCF ratio of RBC (3.54) is better than 63.85% of 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.
The Debt to Equity ratio of RBC (0.34) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.54 | ||
| Altman-Z | 5.75 |
ROIC/WACC0.69
WACC9.54%
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.
The Current ratio of RBC (3.18) is better than 79.23% 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 (1.13) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.18 | ||
| Quick Ratio | 1.13 |
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.
RBC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.27%.
The Revenue has been growing by 17.60% on average over the past years. This is quite good.
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
Based on estimates for the next years, RBC will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.80% on average per year.
RBC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.79% yearly.
EPS Next Y17.23%
EPS Next 2Y16.18%
EPS Next 3Y14.8%
EPS Next 5YN/A
Revenue Next Year13.29%
Revenue Next 2Y12.07%
Revenue Next 3Y10.79%
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
The Price/Earnings ratio is 42.26, which means the current valuation is very expensive for RBC.
Compared to the rest of the industry, the Price/Earnings ratio of RBC indicates a slightly more expensive valuation: RBC is more expensive than 65.38% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.54. RBC is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 34.09, which means the current valuation is very expensive for RBC.
Based on the Price/Forward Earnings ratio, RBC is valued a bit more expensive than 66.15% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RBC to the average of the S&P500 Index (23.78), we can say RBC is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.26 | ||
| Fwd PE | 34.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RBC indicates a slightly more expensive valuation: RBC is more expensive than 72.31% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RBC is valued a bit more expensive than the industry average as 63.08% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.75 | ||
| EV/EBITDA | 30.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RBC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RBC's earnings are expected to grow with 14.80% in the coming years.
PEG (NY)2.45
PEG (5Y)2.91
EPS Next 2Y16.18%
EPS Next 3Y14.8%
5. Dividend
5.1 Amount
No dividends for RBC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
460.17
+2.02 (+0.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners102.34%
Inst Owner Change4.14%
Ins Owners1.63%
Ins Owner Change-1.65%
Market Cap14.55B
Revenue(TTM)1.72B
Net Income(TTM)258.10M
Analysts80
Price Target493.68 (7.28%)
Short Float %1.14%
Short Ratio1.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend0.56
Dividend Growth(5Y)N/A
DP2.21%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.39%
Min EPS beat(2)2.5%
Max EPS beat(2)4.29%
EPS beat(4)4
Avg EPS beat(4)3.94%
Min EPS beat(4)2.5%
Max EPS beat(4)5.24%
EPS beat(8)6
Avg EPS beat(8)2.05%
EPS beat(12)9
Avg EPS beat(12)2.55%
EPS beat(16)13
Avg EPS beat(16)5.56%
Revenue beat(2)1
Avg Revenue beat(2)0%
Min Revenue beat(2)-0.11%
Max Revenue beat(2)0.11%
Revenue beat(4)1
Avg Revenue beat(4)-0.55%
Min Revenue beat(4)-1.57%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-1.37%
Revenue beat(12)2
Avg Revenue beat(12)-1.31%
Revenue beat(16)5
Avg Revenue beat(16)-0.84%
PT rev (1m)8.2%
PT rev (3m)8.32%
EPS NQ rev (1m)0.87%
EPS NQ rev (3m)2.28%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.26 | ||
| Fwd PE | 34.09 | ||
| P/S | 8.44 | ||
| P/FCF | 47.75 | ||
| P/OCF | 40.23 | ||
| P/B | 4.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.26 |
EPS(TTM)10.89
EY2.37%
EPS(NY)13.5
Fwd EY2.93%
FCF(TTM)9.64
FCFY2.09%
OCF(TTM)11.44
OCFY2.49%
SpS54.52
BVpS100.83
TBVpS-6.72
PEG (NY)2.45
PEG (5Y)2.91
Graham Number157.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 8.1% | ||
| ROCE | 8.25% | ||
| ROIC | 6.57% | ||
| ROICexc | 6.7% | ||
| ROICexgc | 24.98% | ||
| OM | 22.68% | ||
| PM (TTM) | 14.98% | ||
| GM | 44.34% | ||
| FCFM | 17.67% |
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-Score6
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 3.54 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 46.61% | ||
| Cap/Sales | 3.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.46% | ||
| Profit Quality | 118.02% | ||
| Current Ratio | 3.18 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 5.75 |
F-Score6
WACC9.54%
ROIC/WACC0.69
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)19.02%
EPS 3Y36.99%
EPS 5Y14.51%
EPS Q2Q%25.76%
EPS Next Y17.23%
EPS Next 2Y16.18%
EPS Next 3Y14.8%
EPS Next 5YN/A
Revenue 1Y (TTM)8.27%
Revenue growth 3Y20.17%
Revenue growth 5Y17.6%
Sales Q2Q%14.43%
Revenue Next Year13.29%
Revenue Next 2Y12.07%
Revenue Next 3Y10.79%
Revenue Next 5YN/A
EBIT growth 1Y9.65%
EBIT growth 3Y34.37%
EBIT growth 5Y18.7%
EBIT Next Year56.03%
EBIT Next 3Y24.91%
EBIT Next 5YN/A
FCF growth 1Y42.4%
FCF growth 3Y17.44%
FCF growth 5Y15.56%
OCF growth 1Y46.4%
OCF growth 3Y17.65%
OCF growth 5Y13.54%
RBC BEARINGS INC / RBC FAQ
Can you provide the ChartMill fundamental rating for RBC BEARINGS INC?
ChartMill assigns a fundamental rating of 5 / 10 to RBC.
Can you provide the valuation status for RBC BEARINGS INC?
ChartMill assigns a valuation rating of 1 / 10 to RBC BEARINGS INC (RBC). This can be considered as Overvalued.
What is the profitability of RBC stock?
RBC BEARINGS INC (RBC) has a profitability rating of 7 / 10.
What is the valuation of RBC BEARINGS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for RBC BEARINGS INC (RBC) is 42.26 and the Price/Book (PB) ratio is 4.56.
Can you provide the financial health for RBC stock?
The financial health rating of RBC BEARINGS INC (RBC) is 6 / 10.