RBC BEARINGS INC (RBC) Stock Fundamental Analysis
USA - NYSE:RBC - US75524B1044 - Common Stock
428.53 USD
+22.08 (+5.43%)
428.53 USD
0 (0%)
RBC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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. While showing a medium growth rate, RBC is valued expensive at the moment. 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.
In the past year RBC had a positive cash flow from operations.
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 (5.15%) which is comparable to the rest of the industry.
RBC has a Return On Equity (7.91%) which is in line with its industry peers.
The Return On Invested Capital of RBC (6.73%) 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 10.04%.
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 has a better Profit Margin (14.80%) than 88.46% of its industry peers.
In the last couple of years the Profit Margin of RBC has declined.
RBC has a Operating Margin of 22.58%. This is amongst the best in the industry. RBC outperforms 95.38% of its industry peers.
RBC's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 44.26%, RBC belongs to the best of the industry, outperforming 82.31% of the companies in the same industry.
RBC's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for RBC has been increased compared to 1 year ago.
RBC has more shares outstanding than it did 5 years ago.
RBC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.10 indicates that RBC is not in any danger for bankruptcy at the moment.
RBC's Altman-Z score of 6.10 is amongst the best of the industry. RBC outperforms 85.38% 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.
RBC's Debt to FCF ratio of 3.55 is fine compared to the rest of the industry. RBC outperforms 65.38% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that RBC is not too dependend on debt financing.
RBC's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. RBC outperforms 63.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.55 | ||
| Altman-Z | 6.1 |
ROIC/WACC0.71
WACC9.45%
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.
RBC has a better Current ratio (3.33) than 83.08% 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 has a Quick ratio (1.33) which is comparable to the rest of the industry.
| 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 19.02% over the past year.
Measured over the past years, RBC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.51% on average per year.
RBC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.87%.
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)4.87%
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 14.29% yearly.
The Revenue is expected to grow by 10.18% on average over the next years. This is quite good.
EPS Next Y16.4%
EPS Next 2Y15.31%
EPS Next 3Y14.29%
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.
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 39.35, 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 rather expensive valuation when compared to the S&P500 average which is at 26.11.
RBC is valuated quite expensively with a Price/Forward Earnings ratio of 32.23.
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 66.92% of the companies listed in the same industry.
RBC is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.35 | ||
| Fwd PE | 32.23 |
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.
65.38% of the companies in the same industry are cheaper than RBC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.08 | ||
| EV/EBITDA | 28.87 |
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 14.29% in the coming years.
PEG (NY)2.4
PEG (5Y)2.71
EPS Next 2Y15.31%
EPS Next 3Y14.29%
5. Dividend
5.1 Amount
No dividends for RBC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
428.53
+22.08 (+5.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners102.55%
Inst Owner Change0.38%
Ins Owners1.63%
Ins Owner Change-0.39%
Market Cap13.52B
Revenue(TTM)1.64B
Net Income(TTM)246.60M
Analysts76.36
Price Target456.28 (6.48%)
Short Float %1.06%
Short Ratio1.58
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)0.11%
PT rev (3m)3.95%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)0.53%
EPS NY rev (1m)0.05%
EPS NY rev (3m)1.79%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)3.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.35 | ||
| Fwd PE | 32.23 | ||
| P/S | 8.12 | ||
| P/FCF | 52.08 | ||
| P/OCF | 42.77 | ||
| P/B | 4.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.87 |
EPS(TTM)10.89
EY2.54%
EPS(NY)13.3
Fwd EY3.1%
FCF(TTM)8.23
FCFY1.92%
OCF(TTM)10.02
OCFY2.34%
SpS52.79
BVpS98.75
TBVpS-2.24
PEG (NY)2.4
PEG (5Y)2.71
Graham Number155.55
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 | 6.1 |
F-Score8
WACC9.45%
ROIC/WACC0.71
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 Y16.4%
EPS Next 2Y15.31%
EPS Next 3Y14.29%
EPS Next 5YN/A
Revenue 1Y (TTM)4.87%
Revenue growth 3Y20.17%
Revenue growth 5Y17.6%
Sales Q2Q%14.43%
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%
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 39.35 and the Price/Book (PB) ratio is 4.34.
Can you provide the financial health for RBC stock?
The financial health rating of RBC BEARINGS INC (RBC) is 7 / 10.