RBC BEARINGS INC (RBC)
US75524B1044 - Common Stock
We assign a fundamental rating of 4 out of 10 to RBC. RBC was compared to 132 industry peers in the Machinery industry. RBC has an average financial health and profitability rating. 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.
In the past 5 years RBC has always been profitable.
RBC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RBC's Return On Assets of 3.72% is in line compared to the rest of the industry. RBC outperforms 50.00% of its industry peers.
RBC has a Return On Equity of 6.47%. This is comparable to the rest of the industry: RBC outperforms 45.38% of its industry peers.
RBC has a Return On Invested Capital of 5.71%. This is comparable to the rest of the industry: RBC outperforms 45.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RBC is significantly below the industry average of 10.80%.
The 3 year average ROIC (4.76%) for RBC is below the current ROIC(5.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 6.47% | ||
| ROIC | 5.71% |
ROA(3y)3.41%
ROA(5y)5.79%
ROE(3y)4.93%
ROE(5y)7.39%
ROIC(3y)4.76%
ROIC(5y)6.88%
1.3 Margins
RBC has a better Profit Margin (11.32%) than 78.46% of its industry peers.
In the last couple of years the Profit Margin of RBC has declined.
RBC has a better Operating Margin (21.89%) than 92.31% 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 (42.74%) is better than 84.62% of its industry peers.
In the last couple of years the Gross Margin of RBC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.89% | ||
| PM (TTM) | 11.32% | ||
| GM | 42.75% |
OM growth 3Y-1.44%
OM growth 5Y0.47%
PM growth 3Y-17.33%
PM growth 5Y-5.38%
GM growth 3Y1.18%
GM growth 5Y1.45%
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.
The number of shares outstanding for RBC has been increased compared to 5 years ago.
RBC has a better debt/assets ratio than last year.
2.2 Solvency
RBC has an Altman-Z score of 3.43. This indicates that RBC is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.43, RBC perfoms like the industry average, outperforming 59.23% of the companies in the same industry.
RBC has a debt to FCF ratio of 5.51. This is a neutral value as RBC would need 5.51 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.51, RBC perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
RBC has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
RBC has a Debt to Equity ratio (0.47) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.51 | ||
| Altman-Z | 3.43 |
ROIC/WACC0.65
WACC8.81%
2.3 Liquidity
A Current Ratio of 3.28 indicates that RBC has no problem at all paying its short term obligations.
The Current ratio of RBC (3.28) is better than 77.69% of its industry peers.
A Quick Ratio of 1.12 indicates that RBC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.12, RBC is in line with its industry, outperforming 44.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.28 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.08% over the past year.
RBC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.12% yearly.
Looking at the last year, RBC shows a small growth in Revenue. The Revenue has grown by 7.48% in the last year.
Measured over the past years, RBC shows a quite strong growth in Revenue. The Revenue has been growing by 16.84% on average per year.
EPS 1Y (TTM)25.08%
EPS 3Y13.82%
EPS 5Y14.12%
EPS growth Q2Q12.8%
Revenue 1Y (TTM)7.48%
Revenue growth 3Y26.4%
Revenue growth 5Y16.84%
Revenue growth Q2Q6.34%
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 12.02% yearly.
Based on estimates for the next years, RBC will show a small growth in Revenue. The Revenue will grow by 6.38% on average per year.
EPS Next Y15.37%
EPS Next 2Y13.44%
EPS Next 3Y12.02%
EPS Next 5YN/A
Revenue Next Year7.14%
Revenue Next 2Y6.52%
Revenue Next 3Y6.38%
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.
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
With a Price/Earnings ratio of 34.94, RBC can be considered very expensive at the moment.
RBC's Price/Earnings ratio is a bit more expensive when compared to the industry. RBC is more expensive than 63.08% of the companies in the same industry.
When comparing the Price/Earnings ratio of RBC to the average of the S&P500 Index (28.15), we can say RBC is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 30.01, the valuation of RBC can be described as expensive.
RBC's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RBC is more expensive than 63.08% of the companies in the same industry.
RBC's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.94 | ||
| Fwd PE | 30.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RBC is valued a bit more expensive than the industry average as 63.85% of the companies are valued more cheaply.
RBC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.64 | ||
| EV/EBITDA | 19.73 |
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 12.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.27
PEG (5Y)2.47
EPS Next 2Y13.44%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
RBC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RBC BEARINGS INC
NYSE:RBC (5/17/2024, 7:22:44 PM)
After market: 289.28 0 (0%)289.28
+21.72 (+8.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.94 | ||
| Fwd PE | 30.01 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.27
PEG (5Y)2.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.72% | ||
| ROE | 6.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.89% | ||
| PM (TTM) | 11.32% | ||
| GM | 42.75% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.28 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)25.08%
EPS 3Y13.82%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.48%
Revenue growth 3Y26.4%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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