RBC BEARINGS INC (RBC) Stock Fundamental Analysis
NYSE:RBC - US75524B1044 - Common Stock
401.56 USD
+11.04 (+2.83%)
401.56 USD
0 (0%)
Taking everything into account, RBC scores 5 out of 10 in our fundamental rating. RBC was compared to 127 industry peers in the Machinery industry. While RBC has a great profitability rating, there are some minor concerns on its financial health. RBC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RBC was profitable.
RBC had a positive operating cash flow in the past year.
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
RBC has a Return On Assets (4.99%) which is comparable to the rest of the industry.
RBC has a Return On Equity (7.71%) which is in line with its industry peers.
RBC has a Return On Invested Capital of 6.76%. This is comparable to the rest of the industry: RBC outperforms 49.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RBC is below the industry average of 10.54%.
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's Profit Margin of 14.29% is amongst the best of the industry. RBC outperforms 85.04% of its industry peers.
In the last couple of years the Profit Margin of RBC has declined.
With an excellent Operating Margin value of 22.69%, RBC belongs to the best of the industry, outperforming 95.28% of the companies in the same industry.
In the last couple of years the Operating Margin of RBC has remained more or less at the same level.
With an excellent Gross Margin value of 44.37%, RBC belongs to the best of the industry, outperforming 82.68% of the companies in the same industry.
RBC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.69% | ||
| 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
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 5.82 indicates that RBC is not in any danger for bankruptcy at the moment.
RBC's Altman-Z score of 5.82 is amongst the best of the industry. RBC outperforms 82.68% 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.
With a Debt to FCF ratio value of 3.80, RBC perfoms like the industry average, outperforming 58.27% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that RBC is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.30, RBC is doing good in the industry, outperforming 61.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 5.82 |
ROIC/WACC0.69
WACC9.81%
2.3 Liquidity
RBC has a Current Ratio of 3.26. This indicates that RBC is financially healthy and has no problem in meeting its short term obligations.
RBC has a better Current ratio (3.26) than 79.53% 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 of 1.18. This is comparable to the rest of the industry: RBC outperforms 44.88% of its industry peers.
| 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 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.
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)14.06%
EPS 3Y36.99%
EPS 5Y14.51%
EPS Q2Q%11.81%
Revenue 1Y (TTM)4.87%
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 9.48% 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 Year11.96%
Revenue Next 2Y11.02%
Revenue Next 3Y9.48%
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
RBC is valuated quite expensively with a Price/Earnings ratio of 38.99.
Based on the Price/Earnings ratio, RBC is valued a bit more expensive than the industry average as 69.29% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.24. RBC is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 30.21, RBC can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, RBC is valued a bit more expensive than 66.14% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, RBC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.99 | ||
| Fwd PE | 30.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RBC is valued a bit more expensive than 73.23% of the companies in the same industry.
68.50% 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 | 51.98 | ||
| EV/EBITDA | 27.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 14.27% in the coming years.
PEG (NY)2.41
PEG (5Y)2.69
EPS Next 2Y15.29%
EPS Next 3Y14.27%
5. Dividend
5.1 Amount
RBC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
401.56
+11.04 (+2.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners101.58%
Inst Owner Change3.46%
Ins Owners1.63%
Ins Owner Change-0.37%
Market Cap12.67B
Analysts76.67
Price Target455.77 (13.5%)
Short Float %1.19%
Short Ratio2.15
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)3.83%
PT rev (3m)17.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.96%
EPS NY rev (1m)1.62%
EPS NY rev (3m)3.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)4.04%
Revenue NY rev (3m)3.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.99 | ||
| Fwd PE | 30.21 | ||
| P/S | 7.75 | ||
| P/FCF | 51.98 | ||
| P/OCF | 43.16 | ||
| P/B | 4.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.61 |
EPS(TTM)10.3
EY2.56%
EPS(NY)13.29
Fwd EY3.31%
FCF(TTM)7.72
FCFY1.92%
OCF(TTM)9.3
OCFY2.32%
SpS51.85
BVpS96.05
TBVpS-5.26
PEG (NY)2.41
PEG (5Y)2.69
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 | 5.82 |
F-Score7
WACC9.81%
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)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)4.87%
Revenue growth 3Y20.17%
Revenue growth 5Y17.6%
Sales Q2Q%7.31%
Revenue Next Year11.96%
Revenue Next 2Y11.02%
Revenue Next 3Y9.48%
Revenue Next 5YN/A
EBIT growth 1Y7.47%
EBIT growth 3Y34.37%
EBIT growth 5Y18.7%
EBIT Next Year53.72%
EBIT Next 3Y24.99%
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%