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ROLL

RBC BearingsNasdaqGS:ROLL Stock Report

Market Cap

US$5.5b

7D

-4.5%

1Y

18.2%

Updated

02 Dec, 2021

Data

Company Financials +
ROLL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance2/6
Financial Health6/6
Dividends0/6

ROLL Stock Overview

RBC Bearings Incorporated manufactures and markets engineered precision bearings and components in North America, Europe, Asia, and Latin America.

RBC Bearings Competitors

Timken

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US$4.9b

AB SKF

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kr97.5b

MinebeaMitsumi

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JP¥1.2t

Zurn Water Solutions

NYSE:ZWS

US$4.2b

Price History & Performance

Summary of all time highs, changes and price drops for RBC Bearings
Historical stock prices
Current Share PriceUS$198.92
52 Week HighUS$250.52
52 Week LowUS$160.51
Beta1.37
1 Month Change-12.16%
3 Month Change-13.38%
1 Year Change18.19%
3 Year Change40.15%
5 Year Change121.91%
Change since IPO1,202.69%

Recent News & Updates

Nov 23
Estimating The Fair Value Of RBC Bearings Incorporated (NASDAQ:ROLL)

Estimating The Fair Value Of RBC Bearings Incorporated (NASDAQ:ROLL)

Today we will run through one way of estimating the intrinsic value of RBC Bearings Incorporated ( NASDAQ:ROLL ) by...

Aug 15
Is It Time To Consider Buying RBC Bearings Incorporated (NASDAQ:ROLL)?

Is It Time To Consider Buying RBC Bearings Incorporated (NASDAQ:ROLL)?

While RBC Bearings Incorporated ( NASDAQ:ROLL ) might not be the most widely known stock at the moment, it received a...

Shareholder Returns

ROLLUS MachineryUS Market
7D-4.5%-4.9%-3.5%
1Y18.2%17.6%19.4%

Return vs Industry: ROLL matched the US Machinery industry which returned 17.6% over the past year.

Return vs Market: ROLL underperformed the US Market which returned 19.4% over the past year.

Price Volatility

Is ROLL's price volatile compared to industry and market?
ROLL volatility
ROLL Average Weekly Movement6.2%
Machinery Industry Average Movement4.8%
Market Average Movement6.1%
10% most volatile stocks in US Market14.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: ROLL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ROLL's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19193,885Michael Hartnetthttps://www.rbcbearings.com

RBC Bearings Incorporated manufactures and markets engineered precision bearings and components in North America, Europe, Asia, and Latin America. It operates through four segments: Plain Bearings, Roller Bearings, Ball Bearings, and Engineered Products. The Plain Bearings segment produces plain bearings with self-lubricating or metal-to-metal designs, including rod end bearings, spherical plain bearings, and journal bearings that are primarily used to rectify inevitable misalignments in various mechanical components, such as aircraft controls, helicopter rotors, or in heavy mining and construction equipment.

RBC Bearings Fundamentals Summary

How do RBC Bearings's earnings and revenue compare to its market cap?
ROLL fundamental statistics
Market CapUS$5.46b
Earnings (TTM)US$78.94m
Revenue (TTM)US$623.26m

72.1x

P/E Ratio

9.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ROLL income statement (TTM)
RevenueUS$623.26m
Cost of RevenueUS$377.00m
Gross ProfitUS$246.27m
ExpensesUS$167.32m
EarningsUS$78.94m

Last Reported Earnings

Oct 02, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.76
Gross Margin39.51%
Net Profit Margin12.67%
Debt/Equity Ratio0.3%

How did ROLL perform over the long term?

See historical performance and comparison

Valuation

Is RBC Bearings undervalued compared to its fair value and its price relative to the market?

32.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ROLL ($198.92) is trading below our estimate of fair value ($293.59)

Significantly Below Fair Value: ROLL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ROLL is poor value based on its PE Ratio (72.1x) compared to the US Machinery industry average (29.6x).

PE vs Market: ROLL is poor value based on its PE Ratio (72.1x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: ROLL is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: ROLL is good value based on its PB Ratio (2.4x) compared to the US Machinery industry average (2.8x).


Future Growth

How is RBC Bearings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

50.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROLL's forecast earnings growth (50% per year) is above the savings rate (2%).

Earnings vs Market: ROLL's earnings (50% per year) are forecast to grow faster than the US market (14.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ROLL's revenue (31.1% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: ROLL's revenue (31.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ROLL's Return on Equity is forecast to be low in 3 years time (8.4%).


Past Performance

How has RBC Bearings performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROLL has high quality earnings.

Growing Profit Margin: ROLL's current net profit margins (12.7%) are lower than last year (16.1%).


Past Earnings Growth Analysis

Earnings Trend: ROLL's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: ROLL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ROLL had negative earnings growth (-26.1%) over the past year, making it difficult to compare to the Machinery industry average (32%).


Return on Equity

High ROE: ROLL's Return on Equity (3.4%) is considered low.


Financial Health

How is RBC Bearings's financial position?


Financial Position Analysis

Short Term Liabilities: ROLL's short term assets ($1.9B) exceed its short term liabilities ($112.3M).

Long Term Liabilities: ROLL's short term assets ($1.9B) exceed its long term liabilities ($118.4M).


Debt to Equity History and Analysis

Debt Level: ROLL has more cash than its total debt.

Reducing Debt: ROLL's debt to equity ratio has reduced from 49.4% to 0.3% over the past 5 years.

Debt Coverage: ROLL's debt is well covered by operating cash flow (2254.4%).

Interest Coverage: ROLL's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet


Dividend

What is RBC Bearings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ROLL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ROLL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ROLL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ROLL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ROLL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Michael Hartnett (75 yo)

29.67yrs

Tenure

US$8,892,078

Compensation

Dr. Michael J. Hartnett, Ph.D. is the Chairman, Chief Executive Officer and President at Roller Bearing Company at America, Inc. Dr. Hartnett has been the President and Chief Executive Officer of Roller Be...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD8.89M) is above average for companies of similar size in the US market ($USD6.35M).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ROLL's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: ROLL's board of directors are considered experienced (8.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.7%.


Top Shareholders

Company Information

RBC Bearings Incorporated's employee growth, exchange listings and data sources


Key Information

  • Name: RBC Bearings Incorporated
  • Ticker: ROLL
  • Exchange: NasdaqGS
  • Founded: 1919
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$5.462b
  • Shares outstanding: 28.62m
  • Website: https://www.rbcbearings.com

Number of Employees


Location

  • RBC Bearings Incorporated
  • One Tribology Center
  • 102 Willenbrock Road
  • Oxford
  • Connecticut
  • 6478
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 23:40
End of Day Share Price2021/12/02 00:00
Earnings2021/10/02
Annual Earnings2021/04/03


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.