NasdaqGS:ROLL

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has RBC Bearings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ROLL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.0%

ROLL

-0.07%

US Machinery

-1.1%

US Market


1 Year Return

-15.8%

ROLL

-24.5%

US Machinery

-13.6%

US Market

Return vs Industry: ROLL exceeded the US Machinery industry which returned -24.5% over the past year.

Return vs Market: ROLL underperformed the US Market which returned -13.6% over the past year.


Shareholder returns

ROLLIndustryMarket
7 Day-8.0%-0.07%-1.1%
30 Day-33.8%-21.5%-17.8%
90 Day-31.6%-31.0%-22.5%
1 Year-15.8%-15.8%-22.3%-24.5%-11.9%-13.6%
3 Year17.8%17.8%-1.8%-8.9%12.1%4.9%
5 Year46.3%46.3%19.9%4.7%30.5%16.3%

Price Volatility Vs. Market

How volatile is RBC Bearings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

30.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ROLL ($111.05) is trading below our estimate of fair value ($158.87)

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 (22.1x) compared to the Machinery industry average (14.8x).

PE vs Market: ROLL is poor value based on its PE Ratio (22.1x) compared to the US market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: ROLL is poor value based on its PEG Ratio (12.1x)


Price to Book Ratio

PB vs Industry: ROLL is overvalued based on its PB Ratio (2.5x) compared to the US Machinery industry average (1.6x).


Next Steps

Future Growth

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

1.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROLL's forecast earnings growth (1.8% per year) is above the savings rate (1.7%).

Earnings vs Market: ROLL's earnings (1.8% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: ROLL's earnings are forecast to grow, but not significantly.

Revenue vs Market: ROLL's revenue (0.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ROLL's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ROLL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has RBC Bearings performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROLL has high quality earnings.

Growing Profit Margin: ROLL's current net profit margins (17.1%) are higher than last year (14.4%).


Past Earnings Growth Analysis

Earnings Trend: ROLL's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: ROLL's earnings growth over the past year (23.1%) exceeds its 5-year average (15.9% per year).

Earnings vs Industry: ROLL earnings growth over the past year (23.1%) exceeded the Machinery industry -2%.


Return on Equity

High ROE: ROLL's Return on Equity (11.5%) is considered low.


Next Steps

Financial Health

How is RBC Bearings's financial position?


Financial Position Analysis

Short Term Liabilities: ROLL's short term assets ($554.7M) exceed its short term liabilities ($99.0M).

Long Term Liabilities: ROLL's short term assets ($554.7M) exceed its long term liabilities ($94.3M).


Debt to Equity History and Analysis

Debt Level: ROLL's debt to equity ratio (2.1%) is considered satisfactory.

Reducing Debt: ROLL's debt to equity ratio has increased from 1.7% to 2.1% over the past 5 years.

Debt Coverage: ROLL's debt is well covered by operating cash flow (617%).

Interest Coverage: ROLL's interest payments on its debt are well covered by EBIT (67.1x coverage).


Balance Sheet

Inventory Level: ROLL has a high level of physical assets or inventory.

Debt Coverage by Assets: ROLL's debt is covered by short term assets (assets are 24.3x debt).


Next Steps

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 payouts.

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

3.2yrs

Average management tenure


CEO

Michael Hartnett (73yo)

28s

Tenure

US$11,640,585

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 ($USD11.64M) is above average for companies of similar size in the US market ($USD5.63M).

Compensation vs Earnings: Michael's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Hartnett
Chairman28yrsUS$11.64m1.61% $44.6m
Daniel Bergeron
VP, CFO6.83yrsUS$5.61m0.34% $9.3m
Ernest Hawkins
VP of Finance & Chief Accounting Officer2.83yrsUS$669.87k0.018% $508.7k
Richard Edwards
24.25yrsUS$1.31m0.047% $1.3m
Patrick Bannon
2.42yrsUS$1.51m0.079% $2.2m
Joseph Salamunovich
VP, General Counsel & Secretary1.5yrsno data0.0057% $158.8k
Robert Sullivan
Corporate Controller3.17yrsno data0.011% $297.8k

3.2yrs

Average Tenure

59yo

Average Age

Experienced Management: ROLL's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Hartnett
Chairman28yrsUS$11.64m1.61% $44.6m
Daniel Bergeron
VP, CFO6.83yrsUS$5.61m0.34% $9.3m
Alan Levine
Independent Director14.5yrsUS$282.59k0.073% $2.0m
Richard Crowell
Independent Director17.83yrsUS$282.59k0.18% $4.9m
Edward Stewart
Independent Director6.83yrsUS$277.59k0.094% $2.6m
Amir Faghri
Independent Director15.75yrsUS$277.59k0.023% $628.7k
Steven Kaplan
Independent Director2.25yrsUS$277.59k0.020% $541.4k
Michael Ambrose
Director0.58yrno data0.0061% $169.3k

10.7yrs

Average Tenure

68yo

Average Age

Experienced Board: ROLL's board of directors are seasoned and experienced ( 10.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ROLL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

RBC Bearings Incorporated's company bio, 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$2.771b
  • Shares outstanding: 24.56m
  • Website: https://www.rbcbearings.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ROLLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2005
B1XDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2005

Biography

RBC Bearings Incorporated manufactures and markets engineered precision bearings and components in North America, Europe, Asia, and Latin America. It operates in four segments: cPlain 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. The Roller Bearings segment offers heavy duty needle roller bearings with inner rings, tapered roller bearings, track rollers, and aircraft roller bearings, which are anti-friction bearings that use rollers instead of balls. The Ball Bearings segment manufactures high precision aerospace, airframe control, thin section, and commercial ball bearings that utilize high precision ball elements to reduce friction in high speed applications. The Engineered Products segment offers engineered hydraulics and valves for aircraft and submarine applications, and aerospace and defense aftermarket services; fasteners; precision mechanical components, which are used in various general industrial applications; and machine tool collets that are used for holding circulars or rods. The company serves the construction and mining, oil and natural resource extraction, heavy truck, marine, rail and train, packaging, semiconductor machinery, and general industrial markets through its direct sales force, as well as a network of industrial and aerospace distributors. RBC Bearings Incorporated was founded in 1919 and is headquartered in Oxford, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 00:06
End of Day Share Price2020/04/01 00:00
Earnings2019/12/28
Annual Earnings2019/03/30


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.