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

Fundamentals

Excellent balance sheet with proven track record.


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


Market Performance


7 Day Return

1.0%

NasdaqGS:ROLL

3.4%

US Machinery

2.9%

US Market


1 Year Return

6.9%

NasdaqGS:ROLL

-6.6%

US Machinery

0.2%

US Market

ROLL outperformed the Machinery industry which returned -8% over the past year.

ROLL outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

ROLLIndustryMarket
7 Day1.0%3.4%2.9%
30 Day-2.1%-7.4%-2.3%
90 Day12.4%-0.1%3.1%
1 Year6.9%6.9%-4.7%-6.6%2.4%0.2%
3 Year100.3%100.3%37.3%28.3%41.7%32.4%
5 Year155.6%155.6%37.8%20.7%55.1%37.9%

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 based on future cash flows and its price relative to the stock market?

35.64x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

RBC Bearings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

RBC Bearings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

RBC Bearings is overvalued based on earnings compared to the US Machinery industry average.

RBC Bearings is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

RBC Bearings is poor value based on expected growth next year.


Price Based on Value of Assets

RBC Bearings is overvalued based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

How is RBC Bearings expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

RBC Bearings's revenue is expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).

RBC Bearings's earnings are expected to grow by 15.6% yearly, however this is not considered high growth (20% yearly).

RBC Bearings's revenue growth is expected to exceed the United States of America market average.

RBC Bearings's earnings growth is expected to exceed the United States of America market average.

RBC Bearings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if RBC Bearings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has RBC Bearings performed over the past 5 years?

13.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

RBC Bearings's year on year earnings growth rate has been positive over the past 5 years.

RBC Bearings's 1-year earnings growth exceeds its 5-year average (16.7% vs 13.9%)

RBC Bearings's earnings growth has not exceeded the US Machinery industry average in the past year (16.7% vs 17.5%).


Return on Equity

RBC Bearings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

RBC Bearings used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

RBC Bearings has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is RBC Bearings's financial position?


Financial Position Analysis

RBC Bearings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

RBC Bearings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

RBC Bearings's level of debt (2.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (2% vs 2.6% today).

Debt is well covered by operating cash flow (437.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 37.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 19.6x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate RBC Bearings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate RBC Bearings's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as RBC Bearings has not reported any payouts.

Unable to verify if RBC Bearings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as RBC Bearings has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of RBC Bearings's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of RBC Bearings's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Michael Hartnett (73yo)

27.3yrs

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

Michael's remuneration is higher than average for companies of similar size in United States of America.

Michael's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

2.5yrs

Average Tenure

59yo

Average Age

The tenure for the RBC Bearings management team is about average.


Board Age and Tenure

13.7yrs

Average Tenure

69.5yo

Average Age

The average tenure for the RBC Bearings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

RBC Bearings individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,279,74028 Jun 19
Michael Hartnett
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares7,925
Max PriceUS$161.48
SellUS$772,19814 Jun 19
Michael Hartnett
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,140
Max PriceUS$150.23
SellUS$809,74411 Jun 19
Michael Hartnett
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,381
Max PriceUS$150.55
SellUS$248,87305 Jun 19
Patrick Bannon
EntityIndividual
Role
Other Key Executive
Shares1,693
Max PriceUS$147.00

Ownership Breakdown


Management Team

  • Joseph Salamunovich (59yo)

    VP, General Counsel & Secretary

    • Tenure: 0.8yrs
  • Dan Bergeron (59yo)

    VP, CFO

    • Tenure: 6.2yrs
    • Compensation: US$5.61m
  • Michael Hartnett (73yo)

    Chairman

    • Tenure: 27.3yrs
    • Compensation: US$11.64m
  • Richard Edwards (63yo)

    • Tenure: 23.6yrs
    • Compensation: US$1.31m
  • Rob Sullivan (35yo)

    Corporate Controller

    • Tenure: 2.5yrs
  • Ernest Hawkins (54yo)

    VP of Finance & Chief Accounting Officer

    • Tenure: 2.2yrs
    • Compensation: US$669.87k
  • Pat Bannon (54yo)

    • Tenure: 1.8yrs
    • Compensation: US$1.51m

Board Members

  • Dan Bergeron (59yo)

    VP, CFO

    • Tenure: 6.2yrs
    • Compensation: US$5.61m
  • Alan Levine (75yo)

    Director

    • Tenure: 13.8yrs
    • Compensation: US$282.59k
  • Michael Hartnett (73yo)

    Chairman

    • Tenure: 27.3yrs
    • Compensation: US$11.64m
  • Richard Crowell (64yo)

    Director

    • Tenure: 17.2yrs
    • Compensation: US$282.59k
  • Ed Stewart (76yo)

    Director

    • Tenure: 6.2yrs
    • Compensation: US$277.59k
  • Amir Faghri (68yo)

    Director

    • Tenure: 15.1yrs
    • Compensation: US$277.59k
  • Tom O'Brien (71yo)

    Director

    • Tenure: 13.5yrs
    • Compensation: US$277.59k
  • Steve Kaplan (66yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: US$277.59k

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$3.874b
  • 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 Bear ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:55
End of Day Share Price2019/08/21 00:00
Earnings2019/06/29
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.