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

1.4%

ROLL

3.1%

US Machinery

1.0%

US Market


1 Year Return

15.1%

ROLL

2.3%

US Machinery

6.7%

US Market

Return vs Industry: ROLL exceeded the US Machinery industry which returned 2.3% over the past year.

Return vs Market: ROLL exceeded the US Market which returned 6.7% over the past year.


Share holder returns

ROLLIndustryMarket
7 Day1.4%3.1%1.0%
30 Day-4.6%-3.5%-1.8%
90 Day-2.8%-4.5%-1.8%
1 Year15.1%15.1%4.5%2.3%9.1%6.7%
3 Year126.7%126.7%46.3%36.8%46.0%36.6%
5 Year196.5%196.5%60.6%41.3%66.9%48.6%

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?

36.1x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: ROLL ($159.79) is trading above our estimate of fair value ($66.63)

Significantly Undervalued: ROLL is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: ROLL is poor value based on its PE Ratio (36.1x) compared to the Machinery industry average (19.7x).

PE vs Market: ROLL is poor value based on its PE Ratio (36.1x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: ROLL is poor value based on its PEG Ratio (2.3x)


Price Based on Value of Assets

PB vs Industry: ROLL is overvalued based on its PB Ratio (3.9x) compared to the US Machinery industry average (2.2x).


Next Steps

Future Growth

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

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: ROLL's forecast earnings growth (15.5% per year) is above the savings rate (2.7%).

Earnings vs Market: ROLL's earnings (15.5% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: ROLL's revenue (9.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: ROLL's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High 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?

13.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ROLL's earnings have grown by 13.9% per year over the past 5 years.

Accelerating Growth: ROLL's earnings growth over the past year (16.7%) exceeds its 5-year average (13.9% per year).

Earnings vs Industry: ROLL earnings growth over the past year (16.7%) underperformed the Machinery industry 18.7%.


Return on Equity

High ROE: ROLL's Return on Equity (10.9%) is considered low.


Return on Assets

ROA vs Industry: ROLL has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: ROLL has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is RBC Bearings's financial position?


Financial Position Analysis

Short Term Liabilities: ROLL's short term assets ($514.4M) exceeds its short term liabilities ($99.9M)

Long Term Liabilities: ROLL's short term assets ($514.4M) exceeds its long term liabilities ($94.7M)


Debt to Equity History and Analysis

Debt Level: ROLL's debt to equity ratio (2.6%) is considered satisfactory

Reducing Debt: ROLL's debt to equity ratio has increased from 2% to 2.6% over the past 5 years.

Debt Coverage: ROLL's debt is well covered by operating cash flow (437.2%).

Interest Coverage: ROLL's interest payments on its debt are well covered by EBIT (37.7x 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 19.585060x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.7%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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.

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

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

2.7yrs

Average management tenure


CEO

Michael Hartnett (73yo)

27.5yrs

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 ($USD11.64M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

2.7yrs

Average Tenure

59yo

Average Age

Experienced Management: ROLL's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

10.2yrs

Average Tenure

68yo

Average Age

Experienced Board: ROLL's board of directors are seasoned and experienced ( 10.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$203,75020 Sep 19
Alan Levine
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,250
Max PriceUS$163.00
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: 1yrs
  • Dan Bergeron (59yo)

    VP, CFO

    • Tenure: 6.3yrs
    • Compensation: US$5.61m
  • Michael Hartnett (73yo)

    Chairman

    • Tenure: 27.5yrs
    • Compensation: US$11.64m
  • Richard Edwards (63yo)

    • Tenure: 23.8yrs
    • Compensation: US$1.31m
  • Rob Sullivan (35yo)

    Corporate Controller

    • Tenure: 2.7yrs
  • Ernest Hawkins (54yo)

    VP of Finance & Chief Accounting Officer

    • Tenure: 2.3yrs
    • Compensation: US$669.87k
  • Pat Bannon (54yo)

    • Tenure: 1.9yrs
    • Compensation: US$1.51m

Board Members

  • Dan Bergeron (59yo)

    VP, CFO

    • Tenure: 6.3yrs
    • Compensation: US$5.61m
  • Alan Levine (75yo)

    Director

    • Tenure: 14yrs
    • Compensation: US$282.59k
  • Michael Hartnett (73yo)

    Chairman

    • Tenure: 27.5yrs
    • Compensation: US$11.64m
  • Richard Crowell (64yo)

    Director

    • Tenure: 17.3yrs
    • Compensation: US$282.59k
  • Ed Stewart (76yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$277.59k
  • Amir Faghri (68yo)

    Director

    • Tenure: 15.3yrs
    • Compensation: US$277.59k
  • Steve Kaplan (66yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$277.59k
  • Mike Ambrose

    Director

    • Tenure: 0.08yrs

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$3.924b
  • 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 Analysis2019/10/14 01:45
End of Day Share Price2019/10/11 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.

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