RBC Bearings INC (RBC) stock analysis

P/E below its 5-year median

RBC Bearings's P/E of 44.2 is below its own 5-year median of 50.0.

P/E above the industry

RBC Bearings's P/E of 44.2 is above the General Industrial Machinery and Equipment median of 26.9.

EV/EBITDA below its 5-year median

RBC Bearings's EV/EBITDA of 25.9 is below its 5-year median of 28.3.

P/B above the industry

RBC Bearings's price-to-book of 4.40 is above the General Industrial Machinery and Equipment median of 2.84.

Trading above fair value

The share price of $494.56 is above our fair value estimate of $423.98.

Margin of safety under 20%

The price is 16.6% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 8.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 22.5% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 36.8% over the last twelve months, against a 5-year average of 26.1% a year.

Growing faster than the industry

Revenue grew 17.4% over the last twelve months; the General Industrial Machinery and Equipment median is 12.4%.

Guidance issued

The latest outlook (third quarter of fiscal 2027 net sales, Oct 30, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 45.5% over the last twelve months, against 44.3% a year earlier.

Return on equity under 15%

Return on equity was 10.5% over the last twelve months and averaged 7.1% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 9.3%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

RBC Bearings's return on equity of 10.5% is above the General Industrial Machinery and Equipment median of 9.9%.

Earnings grew over 5 years

Net income grew 26.1% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 17.5% over the last twelve months, against a 5-year average of 12.2%.

Net margin above the industry

RBC Bearings's net margin of 17.5% is above the General Industrial Machinery and Equipment median of 8.0%.

Low debt

Debt is 20.0% of shareholders' equity, under the 40% we consider low.

Debt rising against equity

Debt to equity rose from 1.3% five years ago to 20.0%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 68.3% of total debt.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 3.13 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 7.18; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

RBC Bearings has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.