RBC Bearings, Inc. (ROLL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mueller Industries, Inc.

Insteel Industries, Inc.

Valmont Industries, Inc.

RBC Bearings, Inc.

CompX International, Inc.

Gibraltar Industries, Inc.

Xometry, Inc.

Olympic Steel, Inc.

Park-Ohio Holdings Corp.

NL Industries, Inc.

Fathom Digital Manufacturing Corp.

Why is RBC Bearings, Inc. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 20.52

Healthy long term growth as Net Sales has grown by an annual rate of 18.89% and Operating profit at 20.62%

The company has declared Positive results for the last 12 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 316.2 MM
ROCE(HY) Highest at 8.56%
DEBT-EQUITY RATIO (HY) Lowest at 27.22 %

With ROCE of 9.54%, it has a very expensive valuation with a 3.37 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 30.47%, its profits have risen by 16.6% ; the PEG ratio of the company is 6.1

Market Beating performance in long term as well as near term

Along with generating 30.47% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to RBC Bearings, Inc. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is RBC Bearings, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

RBC Bearings, Inc.

30.47%

2.17

27.92%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.89%

EBIT Growth (5y)

20.62%

EBIT to Interest (avg)

20.52

Debt to EBITDA (avg)

2.86

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

0.39

Tax Ratio

21.06%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

8.45%

ROE (avg)

6.74%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.07

EV to EBIT

35.33

EV to EBITDA

26.77

EV to Capital Employed

3.37

EV to Sales

8.10

PEG Ratio

6.11

Dividend Yield

ROCE (Latest)

9.54%

ROE (Latest)

8.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 316.2 MM

ROCE(HY)

Highest at 8.56%

DEBT-EQUITY RATIO (HY)

Lowest at 27.22 %

INTEREST COVERAGE RATIO(Q)

Highest at 1,090.16

RAW MATERIAL COST(Y)

Fallen by 0.6% (YoY

PRE-TAX PROFIT(Q)

Highest at USD 89 MM

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.95 times

Here's what is working for RBC Bearings, Inc.

Operating Cash Flow

Highest at USD 316.2 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Highest at 1,090.16

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 27.22 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Pre-Tax Profit

Highest at USD 89 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Raw Material Cost

Fallen by 0.6% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for RBC Bearings, Inc.

Debtors Turnover Ratio

Lowest at 5.95 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio