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RBC Bearings
(NYSE:RBC)
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Rating:70Outperform
Price Target:
$606.00
▲(1.84% Upside)
Action:Reiterated
Date:08/01/26
The score is primarily supported by strong financial performance (improving margins, robust free cash flow, and substantially de-risked leverage) and a constructive, guidance-backed earnings outlook with sizable backlog. Offsetting these positives are weak near-term technicals (trading below 20/50/100-day averages) and a rich valuation (P/E ~54), which together cap the overall score.
Positive Factors
Cash generation & de‑leveraging
Sustained high free cash flow and sharply reduced leverage create durable financial flexibility. With FCF generation material versus earnings and debt-to-equity near 0.05, the company can fund capex, support A&D program ramps, pay down remaining term debt and absorb cyclical shocks without stressing liquidity.
Negative Factors
Contract repricing exposure
With ~40% of legacy LTAs not yet repriced into the post‑inflation environment, future revenue and margin realization remains uncertain. Delayed or partial repricing can compress margins as raw‑material or labor costs persist, creating multi‑quarter variability in profitability as contracts roll to market.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & de‑leveraging
Sustained high free cash flow and sharply reduced leverage create durable financial flexibility. With FCF generation material versus earnings and debt-to-equity near 0.05, the company can fund capex, support A&D program ramps, pay down remaining term debt and absorb cyclical shocks without stressing liquidity.
Read all positive factors
RBC Bearings (RBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.96B
Dividend YieldN/A
Average Volume (3M)243.88K
Price to Earnings (P/E)54.7
Beta (1Y)0.81
Revenue Growth17.31%
EPS Growth27.05%
CountryUS
Employees5,816
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)10.17
Shares Outstanding31,659,245
10 Day Avg. Volume230,389
30 Day Avg. Volume243,885
Financial Highlights & Ratios
PEG Ratio3.27
Price to Book (P/B)4.99
Price to Sales (P/S)8.96
P/FCF Ratio48.91
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$650.25Price Target Upside9.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)14.92
Revenue Forecast (FY)$2.11B
RBC Bearings Business Overview & Revenue Model
Company Description
RBC Bearings Incorporated (RBC) is a global enterprise specializing in the design, production, and distribution of precisely engineered bearings and a wide array of related mechanical components. The company strategically operates through two core...
How the Company Makes Money
RBC primarily makes money by manufacturing and selling engineered bearings and related precision components to customers in two main end markets: industrial and aerospace/defense. Revenue is generated from product sales that are typically specifie...
RBC Bearings Earnings Call Summary
Earnings Call Date:May 15, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call was broadly positive: the company reported strong top‑line growth, solid margin and profitability expansion, robust free cash flow, significant backlog (particularly in defense/space), and clear de‑leveraging progress. Notable execution and integration efforts (VACCO), capacity investments for submarine ramps, supply‑chain risks (titanium/high‑alloy inputs), elevated SG&A and remaining contract repricing exposure are meaningful headwinds but appear manageable against strong operating cash flow and healthy guidance. Overall, positives materially outweigh the headwinds.Positive Updates
Strong Quarterly and Annual Revenue Growth
Q4 net sales increased 18.3% year‑over‑year to $518.0M; full year sales up 32.0% with 19.1% organic growth.
Negative Updates
Elevated SG&A and Compensation Timing
SG&A totaled $86.9M (16.8% of net sales) in the quarter with personnel costs and stock‑based compensation noted as primary drivers; management indicated SG&A may trend a bit above $80M per quarter going forward.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Quarterly and Annual Revenue Growth
Q4 net sales increased 18.3% year‑over‑year to $518.0M; full year sales up 32.0% with 19.1% organic growth.
Read all positive updates
Company Guidance
Management guided fiscal 2027 revenue of $500.0–$510.0 million (implying year‑over‑year growth of ~14.7%–17.0%), an adjusted gross margin of 45.25%–45.50%, SG&A of 16.5%–16.75% of sales, and expects to expand consolidated gross margin roughly 50 basis points for the full year; they reiterated a capital intensity run rate of roughly 3.5%–4% of sales and remain on track to pay off the remainder of the term loan by November 2026, while noting A&D margin improvement should continue gradually as efficiencies, volume and new contracts flow through.RBC Bearings Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.95B | 1.87B | 1.64B | 1.56B | 1.47B | 942.90M |
| Gross Profit | 882.80M | 830.20M | 726.10M | 670.50M | 604.80M | 357.10M |
| EBITDA | 587.70M | 547.90M | 491.70M | 459.80M | 401.80M | 185.70M |
| Net Income | 320.60M | 287.60M | 246.20M | 209.90M | 166.70M | 54.70M |
Balance Sheet | ||||||
| Total Assets | 5.20B | 5.12B | 4.69B | 4.68B | 4.69B | 4.85B |
| Cash, Cash Equivalents and Short-Term Investments | 124.50M | 57.30M | 36.80M | 63.50M | 65.40M | 182.86M |
| Total Debt | 878.10M | 991.40M | 1.03B | 1.29B | 1.49B | 1.78B |
| Total Liabilities | 1.73B | 1.76B | 1.65B | 1.93B | 2.15B | 2.47B |
| Stockholders Equity | 3.46B | 3.36B | 3.03B | 2.75B | 2.54B | 2.37B |
Cash Flow | ||||||
| Free Cash Flow | 385.20M | 342.60M | 243.80M | 241.50M | 178.60M | 150.50M |
| Operating Cash Flow | 467.50M | 415.70M | 293.60M | 274.70M | 220.60M | 180.30M |
| Investing Cash Flow | -358.90M | -349.70M | -49.80M | -52.20M | -14.00M | -2.85B |
| Financing Cash Flow | -114.80M | -43.30M | -270.40M | -223.50M | -322.80M | 2.70B |
RBC Bearings Technical Analysis
Negative
595.07
Price Trends
595.00
Negative
586.13
Negative
534.22
Positive
Market Momentum
-9.39
Positive
43.73
Neutral
37.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBC, the sentiment is Negative. The current price of 595.07 is above the 20-day moving average (MA) of 576.08, above the 50-day MA of 595.00, and above the 200-day MA of 534.22, indicating a neutral trend. The MACD of -9.39 indicates Positive momentum. The RSI at 43.73 is Neutral, neither overbought nor oversold. The STOCH value of 37.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RBC.
RBC Bearings Risk Analysis
RBC Bearings disclosed 27 risk factors in its most recent earnings report. RBC Bearings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Goodwill and indefinite-lived intangibles comprise a significant portion of our total assets, and if we determine that goodwill and indefinite-lived intangibles have become impaired in the future, our results of operations and financial condition in such years may be materially and adversely affected. Q1, 2026
2.
We may not be able to continue to make the acquisitions necessary for us to realize our growth strategy. Q1, 2026
3.
Use of artificial intelligence could expose us to operational, compliance, and data-related risk. Q1, 2026
RBC Bearings Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $21.54B | 20.64 | 17.41% | 2.34% | 4.02% | 4.39% | |
72 Outperform | $9.03B | 34.12 | 8.13% | 1.00% | 3.31% | -5.18% | |
70 Outperform | $17.96B | 54.72 | 9.66% | ― | 17.31% | 27.05% | |
70 Outperform | $15.37B | 27.46 | 37.21% | 1.24% | 9.14% | 12.52% | |
68 Neutral | $15.69B | 25.16 | 6.90% | 3.64% | 0.57% | 29.85% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $2.52B | 7.04 | 10.46% | 2.27% | 19.82% | 272.31% |
* Industrials Sector Average
RBC
RBC Bearings
556.50
159.66
40.23%
KMT
Kennametal
31.59
11.82
59.78%
LECO
Lincoln Electric Holdings
277.33
42.12
17.91%
SNA
Snap-on
411.11
98.56
31.53%
SWK
Stanley Black & Decker
102.64
36.80
55.90%
TKR
Timken Company
126.57
53.32
72.79%
RBC Bearings Corporate Events
Business Operations and StrategyExecutive/Board Changes
RBC Bearings Updates CEO and COO Employment Agreements
Positive
Jun 24, 2026
On June 23, 2026, RBC Bearings amended and restated the employment agreement with its President, Chief Executive Officer and Chairman, Dr. Michael J. Hartnett, formalizing updated terms for the company’s top executive. On the same date, the ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.