RBC Bearings (RBC) AI Stock Analysis

• Market Cap: $12.01B
• Dividend Yield: N/A
• Average Volume (3M): 175.68K
• Price to Earnings (P/E): 49.7
• Beta (1Y): 1.01
• Revenue Growth: 4.87%
• EPS Growth: 19.66%
• Country: US
• Employees: 5,302
• Sector: Industrials
• Sector Strength: 88
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 2.83
• Shares Outstanding: 31,478,058
• 10 Day Avg. Volume: 204,900
• 30 Day Avg. Volume: 175,679
• PEG Ratio: 8.94
• Price to Book (P/B): 3.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 48.15
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 1.98
• Enterprise Value/Gross Profit: 17.49
• Enterprise Value/Ebitda: 6.62
• 1Y Price Target: $413.67
• Price Target Upside: 8.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 77 Outperform
• Price Target: $408.00 ▲(6.97%Upside)

RBC Bearings scores well overall due to strong financial performance and strategic corporate actions. While technical indicators suggest bullish momentum, valuation remains a concern with a high P/E ratio. Nonetheless, the company's positive earnings outlook and strategic acquisition plans support a favorable stock assessment.

Positive Factors

Expansion and Market Share

RBC Bearings is expanding its capacity to meet the increasing demand in commercial aerospace, which indicates potential market share gains in an undersupplied market.

Financial Performance

RBC once again displayed the counter-cyclicality of its portfolio, outperforming industrial peers with building momentum across nearly all facets of the business looking into fiscal 2026 and beyond.

Strategic Acquisitions

The acquisition of VACCO is seen as a strategic move to create attractive opportunities, such as expanding the company's presence on naval defense platforms and within the commercial space market.

Negative Factors

Acquisition Impact

VACCO's current profitability is uncertain and noted to be highly dilutive to its segment's adjusted EBITDA margins, representing a drag on RBC's company level.

Cash Flow Concerns

RBC reported operating cash flow of $69mn, below consensus of $160mn and below MSe of $117mn.

RBC Bearings Business Overview & Revenue Model

Company Description

RBC Bearings Incorporated manufactures and markets engineered precision bearings and components in the United States and internationally. It operates through two segments, Aerospace/Defense and Industrial. The company produces plain bearings with self-lubricating or metal-to-metal designs, including rod end bearings, spherical plain bearings, and journal bearings; roller bearings, such as tapered roller bearings, needle roller bearings, and needle bearing track rollers and cam followers, which are anti-friction products that are used in industrial applications and military aircraft platforms; and ball bearings include high precision aerospace, airframe control, thin section, and industrial ball bearings that utilize high precision ball elements to reduce friction in high-speed applications. It also offers mounted bearing products include mounted ball bearings, mounted roller bearings, and mounted plain bearings; and enclosed gearing product lines, including quantis gearmotor, torque arm, tigear, magnagear & maxum, and controlled start transmission. In addition, the company produces power transmission components include mechanical drive components, couplings, and conveyor components; engineered hydraulics and valves for aircraft and submarine applications, and aerospace and defense aftermarket services; fasteners; precision mechanical components, which are used in various general industrial applications; and machine tool collets that are used for holding circulars or rod-like pieces. It serves automotive, tool holding, agricultural and semiconductor machinery, commercial and defense aerospace, ground defense, construction and mining, oil and natural resource extraction, heavy truck, marine, rail and train, packaging, food and beverage, packaging and canning, wind, and general industrial markets through its direct sales force, as well as a network of industrial and aerospace distributors. The company was founded in 1919 and is headquartered in Oxford, Connecticut.

How the Company Makes Money

RBC Bearings generates revenue through the manufacturing and sale of its precision bearings and components, which are integral to the function of a broad spectrum of machinery and equipment. The company's key revenue streams include sales to original equipment manufacturers (OEMs) and aftermarket clients across diverse industries such as aerospace, defense, and industrial machinery. RBC's strategic partnerships and long-term contracts with leading industry players also significantly contribute to its earnings. By focusing on high-performance products and maintaining strong relationships with its clients, RBC is able to secure a stable revenue base in both domestic and international markets.

RBC Bearings Financial Statement Overview

Summary

RBC Bearings has shown remarkable financial performance with substantial revenue and profit growth, improved margins, and a strengthened balance sheet. The company has effectively managed its leverage, enhancing profitability and cash flow generation.

Income Statement

RBC Bearings has demonstrated strong revenue growth over the past few years, with a notable increase from $942.9 million in 2022 to $1.64 billion in 2025. The gross profit margin has shown stability around 44%, indicating effective cost management. Net profit margin increased from 4.5% in 2022 to 15.0% in 2025, reflecting improved profitability. The EBIT margin also improved significantly from 6.8% in 2022 to 22.6% in 2025. These metrics reflect solid financial performance and operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has decreased from 0.73 in 2022 to 0.34 in 2025, indicating a reduction in leverage and a more stable financial position. Return on equity improved from 1.8% in 2022 to 8.1% in 2025, showcasing better profitability relative to shareholder equity. However, the equity ratio has decreased slightly, suggesting a moderate increase in liabilities relative to assets. Overall, RBC has strengthened its balance sheet with lower leverage and improved returns for shareholders.

Cash Flow

RBC Bearings has shown strong cash flow performance, with free cash flow growing consistently from $150.5 million in 2022 to $243.8 million in 2025. The operating cash flow to net income ratio has remained healthy, indicating efficient conversion of net income to cash. The free cash flow to net income ratio also improved, highlighting effective cash management and reinvestment strategies. These metrics demonstrate robust cash flow generation and financial flexibility.

Breakdown	Mar 2025	Mar 2024	Jun 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.64B	1.56B	1.47B	942.94M	608.98M
Gross Profit	726.10M	670.50M	604.75M	357.07M	234.11M
EBITDA	491.70M	459.80M	409.00M	185.79M	144.23M
Net Income	246.20M	209.90M	166.70M	42.70M	90.10M
Balance Sheet
Total Assets	4.69B	4.68B	4.69B	4.85B	1.43B
Cash, Cash Equivalents and Short-Term Investments	36.80M	63.50M	65.40M	182.86M	241.34M
Total Debt	1.03B	1.29B	1.44B	1.74B	51.81M
Total Liabilities	1.65B	1.93B	2.15B	2.47B	204.31M
Stockholders Equity	3.03B	2.75B	2.54B	2.37B	1.23B
Cash Flow
Free Cash Flow	243.80M	241.50M	178.60M	150.53M	140.68M
Operating Cash Flow	293.60M	274.70M	220.60M	180.29M	152.45M
Investing Cash Flow	-49.80M	-52.20M	-14.00M	-2.85B	-101.52M
Financing Cash Flow	-270.40M	-223.50M	-322.80M	2.70B	-3.36M

RBC Bearings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 381.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBC, the sentiment is Positive. The current price of 381.43 is above the 20-day moving average (MA) of 377.66, above the 50-day MA of 361.21, and above the 200-day MA of 330.25, indicating a bullish trend. The MACD of 5.71 indicates Positive momentum. The RSI at 56.97 is Neutral, neither overbought nor oversold. The STOCH value of 63.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RBC.

RBC Bearings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RBC	77 Outperform	$12.01B	49.66	8.51%	―	4.87%	19.66%
LECO	77 Outperform	$11.74B	25.94	34.83%	1.45%	-2.29%	-14.49%
TKR	74 Outperform	$5.28B	16.28	11.85%	1.93%	-3.69%	-11.76%
SNA	72 Outperform	$16.26B	16.28	19.15%	2.75%	-0.88%	0.04%
SWK	72 Outperform	$10.47B	28.73	4.03%	4.84%	-3.04%	―
KMT	71 Outperform	$1.83B	17.30	8.69%	3.48%	-2.93%	2.74%
Sector *	65 Neutral	$10.65B	15.49	5.57%	1.97%	2.71%	-26.32%

RBC Bearings Corporate Events

RBC Bearings to Acquire VACCO Industries for $310M

RBC Bearings Incorporated has announced a definitive agreement to acquire VACCO Industries from ESCO Technologies for $310 million in cash. VACCO, based in South El Monte, California, specializes in manufacturing valves, manifolds, regulators, filters, and other precision components for space and naval defense applications. The acquisition, expected to close in the summer of 2025 pending regulatory approval, will be financed through RBC’s existing credit agreement and cash on hand. This strategic move aims to expand RBC’s product breadth and capacity in its rapidly growing space and naval defense channels, enhancing its design, engineering, and manufacturing capabilities to better serve customer needs.

The most recent analyst rating on (RBC) stock is a Hold with a $276.00 price target. To see the full list of analyst forecasts on RBC Bearings stock, see the RBC Stock Forecast page.