RBC Bearings (RBC) AI Stock Analysis

• Market Cap: $12.31B
• Dividend Yield: N/A
• Average Volume (3M): 170.12K
• Price to Earnings (P/E): 48.8
• Beta (1Y): 0.96
• Revenue Growth: 5.48%
• EPS Growth: 16.88%
• Country: US
• Employees: 5,302
• Sector: Industrials
• Sector Strength: 77
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 2.84
• Shares Outstanding: 31,562,597
• 10 Day Avg. Volume: 187,654
• 30 Day Avg. Volume: 170,123
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 7.73
• Enterprise Value/Gross Profit: 17.47
• Enterprise Value/Ebitda: 26.07
• 1Y Price Target: $449.17
• Price Target Upside: 15.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 75 Outperform
• Price Target: $439.00 ▲(13.23% Upside)

RBC Bearings is well-positioned financially, with strong revenue growth and cash flow management. The positive outlook from the earnings call further supports its prospects. However, the high P/E ratio and current technical indicators suggest caution, as the stock may be overvalued and facing short-term technical challenges.

Positive Factors

Backlog Growth

Backlog exited the fiscal first quarter at a new high of $1.017 billion, implying year-over-year order growth of 24.8%.

Contract Upgrades

RBC's renegotiated contracts with Boeing and ongoing discussions with Airbus highlight upgraded contract quality and potential content wins in the aerospace sector.

Earnings

Shares of RBC ended up 3.2% following the company’s better-than-expected fiscal first quarter results.

Negative Factors

Acquisition Concerns

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.

Market Valuation

Shares of RBC are closing in on all-time highs, having retraced the Liberation Day sell-off since early April, and are trading at a slight premium to the company’s historical FY2 EV/EBITDA relative multiple.

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 primarily through the sale of its precision bearing products and components. The company operates on a business-to-business model, supplying its products to a wide range of clients in the aerospace, defense, and industrial sectors. Key revenue streams include direct sales to manufacturers and OEMs (original equipment manufacturers), as well as aftermarket sales for maintenance and repair services. RBC Bearings also benefits from long-term contracts and partnerships with large aerospace and defense clients, which provide a stable and recurring revenue base. Additionally, the company invests in research and development to innovate and improve its product offerings, enabling it to maintain competitive pricing and expand its market share.

RBC Bearings Financial Statement Overview

Summary

RBC Bearings shows strong financial performance with robust revenue and profit growth, a stable balance sheet with manageable debt levels, and strong cash flow generation. The company is well-positioned for sustained financial health.

Income Statement

RBC Bearings demonstrates strong revenue growth, with a TTM increase of 8.85% from the previous annual report. Gross Profit Margin is stable at approximately 44.26%. Net Profit Margin has improved to 15.2% TTM, indicating enhanced profitability. EBIT and EBITDA margins are healthy, reflecting strong operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is low, with a notable reduction in total debt, improving financial stability. Stockholders' equity covers 65.06% of total assets, indicating a solid equity base. Return on Equity of 8.13% TTM shows reasonable profitability on shareholder investments.

Cash Flow

Free Cash Flow has grown by 6.52% over the last year, showcasing efficient cash management. The operating cash flow to net income ratio of 1.25 TTM suggests effective operational cash generation. Free cash flow to net income ratio of 1.03 indicates strong cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.67B	1.64B	1.56B	1.47B	942.90M	609.00M
Gross Profit	737.30M	726.10M	670.50M	604.80M	357.10M	234.10M
EBITDA	494.10M	491.70M	459.80M	401.80M	185.70M	146.80M
Net Income	253.30M	246.20M	209.90M	166.70M	54.70M	90.10M
Balance Sheet
Total Assets	4.79B	4.69B	4.68B	4.69B	4.85B	1.43B
Cash, Cash Equivalents and Short-Term Investments	132.90M	36.80M	63.50M	65.40M	182.90M	241.34M
Total Debt	981.20M	1.03B	1.29B	1.49B	1.78B	51.81M
Total Liabilities	1.67B	1.65B	1.93B	2.15B	2.47B	202.16M
Stockholders Equity	3.12B	3.03B	2.75B	2.54B	2.37B	1.23B
Cash Flow
Free Cash Flow	259.70M	243.80M	241.50M	178.60M	150.53M	140.68M
Operating Cash Flow	316.20M	293.60M	274.70M	220.60M	180.29M	152.45M
Investing Cash Flow	-56.50M	-49.80M	-52.20M	-14.00M	-2.85B	-101.52M
Financing Cash Flow	-203.60M	-270.40M	-223.50M	-322.80M	2.70B	-3.36M

RBC Bearings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 387.71
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBC, the sentiment is Neutral. The current price of 387.71 is below the 20-day moving average (MA) of 397.79, below the 50-day MA of 391.46, and above the 200-day MA of 352.14, indicating a neutral trend. The MACD of -0.42 indicates Positive momentum. The RSI at 39.71 is Neutral, neither overbought nor oversold. The STOCH value of 15.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RBC.

RBC Bearings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNA	78 Outperform	$16.97B	17.24	18.18%	2.65%	-0.76%	-2.62%
LECO	78 Outperform	$13.39B	27.21	37.35%	1.22%	0.24%	0.05%
RBC	75 Outperform	$12.31B	48.76	8.56%	―	5.48%	16.88%
TKR	73 Outperform	$5.38B	17.57	10.52%	1.80%	-2.01%	-9.95%
SWK	69 Neutral	$11.50B	22.74	5.38%	4.59%	-2.71%	―
Sector *	64 Neutral	$10.74B	15.62	8.14%	2.00%	2.79%	-14.82%
KMT	63 Neutral	$1.63B	17.93	7.35%	3.73%	-3.91%	-12.49%

RBC Bearings Corporate Events

RBC Bearings Acquires VACCO Industries for $275 Million

On July 18, 2025, RBC Bearings completed the acquisition of VACCO Industries from ESCO Technologies Inc. for $275 million, utilizing both borrowing and available cash. VACCO, based in South El Monte, California, specializes in producing precision components for space and naval defense, potentially enhancing RBC Bearings’ market position in these sectors.