Rbc Bearings (RBC)
NYSE:RBC
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RBC Bearings
(NYSE:RBC)
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Rating:74Outperform
Price Target:
$637.00
▲(8.01% Upside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by strong financial performance (expanding revenues, improved margins, and a much stronger balance sheet) and a constructive earnings outlook supported by positive guidance and a sizable backlog. Offsetting factors are a premium valuation (high P/E with no dividend yield provided) and mixed near-term technical momentum with the stock trading below key short-term moving averages.
Positive Factors
Balance-sheet strength
RBC's dramatic de‑leveraging to a ~0.07 debt/equity ratio materially increases financial flexibility. Lower leverage reduces interest expense, supports capital spending for capacity ramps, and preserves M&A optionality. A conservative capital structure enhances resilience across cycles and underpins durable investment capability over the next 2–6 months.
Negative Factors
Elevated SG&A
SG&A running near 16.5%–16.8% of sales constrains operating leverage; ongoing personnel costs and stock‑based comp could keep fixed overhead elevated. Unless revenue growth sustainably outpaces these expenses, margin expansion and free cash flow conversion may be limited over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
RBC's dramatic de‑leveraging to a ~0.07 debt/equity ratio materially increases financial flexibility. Lower leverage reduces interest expense, supports capital spending for capacity ramps, and preserves M&A optionality. A conservative capital structure enhances resilience across cycles and underpins durable investment capability over the next 2–6 months.
Read all positive factors
RBC Bearings (RBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.70B
Dividend YieldN/A
Average Volume (3M)254.51K
Price to Earnings (P/E)64.8
Beta (1Y)0.84
Revenue Growth14.34%
EPS Growth18.07%
CountryUS
Employees5,302
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)9.13
Shares Outstanding31,635,359
10 Day Avg. Volume279,741
30 Day Avg. Volume254,511
Financial Highlights & Ratios
PEG Ratio3.28
Price to Book (P/B)4.99
Price to Sales (P/S)8.96
P/FCF Ratio48.91
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue10.17
Enterprise Value/Gross Profit22.92
Enterprise Value/Ebitda37.30
Forecast
1Y Price Target
$627.50Price Target Upside6.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)14.33
Revenue Forecast (FY)$2.10B
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 makes money by manufacturing and selling bearings and related engineered components to customers in its end markets, principally aerospace/defense and industrial. Revenue is generated from (1) aerospace/defense sales, where RBC supplies precis...
RBC Bearings Earnings Call Summary
Earnings Call Date:May 15, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jul 31, 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
88
Very Positive
Cash Flow
82
Very Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.87B | 1.64B | 1.56B | 1.47B | 942.90M |
| Gross Profit | 830.20M | 726.10M | 670.50M | 604.80M | 357.10M |
| EBITDA | 421.00M | 491.70M | 459.80M | 401.80M | 185.70M |
| Net Income | 287.60M | 246.20M | 209.90M | 166.70M | 54.70M |
Balance Sheet | |||||
| Total Assets | 5.12B | 4.69B | 4.68B | 4.69B | 4.85B |
| Cash, Cash Equivalents and Short-Term Investments | 57.30M | 36.80M | 63.50M | 65.40M | 182.86M |
| Total Debt | 991.40M | 1.03B | 1.29B | 1.49B | 1.78B |
| Total Liabilities | 1.76B | 1.65B | 1.93B | 2.15B | 2.47B |
| Stockholders Equity | 3.36B | 3.03B | 2.75B | 2.54B | 2.37B |
Cash Flow | |||||
| Free Cash Flow | 342.60M | 243.80M | 241.50M | 178.60M | 150.50M |
| Operating Cash Flow | 415.70M | 293.60M | 274.70M | 220.60M | 180.30M |
| Investing Cash Flow | -349.70M | -49.80M | -52.20M | -14.00M | -2.85B |
| Financing Cash Flow | -43.30M | -270.40M | -223.50M | -322.80M | 2.70B |
RBC Bearings Technical Analysis
Positive
589.77
Price Trends
582.95
Positive
561.15
Positive
489.23
Positive
Market Momentum
-0.27
Negative
53.79
Neutral
82.32
Negative
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 589.77 is above the 20-day moving average (MA) of 582.60, above the 50-day MA of 582.95, and above the 200-day MA of 489.23, indicating a bullish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 53.79 is Neutral, neither overbought nor oversold. The STOCH value of 82.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $19.72B | 19.30 | 17.48% | 2.52% | 2.99% | 1.23% | |
74 Outperform | $18.70B | 64.80 | 8.90% | ― | 14.34% | 18.07% | |
71 Outperform | $9.36B | 30.39 | 9.77% | 1.61% | 3.31% | -5.18% | |
70 Outperform | $14.30B | 26.57 | 37.29% | 1.22% | 7.72% | 19.51% | |
64 Neutral | $2.53B | 18.49 | 10.46% | 2.74% | 7.16% | 28.79% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $12.21B | 32.11 | 4.12% | 4.42% | -0.06% | 3.45% |
* Industrials Sector Average
RBC
RBC Bearings
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209.75
55.02%
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TKR
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87.70%
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.