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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 46.2GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
7.8%
Sector: 8.9%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, RBC Bearings INC (RBC) receives a "Hold" rating with a composite score of 52.1/100, ranked #438 out of 4446 stocks. Key factor scores: Quality 46/100, Value 40/100, Momentum 69/100. This is quantitative analysis only — not investment advice.
RBC Bearings INC (RBC) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does RBC Bearings INC Do?
RBC Bearings Incorporated manufactures and markets engineered precision bearings and components in North America, Europe, Asia, and Latin America. It operates through four segments: Plain Bearings, Roller Bearings, Ball Bearings, and Engineered Products. The Plain Bearings segment produces plain bearings with self-lubricating or metal-to-metal designs, including rod end bearings, spherical plain bearings, and journal bearings that are primarily used to rectify inevitable misalignments in various mechanical components, such as aircraft controls, helicopter rotors, or in heavy mining and construction equipment. The Roller Bearings segment offers heavy duty needle roller bearings, tapered roller bearings, track rollers, and aircraft roller bearings, which are anti-friction bearings that use rollers instead of balls. The Ball Bearings segment manufactures high precision aerospace, airframe control, thin section, and commercial ball bearings that utilize high precision ball elements to reduce friction in high speed applications. The Engineered Products segment offers 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. The company serves the construction and mining, oil and natural resource extraction, heavy truck, marine, rail and train, packaging, semiconductor machinery, wind, canning, and general industrial markets through its direct sales force, as well as a network of industrial and aerospace distributors. RBC Bearings Incorporated was founded in 1919 and is headquartered in Oxford, Connecticut. RBC Bearings INC (RBC) is classified as a large-cap stock in the Industrials sector, specifically within the Machinery industry. The company is led by CEO Michael J. Hartnett and employs approximately 3,550 people, headquartered in OXFORD, Connecticut. With a market capitalization of $17.5B, RBC is one of the prominent companies in the Industrials sector.
RBC Bearings INC (RBC) Stock Rating — Hold (April 2026)
As of April 2026, RBC Bearings INC receives a Hold rating with a composite score of 52.1/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.RBC ranks #438 out of 4,446 stocks in our coverage universe. Within the Industrials sector, RBC Bearings INC ranks #74 of 752 stocks, placing it in the top 10% of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
RBC Stock Price and 52-Week Range
RBC Bearings INC (RBC) currently trades at $595.11. The 52-week high for RBC is $576.72, which means the stock is currently trading 3.2% from its annual peak. The 52-week low is $297.28, putting the stock 100.2% above its annual trough. Recent trading volume was 0 shares, suggesting relatively thin trading activity.
Is RBC Overvalued or Undervalued? — Valuation Analysis
RBC Bearings INC (RBC) carries a value factor score of 40/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 68.37x, compared to the Industrials sector average of 28.33x — a premium of 141%. The price-to-book ratio stands at 5.36x, versus the sector average of 2.23x. The price-to-sales ratio is 9.68x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, RBC trades at 35.03x EV/EBITDA, versus 5.70x for the sector.
Overall, RBC's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
RBC Bearings INC Profitability — ROE, Margins, and Quality Score
RBC Bearings INC (RBC) earns a quality factor score of 46/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 7.8%, compared to the Industrials sector average of 8.9%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 5.0% versus the sector average of 3.3%.
On a margin basis, RBC Bearings INC reports gross margins of 44.3%, compared to 35.8% for the sector. The operating margin is 22.1% (sector: 6.2%). Net profit margin stands at 14.2%, versus 3.9% for the average Industrials stock. Revenue growth is running at 17.0% on a trailing basis, compared to 6.4% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
RBC Debt, Balance Sheet, and Financial Health
RBC Bearings INC has a debt-to-equity ratio of 30.0%, compared to the Industrials sector average of 70.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.86x, suggesting adequate working capital coverage. Total debt on the balance sheet is $990M.
RBC has a beta of 0.92, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for RBC Bearings INC is 81/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
RBC Bearings INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, RBC Bearings INC reported revenue of $1.81B and earnings per share (EPS) of $2.14. Net income for the quarter was $256M. Gross margin was 44.3%. Operating income came in at $400M.
In Q3 2026, RBC Bearings INC reported revenue of $462M and earnings per share (EPS) of $2.14. Net income for the quarter was $67M. Gross margin was 44.3%. Revenue grew 17.0% year-over-year compared to Q3 2025. Operating income came in at $103M.
In Q2 2025, RBC Bearings INC reported revenue of $455M and earnings per share (EPS) of $1.90. Net income for the quarter was $60M. Gross margin was 44.1%. Operating income came in at $98M.
In Q2 2026, RBC Bearings INC reported revenue of $455M and earnings per share (EPS) of $1.90. Net income for the quarter was $60M. Gross margin was 44.1%. Revenue grew 0.0% year-over-year compared to Q2 2025. Operating income came in at $98M.
Over the past 8 quarters, RBC Bearings INC has demonstrated a growth trajectory, with revenue expanding from $406M to $1.81B. Investors analyzing RBC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
RBC Dividend Yield and Income Analysis
RBC Bearings INC (RBC) does not currently pay a dividend. This is common among growth-oriented companies in the Machinery industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Industrials dividend stocks may want to explore other Industrials stocks or use the stock screener to filter by dividend yield.
RBC Momentum and Technical Analysis Profile
RBC Bearings INC (RBC) has a momentum factor score of 69/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 27/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 43/100 reflects moderate short selling activity.
RBC vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing RBC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full RBC vs S&P 500 (SPY) comparison to assess how RBC Bearings INC stacks up against the broader market across all factor dimensions.
RBC Next Earnings Date
No upcoming earnings date has been announced for RBC Bearings INC (RBC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy RBC? — Investment Thesis Summary
RBC Bearings INC presents a balanced picture with arguments on both sides. Price momentum is positive at 69/100, suggesting the trend favors buyers. Low volatility (stability score 81/100) reduces downside risk.
In summary, RBC Bearings INC (RBC) earns a Hold rating with a composite score of 52.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on RBC stock.
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Institutional Research Dossier
RBC Bearings INC (RBC) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
RBC Bearings Incorporated (RBC) receives a Hold rating, primarily due to its premium valuation relative to its sector, despite demonstrating strong operational performance and profitability. While the company exhibits impressive margins and revenue growth, the current multiples suggest that much of this success is already priced into the stock. Investors should await a more favorable entry point before considering RBC for their portfolios, as the risk/reward profile appears balanced at current levels.
The company's focus on engineered precision bearings and components, particularly in high-reliability applications, provides a degree of resilience. However, the high P/E and EV/EBITDA ratios compared to the Industrials sector indicate that the market has high expectations for future growth, which may be difficult to consistently achieve. Therefore, a Hold rating reflects the need for further evidence of sustained performance to justify the current valuation.
Business Strategy & Overview
RBC Bearings operates as a manufacturer and marketer of engineered precision bearings and components, serving a diverse range of industries including aerospace, defense, and general industrial sectors. The company's strategy revolves around providing highly engineered solutions that meet stringent performance requirements, often in applications where reliability is paramount. This focus allows RBC to command premium pricing and maintain strong margins.
The company's four segments – Plain Bearings, Roller Bearings, Ball Bearings, and Engineered Products – cater to different needs within the bearing market. The Plain Bearings segment addresses misalignment issues in mechanical components, while the Roller and Ball Bearings segments focus on anti-friction solutions for high-speed applications. The Engineered Products segment expands RBC's offerings into hydraulics, valves, fasteners, and precision mechanical components, providing a broader range of solutions to its customers.
RBC's strategic positioning emphasizes serving niche markets with high barriers to entry. The aerospace and defense industries, in particular, demand rigorous quality control and certifications, which favor established players like RBC. The company's direct sales force and network of distributors enable it to reach a wide customer base across North America, Europe, Asia, and Latin America.
The company's growth strategy includes organic expansion through new product development and strategic acquisitions to broaden its product portfolio and geographic reach. RBC's focus on high-margin, engineered solutions differentiates it from commodity bearing manufacturers, allowing it to maintain profitability even in challenging economic environments. The company's aftermarket services also contribute to recurring revenue and strengthen customer relationships.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
17.0%
Sector: 6.4%
+167% VS SCTR
Economic Moat Analysis
RBC Bearings possesses a Narrow economic moat, primarily derived from intangible assets and switching costs. The company's reputation for high-quality, precision-engineered bearings, particularly in the aerospace and defense industries, creates a valuable intangible asset. These industries demand stringent quality control and certifications, making it difficult for new entrants to gain credibility and market share quickly.
Switching costs also contribute to RBC's moat. In many applications, bearings are critical components that directly impact the performance and reliability of the overall system. Replacing a bearing supplier can involve significant testing and validation processes, as well as potential downtime and disruption. This creates a reluctance among customers to switch to a new supplier unless there is a compelling cost advantage or performance improvement.
However, the moat is not considered Wide due to the presence of other established players in the engineered bearings market. While RBC has a strong position in certain niches, it faces competition from larger, more diversified industrial companies. The bearing industry is also subject to cyclical demand, which can impact profitability and limit the company's ability to consistently generate excess returns on capital.
Furthermore, the company's reliance on specific industries, such as aerospace and defense, exposes it to risks related to government spending and regulatory changes. A significant reduction in defense budgets or stricter regulations could negatively impact RBC's revenue and profitability. While the company's diversification into other industrial sectors mitigates this risk to some extent, it remains a relevant consideration.
The company's ability to maintain its moat will depend on its continued focus on innovation, quality, and customer service. Investing in new product development and maintaining strong relationships with key customers will be crucial for defending its market position against competitors. The moat is narrow because while RBC has advantages, they are not insurmountable and the company operates in a competitive landscape.
Financial Health & Profitability
RBC Bearings demonstrates solid financial health, characterized by strong margins and profitability. The company's gross margin of 44.3% and operating margin of 22.1% significantly exceed the sector averages of 35.8% and 6.2%, respectively. This indicates RBC's ability to command premium pricing and efficiently manage its operations. The net margin of 14.2% also surpasses the sector average of 3.7%, further highlighting the company's superior profitability.
Revenue growth has been robust, with a 17.0% increase compared to the sector average of 6.6%. This growth reflects RBC's success in expanding its market share and capitalizing on favorable industry trends. The quarterly financial history shows consistent revenue growth over the past several quarters, indicating a positive trajectory. However, it's important to note that the provided data only covers a limited time frame, and a longer-term analysis would provide a more comprehensive view of the company's revenue trends.
The company's debt-to-equity ratio of 30.00 is significantly lower than the sector average of 70.00, suggesting a conservative approach to leverage. While the total debt of $990.20 million is substantial, the company's strong cash flow generation and profitability provide ample coverage for its debt obligations. The current ratio of 1.86 indicates a healthy level of liquidity, ensuring that the company can meet its short-term obligations.
The company's Return on Equity (ROE) of 7.9% is slightly below the sector average of 9.2%. This could be due to the company's lower leverage compared to its peers. However, the company's strong margins and asset turnover contribute to a respectable ROE. The absence of Free Cash Flow (FCF) data makes it difficult to assess the company's cash flow generation capabilities fully. The one data point available shows a negative FCF in Q2 FY2025, which warrants further investigation to understand the underlying drivers.
Overall, RBC Bearings exhibits a strong financial profile, characterized by high margins, robust revenue growth, and a conservative balance sheet. The lack of consistent FCF data is a concern, but the company's profitability and liquidity provide a solid foundation for future growth. The company's financial health supports its ability to invest in new product development, pursue strategic acquisitions, and return value to shareholders.
Valuation Assessment
RBC Bearings' valuation presents a mixed picture. The company's P/E ratio of 248.2x is significantly higher than the sector average of 27.7x, indicating a substantial premium. Similarly, the EV/EBITDA ratio of 32.7x is far above the sector average of 5.7x, further suggesting that the stock is richly valued. These high multiples imply that the market has very high expectations for RBC's future growth and profitability.
Given the company's strong margins and revenue growth, a premium valuation is not entirely unwarranted. However, the magnitude of the premium raises concerns about the potential for downside risk if the company fails to meet these lofty expectations. The company's historical growth rate and competitive landscape should be carefully considered when assessing the sustainability of its current valuation.
The absence of Free Cash Flow (FCF) data makes it challenging to perform a discounted cash flow (DCF) analysis, which is a common method for valuing companies. Without FCF data, it is difficult to assess the intrinsic value of the stock and determine whether it is truly overvalued or not. The negative FCF in Q2 FY2025 is a red flag that warrants further investigation.
Relative to its own history, RBC's current valuation is also elevated. While the company has consistently traded at a premium to the sector, the current multiples are at the higher end of its historical range. This suggests that the stock may be vulnerable to a correction if investor sentiment shifts or if the company experiences any setbacks.
Based on the available data, RBC Bearings appears to be overvalued. The high P/E and EV/EBITDA ratios, combined with the lack of consistent FCF data, suggest that the stock is priced for perfection. Investors should exercise caution and consider waiting for a more favorable entry point before investing in RBC.
Risk & Uncertainty
RBC Bearings faces several specific risks that could impact its future performance. One significant risk is its reliance on specific industries, particularly aerospace and defense. A downturn in these sectors, driven by factors such as government spending cuts or geopolitical instability, could negatively affect RBC's revenue and profitability. While the company has diversified into other industrial sectors, its exposure to aerospace and defense remains substantial.
Another risk is competition from other established players in the engineered bearings market. RBC faces competition from larger, more diversified industrial companies that may have greater resources and broader product portfolios. These competitors could potentially undercut RBC's pricing or develop competing products that erode its market share. The company's ability to maintain its competitive advantage will depend on its continued focus on innovation, quality, and customer service.
The cyclical nature of the bearing industry also poses a risk to RBC. Demand for bearings is closely tied to overall economic activity, and a recession or slowdown in industrial production could lead to a decline in revenue and profitability. The company's ability to manage its costs and maintain its margins during economic downturns will be crucial for mitigating this risk.
Acquisition integration risk is also present. RBC has grown through acquisitions, and the success of these acquisitions depends on the company's ability to integrate them effectively. Failure to integrate acquired businesses smoothly could lead to cost overruns, loss of key personnel, and disruption of operations.
Bulls Say / Bears Say
The Bull Case
BULL VIEWRBC Bearings' focus on high-margin, engineered solutions in critical applications provides resilience and pricing power, leading to consistent profitability even in challenging economic environments.
BULL VIEWThe company's strong presence in the aerospace and defense industries, coupled with its reputation for quality and reliability, creates a sustainable competitive advantage and recurring revenue streams.
BULL VIEWRBC's conservative balance sheet and strong cash flow generation enable it to pursue strategic acquisitions and invest in new product development, driving long-term growth and shareholder value.
The Bear Case
BEAR VIEWRBC Bearings' extremely high valuation multiples, particularly its P/E and EV/EBITDA ratios, suggest that the stock is significantly overvalued and vulnerable to a correction.
BEAR VIEWThe company's reliance on cyclical industries like aerospace and defense exposes it to significant downside risk during economic downturns or periods of reduced government spending.
BEAR VIEWThe lack of consistent free cash flow data raises concerns about the company's ability to generate sustainable cash flow and support its debt obligations, potentially limiting its financial flexibility.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score RBC and 4,400+ other equities.
RBC Bearings INC exhibits a 658% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
5.0%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
44.3%
Sector: 35.8%
Operating Margin
Core business profitability
22.1%
Sector: 6.2%
Net Margin
Bottom-line profitability
14.2%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
