RBCRBC Bearings Incorporated
Is the business good?
A genuinely good business: earnings fully cash-backed (1.3×) and margins widening.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 9% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is RBC?
RBC Bearings Incorporated earns 8.8% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.22 points below what the capital costs: growth destroys value
- Operating margin
- 24%
Operating margin · Tools & Accessories median 14% · 12 months to Q1 2027
- Cash conversion
- 1.30×
Cash conversion · 1.07× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.51%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2021 | 19% |
| FY2022 | 13% |
| FY2023 | 20% |
| FY2024 | 22% |
| FY2025 | 23% |
| FY2026 | 23% |
Details›
- Gross margin12 months to Q1 2027
- 45%
- Operating margin12 months to Q1 2027
- 24%
- Net margin12 months to Q1 2027
- 16%
- Free cash flow margin
- 20%
- Revenue, trailing twelve months
- $1.95B
- Free cash flow, trailing twelve months
- $385M
- Net income, trailing twelve months
- $321M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Tools & Accessories
Ranks #6 of 6 by RyuScore