RBCRBC Bearings exhibits strong fundamental performance with solid profitability and a healthy balance sheet, supported by its position in essential industrial and aerospace markets. Thematic tailwinds are present, but current technical indicators suggest a cautious approach due to recent price weakness.
RBC Bearings benefits from sustained demand in its key end markets, including aerospace, defense, and various industrial sectors. Its engineered precision bearings are critical components, aligning with themes of industrial automation, infrastructure renewal, and defense spending.
RBC Bearings demonstrates strong financial health with improving profitability, robust revenue growth, and a manageable debt level. The company has consistently beaten earnings expectations and shows strong gross and operating margins.
While the stock has shown strong long-term performance, current technical indicators suggest a short-term pullback or consolidation. The price is below key moving averages, and some momentum indicators are bearish.
| Factor | Score |
|---|---|
| Aerospace & Defense Demand | 85 |
| Industrial Automation & Efficiency | 70 |
| Infrastructure Spending | 75 |
| Supply Chain Resilience | 70 |
| Energy Sector Demand | 70 |
| Factor | Score |
|---|---|
| Valuation | 50 |
| Profitability | 85 |
| Growth | 80 |
| Balance Sheet Health | 75 |
| Cash Flow | 85 |
| Earnings Quality | 90 |
| Factor | Score |
|---|---|
| Trend Analysis | 40 |
| Momentum | 60 |
| Volume Analysis | 70 |
| Support & Resistance | 70 |
| Short-term Oscillators | 65 |
Strong Earnings Growth Momentum
Quarterly EPS has shown consistent year-over-year growth, with the latest quarter (2025Q1) reporting EPS of $2.83 against an estimate of $2.70, indicating a positive earnings surprise of 4.78%. Previous quarters also demonstrate similar beats, suggesting reliable earnings generation.
Improving Valuation Metrics
The Price-to-Earnings (P/E) ratio has decreased from 111.4 in 2022 to an estimated 41.1 in 2025Q1 on an annual basis. Quarterly P/E ratios also show a declining trend from 2024Q2 (197.4) to 2025Q1 (139.3), indicating that the stock may be becoming more attractively valued relative to its earnings.
High P/E Ratio Despite Declines
Despite the declining trend, the forward P/E ratio (2025Q1) of 41.1 is still relatively high, suggesting that future growth expectations are priced in, making the stock susceptible to significant corrections if growth falters.
Slowing Revenue Growth
While revenue for 2025Q1 is projected at $1.636 billion, the quarterly revenue growth rate (from 2024Q1 to 2025Q1) is modest, with net income growth appearing more robust. This might indicate challenges in top-line expansion.
May 2014
28
Ex-Dividend Date
June 2014
13
Next Dividend Date
August 2025
1
Next Earnings Date
H: $2.81
A: $2.74
L: $2.66
H: 433.24M
A: 432.26M
L: 430.79M
RBC Bearings Incorporated manufactures and markets engineered precision bearings, components, and systems 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 that 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. In addition, it 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 and maxum, and controlled start transmission. Further, the company's 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 commercial and defense aerospace,, construction, mining, forestry, energy, agricultural, food and beverage, metals and mining material handling, chemicals, oil and gas production, warehousing and logistics, semiconductor equipment, waste and water management, and rail and transportation applications through its direct sales force, and a network of industrial and aerospace distributors. The company was founded in 1919 and is based in Oxford, Connecticut.
429.57 USD
The 39 analysts offering 1 year price forecasts for RBC have a max estimate of 480.00 and a min estimate of 390.00.