# RBC Bearings (RBC.US)

Canonical: https://gigainvestors.com/s/RBC

Analysis as of: 2026-10-16T07:31:27.993Z. Financial observations: FY2001–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $497.73 per share; close as of 2026-10-15.

Estimated value: low $133.37 per share, central $159.94 per share, high $185.86 per share. Buy at or below the central value $159.94 per share. Valuation as of 2026-10-16T07:31:27.993Z; scenarios are not confidence intervals.

Expected annual return: 5.2% at the stated quote. About 5.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.14×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.19×

- FY2018: 0.19×

- FY2019: 0.19×

- FY2020: 0.21×

- FY2021: 0.19×

- FY2022: 0.13×

- FY2023: 0.20×

- FY2024: 0.22×

- FY2025: 0.23×

- FY2026: 0.23×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 6.2%

- ROIC, second-lowest year: 4.4%

- Typical minus recent gross margin: -4.8 pp

- Typical gross margin (annual median): 39.6%

- Recent gross margin (lower of latest and 3-year median): 44.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.3%

- ROIC including acquisitions, ten-year median: 5.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 4.4%

- FY2018: 6.0%

- FY2019: 5.6%

- FY2020: 6.5%

- FY2021: 5.8%

- FY2022: 4.1%

- FY2023: 8.9%

- FY2024: 13.1%

- FY2025: 13.6%

- FY2026: 14.3%

### economics: pass

- Owner earnings / net income, 5-yr: 1.33×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.3B

- Net income, five-year total: $965M

- Return on incremental invested capital: 89.8%

- Working capital / revenue, annual change: -1.3 pp

- Working capital / revenue, change between three-year averages: -7.8 pp

- Working capital / revenue, final three-year average: 50.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.65×

- FY2023: 1.44×

- FY2024: 1.41×

- FY2025: 1.29×

- FY2026: 1.19×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 5.6% vs 13.6%

- Per-share earnings: 2.97 to 8.11 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.0%

- Ordinary dilution, 5-year annual growth: 4.7%

- Market cap gain: $15B

- Cumulative retained earnings: $1.3B

- Diluted shares, 10-year annual growth: 3.0%

- Diluted shares, 5-year annual growth: 4.7%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 13.4%

- Per-share value change: $5.14

- Per-share value, starting three-year median: $2.97

- Per-share value, ending three-year median: $8.11

- Buybacks concentrated in cheaper years (correlation): 0.61

- Average buyback yield: 0.2%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $3.3B

- Cumulative net income, 10 years: $1.4B

- ROIC, first three-year median: 5.6%

- ROIC, last three-year median: 13.6%

Chart: Earnings per share; fiscal year observations.

- FY2017: $2.97

- FY2018: $3.58

- FY2019: $4.26

- FY2020: $4.81

- FY2021: $3.58

- FY2022: $2.00

- FY2023: $5.73

- FY2024: $7.19

- FY2025: $8.11

- FY2026: $9.09

### accounting: pass

- Sloan accruals: -2.5%

- Receivables to sales index (DSRI): 0.99×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 8.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.45×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.01×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -2.8%

- FY2018: -3.8%

- FY2019: -0.3%

- FY2020: -2.7%

- FY2021: -4.3%

- FY2022: -2.6%

- FY2023: -1.1%

- FY2024: -1.4%

- FY2025: -1.0%

- FY2026: -2.5%

## Holders

- [Henry Ellenbogen](https://gigainvestors.com/DCP): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Robert Torray](https://gigainvestors.com/T): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 23% since Jun 2026 · "However, revenue growth of 8.6% annually is set to lag market expectations of 10.3%." (finance.yahoo.com, Nov 2025) · sales +14.3%

Story as of 2026-10-16T09:59:28.584Z; price observation 2026-10-15.

Price needs cash profits to grow 16.8% a year for ten years

- 2025-11-03: RBC Q3 Deep Dive: Aerospace and Defense Demand Drives Growth, Capacity Expansion in Focus ([finance.yahoo.com](https://finance.yahoo.com/news/rbc-q3-deep-dive-aerospace-150138534.html))

### Sales · FY2025–2026

sales +14.3%; source https://www.sec.gov/Archives/edgar/data/1324948/000121390026057626/ea0288814-10k_rbcbear.htm; observed 2026-05-15.

- FY2017: $615M 

- FY2018: $675M 

- FY2019: $703M 

- FY2020: $727M 

- FY2021: $609M 

- FY2022: $943M 

- FY2023: $1.5B 

- FY2024: $1.6B 

- FY2025: $1.6B 

- FY2026: $1.9B 

### Gross margin · FY2026

gross margin 44.4%; source https://www.sec.gov/Archives/edgar/data/1324948/000121390026057626/ea0288814-10k_rbcbear.htm; observed 2026-05-15.

- FY2017: 37.4% 

- FY2018: 38.3% 

- FY2019: 39.4% 

- FY2020: 39.7% 

- FY2021: 38.4% 

- FY2022: 37.9% 

- FY2023: 41.2% 

- FY2024: 43.0% 

- FY2025: 44.4% 

- FY2026: 44.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in tools & accessories; annual sales are USD 1.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1324948/000121390026057626/ea0288814-10k_rbcbear.htm (filed 2026-05-15); FY2026: revenue 1870900000; grossProfit 830200000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RBC.US: 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, for use 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.

### Why customers stay

Margins ranged from 43% to 44.4% during 2024–26; it earns 6.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-15); FY2024: grossProfit / revenue = 43%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-15); FY2025: grossProfit / revenue = 44.4%.

- Source: https://www.sec.gov/Archives/edgar/data/1324948/000121390026057626/ea0288814-10k_rbcbear.htm (filed 2026-05-15); FY2026: grossProfit / revenue = 44.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-15); 10-year return on capital observations [[2017,0.04446524528919462],[2018,0.05958287918795383],[2019,0.05551163182129765],[2020,0.06496293454543903],[2021,0.05847753452906917],[2022,0.04062486486515261],[2023,0.08942255607453597],[2024,0.13064200187782538],[2025,0.1357238054364617],[2026,0.14306516667046545]]; median 0.062272906866696426. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 80.6% of cash earnings; earns 89.8% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-15); FY2017: growth capex 0; upkeep 20894000; cash acquisitions 651000; owner earnings 77101000. Growth capex plus acquisitions / owner earnings = 0.008443470253304108.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-15); FY2018: growth capex 0; upkeep 27976000; owner earnings 87525000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-15); FY2019: growth capex 8307962.055325862; upkeep 33038037.944674138; owner earnings 101812962.05532587. Growth capex / owner earnings = 0.08160023917987239.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-15); FY2020: growth capex 5877000; upkeep 31420000; cash acquisitions 33842000; owner earnings 120350000. Growth capex plus acquisitions / owner earnings = 0.3300290818446199.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-15); FY2021: growth capex 0; upkeep 11800000; cash acquisitions 300000; owner earnings 111000000. Growth capex plus acquisitions / owner earnings = 0.002702702702702703.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-15); FY2022: growth capex 0; upkeep 29759000; cash acquisitions 2908200000; owner earnings 90441000. Growth capex plus acquisitions / owner earnings = 32.15577006003914.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-15); FY2023: growth capex 0; upkeep 42000000; cash acquisitions 27500000; owner earnings 240100000. Growth capex plus acquisitions / owner earnings = 0.11453561016243231.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-15); FY2024: growth capex 0; upkeep 33200000; cash acquisitions 19300000; owner earnings 296000000. Growth capex plus acquisitions / owner earnings = 0.0652027027027027.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-15); FY2025: growth capex 0; upkeep 49800000; owner earnings 316400000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1324948/000121390026057626/ea0288814-10k_rbcbear.htm (filed 2026-05-15); FY2026: growth capex 0; upkeep 73100000; cash acquisitions 276700000; owner earnings 343300000. Growth capex plus acquisitions / owner earnings = 0.8060005825808331.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-15); Incremental return on capital 0.8982580865870873, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-15); Dividend observations: [[2017,42100000],[2018,44500000],[2019,23271000],[2020,13598000],[2021,11376000],[2022,7092000],[2023,22900000],[2024,23000000],[2025,17200000],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1324948/000121390026057626/ea0288814-10k_rbcbear.htm (filed 2026-05-15); FY2026: cash repurchases 14400000 USD.

### Are managers owners

Insiders own 1.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RBC.US SharesStats.PercentInsiders = 1.6230000000000002 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 16.8% yearly over ten years; actual growth was 14%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-15); Ten-year compound average after fade. Initial solved rate 0.2310185053192591. Price 497.73; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 2.928185129258804 → FY2026 10.851942956143862. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $71.35 per share

- 2016-11: $84.76 per share

- 2016-12: $92.81 per share

- 2017-01: $92.63 per share

- 2017-02: $93.30 per share

- 2017-03: $97.09 per share

- 2017-04: $100.30 per share

- 2017-05: $101.32 per share

- 2017-06: $101.76 per share

- 2017-07: $103.34 per share

- 2017-08: $110.27 per share

- 2017-09: $125.15 per share

- 2017-10: $123.82 per share

- 2017-11: $133.45 per share

- 2017-12: $126.40 per share

- 2018-01: $126.00 per share

- 2018-02: $120.50 per share

- 2018-03: $124.20 per share

- 2018-04: $116.38 per share

- 2018-05: $125.71 per share

- 2018-06: $128.81 per share

- 2018-07: $145.38 per share

- 2018-08: $149.81 per share

- 2018-09: $150.36 per share

- 2018-10: $147.68 per share

- 2018-11: $153.02 per share

- 2018-12: $131.10 per share

- 2019-01: $139.42 per share

- 2019-02: $140.15 per share

- 2019-03: $127.17 per share

- 2019-04: $137.55 per share

- 2019-05: $142.30 per share

- 2019-06: $166.81 per share

- 2019-07: $162.69 per share

- 2019-08: $159.53 per share

- 2019-09: $165.91 per share

- 2019-10: $160.44 per share

- 2019-11: $165.88 per share

- 2019-12: $158.34 per share

- 2020-01: $155.51 per share

- 2020-02: $171.19 per share

- 2020-03: $112.79 per share

- 2020-04: $126.68 per share

- 2020-05: $140.65 per share

- 2020-06: $134.04 per share

- 2020-07: $122.42 per share

- 2020-08: $132.04 per share

- 2020-09: $121.21 per share

- 2020-10: $119.05 per share

- 2020-11: $168.84 per share

- 2020-12: $179.04 per share

- 2021-01: $167.33 per share

- 2021-02: $199.06 per share

- 2021-03: $196.77 per share

- 2021-04: $199.43 per share

- 2021-05: $195.79 per share

- 2021-06: $199.42 per share

- 2021-07: $235.00 per share

- 2021-08: $231.52 per share

- 2021-09: $212.20 per share

- 2021-10: $233.93 per share

- 2021-11: $197.69 per share

- 2021-12: $201.97 per share

- 2022-01: $180.47 per share

- 2022-02: $193.85 per share

- 2022-03: $193.88 per share

- 2022-04: $168.35 per share

- 2022-05: $186.39 per share

- 2022-06: $184.95 per share

- 2022-07: $236.00 per share

- 2022-08: $240.68 per share

- 2022-09: $207.81 per share

- 2022-10: $253.53 per share

- 2022-11: $236.97 per share

- 2022-12: $209.35 per share

- 2023-01: $243.97 per share

- 2023-02: $229.81 per share

- 2023-03: $232.73 per share

- 2023-04: $227.01 per share

- 2023-05: $198.29 per share

- 2023-06: $217.47 per share

- 2023-07: $226.05 per share

- 2023-08: $230.54 per share

- 2023-09: $234.13 per share

- 2023-10: $219.84 per share

- 2023-11: $257.74 per share

- 2023-12: $284.89 per share

- 2024-01: $268.54 per share

- 2024-02: $272.83 per share

- 2024-03: $270.35 per share

- 2024-04: $244.55 per share

- 2024-05: $295.28 per share

- 2024-06: $269.78 per share

- 2024-07: $290.84 per share

- 2024-08: $297.85 per share

- 2024-09: $299.38 per share

- 2024-10: $280.35 per share

- 2024-11: $335.11 per share

- 2024-12: $299.14 per share

- 2025-01: $348.75 per share

- 2025-02: $359.20 per share

- 2025-03: $321.77 per share

- 2025-04: $328.57 per share

- 2025-05: $365.87 per share

- 2025-06: $384.80 per share

- 2025-07: $387.34 per share

- 2025-08: $389.96 per share

- 2025-09: $390.29 per share

- 2025-10: $428.53 per share

- 2025-11: $444.97 per share

- 2025-12: $448.43 per share

- 2026-01: $499.67 per share

- 2026-02: $575.92 per share

- 2026-03: $543.12 per share

- 2026-04: $599.09 per share

- 2026-05: $571.96 per share

- 2026-06: $644.06 per share

- 2026-07: $551.31 per share

- 2026-08: $494.26 per share

- 2026-09: $499.23 per share

- 2026-10: $497.73 per share

## Annual estimated value (USD per share)

- FY2017: low $37.66 per share, central $45.54 per share, high $52.89 per share

- FY2018: low $41.91 per share, central $50.38 per share, high $58.43 per share

- FY2019: low $42.99 per share, central $51.44 per share, high $59.80 per share

- FY2020: low $49.00 per share, central $60.88 per share, high $70.50 per share

- FY2021: low $47.47 per share, central $52.76 per share, high $59.80 per share

- FY2022: low $62.90 per share, central $73.50 per share, high $84.56 per share

- FY2023: low $96.84 per share, central $116.79 per share, high $135.86 per share

- FY2024: low $103.19 per share, central $124.14 per share, high $144.43 per share

- FY2025: low $113.24 per share, central $136.06 per share, high $158.46 per share

- FY2026: low $125.72 per share, central $151.15 per share, high $175.96 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1324948/000121390026057626/ea0288814-10k_rbcbear.htm); period 2026-03-28, filed 2026-05-15.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.