RBC Bearings Incorporated Common Stock (RBC)

FairStock Score: 37/100 — MIXED

Key Financials

Strengths

• Generates $220 million in annual free cash flow (1.2% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Conservative balance sheet with debt-to-equity of just 0.32, providing financial flexibility
• Altman Z-Score of 6.8 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 17.0% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($141) with negative 327% margin of safety—limited downside protection

AI Analysis

RBC Bearings Incorporated Common Stock is a mid-cap industrials company valued at $19.0 billion. The business generates $1.8 billion in annual revenue with a 3.8% net margin and $220 million in free cash flow. From a quality standpoint, RBC shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 6.8 confirms fortress-level solvency. On valuation, the stock is commanding a steep 70.4x multiple, with trades far above its Graham Number ($141) with no margin of safety. Growth dynamics show revenue growing at 17.0% and profit growth of 16.4%. Our composite FairStock Score of 37/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

RBC's 17% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $220 million in annual free cash flow (1.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 70x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer