RBC Bearings manufactures and markets precision plain, roller, and ball bearings primarily in North America, Europe, Asia, and Latin America. It operates in four segments: Plain Bearings, Roller Bearings, Ball Bearings, and Other. The company was founded in 1919 and is based in Oxford, Connecticut.
ROLL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for RBC Bearings INC with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that RBC Bearings INC ranked in the 49th percentile in terms of potential gain offered. As for the metrics that stood out in our discounted cash flow analysis of RBC Bearings INC, consider:
Interest coverage, a measure of earnings relative to interest payments, is 82.77; that's higher than 96.56% of US stocks in the Industrials sector that have positive free cash flow.
The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately just 6.57% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
ROLL's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 55.86% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ROLL, try VVI, CCL, GNK, WTS, and EME.
RBC Bearings Incorporated (Nasdaq: ROLL), a leading international manufacturer of highly engineered precision bearings and components for the industrial, aerospace and defense industries, today announced that it will participate in the William Blair 40th Annual Growth Stock Virtual Conference 2020 on June 9, 2020. Materials shared during the conference will be available online at: http://investor.rbcbearings.com.
RBC Bearings (ROLL) gains from the healthy defense business in Q4 and expects it to aid fiscal 2021 results. However, the pandemic might continue hurting industrial and commercial aerospace end markets.