Yahoo Finance How Does RBC Bearings Incorporated's (NASDAQ:ROLL) Earnings Growth Stack Up Against Industry Performance?
Understanding RBC Bearings Incorporated's (NasdaqGS:ROLL) performance as a company requires examining more than earnings from one point in time. Today I will take you through a basic sense check to gain perspective on how RBC Bearings is doing by evaluating its latest earnings with its longer term trend as well as its industry peers' performance over the same period.
View our latest analysis for RBC Bearings
Were ROLL's earnings stronger than its past performances and the industry?
ROLL's trailing twelve-month earnings (from 29 June 2019) of US$108m has jumped 17% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 14%, indicating the rate at which ROLL is growing has accelerated. What's enabled this growth? Let's take a look at if it is solely attributable to an industry uplift, or if RBC Bearings has seen some company-specific growth.
In terms of returns from investment, RBC Bearings has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 9.4% exceeds the US Machinery industry of 7.3%, indicating RBC Bearings has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for RBC Bearings’s debt level, has increased over the past 3 years from 12% to 14%.
What does this mean?
RBC Bearings's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as RBC Bearings gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research RBC Bearings to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for ROLL’s future growth? Take a look at our free research report of analyst consensus for ROLL’s outlook.
Financial Health: Are ROLL’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 29 June 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
