Rbc Bearings Incorporated Stock Beneish M Score

RBC Stock  USD 324.45  0.01  0%   
This module uses fundamental data of RBC Bearings to approximate the value of its Beneish M Score. RBC Bearings M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out RBC Bearings Piotroski F Score and RBC Bearings Altman Z Score analysis.
  
At present, RBC Bearings' Net Debt is projected to increase significantly based on the last few years of reporting. The current year's Short Term Debt is expected to grow to about 17.3 M, whereas Long Term Debt is forecasted to decline to about 936.1 M. At present, RBC Bearings' Days Sales Outstanding is projected to slightly grow based on the last few years of reporting. The current year's Capex To Depreciation is expected to grow to 0.45, whereas PTB Ratio is forecasted to decline to 2.20.
At this time, RBC Bearings' M Score is unavailable. The earnings manipulation may begin if RBC Bearings' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by RBC Bearings executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of RBC Bearings' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.37
Beneish M Score - Unavailable
Elasticity of Receivables

1.0

Focus
Asset Quality

0.98

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

0.99

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

1.1

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.0

Focus

RBC Bearings Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if RBC Bearings' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables275.2 M262.1 M
Sufficiently Up
Slightly volatile
Total Revenue1.6 B1.6 B
Sufficiently Up
Slightly volatile
Total Assets4.9 B4.7 B
Sufficiently Up
Slightly volatile
Total Current AssetsB965.5 M
Sufficiently Up
Slightly volatile
Non Current Assets Total3.9 B3.7 B
Sufficiently Up
Slightly volatile
Property Plant Equipment567.6 M479.2 M
Fairly Up
Pretty Stable
Selling General Administrative266.2 M253.5 M
Sufficiently Up
Slightly volatile
Total Current Liabilities309 M294.3 M
Sufficiently Up
Slightly volatile
Non Current Liabilities Total1.7 B1.6 B
Sufficiently Up
Slightly volatile
Short Term Debt17.3 M16.5 M
Sufficiently Up
Slightly volatile
Long Term Debt936.1 M1.2 B
Significantly Down
Slightly volatile
Operating Income359.3 M342.2 M
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities288.4 M274.7 M
Sufficiently Up
Slightly volatile
Gross Profit Margin0.380.3846
Fairly Down
Slightly volatile

RBC Bearings Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between RBC Bearings' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards RBC Bearings in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find RBC Bearings' degree of accounting gimmicks and manipulations.

About RBC Bearings Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

1.28 Billion

At present, RBC Bearings' Other Operating Expenses is projected to increase significantly based on the last few years of reporting.

RBC Bearings Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as RBC Bearings. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables129.0M110.5M247.5M239.6M262.1M275.2M
Total Revenue727.5M609.0M942.9M1.5B1.6B1.6B
Total Assets1.3B1.4B4.8B4.7B4.7B4.9B
Total Current Assets612.0M728.2M962.2M913.3M965.5M1.0B
Net Debt(51.1M)(99.3M)1.6B1.4B1.2B1.3B
Short Term Debt12.1M8.3M13.5M14.3M16.5M17.3M
Long Term Debt1.1B840.4M1.7B2.0B1.2B936.1M
Operating Income124.6M78.7M63.7M171.0M342.2M359.3M
Investments74.3M(37M)(2.8B)(14M)(46.9M)(49.2M)

RBC Bearings ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, RBC Bearings' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to RBC Bearings' managers, analysts, and investors.
Environmental
Governance
Social

About RBC Bearings Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze RBC Bearings Incorporated's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of RBC Bearings using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of RBC Bearings Incorporated based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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When determining whether RBC Bearings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of RBC Bearings' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Rbc Bearings Incorporated Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Rbc Bearings Incorporated Stock:
Check out RBC Bearings Piotroski F Score and RBC Bearings Altman Z Score analysis.
You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Is Electrical Components & Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of RBC Bearings. If investors know RBC will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about RBC Bearings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.044
Earnings Share
6.87
Revenue Per Share
54.835
Quarterly Revenue Growth
0.032
Return On Assets
0.0475
The market value of RBC Bearings is measured differently than its book value, which is the value of RBC that is recorded on the company's balance sheet. Investors also form their own opinion of RBC Bearings' value that differs from its market value or its book value, called intrinsic value, which is RBC Bearings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because RBC Bearings' market value can be influenced by many factors that don't directly affect RBC Bearings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between RBC Bearings' value and its price as these two are different measures arrived at by different means. Investors typically determine if RBC Bearings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, RBC Bearings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.