For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.
In contrast to all that, many investors prefer to focus on companies like RBC Bearings (NYSE:RBC), which has not only revenues, but also profits. While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing.
How Fast Is RBC Bearings Growing?
The market is a voting machine in the short term, but a weighing machine in the long term, so you'd expect share price to follow earnings per share (EPS) outcomes eventually. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Shareholders will be happy to know that RBC Bearings' EPS has grown 21% each year, compound, over three years. If growth like this continues on into the future, then shareholders will have plenty to smile about.
One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. RBC Bearings maintained stable EBIT margins over the last year, all while growing revenue 6.2% to US$1.6b. That's progress.
In the chart below, you can see how the company has grown earnings and revenue, over time. For finer detail, click on the image.
NYSE:RBC Earnings and Revenue History June 22nd 2024
In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of RBC Bearings' forecast profits?
Are RBC Bearings Insiders Aligned With All Shareholders?
Since RBC Bearings has a market capitalisation of US$8.0b, we wouldn't expect insiders to hold a large percentage of shares. But we are reassured by the fact they have invested in the company. Indeed, they have a considerable amount of wealth invested in it, currently valued at US$142m. Holders should find this level of insider commitment quite encouraging, since it would ensure that the leaders of the company would also experience their success, or failure, with the stock.
Is RBC Bearings Worth Keeping An Eye On?
For growth investors, RBC Bearings' raw rate of earnings growth is a beacon in the night. With EPS growth rates like that, it's hardly surprising to see company higher-ups place confidence in the company through continuing to hold a significant investment. The growth and insider confidence is looked upon well and so it's worthwhile to investigate further with a view to discern the stock's true value. We don't want to rain on the parade too much, but we did also find 2 warning signs for RBC Bearings that you need to be mindful of.
Although RBC Bearings certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of companies that not only boast of strong growth but have strong insider backing.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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对于初学者来说,收购一家向投资者讲述好故事的公司似乎是个好主意(也是一个令人兴奋的前景),即使该公司目前缺乏收入和利润记录。不幸的是,这些高风险投资获得回报的可能性通常很小,许多投资者为吸取教训付出了代价。亏损的公司总是为了实现财务可持续性而争分夺秒,因此这些公司的投资者承担的风险可能超出了应有的水平。
与此形成鲜明对比的是,许多投资者更愿意关注像RBC Bearings(纽约证券交易所代码:RBC)这样的公司,这些公司不仅有收入,还有利润。尽管这并不一定说明其估值是否被低估,但该业务的盈利能力足以保证一定的升值——尤其是在其增长的情况下。
RBC Bearings的增长速度有多快?
市场在短期内是投票机,但从长远来看是一台权衡器,因此您预计股价最终将跟随每股收益(EPS)的结果。因此,经验丰富的投资者在进行投资研究时密切关注公司的每股收益是有道理的。股东们会很高兴得知,RBC Bearings的每股收益在三年内每年复合增长21%。如果这样的增长持续到未来,那么股东们将有很多值得微笑的地方。
仔细检查公司增长的一种方法是查看其收入以及利息和税前收益(EBIT)利润率如何变化。加拿大皇家银行轴承去年保持了稳定的息税前利润率,同时收入增长了6.2%,达到16亿美元。这就是进步。
在下图中,您可以看到随着时间的推移,该公司的收益和收入是如何增长的。要获得更详细的细节,请点击图片。
纽约证券交易所:RBC收益和收入历史记录 2024 年 6 月 22 日
在投资中,就像在生活中一样,未来比过去更重要。那么,为什么不看看这个RBC Bearings预测利润的免费交互式可视化呢?
RBC Bearings内部人士是否与所有股东保持一致?
由于RBC Bearings的市值为80亿美元,我们预计内部人士不会持有很大比例的股份。但是他们投资了该公司,这让我们感到放心。事实上,他们有大量财富投资于此,目前价值1.42亿美元。持有人应该会发现这种程度的内部承诺相当令人鼓舞,因为这将确保公司的领导者也能在股票上经历成功或失败。
RBC Bearings值得关注吗?
对于成长型投资者来说,RBC Bearings的原始收益增长率是夜间的灯塔。在每股收益增长率如此之高的情况下,看到公司高层通过继续持有大量投资对公司充满信心也就不足为奇了。增长和内部信心备受关注,因此值得进一步调查,以辨别该股的真实价值。我们不想在游行队伍中下太多雨,但我们也确实发现了两个需要注意的加拿大皇家银行轴承警告标志。
尽管RBC Bearings确实看起来不错,但如果内部人士买入股票,它可能会吸引更多的投资者。如果你想看到拥有更多风险的公司,那么看看这些精心挑选的公司,这些公司不仅拥有强劲的增长,而且有强大的内部支持。
请注意,本文中讨论的内幕交易是指相关司法管辖区内应报告的交易。
对这篇文章有反馈吗?对内容感到担忧吗?请直接联系我们。或者,也可以发送电子邮件至编辑团队 (at) simplywallst.com。
Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。
对这篇文章有反馈吗?担心内容吗?直接联系我们。或者,发送电子邮件至 editorial-team@simplywallst.com