Investors Are Circling RBC Bearings Incorporated (NasdaqGS:ROLL), What Does The 66 VC2 Tell Us?

The Value Composite Two of RBC Bearings Incorporated (NasdaqGS:ROLL) is 66. The VC2 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings and shareholder yield.  Similarly, the Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of RBC Bearings Incorporated (NasdaqGS:ROLL) is 62.  A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company.  The VC1 is calculated using the same metrics as VC2, but without taking into consideration shareholder yield.

Investors are usually striving to find that next big stock to add to the portfolio. With markets still riding high, investors will be closely watching the numbers as companies start reporting quarterly earnings results. Investors will also be keeping an eye on key economic data over the next few weeks. Many individual investors will approach the stock market from various angles. This may include following fundamental and technical information, and it may also include following analyst projections.

We can now take a quick look at some historical stock price index data. RBC Bearings Incorporated (NasdaqGS:ROLL) presently has a 10 month price index of 1.08032. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.01254, the 24 month is 1.41195, and the 36 month is 1.9181. Narrowing in a bit closer, the 5 month price index is 1.19275, the 3 month is 1.02581, and the 1 month is currently 0.92008.

Watching some historical volatility numbers on shares of RBC Bearings Incorporated (NasdaqGS:ROLL), we can see that the 12 month volatility is presently 34.6515. The 6 month volatility is 25.4263, and the 3 month is spotted at 27.0264. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period. 

Valuation Scores

Shifting gears, we can see that RBC Bearings Incorporated (NasdaqGS:ROLL) has a Q.i. Value of 45. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be.

At the time of writing, RBC Bearings Incorporated (NasdaqGS:ROLL) has a Piotroski F-Score of 7. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

RBC Bearings Incorporated has an M-score Beneish of -2.308245. This M-score model was developed by Messod Beneish in order to detect manipulation of financial statements. The score uses a combination of eight different variables. The specifics of the variables and formula can be found in the Beneish paper “The Detection of Earnings Manipulation”.

Investors may be interested in viewing the Gross Margin score on shares of RBC Bearings Incorporated (NasdaqGS:ROLL). The name currently has a score of 22. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.

RBC Bearings Incorporated (NasdaqGS:ROLL) has a current MF Rank of 5724. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks. RBC Bearings Incorporated has a current ERP5 Rank of 6597. The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When looking at the ERP5 ranking, it is generally considered the lower the value, the better.

Investors might be looking to sharpen the gaze and focus on recent market action. As we move into the second part of the year, everyone will be watching to see which way the stock market momentum shifts. Many believe that the bulls are still charging while others feel like the bears may be waiting in the wings. There are various schools of thought when it comes to trading stocks. Investors may have to first asses their appetite for risk in order to start creating a solid investment plan.