RBC Bearings Incorporated (NasdaqGS:ROLL) has an ERP5 rank of 6220. The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  It looks at the stock’s Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The lower the rank, the more undervalued a company is considered to be.

Investors may be trying to gauge the current business cycle phase and how that could potentially impact the portfolio. Business cycles can be one way to analyze portfolio performance. Early on in the cycle, profits tend to grow rapidly, sales tend to improve, and activity rebounds. In the middle of a cycle, growth may be peaking, strong credit growth may still be seen, and policy may swing neutral. Toward the later stages, growth may be moderate, earnings may come under pressure, and credit may tighten. Heading into a period of recession, credit may completely dry up, profits may decline sharply, and there may be policy easing. Investors will often have to adjust portfolio holdings that reflect the current state of a business cycle.

The Q.i. Value of RBC Bearings Incorporated (NasdaqGS:ROLL) is 42.00000. The Q.i. Value is another helpful tool in determining if a company is undervalued or not. The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity. The lower the Q.i. value, the more undervalued the company is thought to be.

The EBITDA Yield is a great way to determine a company’s profitability. This number is calculated by dividing a company’s earnings before interest, taxes, depreciation and amortization by the company’s enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The EBITDA Yield for RBC Bearings Incorporated (NasdaqGS:ROLL) is 0.047620.

The Earnings to Price yield of RBC Bearings Incorporated (NasdaqGS:ROLL) is 0.026179.  This is calculated by taking the earnings per share and dividing it by the last closing share price.  This is one of the most popular methods investors use to evaluate a company’s financial performance.  Earnings Yield is calculated by taking the operating income or earnings before interest and taxes (EBIT) and dividing it by the Enterprise Value of the company.  The Earnings Yield for RBC Bearings Incorporated (NasdaqGS:ROLL) is 0.039394.  Earnings Yield helps investors measure the return on investment for a given company.  Similarly, the Earnings Yield Five Year Average is the five year average operating income or EBIT divided by the current enterprise value.  The Earnings Yield Five Year average for RBC Bearings Incorporated is 0.023590.

The FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The average FCF of a company is determined by looking at the cash generated by operations of the company. The Free Cash Flow Yield 5 Year Average of RBC Bearings Incorporated (NasdaqGS:ROLL) is 0.009333.

Price Index

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 1.13870. 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 1.31364, the 24 month is 1.85555, and the 36 month is 2.08816. Narrowing in a bit closer, the 5 month price index is 1.09665, the 3 month is 1.15104, and the 1 month is currently 1.08433.

Returns

Looking at some ROIC (Return on Invested Capital) numbers, RBC Bearings Incorporated (NasdaqGS:ROLL)’s ROIC is 0.255554. The ROIC 5 year average is 0.241714 and the ROIC Quality ratio is 8.857915. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.

RBC Bearings Incorporated (NasdaqGS:ROLL) has a Price to Book ratio of 3.988563. This ratio is calculated by dividing the current share price by the book value per share. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some other ratios, the company has a Price to Cash Flow ratio of 25.548307, and a current Price to Earnings ratio of 38.198591. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

RBC Bearings Incorporated (NasdaqGS:ROLL) presently has a current ratio of 4.60. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply calculated by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain company to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the company may be more capable of paying back its obligations.

The Price to book ratio is the current share price of a company divided by the book value per share.  The Price to Book ratio for RBC Bearings Incorporated NasdaqGS:ROLL is 3.988563.  A lower price to book ratio indicates that the stock might be undervalued.  Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value.  The Price to Cash Flow for RBC Bearings Incorporated (NasdaqGS:ROLL) is 25.548307.  This ratio is calculated by dividing the market value of a company by cash from operating activities.  Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability.  The price to earnings ratio for RBC Bearings Incorporated (NasdaqGS:ROLL) is 38.198591. This ratio is found by taking the current share price and dividing by earnings per share.

Stock market investing can indeed tug on an individual’s emotional strings. When the market becomes tumultuous, investors may be tempted to act impulsively, or they may freeze and not act at all. Being prepared for various scenarios may help the investor better deal with the market when the time comes. Staying disciplined with portfolio rebalancing and asset allocation may be a big help for the individual investor. Investors who constantly try to outguess the market and chase winners may eventually find themselves swimming upstream. Staying the course and keeping a logical perspective may assist the investor with making the tricky portfolio decisions when necessary.