REGAL REXNORD CORP (RRX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RRX - US7587501039 - Common Stock
143.695 USD
+0.51 (+0.36%)
Overall RRX gets a fundamental rating of 5 out of 10. We evaluated RRX against 91 industry peers in the Electrical Equipment industry. While RRX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. RRX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year RRX was profitable.
In the past year RRX had a positive cash flow from operations.
RRX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years RRX had a positive operating cash flow.
1.2 Ratios
RRX's Return On Assets of 1.85% is fine compared to the rest of the industry. RRX outperforms 71.43% of its industry peers.
RRX has a Return On Equity of 3.80%. This is in the better half of the industry: RRX outperforms 72.53% of its industry peers.
With a decent Return On Invested Capital value of 4.42%, RRX is doing good in the industry, outperforming 70.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RRX is significantly below the industry average of 9.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.85% | ||
| ROE | 3.8% | ||
| ROIC | 4.42% |
ROA(3y)1.93%
ROA(5y)2.43%
ROE(3y)3.29%
ROE(5y)4.19%
ROIC(3y)4.88%
ROIC(5y)5.01%
1.3 Margins
RRX has a better Profit Margin (4.38%) than 74.73% of its industry peers.
In the last couple of years the Profit Margin of RRX has declined.
With an excellent Operating Margin value of 11.87%, RRX belongs to the best of the industry, outperforming 82.42% of the companies in the same industry.
RRX's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 37.05%, RRX belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
RRX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.87% | ||
| PM (TTM) | 4.38% | ||
| GM | 37.05% |
OM growth 3Y2.96%
OM growth 5Y2.49%
PM growth 3Y-18.59%
PM growth 5Y-15.11%
GM growth 3Y7.59%
GM growth 5Y6.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RRX is destroying value.
RRX has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, RRX has more shares outstanding
RRX has a better debt/assets ratio than last year.
2.2 Solvency
RRX has an Altman-Z score of 1.73. This is a bad value and indicates that RRX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of RRX (1.73) is comparable to the rest of the industry.
RRX has a debt to FCF ratio of 5.11. This is a neutral value as RRX would need 5.11 years to pay back of all of its debts.
The Debt to FCF ratio of RRX (5.11) is better than 73.63% of its industry peers.
RRX has a Debt/Equity ratio of 0.71. This is a neutral value indicating RRX is somewhat dependend on debt financing.
RRX has a Debt to Equity ratio (0.71) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 1.73 |
ROIC/WACC0.6
WACC7.4%
2.3 Liquidity
A Current Ratio of 2.05 indicates that RRX has no problem at all paying its short term obligations.
With a Current ratio value of 2.05, RRX perfoms like the industry average, outperforming 59.34% of the companies in the same industry.
RRX has a Quick Ratio of 2.05. This is a bad value and indicates that RRX is not financially healthy enough and could expect problems in meeting its short term obligations.
RRX has a Quick ratio (0.97) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.64% over the past year.
RRX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.44% yearly.
Looking at the last year, RRX shows a decrease in Revenue. The Revenue has decreased by -4.99% in the last year.
RRX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.26% yearly.
EPS 1Y (TTM)4.64%
EPS 3Y1.35%
EPS 5Y10.44%
EPS Q2Q%0.8%
Revenue 1Y (TTM)-4.99%
Revenue growth 3Y16.56%
Revenue growth 5Y13.26%
Sales Q2Q%1.33%
3.2 Future
RRX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.17% yearly.
Based on estimates for the next years, RRX will show a small growth in Revenue. The Revenue will grow by 2.00% on average per year.
EPS Next Y7.04%
EPS Next 2Y10.92%
EPS Next 3Y12.17%
EPS Next 5YN/A
Revenue Next Year-2.06%
Revenue Next 2Y0.89%
Revenue Next 3Y2%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.16, the valuation of RRX can be described as correct.
Based on the Price/Earnings ratio, RRX is valued cheaply inside the industry as 89.01% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.61. RRX is valued slightly cheaper when compared to this.
RRX is valuated correctly with a Price/Forward Earnings ratio of 12.81.
RRX's Price/Forward Earnings ratio is rather cheap when compared to the industry. RRX is cheaper than 90.11% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.01, RRX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.16 | ||
| Fwd PE | 12.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RRX is valued cheaply inside the industry as 90.11% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, RRX is valued cheaply inside the industry as 97.80% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.19 | ||
| EV/EBITDA | 11.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of RRX may justify a higher PE ratio.
A more expensive valuation may be justified as RRX's earnings are expected to grow with 12.17% in the coming years.
PEG (NY)2.15
PEG (5Y)1.45
EPS Next 2Y10.92%
EPS Next 3Y12.17%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, RRX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.28, RRX pays a better dividend. On top of this RRX pays more dividend than 89.01% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, RRX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
The dividend of RRX has a limited annual growth rate of 5.45%.
RRX has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of RRX decreased in the last 3 years.
Dividend Growth(5Y)5.45%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
RRX pays out 36.07% of its income as dividend. This is a sustainable payout ratio.
The dividend of RRX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.07%
EPS Next 2Y10.92%
EPS Next 3Y12.17%
NYSE:RRX (12/23/2025, 12:40:20 PM)
143.695
+0.51 (+0.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners112.46%
Inst Owner ChangeN/A
Ins Owners0.47%
Ins Owner Change-8.21%
Market Cap9.54B
Revenue(TTM)5.87B
Net Income(TTM)257.30M
Analysts83.53
Price Target183.64 (27.8%)
Short Float %4.84%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend1.4
Dividend Growth(5Y)5.45%
DP36.07%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.91%
Min EPS beat(2)-2.27%
Max EPS beat(2)0.45%
EPS beat(4)2
Avg EPS beat(4)2.03%
Min EPS beat(4)-6.13%
Max EPS beat(4)16.06%
EPS beat(8)4
Avg EPS beat(8)1.78%
EPS beat(12)7
Avg EPS beat(12)1.19%
EPS beat(16)10
Avg EPS beat(16)1.64%
Revenue beat(2)0
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-0.59%
Max Revenue beat(2)-0.4%
Revenue beat(4)1
Avg Revenue beat(4)-0.32%
Min Revenue beat(4)-2.92%
Max Revenue beat(4)2.61%
Revenue beat(8)2
Avg Revenue beat(8)-1.06%
Revenue beat(12)2
Avg Revenue beat(12)-1.45%
Revenue beat(16)5
Avg Revenue beat(16)-0.88%
PT rev (1m)2.16%
PT rev (3m)0.66%
EPS NQ rev (1m)-0.66%
EPS NQ rev (3m)-7.76%
EPS NY rev (1m)-1.14%
EPS NY rev (3m)-2.58%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)1.64%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.16 | ||
| Fwd PE | 12.81 | ||
| P/S | 1.62 | ||
| P/FCF | 10.19 | ||
| P/OCF | 9.21 | ||
| P/B | 1.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.55 |
EPS(TTM)9.48
EY6.6%
EPS(NY)11.22
Fwd EY7.81%
FCF(TTM)14.1
FCFY9.82%
OCF(TTM)15.61
OCFY10.86%
SpS88.45
BVpS101.88
TBVpS-50.37
PEG (NY)2.15
PEG (5Y)1.45
Graham Number147.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.85% | ||
| ROE | 3.8% | ||
| ROCE | 5.53% | ||
| ROIC | 4.42% | ||
| ROICexc | 4.57% | ||
| ROICexgc | 26.55% | ||
| OM | 11.87% | ||
| PM (TTM) | 4.38% | ||
| GM | 37.05% | ||
| FCFM | 15.95% |
ROA(3y)1.93%
ROA(5y)2.43%
ROE(3y)3.29%
ROE(5y)4.19%
ROIC(3y)4.88%
ROIC(5y)5.01%
ROICexc(3y)5.16%
ROICexc(5y)5.49%
ROICexgc(3y)22.93%
ROICexgc(5y)21.5%
ROCE(3y)6.1%
ROCE(5y)6.26%
ROICexgc growth 3Y16.97%
ROICexgc growth 5Y6%
ROICexc growth 3Y6.15%
ROICexc growth 5Y-9.75%
OM growth 3Y2.96%
OM growth 5Y2.49%
PM growth 3Y-18.59%
PM growth 5Y-15.11%
GM growth 3Y7.59%
GM growth 5Y6.42%
F-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.11 | ||
| Debt/EBITDA | 3.97 | ||
| Cap/Depr | 19.72% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 2.13 | ||
| Cash Conversion | 86.12% | ||
| Profit Quality | 363.93% | ||
| Current Ratio | 2.05 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z | 1.73 |
F-Score6
WACC7.4%
ROIC/WACC0.6
Cap/Depr(3y)24.27%
Cap/Depr(5y)28.18%
Cap/Sales(3y)1.78%
Cap/Sales(5y)1.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.64%
EPS 3Y1.35%
EPS 5Y10.44%
EPS Q2Q%0.8%
EPS Next Y7.04%
EPS Next 2Y10.92%
EPS Next 3Y12.17%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.99%
Revenue growth 3Y16.56%
Revenue growth 5Y13.26%
Sales Q2Q%1.33%
Revenue Next Year-2.06%
Revenue Next 2Y0.89%
Revenue Next 3Y2%
Revenue Next 5YN/A
EBIT growth 1Y-5.31%
EBIT growth 3Y20%
EBIT growth 5Y16.07%
EBIT Next Year69.92%
EBIT Next 3Y25.13%
EBIT Next 5YN/A
FCF growth 1Y57.56%
FCF growth 3Y18.14%
FCF growth 5Y9.6%
OCF growth 1Y45.49%
OCF growth 3Y19.43%
OCF growth 5Y8.33%
REGAL REXNORD CORP / RRX FAQ
What is the fundamental rating for RRX stock?
ChartMill assigns a fundamental rating of 5 / 10 to RRX.
What is the valuation status for RRX stock?
ChartMill assigns a valuation rating of 6 / 10 to REGAL REXNORD CORP (RRX). This can be considered as Fairly Valued.
Can you provide the profitability details for REGAL REXNORD CORP?
REGAL REXNORD CORP (RRX) has a profitability rating of 7 / 10.
What is the valuation of REGAL REXNORD CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for REGAL REXNORD CORP (RRX) is 15.16 and the Price/Book (PB) ratio is 1.41.
What is the expected EPS growth for REGAL REXNORD CORP (RRX) stock?
The Earnings per Share (EPS) of REGAL REXNORD CORP (RRX) is expected to grow by 7.04% in the next year.