REGAL REXNORD CORP (RRX) Stock Fundamental Analysis
NYSE:RRX - New York Stock Exchange, Inc. - US7587501039 - Common Stock
Taking everything into account, RRX scores 5 out of 10 in our fundamental rating. RRX was compared to 93 industry peers in the Electrical Equipment industry. Both the profitability and the financial health of RRX get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past 5 years RRX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RRX (1.45%) is better than 73.63% of its industry peers.
RRX's Return On Equity of 3.26% is fine compared to the rest of the industry. RRX outperforms 72.53% of its industry peers.
RRX's Return On Invested Capital of 4.45% is fine compared to the rest of the industry. RRX outperforms 71.43% of its industry peers.
RRX had an Average Return On Invested Capital over the past 3 years of 4.62%. This is significantly below the industry average of 10.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 3.26% | ||
| ROIC | 4.45% |
ROA(3y)2.2%
ROA(5y)3.22%
ROE(3y)3.45%
ROE(5y)5.59%
ROIC(3y)4.62%
ROIC(5y)5.56%
1.3 Margins
RRX has a better Profit Margin (3.41%) than 75.82% of its industry peers.
Looking at the Operating Margin, with a value of 11.91%, RRX belongs to the top of the industry, outperforming 82.42% of the companies in the same industry.
RRX's Operating Margin has been stable in the last couple of years.
RRX's Gross Margin of 36.89% is amongst the best of the industry. RRX outperforms 85.71% of its industry peers.
RRX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.91% | ||
| PM (TTM) | 3.41% | ||
| GM | 36.89% |
OM growth 3Y-0.72%
OM growth 5Y0.74%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.92%
GM growth 5Y4.95%
2. Health
2.1 Basic Checks
RRX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
RRX has about the same amout of shares outstanding than it did 1 year ago.
RRX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RRX has a worse debt to assets ratio.
2.2 Solvency
RRX has an Altman-Z score of 1.71. 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 (1.71) is comparable to the rest of the industry.
The Debt to FCF ratio of RRX is 11.62, which is on the high side as it means it would take RRX, 11.62 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.62, RRX is in the better half of the industry, outperforming 67.03% of the companies in the same industry.
RRX has a Debt/Equity ratio of 0.87. This is a neutral value indicating RRX is somewhat dependend on debt financing.
RRX has a Debt to Equity ratio of 0.87. This is in the lower half of the industry: RRX underperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 11.62 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.42
WACC10.71%
2.3 Liquidity
RRX has a Current Ratio of 2.45. This indicates that RRX is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of RRX (2.45) is better than 68.13% of its industry peers.
RRX has a Quick Ratio of 1.35. This is a normal value and indicates that RRX is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of RRX (1.35) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The earnings per share for RRX have decreased by -4.83% in the last year.
RRX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.76% yearly.
Looking at the last year, RRX shows a small growth in Revenue. The Revenue has grown 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 11.39% yearly.
EPS 1Y (TTM)-4.83%
EPS 3Y16.66%
EPS 5Y8.76%
EPS Q2Q%18.57%
Revenue 1Y (TTM)4.99%
Revenue growth 3Y29.07%
Revenue growth 5Y11.39%
Sales Q2Q%-10.45%
3.2 Future
Based on estimates for the next years, RRX will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.06% on average per year.
RRX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.05% yearly.
EPS Next Y1.98%
EPS Next 2Y7.65%
EPS Next 3Y9.06%
EPS Next 5YN/A
Revenue Next Year-3.24%
Revenue Next 2Y-1.83%
Revenue Next 3Y0.05%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.27, RRX is valued on the expensive side.
RRX's Price/Earnings ratio is rather cheap when compared to the industry. RRX is cheaper than 84.62% of the companies in the same industry.
When comparing the Price/Earnings ratio of RRX to the average of the S&P500 Index (27.96), we can say RRX is valued slightly cheaper.
RRX is valuated correctly with a Price/Forward Earnings ratio of 14.74.
Based on the Price/Forward Earnings ratio, RRX is valued cheaply inside the industry as 83.52% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.11, RRX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.27 | ||
| Fwd PE | 14.74 |
4.2 Price Multiples
RRX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RRX is cheaper than 82.42% of the companies in the same industry.
81.32% of the companies in the same industry are more expensive than RRX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.29 | ||
| EV/EBITDA | 12.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RRX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.72
PEG (5Y)1.97
EPS Next 2Y7.65%
EPS Next 3Y9.06%
5. Dividend
5.1 Amount
RRX has a yearly dividend return of 0.88%, which is pretty low.
RRX's Dividend Yield is rather good when compared to the industry average which is at 3.39. RRX pays more dividend than 84.62% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, RRX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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 Years1
Div Non Decr Years2
5.3 Sustainability
44.14% of the earnings are spent on dividend by RRX. This is a bit on the high side, but may be sustainable.
The dividend of RRX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP44.14%
EPS Next 2Y7.65%
EPS Next 3Y9.06%
REGAL REXNORD CORP
NYSE:RRX (1/17/2025, 8:25:16 PM)
After market: 156.11 -0.39 (-0.25%)156.5
-1.96 (-1.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.09%
Inst Owner ChangeN/A
Ins Owners0.47%
Ins Owner Change2.58%
Market Cap10.36B
Analysts85.33
Price Target211.75 (35.3%)
Short Float %2.23%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend1.4
Dividend Growth(5Y)5.45%
DP44.14%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.95%
Min EPS beat(2)-0.43%
Max EPS beat(2)6.33%
EPS beat(4)2
Avg EPS beat(4)1.52%
Min EPS beat(4)-0.54%
Max EPS beat(4)6.33%
EPS beat(8)5
Avg EPS beat(8)0.77%
EPS beat(12)8
Avg EPS beat(12)1.51%
EPS beat(16)11
Avg EPS beat(16)3.27%
Revenue beat(2)1
Avg Revenue beat(2)-1.73%
Min Revenue beat(2)-3.82%
Max Revenue beat(2)0.36%
Revenue beat(4)1
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-3.82%
Max Revenue beat(4)0.36%
Revenue beat(8)1
Avg Revenue beat(8)-2.01%
Revenue beat(12)4
Avg Revenue beat(12)-1.06%
Revenue beat(16)7
Avg Revenue beat(16)0%
PT rev (1m)2.43%
PT rev (3m)5.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.19%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-2.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.75%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.27 | ||
| Fwd PE | 14.74 | ||
| P/S | 1.68 | ||
| P/FCF | 21.29 | ||
| P/OCF | 17.35 | ||
| P/B | 1.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.49 |
EPS(TTM)9.06
EY5.79%
EPS(NY)10.62
Fwd EY6.78%
FCF(TTM)7.35
FCFY4.7%
OCF(TTM)9.02
OCFY5.76%
SpS93.32
BVpS97.74
TBVpS-59.02
PEG (NY)8.72
PEG (5Y)1.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 3.26% | ||
| ROCE | 5.51% | ||
| ROIC | 4.45% | ||
| ROICexc | 4.6% | ||
| ROICexgc | 23.65% | ||
| OM | 11.91% | ||
| PM (TTM) | 3.41% | ||
| GM | 36.89% | ||
| FCFM | 7.88% |
ROA(3y)2.2%
ROA(5y)3.22%
ROE(3y)3.45%
ROE(5y)5.59%
ROIC(3y)4.62%
ROIC(5y)5.56%
ROICexc(3y)4.94%
ROICexc(5y)6.15%
ROICexgc(3y)20%
ROICexgc(5y)20.41%
ROCE(3y)5.74%
ROCE(5y)6.89%
ROICexcg growth 3Y-6.98%
ROICexcg growth 5Y-0.95%
ROICexc growth 3Y-21.13%
ROICexc growth 5Y-13.48%
OM growth 3Y-0.72%
OM growth 5Y0.74%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.92%
GM growth 5Y4.95%
F-Score8
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 11.62 | ||
| Debt/EBITDA | 4.5 | ||
| Cap/Depr | 21.23% | ||
| Cap/Sales | 1.79% | ||
| Interest Coverage | 1.86 | ||
| Cash Conversion | 47.53% | ||
| Profit Quality | 230.87% | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 1.71 |
F-Score8
WACC10.71%
ROIC/WACC0.42
Cap/Depr(3y)27.79%
Cap/Depr(5y)37.64%
Cap/Sales(3y)1.65%
Cap/Sales(5y)1.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.83%
EPS 3Y16.66%
EPS 5Y8.76%
EPS Q2Q%18.57%
EPS Next Y1.98%
EPS Next 2Y7.65%
EPS Next 3Y9.06%
EPS Next 5YN/A
Revenue 1Y (TTM)4.99%
Revenue growth 3Y29.07%
Revenue growth 5Y11.39%
Sales Q2Q%-10.45%
Revenue Next Year-3.24%
Revenue Next 2Y-1.83%
Revenue Next 3Y0.05%
Revenue Next 5YN/A
EBIT growth 1Y12.78%
EBIT growth 3Y28.14%
EBIT growth 5Y12.22%
EBIT Next Year75.68%
EBIT Next 3Y26.64%
EBIT Next 5YN/A
FCF growth 1Y83.05%
FCF growth 3Y15.4%
FCF growth 5Y15.9%
OCF growth 1Y76.98%
OCF growth 3Y18%
OCF growth 5Y14.55%