REGAL REXNORD CORP (RRX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RRX - US7587501039 - Common Stock
152.65 USD
-1.62 (-1.05%)
152.65 USD
0 (0%)
Overall RRX gets a fundamental rating of 5 out of 10. We evaluated RRX against 91 industry peers in the Electrical Equipment industry. RRX has an excellent profitability rating, but there are some minor concerns on its financial health. RRX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year RRX was profitable.
RRX had a positive operating cash flow in the past year.
RRX had positive earnings in 4 of the past 5 years.
RRX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RRX has a better Return On Assets (1.85%) than 71.43% of its industry peers.
RRX has a better Return On Equity (3.80%) than 72.53% of its industry peers.
RRX has a Return On Invested Capital of 4.42%. This is in the better half of the industry: RRX outperforms 70.33% of its industry peers.
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.
RRX's Profit Margin has declined in the last couple of years.
RRX's Operating Margin of 11.87% is amongst the best of the industry. RRX outperforms 82.42% of its industry peers.
In the last couple of years the Operating Margin of RRX has grown nicely.
The Gross Margin of RRX (37.05%) is better than 85.71% of its industry peers.
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.
Compared to 1 year ago, RRX has about the same amount of shares outstanding.
RRX has more shares outstanding than it did 5 years ago.
RRX has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.79, we must say that RRX is in the distress zone and has some risk of bankruptcy.
RRX has a Altman-Z score (1.79) which is comparable to the rest of the industry.
The Debt to FCF ratio of RRX is 5.11, which is a neutral value as it means it would take RRX, 5.11 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.11, RRX is doing good in the industry, outperforming 73.63% of the companies in the same industry.
A Debt/Equity ratio of 0.71 indicates that RRX is somewhat dependend on debt financing.
RRX's Debt to Equity ratio of 0.71 is in line compared to the rest of the industry. RRX outperforms 43.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.59
WACC7.47%
2.3 Liquidity
A Current Ratio of 2.05 indicates that RRX has no problem at all paying its short term obligations.
RRX has a better Current ratio (2.05) than 60.44% of its industry peers.
A Quick Ratio of 0.97 indicates that RRX may have some problems paying its short term obligations.
RRX's Quick ratio of 0.97 is in line compared to the rest of the industry. RRX outperforms 43.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
RRX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.64%.
Measured over the past years, RRX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.44% on average per year.
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
Based on estimates for the next years, RRX will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.09% on average per year.
RRX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.99% yearly.
EPS Next Y7.05%
EPS Next 2Y10.53%
EPS Next 3Y12.09%
EPS Next 5YN/A
Revenue Next Year-2.07%
Revenue Next 2Y0.81%
Revenue Next 3Y1.99%
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
A Price/Earnings ratio of 16.10 indicates a correct valuation of RRX.
Based on the Price/Earnings ratio, RRX is valued cheaply inside the industry as 89.01% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.19, RRX is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.70, RRX is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RRX indicates a rather cheap valuation: RRX is cheaper than 86.81% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, RRX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 13.7 |
4.2 Price Multiples
RRX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RRX is cheaper than 91.21% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RRX is valued cheaper than 95.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.82 | ||
| EV/EBITDA | 12.16 |
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.
RRX's earnings are expected to grow with 12.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.28
PEG (5Y)1.54
EPS Next 2Y10.53%
EPS Next 3Y12.09%
5. Dividend
5.1 Amount
RRX has a yearly dividend return of 1.00%, which is pretty low.
RRX's Dividend Yield is rather good when compared to the industry average which is at 0.28. RRX pays more dividend than 89.01% of the companies in the same industry.
With a Dividend Yield of 1.00, RRX pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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.
RRX has decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.45%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
36.07% of the earnings are spent on dividend by RRX. This is a low number and sustainable payout ratio.
RRX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.07%
EPS Next 2Y10.53%
EPS Next 3Y12.09%
152.65
-1.62 (-1.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners112.68%
Inst Owner ChangeN/A
Ins Owners0.47%
Ins Owner Change-8.21%
Market Cap10.13B
Revenue(TTM)5.87B
Net Income(TTM)257.30M
Analysts83.53
Price Target183.81 (20.41%)
Short Float %5.25%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend1.4
Dividend Growth(5Y)5.45%
DP36.07%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
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)0.09%
PT rev (3m)2%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-7.63%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-2.55%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 13.7 | ||
| P/S | 1.73 | ||
| P/FCF | 10.82 | ||
| P/OCF | 9.78 | ||
| P/B | 1.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.16 |
EPS(TTM)9.48
EY6.21%
EPS(NY)11.14
Fwd EY7.3%
FCF(TTM)14.1
FCFY9.24%
OCF(TTM)15.61
OCFY10.22%
SpS88.45
BVpS101.88
TBVpS-50.37
PEG (NY)2.28
PEG (5Y)1.54
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 | 1.79 |
F-Score6
WACC7.47%
ROIC/WACC0.59
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 Y7.05%
EPS Next 2Y10.53%
EPS Next 3Y12.09%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.99%
Revenue growth 3Y16.56%
Revenue growth 5Y13.26%
Sales Q2Q%1.33%
Revenue Next Year-2.07%
Revenue Next 2Y0.81%
Revenue Next 3Y1.99%
Revenue Next 5YN/A
EBIT growth 1Y-5.31%
EBIT growth 3Y20%
EBIT growth 5Y16.07%
EBIT Next Year69.92%
EBIT Next 3Y24.81%
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.
Can you provide the valuation status for REGAL REXNORD CORP?
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 are the PE and PB ratios of REGAL REXNORD CORP (RRX) stock?
The Price/Earnings (PE) ratio for REGAL REXNORD CORP (RRX) is 16.1 and the Price/Book (PB) ratio is 1.5.
Can you provide the expected EPS growth for RRX stock?
The Earnings per Share (EPS) of REGAL REXNORD CORP (RRX) is expected to grow by 7.05% in the next year.