REGAL REXNORD CORP (RRX) Stock Fundamental Analysis
USA - NYSE:RRX - US7587501039 - Common Stock
135.96 USD
+0.6 (+0.44%)
135.96 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to RRX. RRX was compared to 91 industry peers in the Electrical Equipment industry. RRX scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on RRX.
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.
Of the past 5 years RRX 4 years were profitable.
Each year in the past 5 years RRX had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 1.85%, RRX is doing good in the industry, outperforming 71.74% of the companies in the same industry.
RRX has a Return On Equity of 3.80%. This is in the better half of the industry: RRX outperforms 73.91% of its industry peers.
The Return On Invested Capital of RRX (4.42%) is better than 70.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RRX is significantly below the industry average of 10.34%.
| 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 76.09% 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 82.61% of its industry peers.
RRX's Operating Margin has improved in the last couple of years.
The Gross Margin of RRX (37.05%) is better than 83.70% of its industry peers.
In the last couple of years the Gross Margin of RRX has grown nicely.
| 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.
Compared to 5 years ago, RRX has more shares outstanding
The debt/assets ratio for RRX has been reduced compared to a year ago.
2.2 Solvency
RRX has an Altman-Z score of 1.69. This is a bad value and indicates that RRX is not financially healthy and even has some risk of bankruptcy.
RRX has a Altman-Z score of 1.69. This is comparable to the rest of the industry: RRX outperforms 57.61% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 5.11, RRX is in the better half of the industry, outperforming 75.00% 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 41.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 5.11 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.6
WACC7.32%
2.3 Liquidity
RRX has a Current Ratio of 2.05. This indicates that RRX is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of RRX (2.05) is comparable to the rest of the industry.
A Quick Ratio of 0.97 indicates that RRX may have some problems paying its short term obligations.
With a Quick ratio value of 0.97, RRX perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
| 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%.
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.
Measured over the past years, RRX shows a quite strong growth in Revenue. The Revenue has been growing by 13.26% on average per year.
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 11.95% yearly.
RRX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.77% yearly.
EPS Next Y8.27%
EPS Next 2Y10.99%
EPS Next 3Y11.95%
EPS Next 5YN/A
Revenue Next Year-2.27%
Revenue Next 2Y0.71%
Revenue Next 3Y1.77%
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
RRX is valuated correctly with a Price/Earnings ratio of 14.34.
Based on the Price/Earnings ratio, RRX is valued cheaper than 89.13% of the companies in the same industry.
RRX is valuated rather cheaply when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.10, which indicates a correct valuation of RRX.
Based on the Price/Forward Earnings ratio, RRX is valued cheaply inside the industry as 89.13% of the companies are valued more expensively.
RRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.34 | ||
| Fwd PE | 12.1 |
4.2 Price Multiples
RRX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RRX is cheaper than 90.22% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RRX is valued cheaper than 95.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.64 | ||
| EV/EBITDA | 11.14 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RRX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.73
PEG (5Y)1.37
EPS Next 2Y10.99%
EPS Next 3Y11.95%
5. Dividend
5.1 Amount
RRX has a Yearly Dividend Yield of 1.03%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.16, RRX pays a better dividend. On top of this RRX pays more dividend than 88.04% of the companies listed in the same industry.
With a Dividend Yield of 1.03, RRX pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
5.2 History
The dividend of RRX has a limited annual growth rate of 5.45%.
RRX has paid a dividend for at least 10 years, which is 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
36.07% of the earnings are spent on dividend by RRX. This is a low number and sustainable payout ratio.
The dividend of RRX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.07%
EPS Next 2Y10.99%
EPS Next 3Y11.95%
135.96
+0.6 (+0.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners108.11%
Inst Owner ChangeN/A
Ins Owners0.51%
Ins Owner Change-0.07%
Market Cap9.02B
Revenue(TTM)5.87B
Net Income(TTM)257.30M
Analysts83.53
Price Target179.74 (32.2%)
Short Float %5.42%
Short Ratio5.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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)-0.26%
PT rev (3m)-0.31%
EPS NQ rev (1m)-6.99%
EPS NQ rev (3m)-5.29%
EPS NY rev (1m)-1.44%
EPS NY rev (3m)-1.28%
Revenue NQ rev (1m)1.65%
Revenue NQ rev (3m)3.62%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.34 | ||
| Fwd PE | 12.1 | ||
| P/S | 1.54 | ||
| P/FCF | 9.64 | ||
| P/OCF | 8.71 | ||
| P/B | 1.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.14 |
EPS(TTM)9.48
EY6.97%
EPS(NY)11.23
Fwd EY8.26%
FCF(TTM)14.11
FCFY10.38%
OCF(TTM)15.61
OCFY11.48%
SpS88.48
BVpS101.91
TBVpS-50.39
PEG (NY)1.73
PEG (5Y)1.37
Graham Number147.43
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 | 1.69 |
F-Score6
WACC7.32%
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 Y8.27%
EPS Next 2Y10.99%
EPS Next 3Y11.95%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.99%
Revenue growth 3Y16.56%
Revenue growth 5Y13.26%
Sales Q2Q%1.33%
Revenue Next Year-2.27%
Revenue Next 2Y0.71%
Revenue Next 3Y1.77%
Revenue Next 5YN/A
EBIT growth 1Y-5.31%
EBIT growth 3Y20%
EBIT growth 5Y16.07%
EBIT Next Year71.97%
EBIT Next 3Y24.86%
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 7 / 10 to REGAL REXNORD CORP (RRX). This can be considered as Undervalued.
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 14.34 and the Price/Book (PB) ratio is 1.33.
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 8.27% in the next year.