REGAL REXNORD CORP (RRX) Stock Fundamental Analysis
NYSE:RRX - US7587501039 - Common Stock
145.56 USD
-1.73 (-1.17%)
145.56 USD
0 (0%)
RRX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 92 industry peers in the Electrical Equipment industry. While RRX has a great profitability rating, there are quite some concerns on its financial health. RRX is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
Each year in the past 5 years RRX had a positive operating cash flow.
1.2 Ratios
RRX has a better Return On Assets (1.80%) than 72.83% of its industry peers.
The Return On Equity of RRX (3.74%) is better than 71.74% of its industry peers.
RRX has a Return On Invested Capital of 4.46%. This is in the better half of the industry: RRX outperforms 71.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RRX is below the industry average of 9.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 3.74% | ||
| ROIC | 4.46% |
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
With a decent Profit Margin value of 4.28%, RRX is doing good in the industry, outperforming 78.26% of the companies in the same industry.
In the last couple of years the Profit Margin of RRX has declined.
With an excellent Operating Margin value of 12.04%, RRX belongs to the best of the industry, outperforming 83.70% of the companies in the same industry.
In the last couple of years the Operating Margin of RRX has grown nicely.
Looking at the Gross Margin, with a value of 37.23%, RRX belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
In the last couple of years the Gross Margin of RRX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.04% | ||
| PM (TTM) | 4.28% | ||
| GM | 37.23% |
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
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.
Compared to 5 years ago, RRX has more shares outstanding
Compared to 1 year ago, RRX has an improved debt to assets ratio.
2.2 Solvency
RRX has an Altman-Z score of 1.72. This is a bad value and indicates that RRX is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.72, RRX perfoms like the industry average, outperforming 55.43% of the companies in the same industry.
The Debt to FCF ratio of RRX is 5.47, which is a neutral value as it means it would take RRX, 5.47 years of fcf income to pay off all of its debts.
RRX has a Debt to FCF ratio of 5.47. This is in the better half of the industry: RRX outperforms 72.83% of its industry peers.
RRX has a Debt/Equity ratio of 0.72. This is a neutral value indicating RRX is somewhat dependend on debt financing.
RRX has a Debt to Equity ratio of 0.72. This is in the lower half of the industry: RRX underperforms 61.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 5.47 | ||
| Altman-Z | 1.72 |
ROIC/WACC0.61
WACC7.37%
2.3 Liquidity
RRX has a Current Ratio of 2.00. This is a normal value and indicates that RRX is financially healthy and should not expect problems in meeting its short term obligations.
RRX has a Current ratio (2.00) which is comparable to the rest of the industry.
A Quick Ratio of 0.93 indicates that RRX may have some problems paying its short term obligations.
RRX has a Quick ratio (0.93) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.11% 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.
RRX shows a decrease in Revenue. In the last year, the revenue decreased by -7.88%.
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)9.11%
EPS 3Y1.35%
EPS 5Y10.44%
EPS Q2Q%8.3%
Revenue 1Y (TTM)-7.88%
Revenue growth 3Y16.56%
Revenue growth 5Y13.26%
Sales Q2Q%-3.33%
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.
The Revenue is expected to grow by 1.53% on average over the next years.
EPS Next Y9.87%
EPS Next 2Y12.24%
EPS Next 3Y12.09%
EPS Next 5YN/A
Revenue Next Year-2.65%
Revenue Next 2Y0.6%
Revenue Next 3Y1.53%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 15.39, the valuation of RRX can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of RRX indicates a rather cheap valuation: RRX is cheaper than 90.22% of the companies listed in the same industry.
RRX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.67, RRX is valued correctly.
RRX's Price/Forward Earnings ratio is rather cheap when compared to the industry. RRX is cheaper than 90.22% of the companies in the same industry.
RRX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 12.67 |
4.2 Price Multiples
88.04% of the companies in the same industry are more expensive than RRX, based on the Enterprise Value to EBITDA ratio.
RRX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RRX is cheaper than 94.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.88 | ||
| EV/EBITDA | 11.74 |
4.3 Compensation for Growth
RRX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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)1.56
PEG (5Y)1.47
EPS Next 2Y12.24%
EPS Next 3Y12.09%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, RRX is not a good candidate for dividend investing.
RRX's Dividend Yield is rather good when compared to the industry average which is at 3.35. RRX pays more dividend than 86.96% of the companies in the same industry.
With a Dividend Yield of 0.95, RRX pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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
37.14% 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.
DP37.14%
EPS Next 2Y12.24%
EPS Next 3Y12.09%
145.56
-1.73 (-1.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners106.89%
Inst Owner ChangeN/A
Ins Owners0.57%
Ins Owner Change2.59%
Market Cap9.66B
Analysts83.75
Price Target182.43 (25.33%)
Short Float %4.58%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend1.4
Dividend Growth(5Y)5.45%
DP37.14%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.26%
Min EPS beat(2)0.45%
Max EPS beat(2)16.06%
EPS beat(4)2
Avg EPS beat(4)2.49%
Min EPS beat(4)-6.13%
Max EPS beat(4)16.06%
EPS beat(8)4
Avg EPS beat(8)-0.12%
EPS beat(12)8
Avg EPS beat(12)1.43%
EPS beat(16)10
Avg EPS beat(16)1.74%
Revenue beat(2)1
Avg Revenue beat(2)1.01%
Min Revenue beat(2)-0.59%
Max Revenue beat(2)2.61%
Revenue beat(4)1
Avg Revenue beat(4)-1.18%
Min Revenue beat(4)-3.82%
Max Revenue beat(4)2.61%
Revenue beat(8)2
Avg Revenue beat(8)-1.69%
Revenue beat(12)2
Avg Revenue beat(12)-1.42%
Revenue beat(16)5
Avg Revenue beat(16)-0.88%
PT rev (1m)1.18%
PT rev (3m)12.04%
EPS NQ rev (1m)-2.54%
EPS NQ rev (3m)-5.73%
EPS NY rev (1m)0.18%
EPS NY rev (3m)0.75%
Revenue NQ rev (1m)1%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 12.67 | ||
| P/S | 1.65 | ||
| P/FCF | 10.88 | ||
| P/OCF | 9.72 | ||
| P/B | 1.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.74 |
EPS(TTM)9.46
EY6.5%
EPS(NY)11.49
Fwd EY7.89%
FCF(TTM)13.38
FCFY9.19%
OCF(TTM)14.97
OCFY10.28%
SpS88.18
BVpS100.94
TBVpS-52.74
PEG (NY)1.56
PEG (5Y)1.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.8% | ||
| ROE | 3.74% | ||
| ROCE | 5.57% | ||
| ROIC | 4.46% | ||
| ROICexc | 4.58% | ||
| ROICexgc | 26.56% | ||
| OM | 12.04% | ||
| PM (TTM) | 4.28% | ||
| GM | 37.23% | ||
| FCFM | 15.17% |
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%
ROICexcg growth 3Y16.97%
ROICexcg 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-Score7
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 5.47 | ||
| Debt/EBITDA | 4.01 | ||
| Cap/Depr | 20.94% | ||
| Cap/Sales | 1.8% | ||
| Interest Coverage | 2.05 | ||
| Cash Conversion | 82.17% | ||
| Profit Quality | 354.59% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 1.72 |
F-Score7
WACC7.37%
ROIC/WACC0.61
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)9.11%
EPS 3Y1.35%
EPS 5Y10.44%
EPS Q2Q%8.3%
EPS Next Y9.87%
EPS Next 2Y12.24%
EPS Next 3Y12.09%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.88%
Revenue growth 3Y16.56%
Revenue growth 5Y13.26%
Sales Q2Q%-3.33%
Revenue Next Year-2.65%
Revenue Next 2Y0.6%
Revenue Next 3Y1.53%
Revenue Next 5YN/A
EBIT growth 1Y-2.21%
EBIT growth 3Y20%
EBIT growth 5Y16.07%
EBIT Next Year71.46%
EBIT Next 3Y24.36%
EBIT Next 5YN/A
FCF growth 1Y63.25%
FCF growth 3Y18.14%
FCF growth 5Y9.6%
OCF growth 1Y50.85%
OCF growth 3Y19.43%
OCF growth 5Y8.33%