Regal Rexnord Corporation (RRX)
Industrials · NYQ · US
Fundamentals
Valuation and ratings
Regal Rexnord Corporation trades at USD212.00, which is 49% above the USD108.00 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 40 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 50.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Regal Rexnord Corporation
Regal Rexnord Corporation provides sustainable solutions for power, transmit, and control motion products in the North America, Asia, Europe, and internationally. The company operates through Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions. The Automation & Motion Control segment provides conveyor products, conveying automation subsystems, aerospace components, precision motion control solutions, miniature servo motors, controls, drives, and linear actuators, as well as power management products that include automatic transfer switches, paralleling switchgear, and customized modular electric pod solutions that comprise relevant power and thermal management content. The Industrial Powertrain Solutions segment offers mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes and gear motors, clutches, brakes, and industrial powertrain components and solutions, as well as industrial powertrain solutions. The Power Efficiency Solutions segment produces fractional to approximately 5 horsepower AC and DC motors, electronic variable speed controls, electronic drives, fans and blowers, as well as integrated air moving subsystems. It serves factory automation, food and beverage, aerospace, general industrial, medical, data center, general industrial, metals and mining, energy, discrete automation, commercial HVAC, and general commercial applications. The company was formerly known as Regal Beloit Corporation. Regal Rexnord Corporation was founded in 1955 and is based in Milwaukee, Wisconsin.
RRX passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Regal Rexnord Corporation (RRX) undervalued?
Against our discounted cash flow estimate of USD108.00, RRX at USD212.00 is 49% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is RRX's P/E ratio?
RRX trades at 50.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for RRX, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.