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RRX

NYSE
Weak · 35/100

Regal Rexnord Corp

Industrials
Electrical Equipment

$219.57

0.5%

Updated Today 12:11 PM ET

Report Card

RRX at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Weak · 35/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▲ Up 44.8% over the last 12 months

Price 50-day average 200-day averageDCF fair value ±15%Source: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$14.54B

P/E

51.25x

Forward P/E (est.)

41.81x

ROE

4.2%

Revenue Growth

1.5%

EPS Growth

22.6%

Profit Margin

4.8%

FCF Yield

2.9%

Debt / Equity

0.7x

ROIC

5.0%

Interest Coverage

1.58x

Current Ratio

2.17x

Dividend Yield

0.6%

Implied Growth (rev. DCF)

2.7%

Rating Score

35/100

Business Overview
Research

Regal Rexnord Corp (RRX) is a large-cap company in the Electrical Equipment industry, part of the Industrials sector of the S&P 500, with a market value around $14.54B.

In its latest reported year it generated about $5.93B in revenue and $279.50M in net profit.

Our model rates RRX Weak (35/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what RRX's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. RRX trades near $219.57, above its 50-day average ($212.27) and 200-day average ($177.50). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 54 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.

Volatility — ATR. Average True Range is the typical daily move. RRX's is $12.50 (~5.7% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month RRX found buyers near $199.34 (support) and sellers near $247.80 (resistance); its 52-week range is $127.96–$247.80. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.3× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

13.0%

3/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $3.22B in 2016 to $5.93B in 2025, a 10.7% compound annual growth rate. The most recent year was roughly flat (1.5%) year over year. Slower, mature growth is common for established businesses.

Profitability
Research
1/4 checks passedProfitableNet margin above sector midpointROE above 12%ROIC above 10%

Gross Margin

37.4%

Operating Margin

11.5%

Net Margin

4.7%

ROE

4.2%

Regal Rexnord Corp keeps about 4.8% of each sales dollar as net profit, with a 37.4% gross margin and 11.5% operating margin. Return on equity is 4.2% and return on invested capital about 5.0%. Thin margins leave less cushion if costs rise.

Debt Analysis
Research
3/4 checks passedDebt under 1× equityDebt under 2× equityInterest covered 3×+Short-term bills covered

Total Debt

$4.82B

Net Debt

$4.42B

Net Debt / EBITDA

6.49x

Debt / Equity

0.7x

Leverage: debt-to-equity is 0.7x, and operating profit covers interest about 1.6x, with a current ratio of 2.2x. That is a moderate, manageable debt load for most businesses. It carries roughly $4.82B of total debt against $401.00M of cash.

Cash Flow Analysis
Research
3/3 checks passedPositive free cash flowFCF yield above 2%Market expects achievable growth (<8%)

Operating CF

$990.80M

Free Cash Flow

$893.10M

FCF Margin

15.0%

In the latest year Regal Rexnord Corp produced about $990.80M of operating cash flow and $893.10M of free cash flow after capital spending. That is a free-cash-flow yield of about 2.9% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research
2/4 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)Trading below DCF fair value

P/E

51.25x

P/S

2.48x

P/B

1.36x

EV / EBITDA

16.16x

RRX trades at 51.2x trailing earnings (about 41.8x on estimated forward earnings), 2.5x sales, and 1.4x book value. Reverse-engineering today's price implies the market expects roughly 2.7% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

$200.32

Current price

$219.57

-9% · Near fair-value estimate

Starting FCF (latest 10-K)

$893.10M

Growth, years 1–5

1.5%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$6.20B
PV of terminal value$7.13B
Estimated equity value$13.34B
Shares outstanding67M

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
51.2xExpensive
Forward P/E
41.8xExpensive
P/S ratio
2.5xFair
Revenue growth
1.5%Weak
EPS growth
22.6%Strong
Gross margin
37.4%Weak
Net margin
4.8%Weak
ROE
4.2%Weak

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $219.57 today · expected CAGR -6%4%

Metric20262027202820292030
Revenue$6.11B$6.30B$6.48B$6.68B$6.88B
Net income$305.63M$314.80M$324.24M$333.97M$343.99M
EPS$4.59$4.73$4.87$5.02$5.17
Share price (low)$142.32$146.59$150.99$155.52$160.19
Share price (high)$234.15$241.17$248.40$255.86$263.53
CAGR (low–high)-35% / 7%-18% / 5%-12% / 4%-8% / 4%-6% / 4%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for RRX:

  • As an established S&P 500 member in Industrials, it brings scale and a long operating history.
Bear Case

The case against RRX:

  • Revenue growth is slow (1.5%), limiting the upside engine.
  • Thin net margins (4.8%) leave little room for error.
  • Interest coverage is thin (1.6x), so debt costs bite.
  • A rich 51.2x earnings multiple prices in a lot of growth.
  • Our model's overall read is Weak (35/100).
Key Risks
Research

Valuation risk — at 51.2x earnings, disappointing results could compress the multiple.

Growth risk — sluggish revenue (1.5%) leaves little margin for execution missteps.

Margin risk — thin profitability (4.8%) is vulnerable to cost or pricing pressure.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen weakly: Regal Rexnord Corp is a large-cap industrials business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 51.2x earnings, which our model scores Weak (35/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

RRX — frequently asked questions

Is RRX a good stock to buy?

We don't give buy or sell advice. Our model rates Regal Rexnord Corp Weak (35/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is RRX's rating on The Stocks School?

Regal Rexnord Corp currently scores 35/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does RRX's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Regal Rexnord Corp's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for RRX calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this RRX analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell RRX. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.