Regal Rexnord (RRX) AI Stock Analysis

• Market Cap: $9.49B
• Dividend Yield: 0.91%
• Average Volume (3M): 854.11K
• Price to Earnings (P/E): 38.0
• Beta (1Y): 1.28
• Revenue Growth: -7.88%
• EPS Growth: N/A
• Country: US
• Employees: 30,000
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Machinery
• EPS (TTM): 2.48
• Shares Outstanding: 66,374,190
• 10 Day Avg. Volume: 1,191,880
• 30 Day Avg. Volume: 854,112
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 2.45
• Enterprise Value/Gross Profit: 6.62
• Enterprise Value/Ebitda: 15.58
• 1Y Price Target: $177.13
• Price Target Upside: 19.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 67 Neutral
• Price Target: $167.00 ▲(12.67% Upside)

Regal Rexnord's overall stock score reflects its solid financial health and operational efficiency, supported by strong cash flow generation. While technical indicators show a positive trend, valuation concerns and mixed earnings call results temper the outlook. The company's ability to navigate market challenges and capitalize on growth opportunities will be crucial for future performance.

Positive Factors

Growth and Margins

The improved portfolio with an enhanced growth/margin profile indicates potential for outperformance regardless of the cyclical backdrop.

Market Recovery

There is a clearer path for the stock to work from here as estimates reacceleration with an end market recovery.

Order Growth

Daily order growth inflected positive for the first time since 2Q22, aided by easier comps.

Negative Factors

Revenue Pressure

RRX missed 3Q operationally and 2024 guidance was reset lower due to incremental revenue pressure.

Sales Growth Outlook

Management sees limited organic sales growth in 2025, with ongoing demand headwinds.

Regal Rexnord Business Overview & Revenue Model

Company Description

Regal Rexnord Corporation, together with its subsidiaries, designs, manufactures, and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide. It operates through four segments: Commercial Systems, Industrial Systems, Climate Solutions, and Motion Control Solutions. The Commercial Systems segment provides AC and DC motors, electronic variable speed controls, fans, blowers, and precision stator and rotor kits. The Industrial Systems segment offers AC motors for industrial applications; electric alternators for prime and standby power applications to data centers, distributed energy, microgrid, rental marine, agriculture, healthcare, mobile, and defense markets; and switchgear for healthcare, government, and waste water applications, as well as residential, commercial, and industrial applications. The Climate Solutions segment provides fractional motors, electronic variable speed controls, and blowers for use in a residential and light commercial air moving applications; and fractional horsepower motors and blowers for white goods, water heating equipment, small pumps, compressors, and fans. The Motion Control Solutions segment offers bearings; conveyors; disc, gear, grid, elastomeric, and torsionally soft couplings; mechanical power transmission drives and components; worm gearing, shaft configuration, helical, bevel, helical bevel, worm, hypoid, and spur gearing products; and aerospace components. This segment serves beverage, bulk handling, metal, special machinery, energy, and aerospace and general industrial markets. The company sells its products directly to original equipment manufacturers and end-users through a network of direct and independent sales representatives, and distributors. The company was formerly known as Regal Beloit Corporation. The company was founded in 1955 and is headquartered in Beloit, Wisconsin.

How the Company Makes Money

Regal Rexnord generates revenue through multiple key streams, including the sale of its extensive range of products such as bearings, motors, and drive systems, which are essential for many industrial applications. The company also earns money through service agreements, providing maintenance, repair, and support for its products. Additionally, Regal Rexnord benefits from strategic partnerships with other industry leaders, enhancing its market reach and innovation capabilities. Factors contributing to its earnings include a focus on research and development, enabling the introduction of advanced products that meet evolving customer needs, as well as its ability to capitalize on trends in automation and energy efficiency.

Regal Rexnord Financial Statement Overview

Summary

Regal Rexnord demonstrates solid financial health with strong cash flow generation and a stable balance sheet. Despite challenges in revenue growth, the company maintains operational efficiency and a strong equity position, providing a foundation for future growth.

Income Statement

Regal Rexnord's income statement shows mixed results. The TTM data indicates a slight decline in revenue growth, but the company maintains a healthy gross profit margin of 36.65%. The net profit margin is modest at 3.96%, reflecting some profitability challenges. EBIT and EBITDA margins are stable, suggesting operational efficiency despite revenue pressures.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.85, indicating manageable leverage. The return on equity is low at 3.66%, suggesting limited profitability from equity investments. However, the equity ratio of 48.18% reflects a strong equity base, providing financial stability.

Cash Flow

Cash flow analysis shows a robust free cash flow growth rate of 70.49% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 3.97, and the free cash flow to net income ratio is strong at 0.83, highlighting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.85B	6.03B	6.25B	5.22B	3.81B	2.91B
Gross Profit	2.17B	2.19B	2.11B	1.67B	1.09B	808.70M
EBITDA	919.70M	1.16B	971.00M	1.04B	573.00M	447.20M
Net Income	250.40M	196.20M	-57.40M	488.90M	229.60M	187.70M
Balance Sheet
Total Assets	13.90B	14.03B	15.43B	10.27B	10.28B	4.59B
Cash, Cash Equivalents and Short-Term Investments	320.10M	393.50M	574.00M	688.50M	672.80M	611.30M
Total Debt	5.00B	5.61B	6.55B	2.02B	1.92B	1.07B
Total Liabilities	7.19B	7.77B	9.07B	3.85B	3.93B	2.01B
Stockholders Equity	6.70B	6.26B	6.34B	6.39B	6.31B	2.54B
Cash Flow
Free Cash Flow	887.90M	499.90M	596.20M	352.40M	303.20M	387.90M
Operating Cash Flow	993.50M	609.40M	715.30M	436.20M	357.70M	435.40M
Investing Cash Flow	-79.00M	275.40M	-4.98B	-113.30M	-175.70M	-37.00M
Financing Cash Flow	-1.11B	-1.10B	4.20B	-274.20M	-117.60M	-147.60M

Regal Rexnord Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 148.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RRX, the sentiment is Positive. The current price of 148.22 is below the 20-day moving average (MA) of 149.46, above the 50-day MA of 146.58, and above the 200-day MA of 142.64, indicating a neutral trend. The MACD of -0.49 indicates Positive momentum. The RSI at 50.95 is Neutral, neither overbought nor oversold. The STOCH value of 67.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RRX.

Regal Rexnord Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPXC	78 Outperform	$8.94B	42.88	15.02%	―	8.90%	29.18%
DCI	77 Outperform	$8.66B	24.95	24.58%	1.51%	3.26%	-7.70%
FLS	77 Outperform	$6.95B	24.11	13.91%	1.58%	3.15%	14.18%
GNRC	71 Outperform	$11.67B	33.69	14.59%	―	9.69%	54.29%
RRX	67 Neutral	$9.49B	38.02	3.84%	0.91%	-7.88%	―
MIDD	65 Neutral	$6.60B	17.55	12.06%	―	-1.70%	10.24%
Sector *	63 Neutral	$10.80B	16.55	6.58%	2.06%	2.37%	-15.86%

Regal Rexnord Corporate Events

Regal Rexnord Announces Leadership Transition in August

Regal Rexnord Corporation announced that Kevin Zaba, Executive Vice President & President of Automation & Motion Control, will retire on December 31, 2025. Kevin Long will succeed him starting August 14, 2025, ensuring a smooth transition period until the retirement date.

The most recent analyst rating on (RRX) stock is a Buy with a $210.00 price target. To see the full list of analyst forecasts on Regal Rexnord stock, see the RRX Stock Forecast page.

Regal Rexnord Approves Bylaws Amendments for Governance Flexibility

On July 22, 2025, Regal Rexnord Corporation’s Board of Directors approved significant amendments to the company’s Bylaws, allowing for remote shareholder meetings and aligning proxy rules with SEC requirements. These changes, effective immediately, aim to enhance corporate governance and operational flexibility, potentially impacting shareholder engagement and regulatory compliance.

The most recent analyst rating on (RRX) stock is a Buy with a $210.00 price target. To see the full list of analyst forecasts on Regal Rexnord stock, see the RRX Stock Forecast page.