Regal Rexnord (RRX) AI Stock Analysis

• Market Cap: $9.49B
• Dividend Yield: 0.97%
• Average Volume (3M): 757.89K
• Price to Earnings (P/E): 38.0
• Beta (1Y): 1.22
• Revenue Growth: -7.88%
• EPS Growth: N/A
• Country: US
• Employees: 30,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.48
• Shares Outstanding: 66,374,190
• 10 Day Avg. Volume: 784,721
• 30 Day Avg. Volume: 757,886
• PEG Ratio: -0.12
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 1.71
• P/FCF Ratio: 20.61
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 2.45
• Enterprise Value/Gross Profit: 6.59
• Enterprise Value/Ebitda: 12.19
• 1Y Price Target: $178.25
• Price Target Upside: 23.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 64 Neutral
• Price Target: $153.00 ▲(6.32% Upside)

Regal Rexnord's overall stock score reflects a balance of strong financial health and cash flow generation against valuation concerns and mixed technical indicators. The earnings call provided a nuanced view with both positive developments and notable challenges, leading to a cautious outlook.

Positive Factors

Strong Free Cash Flow

Strong free cash flow indicates Regal Rexnord's ability to generate cash from operations, providing flexibility for reinvestment and debt reduction, supporting long-term financial health.

Cross-Sell Synergies

Progress in cross-sell synergies enhances market penetration and revenue diversification, contributing to sustainable growth and competitive advantage.

Data Center Order Success

Securing large data center orders boosts future revenue streams and strengthens Regal Rexnord's position in the growing data infrastructure market.

Negative Factors

Sales Decline in Key Segments

Declining sales in key segments like AMC and IPS reflect challenges in market demand, potentially impacting long-term revenue growth and market share.

Rare Earth Magnet Availability

Supply chain issues with rare earth magnets can disrupt production and increase costs, affecting profitability and operational efficiency.

Tariff Challenges

Ongoing tariff challenges increase costs and pressure margins, potentially affecting Regal Rexnord's competitive pricing and profitability.

Regal Rexnord Business Overview & Revenue Model

Company Description

Regal Rexnord Corporation (RRX) is a global leader in the design and manufacturing of innovative motion control and power transmission solutions. Operating primarily in the industrial and commercial sectors, Regal Rexnord provides a wide range of products, including bearings, gears, motors, and power transmission systems. The company serves various industries such as aerospace, automotive, food and beverage, and energy, leveraging advanced technology and extensive engineering expertise to deliver high-performance solutions that enhance efficiency and reliability.

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	2.18B	2.20B	2.11B	1.70B	1.07B	828.40M
EBITDA	1.18B	1.17B	971.00M	1.04B	573.00M	447.20M
Net Income	250.40M	196.20M	-57.40M	488.90M	229.60M	189.30M
Balance Sheet
Total Assets	13.90B	14.03B	15.43B	10.27B	10.37B	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	2.14B	2.04B	1.15B
Total Liabilities	7.19B	7.77B	9.07B	3.85B	3.96B	2.01B
Stockholders Equity	6.70B	6.26B	6.34B	6.39B	6.37B	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: Negative
• Last Price: 143.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RRX, the sentiment is Negative. The current price of 143.91 is above the 20-day moving average (MA) of 143.89, below the 50-day MA of 147.19, and above the 200-day MA of 138.92, indicating a neutral trend. The MACD of -1.27 indicates Negative momentum. The RSI at 44.05 is Neutral, neither overbought nor oversold. The STOCH value of 51.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RRX.

Regal Rexnord Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTS	79 Outperform	9.29B	29.59	16.46%	0.68%	2.96%	12.62%
DCI	78 Outperform	9.44B	26.24	25.25%	1.41%	2.92%	-9.78%
SPXC	78 Outperform	9.04B	40.89	13.74%	―	8.90%	29.18%
AOS	76 Outperform	10.15B	19.91	28.09%	1.88%	-3.53%	-7.46%
CR	71 Outperform	10.48B	33.72	18.63%	0.49%	3.01%	27.13%
RRX	64 Neutral	$9.49B	38.01	3.84%	0.97%	-7.88%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.

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.