Regal Rexnord (RRX) Stock Analysis
This is a peer-relative look at Regal Rexnord (RRX): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Capital Goods peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | RRX |
|---|---|
| Name | Regal Rexnord Corporation |
| Country/Region | United States |
| GICS Sector | Industrials |
| GICS Industry Group | Capital Goods |
| GICS Industry | Electrical Equipment |
| GICS Sub-Industry | Electrical Components & Equipment |
| Market Capitalization | 11.26 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | March 17, 1980 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: RRX | Industry group median |
|---|---|---|
| Total Return (1Y) | 33.67% | 6.84% |
| Total Return (3Y, Annualized) | 20.16% | 17.66% |
| Total Return (5Y, Annualized) | 2.72% | 9.09% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: RRX | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 53.85% | 44.38% |
| Beta (5Y) | 1.04 | 1.19 |
| Max Drawdown (5Y) | -48.11% | -49.95% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: RRX | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 0.55 | 0.06 |
| Sortino Ratio (1Y) | 0.79 | 0.09 |
Profitability
ROE (TTM)
Regal Rexnord (RRX) posts ROE of 3.41%, in the lower peer quartile. Shareholders’ equity is not producing as much profit as it does at most peers, so margins, asset turns, or balance-sheet structure deserve a closer look.
RRX
Capital Goods industry group
3.41%
Group distribution
- Max
- 40.55%
- Q3
- 19.29%
- Median
- 12.12%
- Q1
- 4.08%
- RRX
- 3.41%
- Min
- -17.12%
Largest peers
- GEV
- 93.04%
- CAT
- 56.14%
- GE
- 50.17%
- DE
- 18.24%
- RTX
- 12.85%
- RRX
- 3.41%
- BA
- --
Net Margin (TTM)
Regal Rexnord (RRX) keeps 3.77% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.
RRX
Capital Goods industry group
3.77%
Group distribution
- Max
- 27.47%
- Q3
- 12.10%
- Median
- 6.30%
- RRX
- 3.77%
- Q1
- 1.40%
- Min
- -12.89%
Largest peers
- GEV
- 23.54%
- GE
- 17.31%
- CAT
- 15.21%
- DE
- 10.17%
- RTX
- 8.75%
- BA
- 8.07%
- RRX
- 3.77%
Operating Margin (TTM)
Regal Rexnord (RRX) turns 12.10% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.
RRX
Capital Goods industry group
12.10%
Group distribution
- Max
- 36.60%
- Q3
- 18.33%
- RRX
- 12.10%
- Median
- 11.12%
- Q1
- 5.14%
- Min
- -12.63%
Largest peers
- CAT
- 20.19%
- GE
- 18.49%
- RTX
- 15.54%
- DE
- 13.37%
- GEV
- 12.77%
- RRX
- 12.10%
- BA
- 0.30%
Profitability Metrics
| Metric | Current stock: RRX | Industry group median |
|---|---|---|
| ROE (TTM) | 3.41% | 12.12% |
| ROA (TTM) | 3.20% | 5.29% |
| Net Margin (TTM) | 3.77% | 6.30% |
| Operating Margin (TTM) | 12.10% | 11.12% |
| Gross Margin (TTM) | 37.24% | 29.63% |
Growth
Revenue Growth
Regal Rexnord (RRX) grew revenue -1.65%, in the lower peer quartile. The top line is expanding more slowly than at most peers, which can reflect softer demand, lost share, or weaker pricing.
EPS Growth
Regal Rexnord (RRX) grew earnings per share 42.86%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.
Growth Metrics
| Metric | Current stock: RRX | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | -1.65% | 8.11% |
| Revenue Growth (3Y CAGR) | 4.38% | 6.45% |
| EPS Growth (YoY) | 42.86% | 5.45% |
| EPS Growth (3Y CAGR) | -16.79% | 7.15% |
Financial Strength
Current Ratio (MRQ)
Regal Rexnord (RRX) has current ratio of 2.22, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
RRX
Capital Goods industry group
2.22
Group distribution
- Max
- 5.22
- Q3
- 2.95
- RRX
- 2.22
- Median
- 2.08
- Q1
- 1.43
- Min
- 0.36
Largest peers
- RRX
- 2.22
- DE
- 2.13
- CAT
- 1.42
- BA
- 1.13
- RTX
- 1.05
- GE
- 0.98
- GEV
- 0.83
Debt / Equity (MRQ)
Regal Rexnord (RRX) has debt-to-equity ratio of 0.67, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
RRX
Capital Goods industry group
0.67
Group distribution
- Max
- 2.33
- Q3
- 1.12
- RRX
- 0.67
- Median
- 0.60
- Q1
- 0.29
- Min
- 0.00
Largest peers
- BA
- 7.39
- DE
- 2.30
- CAT
- 2.10
- GE
- 1.16
- RRX
- 0.67
- RTX
- 0.55
- GEV
- 0.30
Financial Strength Metrics
| Metric | Current stock: RRX | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 2.22 | 2.08 |
| Debt / Equity (MRQ) | 0.67 | 0.60 |
| Net Debt / EBITDA | 3.47 | 1.78 |
Dividends
Dividend Yield (TTM)
Regal Rexnord (RRX) has dividend yield of 0.87%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
RRX
Capital Goods industry group
0.87%
Group distribution
- Max
- 2.66%
- Q3
- 1.14%
- RRX
- 0.87%
- Median
- 0.24%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- RTX
- 1.47%
- CAT
- 1.13%
- DE
- 0.98%
- RRX
- 0.87%
- GE
- 0.56%
- GEV
- 0.26%
- BA
- 0.00%
Dividend Payout Ratio (TTM)
Regal Rexnord (RRX) has payout ratio of 40.35%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.
RRX
Capital Goods industry group
40.35%
Group distribution
- Max
- 67.39%
- RRX
- 40.35%
- Q3
- 28.02%
- Median
- 6.86%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- RTX
- 45.85%
- RRX
- 40.35%
- DE
- 36.02%
- CAT
- 24.18%
- GE
- 20.23%
- GEV
- 4.59%
- BA
- 0.00%
Dividend Metrics
| Metric | Current stock: RRX | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.87% | 0.24% |
| Dividend Payout Ratio (TTM) | 40.35% | 6.86% |
Valuation
P/E Ratio (TTM)
Regal Rexnord (RRX) trades at P/E ratio of 48.72, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.
RRX
Capital Goods industry group
48.72
Group distribution
- Max
- 59.38
- RRX
- 48.72
- Q3
- 35.92
- Median
- 25.41
- Q1
- 19.47
- Min
- 3.03
Largest peers
- RRX
- 48.72
- DE
- 37.33
- GE
- 36.94
- RTX
- 30.82
- CAT
- 21.92
- GEV
- 20.32
- BA
- 17.89
P/S Ratio (TTM)
Regal Rexnord (RRX) trades at 1.83 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
RRX
Capital Goods industry group
1.83
Group distribution
- Max
- 7.54
- Q3
- 3.76
- Median
- 2.15
- RRX
- 1.83
- Q1
- 1.03
- Min
- 0.03
Largest peers
- GE
- 6.38
- GEV
- 4.65
- DE
- 3.78
- CAT
- 3.29
- RTX
- 2.66
- RRX
- 1.83
- BA
- 1.45
P/B Ratio (MRQ)
Regal Rexnord (RRX) trades at 1.64 on P/B ratio, in the lower book-value quartile for its industry. Investors are paying less for the balance-sheet equity than they pay for most peers, with returns on that equity still central to the read.
RRX
Capital Goods industry group
1.64
Group distribution
- Max
- 9.66
- Q3
- 5.00
- Median
- 3.12
- Q1
- 1.81
- RRX
- 1.64
- Min
- -1.08
Largest peers
- BA
- 20.99
- GE
- 19.06
- GEV
- 18.00
- CAT
- 11.90
- DE
- 6.47
- RTX
- 3.69
- RRX
- 1.64
Valuation Metrics
| Metric | Current stock: RRX | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 48.72 | 25.41 |
| P/S Ratio (TTM) | 1.83 | 2.15 |
| P/B Ratio (MRQ) | 1.64 | 3.12 |
| Free Cash Flow Yield (TTM) | 3.88% | 3.03% |