Regal Rexnord Corporation
General industrial machinery & equipment, nec company · WI · FY ends Dec · Revenue $6.06B · 11.67% margin · $466M FCF
$154.01
-$2.12 (-1.36%)
EOD Oct 16, 2026
11.47% operating margin is respectable but not wide. ROIC at 5.11%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue declined 1.6% YoY. The question is whether this is cyclical or a structural shift.
At 32x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Net debt of $4.51B represents 5.1x FCF, leverage limits flexibility.
31.8x earnings, 22.0x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$6.06B
▼ -1.6% YoY
Net Income (TTM)
$324M
▲ +42.5% YoY
Op. Margin
11.67%
▲ +1.0pp YoY
ROIC
5.36%
▲ +0.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$466M
▲ +78.7% YoY
Op. Cash Flow (TTM)
$557M
▲ +62.6% YoY
Net Debt
$4.42B
Cash & Equiv.
$442M
5Y CAGR: +15.3%
5Y CAGR: +18.2%
Continue Research
SourceComputed from the 10-Q filed 31 Jul 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 12 Oct 2026. How this is calculated.
Price from market data, last close as of 16 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Regal Rexnord (RRX) overvalued?
At a P/E of 31.8 and a price-to-free-cash-flow of 22.0, Regal Rexnord (RRX) trades above a two-stage DCF intrinsic value of about $118.27 per share, so at $154.01 the stock looks overvalued (23.2% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Regal Rexnord scores 45/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 0.9%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Regal Rexnord's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $118.27 per share for RRX, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $88.70. At today's $154.01, that puts the stock about 23.2% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Regal Rexnord a high-quality business?+
Regal Rexnord scores 45 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 11.7% operating margin and a 5.4% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does Regal Rexnord (RRX) pay a dividend, and how much?+
Yes, Regal Rexnord pays a regular dividend of about $1.39 per share per year (typically in quarterly installments), a yield of roughly 0.9% at the current price. That is a payout ratio of about 28.7% of earnings, so the dividend is amply covered by earnings. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For RRX's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is Regal Rexnord a good stock to buy right now?+
That depends on valuation and quality together, not either alone. RRX currently trades above its estimated intrinsic value and scores 45/100 on quality (mixed). It also yields about 0.9%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
Related stocks: General Industrial Machinery & Equipment, NEC
Spot a number that looks wrong?
Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.