Regal Rexnord RRX
United StatesIndustrials · Specialty Industrial MachineryUSD
242.00 USD (+47.4%)
10 analysts
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Regal Rexnord Corporation is a manufacturer of power transmission components and systems, industrial automation, and control solutions, operating globally in the industrial machinery and consumer sectors.
Key points
from its scores- ✓Strong growth7.0
- ✕Little competitive advantage4.1
- !Balance sheet could be stronger5.1
- !Modest dividend5.2
AI analysis
bottom line, main risk, context and newsHold, with caution due to leverage and the interest rate environment; expected growth could justify the valuation if confirmed.
Regal Rexnord shows earnings growth of 47.10% and a forward P/E of 12.63, suggesting an attractive valuation if growth is sustained, although its high debt (ND/EBITDA 3.55) and low ROE (4.77%) limit its appeal.
The main risk is its high leverage (Net Debt/EBITDA of 3.55) in a rising interest rate environment, which could make refinancing its debt more expensive and pressure its profitability.
Context and risks
Regal Rexnord operates in the specialized industrial machinery sector, with a Net Debt/EBITDA of 3.55, exposing it to tighter financial conditions. Although its business does not directly depend on commodities, its leverage level and the potential need to refinance debt in a rising rate environment in the US (10-year Treasury at 5.28%) represent a risk to its financial health.
Is Regal Rexnord stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Industrials median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 33.8 | 25.4 | +33% |
| EV / EBITDA | 12.5 | 14.5 | −14% |
| Price / book | 1.6 | 4.1 | −61% |
| Price / sales | 1.8 | 2.1 | −12% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.3 out of 10 (median for Industrials: 5.0).
Average analyst target: 242.00 USD, +47.4% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 33.8
- Forward P/E
- 12.6
- EV / EBITDA
- 12.5
- Price / book
- 1.6
- Price / sales
- 1.8
- PEG
- 1.24
- Market cap
- 10.9B USD
- Enterprise value
- 15.3B USD
Profitability
- ROE
- 4.8%
- ROA
- 3.2%
- ROIC (approx.)
- 6.4%
- Gross margin
- 37.5%
- Operating margin
- 12.3%
- Net margin
- 5.3%
- Free cash flow
- 455.2M USD
- FCF yield
- 4.2%
- Cash conversion
- 37%
Solvency
- Total debt
- 4.8B USD
- Net debt
- 4.3B USD
- Cash
- 441.6M USD
- EBITDA
- 1.2B USD
- Net debt / EBITDA
- 3.55
- Debt / equity
- 68.84
- Current ratio
- 2.28
- Quick ratio
- 0.94
Growth
- Revenue growth
- +4.2%
- Earnings growth
- +47.1%
- EPS (TTM)
- 4.86 USD
- EPS (forward)
- 13.00 USD
Dividend
- Dividend yield
- 0.9%
- Payout
- 28.8%
Risk and market
- Beta
- 1.07
- Analyst consensus
- Strong buy (10)
- Target price
- 242.00 USD
- 52-week range
- 127.96 – 247.80
Recent news
All RRX news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Regal Rexnord
Is Regal Rexnord stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Industrials median (within 15%). Valuation score: 5.3 out of 10 (median for Industrials: 5.0). Average analyst target: 242.00 USD, +47.4% versus the price. This is not investment advice.
What score does Regal Rexnord get on MeridIAn Screener?
It scores 5.3 out of 10, rank 1,548 of 2,130 (better than 26% of the companies analysed). Its strongest category is Growth (7.0) and its weakest, Quality / Moat (4.1). Analysis of 08/10/2026.
What is Regal Rexnord's P/E ratio?
Its P/E is 33.8: the share price equals 33.8 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 12.6.
How much is Regal Rexnord worth on the stock market?
Its market capitalisation is 10.9B USD and its enterprise value, debt included, is 15.3B USD.
How much debt does Regal Rexnord have?
Its net debt (debt minus cash) is 4.3B USD. That is 3.55 times its EBITDA; the Industrials median is 1.58.
Does Regal Rexnord pay a dividend?
Yes: its dividend yield is 0.85% and it pays out 29% of its earnings.
How has Regal Rexnord stock performed over the last year?
It has risen 22.9% over the last year, excluding dividends. Over the last 52 weeks it has traded between 127.96 and 247.80 USD. Past performance does not guarantee future results.
What do analysts think of Regal Rexnord?
10 analysts cover it; their average recommendation is “Strong buy” and their average target is 242.00 USD (+47.4% versus the price). It is an estimate, not market data.