Regal Rexnord (RRX) Fundamental Analysis: Revenue, Earnings & Valuation

6.91 / 10

Outperform

RRX's fundamental score of 6.9/10 reflects strong cash and asset metrics, but revenue growth lags. Key positives include Cash-MV (-0.095) in quartile 2 and Asset-MV (-0.501) in quartile 4, both historically associated with double-digit monthly returns. However, Total operating revenue (YoY) at -3.53% places it in performance group 1, indicating a drag. Net cash flow to liabilities (0.140) and PB-ROE (-0.361) sit in moderate groups, offering mixed signals. Constructive factors like cash strength offset revenue decline, supporting an Outperform stance with caveats.

Analysis Checks(5/10)

Revenue-MV

Value0.44

Score3/3

Weight19.88%

1M Return7.64%

Total operating revenue (YoY growth rate %)

Value-3.53

Score0/3

Weight-0.77%

1M Return-0.45%

PB-ROE

Value-0.36

Score1/3

Weight13.18%

1M Return5.72%

Total profit / EBIT (%)

Value51.99

Score2/3

Weight6.09%

1M Return2.97%

Cash-UP

Value-1.07

Score0/3

Weight-4.53%

1M Return-2.71%

Net cash flow from operating activities / Total liabilities (%)

Value0.14

Score3/3

Weight8.65%

1M Return3.72%

Long-term debt to working capital ratio (%)

Value4.01

Score1/3

Weight3.75%

1M Return1.82%

Operating revenue (YoY growth rate %)

Value-3.53

Score0/3

Weight-0.72%

1M Return-0.41%

Asset-MV

Value-0.50

Score3/3

Weight33.18%

1M Return11.84%

Cash-MV

Value-0.10

Score3/3

Weight21.29%

1M Return9.23%

Is RRX undervalued or overvalued?

RRX scores 6.91/10 on fundamentals and holds a Discounted valuation at present. Backed by its 4.26% ROE, 4.73% net margin, 50.32 P/E ratio, 2.05 P/B ratio, and 42.57% earnings growth, these metrics solidify its Outperform investment rating.