Quality Investor
MarketsPortfolioEvidenceTestedCompareWatchlistAbout 

Regal Rexnord Corporation

Rank #379ValueWatchlistCompare with other stocks

RRX · NYSE · Industrials

Regal Rexnord Corporation (RRX) — Rank #379 by gross profitability (GP/assets 0.16) · ROE 4.0% · Piotroski F-Score 7 / 9.

As-of 2026-10-30 · CIK 0000082811 · all metrics point-in-time as of the filing date.

About

Regal Rexnord Corporation provides sustainable solutions for power, transmit, and control motion products in the North America, Asia, Europe, and internationally.

Show more

The company operates through Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions. The Automation & Motion Control segment provides conveyor products, conveying automation subsystems, aerospace components, precision motion control solutions, miniature servo motors, controls, drives, and linear actuators, as well as power management products that include automatic transfer switches, paralleling switchgear, and customized modular electric pod solutions that comprise relevant power and thermal management content. The Industrial Powertrain Solutions segment offers mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes and gear motors, clutches, brakes, and industrial powertrain components and solutions, as well as industrial powertrain solutions. The Power Efficiency Solutions segment produces fractional to approximately 5 horsepower AC and DC motors, electronic variable speed controls, electronic drives, fans and blowers, as well as integrated air moving subsystems. It serves factory automation, food and beverage, aerospace, general industrial, medical, data center, general industrial, metals and mining, energy, discrete automation, commercial HVAC, and general commercial applications. The company was formerly known as Regal Beloit Corporation.

Regal Rexnord Corporation was founded in 1955 and is based in Milwaukee, Wisconsin.

Industry
Specialty Industrial Machinery
Sector
Industrials
State
WI
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

28,700

Industry

Specialty Industrial Machinery

Exchange

NYSE

11/12

Flags passed

RRX fails 1 critical flag

Passes 11 of 12 quality flags

  • FAIL
    Revenue declining YoY

    Revenue contracted year over year

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Operating leverage expanding · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.16
Return on equity
4.0%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.99
Current ratio
2.28×
Net cash
-$4.17B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.6%

Growth

1/2 pass
Revenue growth
-1.6%
Piotroski F-Score
7 / 9
Share dilution
-0.1%

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Does it make money well?

Warning: Revenue declining YoY · GP/assets 8th percentile of 26 SIC 35 peers

Gross profitability (GP / assets)

0.16

Primary signal (Novy-Marx).

8th pctl of 26 SIC 35 peers

Return on equity

4.0%

Gross margin

37.4%

28th pctl of 26 SIC 35 peers

Revenue growth (YoY)

-1.6%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

4.4%

Revenue CAGR (5Y)

15.3%

Earnings CAGR (3Y)

-17.0%

FCF CAGR (3Y)

36.3%

Cash Flow Health

Is the cash real?

No warning flags · FCF 220% above net income

Free cash flow

$893.10M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

219.5%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.6%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net debt $4.17B, F-Score 7/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.99

32nd pctl of 26 SIC 35 peers (best = lowest)

Current ratio

2.28×

56th pctl of 26 SIC 35 peers

Quick ratio

0.82×

Net cash

-$4.17B

Cash & equivalents minus total debt.

Piotroski F-Score

7 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Dividend safety

Composite score

2.8 / 5

Fair
Payout ratio
33.3%4/5 Strong
FCF coverage
9.60×5/5 Strong
Dividend growth streak
0 yr0/5 Weak
Balance-sheet health
D/E 0.99 · IC N/A2/5 Fair

Capital allocation quality

Composite score

2.7 / 5

Fair
Share count trend(net buybacks)
-0.1%3/5 Good
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr0/5 Weak
Net debt trajectory(deleveraging)
5.7%5/5 Strong

Lifecycle Phase History

20212025
Decline
Hypergrowth
Startup
Value

Price History

RRX+7.7% · +1.5% CAGRSPY+82.9% · +12.8% CAGR

View full financial statements →

Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports