Regal Rexnord Corporation (RRX) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+44.0%

$235.56

vs $163.63 price

Levered DCF

$243.68

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

1.93

Grey zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	33.25×	52.59×	-170.14×	16.37×	35.09×	26.35×	15.05×	13.22×
P/B	1.36×	1.65×	1.55×	1.25×	1.26×	1.96×	1.53×	1.32×
P/S	1.57×	1.71×	1.57×	1.53×	2.11×	1.72×	1.11×	0.84×
EV / EBITDA	11.52×	13.32×	17.01×	9.36×	17.39×	13.07×	9.06×	8.37×
Gross margin	37.4%	36.4%	33.7%	32.6%	28.2%	28.5%	27.0%	26.3%
Operating margin	11.5%	11.3%	9.6%	13.8%	9.2%	11.7%	10.5%	10.1%
Net margin	4.7%	3.3%	-0.9%	9.4%	6.0%	6.5%	7.4%	6.3%
Current ratio	2.15×	2.26×	2.55×	2.99×	2.56×	2.25×	2.87×	2.66×
Debt / equity	0.74×	0.9×	1.03×	0.33×	0.32×	0.45×	0.51×	0.57×
Interest coverage	1.96×	1.69×	1.38×	8.12×	5.86×	8.37×	6.13×	6.47×
Dividend yield	1.0%	0.9%	0.9%	1.1%	4.2%	1.0%	1.4%	1.5%
Payout ratio	33.3%	47.4%	-161.7%	18.6%	146.2%	25.7%	20.5%	20.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	4.1%	3.1%	-0.9%	7.7%	3.6%	7.4%	10.2%	10.0%
Return on invested capital	4.3%	4.3%	4.3%	6.2%	2.9%	6.6%	7.0%	7.5%
Return on assets	2.0%	1.4%	-0.4%	4.8%	2.2%	4.1%	5.4%	5.0%
Free cash flow yield	9.6%	4.9%	6.1%	4.4%	3.8%	7.8%	8.8%	9.3%
Earnings yield	3.0%	1.9%	-0.6%	6.1%	2.9%	3.8%	6.6%	7.6%
Enterprise value	$13.8B	$15.5B	$15.8B	$9.5B	$9.4B	$5.5B	$4.5B	$4.1B
Net debt / EBITDA	3.77×	4.48×	6.44×	1.44×	2.52×	1.27×	1.78×	2.15×
Cash conversion cycle (days)	102	116	118	143	148	112	105	102