# Regal Rexnord Corporation (RRX) — Stock CV

Regal Rexnord Corporation is a $11.0B industrial company. Revenue grew 3.5% over the last year, it keeps 5¢ of every dollar of sales as profit, and its net debt equals ~9.1 years of free cash flow. It trades at 33.9× earnings — around the middle of its own history.

> Regal Rexnord Corp is in the engineering and manufacturing of industrial powertrain solutions, power transmission components, electric motors, electronic controls, air-moving products, and specialty electrical components and systems, serving customers around the world.

## Identity

- **Ticker**: RRX
- **Sector**: Industrials
- **Industry**: General Industrial Machinery & Equipment, Nec
- **Headquarters**: MILWAUKEE, WI
- **Employees**: 29 200
- **Website**: https://www.regalrexnord.com
- **Market cap**: $11.0B
- **Last price**: $165.03
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $6.06B
- **Net income**: $324M
- **Free cash flow**: $466M
- **Net debt**: $4.24B
- **P/E**: 33.9
- **Revenue growth (YoY)**: 3.5%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 61 |
| Growth | 57 |
| Profitability | 35 |
| Health | 40 |
| Quality | 97 |
| Moat | 36 |

## Qualifications (beginner checklist) — 7 of 11 passed

- [x] Revenue growing — +3.5% YoY
- [x] Profitable — $324M TTM
- [ ] Profit growing — -16.8% YoY
- [x] Generates cash — $466M TTM
- [ ] Debt under control — ~9.1y of cash flow to repay
- [x] Established company — $11.0B market cap
- [ ] Not printing shares — +63.2% shares over ~5y
- [x] Proven track record — 9/10 profitable years
- [ ] Financially stable — health score 35/100
- [x] Pays a dividend — yield 0.85%
- [x] Valuation not extreme — P/E 33.9

## Experience (career milestones)

- **2023** — The company acquired its rival Altra Industrial Motion in Braintree, Massachusetts for about $5…
- **FY2022** — Best year on record: $489M net income
- **2021** — Regal Beloit Corporation completed its merger with Rexnord Corporation, creating Regal Rexnord…
- **FY2016** — First recorded profitable year: $203M net income
- **FY2016** — Revenue already above $1B: $3.22B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2011** — The company completed the largest acquisition in its history by purchasing A.O
- **2010** — The company acquired CMG Engineering Group, a manufacturer of industrial motors, blowers and metal…
- **2008** — Regal acquired the Dutchi Motors B
- **2007** — Regal acquired the Fasco electrical components business of Tecumseh Products for $220 million in cash
- **1961** — It moved to facilities in South Beloit, Illinois, and in 1969 it changed its name to Regal Beloit
- **1955** — The company was founded in 1955 as Beloit Tool Corporation, and began operations in a converted roller rink

## Strengths

- Piotroski F-Score 7/9 — fundamentally strong checklist

## Watch-outs

- Loss-making in 1 of the recent years
- Net debt equals ~9.1 years of free cash flow

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $3.81B | $210M | $303M |
| FY2022 | $5.22B | $489M | $352M |
| FY2023 | $6.25B | -$57.4M | $596M |
| FY2024 | $6.03B | $196M | $500M |
| FY2025 | $5.93B | $280M | $893M |

---

Source: https://stockcv.com/RRX — derived from company filings; may be delayed or incomplete. Information, not investment advice.