📊 RRX Key Takeaways
Is Regal Rexnord Corp. (RRX) a Good Investment?
Regal Rexnord exhibits deteriorating operational fundamentals with declining revenue and net income, coupled with severely weak returns on capital (ROE 0.9%, ROA 0.5%). Most critically, the company is burning cash with negative free cash flow of -2.5M despite positive operating income, and interest coverage of only 1.4x indicates insufficient buffer for debt servicing if operating conditions worsen further.
Regal Rexnord Corp. Key Strengths (RRX)
- Adequate short-term liquidity with 2.17x current ratio
- Moderate leverage at 0.69x debt-to-equity ratio
- Reasonable gross margin of 37.2% indicates core production efficiency
RRX Stock Risks: Regal Rexnord Corp. Investment Risks
- Negative free cash flow (-2.5M) despite $152.7M operating income signals capital structure stress
- Interest coverage of 1.4x is dangerously low; minimal buffer if EBIT declines further
- Revenue contracting 1.6% YoY with net income down 0.5% indicates declining business momentum
- Abysmal capital efficiency with ROE 0.9% and ROA 0.5% shows poor asset utilization
- Operating cash flow only $14.9M on $1.5B revenue (0.99% conversion) is critically weak
- High insider filing activity (37 Form 4s in 90 days) may signal insider concern
Key Metrics to Watch
- Free cash flow trend and operating cash flow conversion to revenue
- Interest coverage ratio and debt refinancing capacity
- Revenue growth trajectory and operating margin sustainability
- Capital allocation priorities: debt reduction vs. shareholder returns
Regal Rexnord Corp. (RRX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.17x current ratio provides a solid financial cushion.
RRX Profit Margin, ROE & Profitability Analysis
RRX vs Industrial Sector: How Regal Rexnord Corp. Compares
How Regal Rexnord Corp. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Regal Rexnord Corp. Stock Overvalued? RRX Valuation Analysis 2026
Based on fundamental analysis, Regal Rexnord Corp. shows some fundamental concerns relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Regal Rexnord Corp. Balance Sheet: RRX Debt, Cash & Liquidity
RRX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Regal Rexnord Corp.'s revenue has grown significantly by 71% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.87 indicates the company is currently unprofitable.
RRX Revenue Growth, EPS Growth & YoY Performance
RRX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2024 | $1.5B | $26.2M | $0.39 |
| Q1 2024 | $1.2B | -$5.9M | $-0.09 |
| Q3 2023 | $1.3B | -$113.3M | $-1.71 |
| Q2 2023 | $1.3B | $26.2M | $0.39 |
| Q1 2023 | $1.2B | -$5.9M | $-0.09 |
| Q1 2020 | $734.2M | $45.8M | $1.12 |
| Q3 2019 | $772.3M | $49.7M | $1.17 |
| Q2 2019 | $873.7M | $65.9M | $1.50 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Regal Rexnord Corp. Dividends, Buybacks & Capital Allocation
RRX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Regal Rexnord Corp. (CIK: 0000082811)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779829636.xml | View → |
| May 19, 2026 | 4 | xslF345X06/wk-form4_1779230551.xml | View → |
| May 15, 2026 | 4 | xslF345X06/wk-form4_1778878056.xml | View → |
| May 13, 2026 | 4 | xslF345X06/wk-form4_1778705801.xml | View → |
| May 13, 2026 | 4 | xslF345X06/wk-form4_1778705793.xml | View → |
❓ Frequently Asked Questions about RRX
What is the AI rating for RRX?
Regal Rexnord Corp. (RRX) has an AI grade of C with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are RRX's key strengths?
Claude: Adequate short-term liquidity with 2.17x current ratio. Moderate leverage at 0.69x debt-to-equity ratio.
What are the risks of investing in RRX?
Claude: Negative free cash flow (-2.5M) despite $152.7M operating income signals capital structure stress. Interest coverage of 1.4x is dangerously low; minimal buffer if EBIT declines further.
What is RRX's revenue and growth?
Regal Rexnord Corp. reported revenue of $1.5B.
Does RRX pay dividends?
Regal Rexnord Corp. pays dividends, with $23.3M distributed to shareholders in the trailing twelve months.
Where can I find RRX SEC filings?
Official SEC filings for Regal Rexnord Corp. (CIK: 0000082811) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RRX's EPS?
Regal Rexnord Corp. has a diluted EPS of $0.96.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is RRX's fundamental grade?
Based on our AI fundamental analysis in May 2026, Regal Rexnord Corp. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is RRX stock overvalued or undervalued?
Valuation metrics for RRX: ROE of 0.9% (sector avg: 15%), net margin of 4.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is RRX's AI grade for 2026?
Our dual AI analysis gives Regal Rexnord Corp. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is RRX's free cash flow?
Regal Rexnord Corp.'s operating cash flow is $14.9M, with capital expenditures of $17.4M. FCF margin is -0.2%.
How does RRX compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 4.3% (avg: 10%), ROE 0.9% (avg: 15%), current ratio 2.17 (avg: 1.8).