📊 RRX Key Takeaways
Is Regal Rexnord Corp. (RRX) a Good Investment?
Regal Rexnord demonstrates fortress-like financial health with exceptional free cash flow generation ($893M, 15% FCF margin) and strong liquidity, but faces fundamental headwinds including declining revenue (-1.6% YoY) and flat earnings (-0.5% YoY) coupled with poor capital efficiency (4.1% ROE, 2.0% ROA). The company is effectively a cash cow with manageable debt, yet lacks growth momentum and shows concerning signs of earnings manipulation through share buybacks.
Why Buy Regal Rexnord Corp. Stock? RRX Key Strengths
- Exceptional free cash flow generation of $893M (15% of revenue) with low capital intensity ($98M CapEx)
- Strong balance sheet with 2.15x current ratio, 0.70x debt-to-equity, and 6.5x interest coverage indicating financial stability
- Solid operating profitability with 37.4% gross margin and 11.5% operating margin appropriate for industrial machinery sector
RRX Stock Risks: Regal Rexnord Corp. Investment Risks
- Revenue contraction of 1.6% YoY signals weakening demand and potential cyclical headwinds in industrial machinery markets
- Anemic return on equity (4.1%) and return on assets (2.0%) indicate poor capital deployment efficiency despite strong cash generation
- Significant insider trading activity (38 Form 4 filings) combined with 42.9% EPS growth despite flat net income suggests aggressive buyback program masking earnings stagnation
Key Metrics to Watch
- Revenue trend reversal - need to see top-line growth return to positive territory
- Net income and operating cash flow sustainability - ensure cash generation isn't deteriorating
- Return on equity trajectory - must improve capital efficiency to justify equity holder returns
Regal Rexnord Corp. (RRX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.15x 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
❓ Frequently Asked Questions about RRX
What is the AI rating for RRX?
Regal Rexnord Corp. (RRX) has an AI rating of HOLD with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are RRX's key strengths?
Claude: Exceptional free cash flow generation of $893M (15% of revenue) with low capital intensity ($98M CapEx). Strong balance sheet with 2.15x current ratio, 0.70x debt-to-equity, and 6.5x interest coverage indicating financial stability.
What are the risks of investing in RRX?
Claude: Revenue contraction of 1.6% YoY signals weakening demand and potential cyclical headwinds in industrial machinery markets. Anemic return on equity (4.1%) and return on assets (2.0%) indicate poor capital deployment efficiency despite strong cash generation.
What is RRX's revenue and growth?
Regal Rexnord Corp. reported revenue of $5.9B.
Does RRX pay dividends?
Regal Rexnord Corp. pays dividends, with $93.0M 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 $4.20.
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 rating reflects both perspectives for balanced insights.
Is RRX a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Regal Rexnord Corp. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is RRX stock overvalued or undervalued?
Valuation metrics for RRX: ROE of 4.1% (sector avg: 15%), net margin of 4.7% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy RRX stock in 2026?
Our dual AI analysis gives Regal Rexnord Corp. a combined HOLD rating 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 $990.8M, with capital expenditures of $97.7M. FCF margin is 15.0%.
How does RRX compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 4.7% (avg: 10%), ROE 4.1% (avg: 15%), current ratio 2.15 (avg: 1.8).