Regal Rexnord Corporation Common Stock (RRX)

FairStock Score: 36/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital, carry modest debt, and sell at a discount to intrinsic value. Regal Rexnord is a real industrial company, making motion-control and power-transmission products across Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions. The recent trajectory is better: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.6B, net income $116.6M, and diluted EPS $1.74. That compares with fiscal Q2 2025, the quarter ended 2025-06-30, when net income was $79.2M and diluted EPS $1.19. For fiscal year 2025, the year ended 2025-12-31, revenue was $5.9B, net income $279.5M, and diluted EPS $4.20; fiscal year 2024, the year ended 2024-12-31, had revenue $6.0B, net income $196.2M, and diluted EPS $2.94. So earnings are recovering, but revenue has not grown much. The quality test is less impressive. FairStock's calculated ROE is 4.77% and ROCE 3.24%, both modest for an industrial. Debt-to-equity is 0.69, and the Altman Z-Score is 1.50, so the balance sheet deserves attention. Free cash flow is $466.3M, a 4.3% FCF yield at the 2026-10-13 close. Valuation looks full: at the 2026-10-13 close of $163.28, FairStock's P/E is 33.60, P/B 1.57, EV/EBITDA 12.34, and Graham Number $106.56, implying a -53.23% margin of safety. The Piotroski F-Score is 8/9, a positive sign, and PEG is 0.62, but low returns and a high price relative to book value leave little room for error. FairStock classifies it as a TURNAROUND — returned to profit after a loss within the last three years. I would want better returns on capital before calling this a bargain.

In plain English: Regal Rexnord makes motors, drives, conveyor parts, and other equipment that help machines move and control power. The company is profitable again and its latest quarter was stronger than a year earlier, but it earns only modest profits on the money tied up in the business and carries debt. At the recent price, the shares look expensive compared with the company's reported profits and net assets.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer