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Regal Rexnord Corporation (RRX) Fair Value & Analysis

Industrials · US · Market cap $13.9B

RR Regal Rexnord Corporation logo Regal Rexnord Corporation RRX · US
Price$179.02
Fair Value$88.17
Upside-50.8%
Quality53/100
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Mixed Growth
Thin margins · 4.8% net margin
Moderate debt · generates free cash flow
0.65% dividend yield
Trails peers (5/15)
Narrow moat 38/100
Evidence: High Range $54.90 – $110.21 Share as image

Fair value as of: Jul 16, 2026

From 26 valuation models · updated 22 days ago

Share price −15.4% over the past month.

A solid business, but screening 51% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case ($110.21). The favourable scenario is already priced in.
  • Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($54.90 to $110.21) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$238.19 $93.05 Fair Value $88.17 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range $93.05 – $238.19 · fair‑value band $54.90 – $110.21 · the $179.02 price screens above the $88.17 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Regal Rexnord Corporation (RRX) currently trades at $179.02, while our model-based Fair Value estimate is $88.17, implying the stock looks roughly 50.8% overvalued today. We read business quality at 53/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Regal Rexnord Corporation generated revenue of $6.0B at a net margin of 4.8%. Revenue grew 4.3% year over year. It earns a return on equity of 4.3%. Net debt stands at $4.5B. Fundamentals as of Jul 16, 2026

Our scenario range runs from $54.90 (bear case) to $110.21 (bull case); at $179.02, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 24% below its 52-week high and 41% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -51%, RRX screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $101.24 $212.11 $393.11 80
Residual Income $76.85 $76.31 $69.16 76
Rev-Margin DCF $51.82 $120.82 $206.54 74
All 26 models by family
DCF Models
FCF DCF $100.86 $217.23 $409.78 38
Owner Earnings $42.06 $114.57 31
5Y Revenue Exit $51.82 $120.74 $210.39 39
5Y EBITDA Exit $65.58 $148.08 $247.38 41
5Y P/E Exit $29.08 $75.58 $125.42 38
10Y Revenue Exit $64.28 $133.84 $232.38 36
10Y EBITDA Exit $76.34 $153.45 $262.25 37
10Y P/E Exit $52.50 $101.43 $163.76 35
Earnings-Based
Graham-Dodd $28.55 $115.44 $157.06 54
Lynch FV $28.83 $41.19 $53.54 50
PEG = 1.0 $28.83 $41.19 $53.54 46
EPV $24.05 $38.68 $51.48 59
Dividend Discount
Gordon GGM $12.83 $26.67 $42.31 70
DDM Multi-Stage $12.83 $22.49 $27.99 61
Multiples
P/E Multiple $62.98 $83.97 $104.97 63
P/S Multiple $53.53 $71.38 $89.22 58
P/B Multiple $53.53 $71.38 $89.22 55
EV/EBIT $75.24 $121.56 $167.89 53
EV/EBITDA $59.26 $100.26 $141.26 54
EV/Revenue $29.94 $70.09 $110.24 43
Asset-Based
NCAV (Graham) $51.41 $68.88 $102.81 50
Growth DCF
Growth DCF $101.24 $212.11 $393.11 80
Rev-Margin DCF $51.82 $120.82 $206.54 74
Economic Profit
Residual Income $76.85 $76.31 $69.16 76
ROIC Compounder $24.05 $38.68 $51.48 72
Growth Earnings
Growth-Adj P/E $48.88 $69.83 $90.79 68

Widest divergence: Growth DCF ($120.82) versus Dividend Discount ($22.49). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $6.0B
Revenue growth (YoY) +4.3%
Net margin 4.8%
Return on equity 4.3%
Free cash flow $893M FY2025
P/E ratio 48.4
More key figures
Operating margin 11.3%
EPS (TTM) $4.30
Dividend yield 0.7%
EPS growth (YoY) +11.6%
Net debt $4.5B FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 53/100

Of which business quality 57 · Market factors (momentum, volatility) 46

Profitability 27
Margins and returns on capital today
Quality Growth 47
Are margins and returns improving?
Cashflow 80
Earnings quality: real cash, not paper profit
Fin. Strength 43
Balance sheet, leverage, solvency risk
Investment 78
Disciplined investing over empire-building
Low Volatility 36
Calm price path (market factor)
Momentum 51
Price trend over the last 3–12 months (market factor)
52W Momentum 50
Distance to the 52-week high (market factor)
Net Issuance 84
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Regal Rexnord Corporation provides sustainable solutions for power, transmit, and control motion products in the North America, Asia, Europe, and internationally. The company operates through Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions.

Full company description

Regal Rexnord Corporation provides sustainable solutions for power, transmit, and control motion products in the North America, Asia, Europe, and internationally. The company operates through Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions. The Automation & Motion Control segment provides conveyor products, conveying automation subsystems, aerospace components, precision motion control solutions, miniature servo motors, controls, drives, and linear actuators, as well as power management products that include automatic transfer switches, paralleling switchgear, and customized modular electric pod solutions that comprise relevant power and thermal management content. The Industrial Powertrain Solutions segment offers mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes and gear motors, clutches, brakes, and industrial powertrain components and solutions, as well as industrial powertrain solutions. The Power Efficiency Solutions segment produces fractional to approximately 5 horsepower AC and DC motors, electronic variable speed controls, electronic drives, fans and blowers, as well as integrated air moving subsystems. It serves factory automation, food and beverage, aerospace, general industrial, medical, data center, general industrial, metals and mining, energy, discrete automation, commercial HVAC, and general commercial applications. The company was formerly known as Regal Beloit Corporation. Regal Rexnord Corporation was founded in 1955 and is based in Milwaukee, Wisconsin.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Regal Rexnord Corporation reported revenue of $5.9B in FY2025 versus $3.8B in FY2021, a compound +11.7%/yr. Reported net income was $280M in FY2025, compounding +5.0%/yr from FY2021.

Growth Quality 84/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$5.9B
Latest YoY
−1.6%
Avg. growth/yr (3Y)
+4.4%
Avg. growth/yr (5Y)
+15.3%
Avg. growth/yr (40Y)
+12.4%
Revenue +11.7%/yr
FY21 $3.8B
FY22 $5.2B
FY23 $6.3B
FY24 $6.0B
FY25 $5.9B
Net income +5.0%/yr
FY21 $230M
FY22 $489M
FY23 −$57.4M
FY24 $196M
FY25 $280M

RRX screens 51% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Regal Rexnord Corporation Fair Value". https://www.fairvalue-calculator.com/stock/RRX

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Specialty Industrial Machinery · 807 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 53 · Above median
Fair Value upside −51% · Below median
Return on equity (TTM) 4% · Below median
Return on assets 3% · Above median
Net margin (TTM) 5% · Below median
Operating margin (TTM) 11% · Above median
Revenue growth 4% · Below median
Dividend yield (TTM) 0.7% · Below median
Debt / equity 0.70× · Higher than 75% of peers

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 50.0× · Pricier than median
P/B 2.03× · Cheaper than median
P/S (TTM) 2.31× · Pricier than median
P/FCF 15.5× · Pricier than median
EV/EBITDA 15.1× · Cheaper than median
PEG 1.95× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 22 · sector 23
PAST 17 · sector 28
HEALTH 65 · sector 96
DIVIDEND 13 · sector 24

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €967.60 €212.97 -78%
1SIE 1SIE €284.30 €122.46 -57%
SMNS SMNS C$31.76 C$22.68 -29%
Eaton Corporation ETN $407.28 $171.92 -58%
Atlas Copco AB ATCOA kr 195.15 kr 112.59 -42%
Sandvik AB SAND kr 384.10 kr 193.01 -50%
Doosan Enerbility Co 034020 76,400 KRW 7,938 KRW -90%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥43.20 ¥22.68 -48%
Vestas Wind Systems A/S VWS kr 178.10 kr 124.54 -30%
NARI Technology Co 600406 ¥22.19 ¥18.71 -16%

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Frequently asked questions

Is Regal Rexnord Corporation (RRX) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of $88.17 versus a price of $179.02, about −51% (overvalued).
What is the fair value of RRX?
Our model-based fair value for Regal Rexnord Corporation is $88.17 (as of Jul 16, 2026), built from audited fundamentals. The current price is $179.02.
What is the quality score of RRX?
Regal Rexnord Corporation has a Quality Score of 53/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Regal Rexnord Corporation (RRX)?
Regal Rexnord Corporation reported trailing-twelve-month revenue of about $6.0B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of RRX?
The net profit margin of Regal Rexnord Corporation is about 4.8%, meaning it keeps roughly 4.8% of revenue as net income. Based on the latest reported figures.
Does Regal Rexnord Corporation pay a dividend?
Regal Rexnord Corporation currently shows a dividend yield of about 0.65% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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