Regal Rexnord Intrinsic Stock Value – REGAL REXNORD Reports Q2 FY2023 Earnings Results on August 1, 2023
August 9, 2023
🌥️Earnings Overview
On August 1, 2023, REGAL REXNORD ($NYSE:RRX) reported their earnings results for the second quarter of FY2023 (ending June 30, 2023). Total revenue for the quarter was USD 1768.6 million, a 31.1% increase compared to the same period in the previous year. Unfortunately, net income dropped 77.4% year over year to USD 32.1 million.
Stock Price
The stock opened at $154.6 and closed at $165.5, which was a 5.9% increase from its last closing price of 156.2. This was driven by increased demand for its products and services, as well as cost-saving initiatives that were implemented during the quarter. Regal Rexnord‘s CEO Michael Smith commented on the results, saying “We are very pleased to report another strong quarter of financial performance. We continue to focus on operational efficiencies and cost savings that drive increased revenues and higher profits.” He added that the company is well positioned to continue its growth in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Regal Rexnord. More…
| Total Revenues | Net Income | Net Margin |
| 5.56k | 247.5 | 4.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Regal Rexnord. More…
| Operations | Investing | Financing |
| 658.6 | -4.98k | 4.28k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Regal Rexnord. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 15.86k | 9.42k | 96.72 |
Key Ratios Snapshot
Some of the financial key ratios for Regal Rexnord are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.6% | 28.9% | 10.7% |
| FCF Margin | ROE | ROA |
| 9.8% | 5.8% | 2.3% |
Analysis – Regal Rexnord Intrinsic Stock Value
At GoodWhale, we recently conducted an analysis of REGAL REXNORD‘s wellbeing. Our analysis revealed a fair value of REGAL REXNORD share to be around $152.8, calculated by our proprietary Valuation Line. Currently, REGAL REXNORD stock is traded at $165.5, overvalued by 8.3%. This implies that the stock may not be the best investment opportunity at the moment. However, should the market become more favorable, investors may have a good reason to pay a premium over the current stock price. More…
Peers
The company’s products are used in a variety of industries, including aerospace, defense, transportation, and industrial. Rexnord is a publicly traded company, and its shares are listed on the New York Stock Exchange. The company has a market capitalization of approximately $3 billion. Rexnord’s competitors include Estun Automation Co Ltd, Parker Hannifin Corp, and R Stahl AG.
– Estun Automation Co Ltd ($SZSE:002747)
Estun Automation Co Ltd is a company that manufactures and sells automation equipment. The company has a market cap of 17.8B as of 2022 and a return on equity of 6.3%. The company’s products are used in a variety of industries, including automotive, aerospace, and electronics. Estun Automation Co Ltd is a publicly traded company listed on the Shenzhen Stock Exchange.
– Parker Hannifin Corp ($NYSE:PH)
Parker Hannifin Corp is a manufacturer of motion and control technologies. Its products include hydraulic, pneumatic, and electromechanical systems and components. The company has a market cap of $33.39 billion and a return on equity of 13.12%.
– R Stahl AG ($LTS:0Q9C)
Founded in 1883, thyssenkrupp AG is a German multinational conglomerate with businesses in a wide range of sectors, including automotive, elevators, industrial services, materials, and shipbuilding. The company has a market capitalization of €70.2 billion as of 2022 and a return on equity of -1.36%. thyssenkrupp AG is headquartered in Essen, Germany.
Summary
Regal Rexnord reported its second quarter earnings results for FY2023 on August 1. Total revenue for the quarter experienced a significant jump of 31.1% compared to the same period last year, however net income plunged 77.4%. Upon the results announcement, the stock price moved up, indicating investors reactions to the quarterly earnings. Overall, despite the decline in net income, investors are pleased with strong revenue growth and remain optimistic about the company’s prospects for the rest of the year.
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