Regal Rexnord Share Price Trails Behind 13% YoY Returns Despite Five-Year Earnings Growth

🌥️Trending News

The company has developed a wide range of products and services that provide advanced technologies and services to customers in the industrial sector. Despite its strong performance over the past five years, the company’s share price has not been able to keep up with expectations and has declined by 13% in the last year. The company’s earnings have been growing for the last five years, but the share price of Regal Rexnord ($NYSE:RRX) has not kept pace with the 13% year-over-year returns. This has caused some concern among shareholders who are anxious to see their investments return more value. Despite this situation, the company is still committed to delivering innovative solutions and delivering value to its customers. Regal Rexnord is continuing to explore new opportunities to expand its portfolio and increase its market share. The company is also dedicated to providing quality customer service as well as developing relationships with key stakeholders. With its commitment to these goals, the company is confident that it will eventually recover from its current slump in share prices. Shareholders of Regal Rexnord Corporation have been faced with a difficult year, as the company’s five-year earnings growth has not been enough to match the 13% year-over-year returns. Furthermore, the share price has dropped by 13% in the past year.

However, despite this decline, the company remains committed to delivering innovative solutions and delivering value to its customers. With this dedication, shareholders can rest assured that they are investing in a company that is prepared to rise from the current slump and reach new heights.

Earnings

Despite a five-year streak of earnings growth, the share price of REGAL REXNORD continues to trail 13% behind year-over-year returns as of March 31 2023. The latest earning report for FY2023 Q1 revealed a total revenue of 1224.1M USD for the company, however this was 5.7% lower than the same time the previous year. Net income also suffered a 104.7% decrease to a loss of 5.9M USD. Despite this, REGAL REXNORD’s total revenue has grown significantly in the past three years, from 814.1M USD to 1224.1M USD.

However, this has not been matched with a corresponding increase in share price. As of March 31 2023, REGAL REXNORD’s share price was 13% below YoY returns, continuing its downward trend despite strong earnings growth over the past five years.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Regal Rexnord. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Regal Rexnord. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Regal Rexnord. More…

Key Ratios Snapshot

Some of the financial key ratios for Regal Rexnord are shown below. More…

Analysis

As part of our analysis, we evaluated the wellbeing of REGAL REXNORD. According to our Star Chart system, REGAL REXNORD is classified as a ‘cheetah’, a type of company which has achieved high revenue or earnings growth but is considered less stable due to lower profitability. We believe that investors interested in REGAL REXNORD could be looking for strong asset returns, attractive dividend yields, and growth opportunities. The company’s financial stability is rated as medium in terms of profitability, but its health score of 8/10 with regard to its cashflows and debt indicates that it is capable of sustaining future operations in times of crisis. Overall, REGAL REXNORD appears to be a solid investment opportunity for investors looking for higher risk, higher reward opportunities. 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

Investing in Regal Rexnord Corporation has not been a profitable endeavor in the past five years. Despite posting an annualized growth rate of 13%, shareholders have seen their returns decrease due to a drop in share price. This suggests that the company is currently underperforming, and investors should exercise caution when considering investing in the company at this time.