# Regal Beloit (RRX.US)

Canonical: https://gigainvestors.com/s/RRX

Analysis as of: 2026-10-16T07:31:41.148Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $156.13 per share; close as of 2026-10-15.

Estimated value: low $103.47 per share, central $117.08 per share, high $135.18 per share. Buy at or below the central value $117.08 per share. Valuation as of 2026-10-16T07:31:41.148Z; scenarios are not confidence intervals.

Expected annual return: 8.1% at the stated quote. About 8.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 1

- Operating margin variation: 0.18×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.10×

- FY2018: 0.10×

- FY2019: 0.10×

- FY2020: 0.12×

- FY2021: 0.09×

- FY2022: 0.14×

- FY2023: 0.06×

- FY2024: 0.11×

- FY2025: 0.12×

- LTM to Jun 2026: 0.12×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 13.5%

- ROIC, second-lowest year: 7.2%

- Typical minus recent gross margin: -6.8 pp

- Typical gross margin (annual median): 30.5%

- Recent gross margin (lower of latest and 3-year median): 37.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.7%

- ROIC including acquisitions, ten-year median: 8.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 14.5%

- FY2018: 15.9%

- FY2019: 15.7%

- FY2020: 16.9%

- FY2021: 7.2%

- FY2022: 15.2%

- FY2023: 5.2%

- FY2024: 10.9%

- FY2025: 11.5%

- LTM to Jun 2026: 12.4%

### economics: pass

- Owner earnings / net income, 5-yr: 2.47×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $3.0B

- Net income, five-year total: $1.2B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.4 pp

- Working capital / revenue, change between three-year averages: -2.5 pp

- Working capital / revenue, final three-year average: 22.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.46×

- FY2023: -5.51×

- FY2024: 3.05×

- FY2025: 2.44×

- LTM to Jun 2026: 2.27×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 15.9% vs 10.9%

- Per-share earnings: 4.52 to 2.94 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.0%

- Ordinary dilution, 5-year annual growth: 10.3%

- Market cap gain: $6.2B

- Cumulative retained earnings: $778M

- Diluted shares, 10-year annual growth: 4.0%

- Diluted shares, 5-year annual growth: 10.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -5.2%

- Per-share value change: -$1.58

- Per-share value, starting three-year median: $4.52

- Per-share value, ending three-year median: $2.94

- Buybacks concentrated in cheaper years (correlation): 0.60

- Average buyback yield: 1.7%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $5.2B

- Cumulative net income, 10 years: $2.2B

- ROIC, first three-year median: 15.9%

- ROIC, last three-year median: 10.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $4.52

- FY2017: $4.74

- FY2018: $5.27

- FY2019: $5.66

- FY2020: $4.64

- FY2021: $4.81

- FY2022: $7.29

- FY2023: -$0.87

- FY2024: $2.94

- FY2025: $4.20

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -5.1%

- Receivables to sales index (DSRI): 0.63×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 3.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.54×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.47×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.4%

- FY2017: -1.8%

- FY2018: -2.9%

- FY2019: -3.8%

- FY2020: -5.4%

- FY2021: -1.2%

- FY2022: 0.5%

- FY2023: -5.0%

- FY2024: -2.9%

- FY2025: -5.1%

## Holders

- [Andreas Halvorsen](https://gigainvestors.com/vg): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 34% since Jun 2026 · "Yet in the same breath, management trimmed its full-year profitability outlook." (finance.yahoo.com, Aug 2026) · sales +2.1%

Story as of 2026-10-16T09:59:31.784Z; price observation 2026-10-15.

Price needs cash profits to grow 4.6% a year for ten years

### Sales · FY2025–2026

sales +2.1%; source https://www.sec.gov/Archives/edgar/data/82811/000008281126000054/rbc-20251231.htm; observed 2026-02-20.

- FY2017: $3.4B 

- FY2018: $3.6B 

- FY2019: $3.2B 

- FY2020: $2.9B 

- FY2021: $3.8B 

- FY2022: $5.2B 

- FY2023: $6.3B 

- FY2024: $6.0B 

- FY2025: $5.9B 

- FY2026: $6.1B 

### Gross margin · FY2026

gross margin 37.8%; source https://www.sec.gov/Archives/edgar/data/82811/000008281126000054/rbc-20251231.htm; observed 2026-02-20.

- FY2017: 26.9% 

- FY2018: 26.3% 

- FY2019: 27.0% 

- FY2020: 28.5% 

- FY2021: 28.2% 

- FY2022: 32.6% 

- FY2023: 33.1% 

- FY2024: 36.4% 

- FY2025: 37.4% 

- FY2026: 37.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty industrial machinery; annual sales are USD 5.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/82811/000008281126000054/rbc-20251231.htm (filed 2026-02-20); FY2025: revenue 5934500000; grossProfit 2217800000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RRX.US: 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.

### Why customers stay

Margins ranged from 33.1% to 37.4% during 2023–25; it earns 13.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: grossProfit / revenue = 33.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: grossProfit / revenue = 36.4%.

- Source: https://www.sec.gov/Archives/edgar/data/82811/000008281126000054/rbc-20251231.htm (filed 2026-02-20); FY2025: grossProfit / revenue = 37.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); 10-year return on capital observations [[2017,0.14499104783714764],[2018,0.15946107560968448],[2019,0.15693838893064668],[2020,0.1686216420322512],[2021,0.07227776234269954],[2022,0.15176106020201477],[2023,0.051653055916775034],[2024,0.10919677753848608],[2025,0.1145347678135634],[2026,0.12429685160791895]]; median 0.1346439497225333. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2016: growth capex 0; upkeep 65200000; cash acquisitions 0; owner earnings 293600000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2017: growth capex 0; upkeep 65200000; cash acquisitions 0; owner earnings 285000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2018: growth capex 0; upkeep 77600000; cash acquisitions 161500000; owner earnings 296000000. Growth capex plus acquisitions / owner earnings = 0.5456081081081081.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2019: growth capex 0; upkeep 92400000; cash acquisitions 0; owner earnings 311600000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2020: growth capex 0; upkeep 47500000; owner earnings 297700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2021: growth capex 0; upkeep 54500000; cash acquisitions 125500000; owner earnings 377600000. Growth capex plus acquisitions / owner earnings = 0.3323622881355932.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2022: growth capex 0; upkeep 83800000; cash acquisitions 35000000; owner earnings 712500000. Growth capex plus acquisitions / owner earnings = 0.04912280701754386.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: growth capex 0; upkeep 119100000; cash acquisitions 4870200000; owner earnings 316300000. Growth capex plus acquisitions / owner earnings = 15.397407524502055.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: growth capex 0; upkeep 109500000; cash acquisitions 0; owner earnings 598500000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/82811/000008281126000054/rbc-20251231.htm (filed 2026-02-20); FY2025: growth capex 0; upkeep 97700000; cash acquisitions 0; owner earnings 681400000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Dividend observations: [[2016,42100000],[2017,44500000],[2018,47200000],[2019,48900000],[2020,48700000],[2021,335600000],[2022,90900000],[2023,92800000],[2024,93000000],[2025,93000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RRX.US SharesStats.PercentInsiders = 0.49899999999999994 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 4.6% yearly over ten years; actual growth was 8.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Ten-year compound average after fade. Initial solved rate 0.053413554803105084. Price 156.13; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 4.66740576496674 → FY2025 10.231231231231233. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $59.10 per share

- 2016-11: $72.90 per share

- 2016-12: $69.25 per share

- 2017-01: $72.60 per share

- 2017-02: $74.45 per share

- 2017-03: $75.65 per share

- 2017-04: $78.85 per share

- 2017-05: $79.20 per share

- 2017-06: $81.55 per share

- 2017-07: $83.35 per share

- 2017-08: $75.40 per share

- 2017-09: $79.00 per share

- 2017-10: $81.15 per share

- 2017-11: $76.95 per share

- 2017-12: $76.60 per share

- 2018-01: $77.90 per share

- 2018-02: $72.30 per share

- 2018-03: $73.35 per share

- 2018-04: $71.20 per share

- 2018-05: $79.45 per share

- 2018-06: $81.80 per share

- 2018-07: $85.95 per share

- 2018-08: $83.70 per share

- 2018-09: $82.45 per share

- 2018-10: $71.70 per share

- 2018-11: $78.18 per share

- 2018-12: $70.05 per share

- 2019-01: $76.76 per share

- 2019-02: $83.76 per share

- 2019-03: $81.87 per share

- 2019-04: $85.08 per share

- 2019-05: $72.70 per share

- 2019-06: $81.71 per share

- 2019-07: $79.62 per share

- 2019-08: $70.90 per share

- 2019-09: $72.85 per share

- 2019-10: $74.05 per share

- 2019-11: $81.73 per share

- 2019-12: $85.61 per share

- 2020-01: $78.46 per share

- 2020-02: $77.64 per share

- 2020-03: $62.95 per share

- 2020-04: $71.01 per share

- 2020-05: $79.54 per share

- 2020-06: $87.32 per share

- 2020-07: $91.97 per share

- 2020-08: $98.86 per share

- 2020-09: $93.87 per share

- 2020-10: $98.65 per share

- 2020-11: $119.04 per share

- 2020-12: $122.81 per share

- 2021-01: $125.48 per share

- 2021-02: $136.67 per share

- 2021-03: $142.68 per share

- 2021-04: $144.43 per share

- 2021-05: $142.23 per share

- 2021-06: $133.51 per share

- 2021-07: $147.23 per share

- 2021-08: $149.42 per share

- 2021-09: $150.34 per share

- 2021-10: $152.33 per share

- 2021-11: $158.10 per share

- 2021-12: $170.18 per share

- 2022-01: $158.48 per share

- 2022-02: $160.35 per share

- 2022-03: $148.78 per share

- 2022-04: $127.24 per share

- 2022-05: $124.95 per share

- 2022-06: $113.52 per share

- 2022-07: $134.30 per share

- 2022-08: $137.59 per share

- 2022-09: $140.36 per share

- 2022-10: $126.54 per share

- 2022-11: $131.11 per share

- 2022-12: $119.98 per share

- 2023-01: $139.20 per share

- 2023-02: $157.64 per share

- 2023-03: $140.73 per share

- 2023-04: $130.16 per share

- 2023-05: $129.89 per share

- 2023-06: $153.90 per share

- 2023-07: $156.18 per share

- 2023-08: $162.19 per share

- 2023-09: $142.88 per share

- 2023-10: $118.41 per share

- 2023-11: $119.80 per share

- 2023-12: $148.02 per share

- 2024-01: $133.46 per share

- 2024-02: $171.49 per share

- 2024-03: $180.10 per share

- 2024-04: $161.37 per share

- 2024-05: $149.54 per share

- 2024-06: $135.22 per share

- 2024-07: $160.68 per share

- 2024-08: $167.81 per share

- 2024-09: $165.88 per share

- 2024-10: $166.54 per share

- 2024-11: $172.71 per share

- 2024-12: $155.13 per share

- 2025-01: $158.73 per share

- 2025-02: $129.40 per share

- 2025-03: $113.85 per share

- 2025-04: $105.84 per share

- 2025-05: $133.44 per share

- 2025-06: $144.96 per share

- 2025-07: $152.88 per share

- 2025-08: $149.33 per share

- 2025-09: $143.44 per share

- 2025-10: $140.89 per share

- 2025-11: $145.99 per share

- 2025-12: $140.32 per share

- 2026-01: $161.50 per share

- 2026-02: $220.98 per share

- 2026-03: $187.26 per share

- 2026-04: $215.03 per share

- 2026-05: $201.76 per share

- 2026-06: $238.19 per share

- 2026-07: $205.23 per share

- 2026-08: $158.45 per share

- 2026-09: $155.11 per share

- 2026-10: $156.13 per share

## Annual estimated value (USD per share)

- FY2016: low $51.86 per share, central $58.34 per share, high $66.96 per share

- FY2017: low $50.66 per share, central $57.43 per share, high $66.43 per share

- FY2018: low $77.70 per share, central $87.86 per share, high $101.39 per share

- FY2019: low $77.46 per share, central $87.27 per share, high $100.33 per share

- FY2020: low $84.47 per share, central $94.25 per share, high $107.27 per share

- FY2021: low $96.53 per share, central $108.12 per share, high $123.54 per share

- FY2022: low $92.94 per share, central $104.56 per share, high $120.02 per share

- FY2023: low $108.90 per share, central $122.98 per share, high $141.73 per share

- FY2024: low $102.17 per share, central $115.69 per share, high $133.69 per share

- FY2025: low $102.66 per share, central $115.98 per share, high $133.71 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:37:26.503Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/82811/000008281126000054/rbc-20251231.htm); period 2025-12-31, filed 2026-02-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.