Is the business good?
How good a business is RRX?
Regal Rexnord Corporation earns 5.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
5.0%
Return on invested capital · cost of capital 9.0% · 4.0 points below what the capital costs: growth destroys value
- Operating margin
- 12%
Operating margin · Specialty Industrial Machinery median 15% · 12 months to Q2 2026
- Cash conversion
- 1.44×
Cash conversion · 3.55× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +0.60%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 9.6% |
| FY2021 | 9.4% |
| FY2022 | 13% |
| FY2023 | 6.0% |
| FY2024 | 10% |
| FY2025 | 11% |
Details›
- Gross margin12 months to Q2 2026
- 38%
- Operating margin12 months to Q2 2026
- 12%
- Net margin12 months to Q2 2026
- 5.3%
- Free cash flow margin
- 7.7%
- Revenue, trailing twelve months
- $6.06B
- Free cash flow, trailing twelve months
- $466M
- Net income, trailing twelve months
- $324M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Specialty Industrial Machinery
Ranks #32 of 44 by Smart Score