RRXRegal Rexnord Corporation
Is the business good?
A genuinely good business: 7 of 9 health tests passed, earnings fully cash-backed (1.0×), and margins widening.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 4% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
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.
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 14% · 12 months to Q2 2026
- Cash conversion
- 0.97×
Cash conversion · 1.80× a year ago · operating cash flow covers the operating profit after tax
- 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 is operating cash flow over operating profit after tax.
Specialty Industrial Machinery
Ranks #24 of 33 by RyuScore