Latest Ratios: P/E Ratio 37.9x · EV/EBITDA 12.8x · ROE 4.3%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $10.6B | $9.3B | $10.3B | $9.8B | $8.1B | $8.1B | $5.0B | $3.6B | $3.1B | $3.4B | $3.1B |
| Enterprise Value | $15.2B | $13.9B | $15.6B | $15.8B | $9.5B | $9.5B | $5.5B | $4.5B | $4.1B | $4.4B | $4.2B |
| P/E Ratio → | 37.88 | 33.25 | 52.77 | — | 16.46 | 35.38 | 26.47 | 15.13 | 13.29 | 16.16 | 15.32 |
| P/S Ratio | 1.79 | 1.57 | 1.71 | 1.57 | 1.54 | 2.13 | 1.72 | 1.12 | 0.84 | 1.02 | 0.97 |
| P/B Ratio | 1.55 | 1.36 | 1.65 | 1.54 | 1.25 | 1.27 | 1.94 | 1.52 | 1.32 | 1.46 | 1.50 |
| P/FCF | 11.92 | 10.46 | 20.70 | 16.46 | 22.85 | 26.77 | 12.92 | 11.43 | 10.79 | 15.17 | 8.32 |
| P/OCF | 10.74 | 9.43 | 16.98 | 13.72 | 18.46 | 22.69 | 11.51 | 8.84 | 8.48 | 11.78 | 7.09 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.34 | 2.58 | 2.53 | 1.82 | 2.49 | 1.91 | 1.39 | 1.13 | 1.32 | 1.32 |
| EV / EBITDA | 12.80 | 11.70 | 13.01 | 13.88 | 8.98 | 17.11 | 11.17 | 8.90 | 8.11 | 9.29 | 8.17 |
| EV / EBIT | 22.14 | 19.78 | 23.82 | 36.27 | 13.53 | 25.59 | 19.04 | 12.50 | 11.84 | 13.44 | 13.25 |
| EV / FCF | — | 15.54 | 31.13 | 26.48 | 26.96 | 31.27 | 14.30 | 14.21 | 14.50 | 19.59 | 11.33 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 37.4% | 37.4% | 36.4% | 33.7% | 32.6% | 28.2% | 28.5% | 27.0% | 26.3% | 26.9% | 28.3% |
| Operating Margin | 11.5% | 11.5% | 11.3% | 9.6% | 13.8% | 9.2% | 11.7% | 10.5% | 10.1% | 10.1% | 11.3% |
| Net Profit Margin | 4.7% | 4.7% | 3.3% | -0.9% | 9.4% | 6.0% | 6.5% | 7.4% | 6.3% | 6.3% | 6.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 4.3% | 4.3% | 3.1% | -0.9% | 7.6% | 5.1% | 7.6% | 10.1% | 9.9% | 9.6% | 10.0% |
| ROA | 2.0% | 2.0% | 1.3% | -0.4% | 4.7% | 3.1% | 4.2% | 5.3% | 5.1% | 4.9% | 4.6% |
| ROIC | 4.5% | 4.5% | 4.3% | 4.5% | 6.9% | 4.8% | 8.0% | 7.7% | 8.2% | 7.8% | 8.2% |
| ROCE | 5.4% | 5.4% | 5.1% | 5.1% | 7.8% | 5.4% | 8.9% | 8.7% | 9.7% | 9.3% | 9.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.74 | 0.74 | 0.89 | 1.03 | 0.33 | 0.32 | 0.45 | 0.51 | 0.56 | 0.48 | 0.68 |
| Debt / EBITDA | 4.26 | 4.26 | 4.69 | 5.76 | 2.02 | 3.67 | 2.31 | 2.40 | 2.56 | 2.39 | 2.72 |
| Net Debt / Equity | — | 0.66 | 0.83 | 0.94 | 0.23 | 0.21 | 0.21 | 0.37 | 0.45 | 0.43 | 0.54 |
| Net Debt / EBITDA | 3.82 | 3.82 | 4.36 | 5.25 | 1.37 | 2.46 | 1.08 | 1.74 | 2.08 | 2.09 | 2.17 |
| Debt / FCF | — | 5.08 | 10.43 | 10.02 | 4.11 | 4.49 | 1.38 | 2.78 | 3.71 | 4.42 | 3.01 |
| Interest Coverage | 2.01 | 2.01 | 1.61 | 1.00 | 7.94 | 6.17 | 7.16 | 6.48 | 6.14 | 6.20 | 5.94 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.15 | 2.15 | 2.26 | 2.55 | 2.99 | 2.56 | 2.25 | 2.87 | 2.66 | 2.21 | 2.18 |
| Quick Ratio | 1.10 | 1.10 | 1.25 | 1.59 | 1.66 | 1.48 | 1.41 | 1.66 | 1.54 | 1.15 | 1.24 |
| Cash Ratio | 0.41 | 0.41 | 0.32 | 0.43 | 0.69 | 0.61 | 0.74 | 0.59 | 0.36 | 0.20 | 0.41 |
| Asset Turnover | — | 0.43 | 0.43 | 0.41 | 0.51 | 0.37 | 0.63 | 0.73 | 0.79 | 0.77 | 0.74 |
| Inventory Turnover | 2.81 | 2.81 | 3.13 | 3.25 | 2.63 | 2.29 | 3.01 | 3.48 | 3.50 | 3.24 | 3.50 |
| Days Sales Outstanding | — | 32.24 | 50.98 | 53.82 | 55.78 | 75.28 | 54.24 | 52.02 | 55.26 | 55.01 | 52.32 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.9% | 1.0% | 0.9% | 0.9% | 1.1% | 4.1% | 1.0% | 1.4% | 1.5% | 1.3% | 1.4% |
| Payout Ratio | 33.3% | 33.3% | 47.4% | — | 18.6% | 146.2% | 25.7% | 20.5% | 20.4% | 20.9% | 20.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.6% | 3.0% | 1.9% | — | 6.1% | 2.8% | 3.8% | 6.6% | 7.5% | 6.2% | 6.5% |
| FCF Yield | 8.4% | 9.6% | 4.8% | 6.1% | 4.4% | 3.7% | 7.7% | 8.7% | 9.3% | 6.6% | 12.0% |
| Buyback Yield | 0.0% | 0.0% | 0.5% | 0.0% | 3.0% | 0.3% | 0.5% | 4.6% | 4.2% | 1.3% | 0.0% |
| Total Shareholder Yield | 0.9% | 1.0% | 1.4% | 0.9% | 4.1% | 4.5% | 1.5% | 5.9% | 5.7% | 2.6% | 1.4% |
| Shares Outstanding | — | $67M | $67M | $66M | $67M | $48M | $41M | $42M | $44M | $45M | $45M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying RRX stock.
Regal Rexnord Corporation's current P/E ratio is 37.9x. The historical average is 22.5x. This places it at the 93th percentile of its historical range.
Regal Rexnord Corporation's current EV/EBITDA is 12.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.4x.
Regal Rexnord Corporation's return on equity (ROE) is 4.3%. The historical average is 10.0%.
Based on historical data, Regal Rexnord Corporation is trading at a P/E of 37.9x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Regal Rexnord Corporation's current dividend yield is 0.87% with a payout ratio of 33.3%.
Regal Rexnord Corporation has 37.4% gross margin and 11.5% operating margin. Operating margin between 10-20% is typical for established companies.
Regal Rexnord Corporation's Debt/EBITDA ratio is 4.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Goodwill impairment risk
Metrics are mathematically derived from official filings.
Discounted Forward Multiple Signals Recovery
RRX trades at 41.1x trailing earnings but only 16.3x forward earnings, per reported figures, implying the market expects substantial earnings growth. EV/EBITDA of 13.6x is below peers like AMETEK and Rockwell, suggesting relative undervaluation.
The steep discount between trailing and forward P/E (41.1x vs 16.3x) indicates the market is pricing in a significant earnings rebound, likely from margin expansion and cost synergies. At 13.6x EV/EBITDA, RRX is cheaper than AMETEK (25.4x) and Rockwell (29.5x), but this may reflect lower growth expectations or higher risk. The forward EV/EBITDA of 10.4x suggests the market expects EBITDA to grow roughly 30% from current levels, which appears aggressive given revenue growth has been only 4.2% year-over-year.
Margin Expansion Outpaces Revenue Growth
Gross margin improved 400 basis points to 39.2% in 2026Q2, while operating margin reached 13.8%, according to financial statements. Net margin of 7.5% remains below peers like AMETEK (20.0%) and Parker-Hannifin (19.0%), indicating room for improvement.
The 400 basis point gross margin expansion from 35.2% in 2024Q4 to 39.2% in 2026Q2 suggests enhanced pricing power or cost efficiencies, but revenue growth has been tepid at 4.2% year-over-year. Operating margin of 13.8% lags the peer group, which may indicate that RRX's cost structure is still absorbing integration costs from recent acquisitions. Net margin of 7.5% is also below the sector average, and the recent surge in net income may be partly due to tax benefits, as noted in the income statement analysis.
Returns on Capital Remain Subdued
ROIC has hovered around 1.0-1.4% over the past ten quarters, per reported data, far below the cost of capital and peer averages. ROE improved to 1.7% in 2026Q2 but remains weak, indicating capital deployment is not yet generating adequate returns.
ROIC of 1.4% in 2026Q2 is significantly below the cost of capital (likely 8-10%), suggesting that the company is not creating value on its invested capital. This is partly due to the large goodwill balance ($6.6B) from acquisitions, which inflates the capital base. ROE of 1.7% is also low, but it has improved from 0.3% in 2024Q1, indicating a gradual recovery. The low returns may be a temporary post-acquisition phenomenon, but investors should monitor whether margin expansion can translate into higher returns on capital.
Working Capital Drag Persists
Cash conversion cycle extended to 105 days in 2026Q2, up from 119 days in 2024Q1, per reported figures, driven by high inventory days of 132. Asset turnover remains low at 0.11x, indicating inefficient use of the asset base.
The CCC of 105 days is elevated, with DIO of 132 days being the primary driver, suggesting that inventory management may be a challenge. DSO has improved from 54 days to 34 days, indicating better receivables collection, but DPO has also increased, which may be a sign of stretched supplier payments. Asset turnover of 0.11x is very low, reflecting the large goodwill and intangible asset base from acquisitions, which do not generate revenue directly. This inefficiency may be structural given the company's acquisition-heavy strategy.
Deleveraging Improves Coverage
D/E improved from 1.02 to 0.69 over ten quarters, and interest coverage rose to 2.78x in 2026Q2, per balance sheet data. However, D/EBITDA remains high at 14.77x, indicating elevated leverage relative to current earnings.
The reduction in D/E from 1.02 to 0.69 is a positive sign, and interest coverage of 2.78x is the highest in the period, suggesting that debt service is becoming more comfortable. However, D/EBITDA of 14.77x is extremely high, though this is distorted by the low trailing EBITDA due to margin compression. As EBITDA recovers, this ratio should improve, but the current level indicates significant refinancing risk if interest rates rise. The company has been actively deleveraging, which is a prudent move given the high debt load.
Liquidity Buffer Strengthens
Current ratio improved to 2.28 in 2026Q2 from 2.00 in 2025Q2, with quick ratio at 1.16, per reported figures. Cash of $441.6M provides a solid buffer, but inventory dependence remains a concern.
The current ratio of 2.28 indicates a comfortable liquidity position, and the quick ratio of 1.16 suggests that even without inventory, the company can cover short-term obligations. However, the quick ratio has declined from 1.56 in 2024Q1, indicating a slight deterioration in the most liquid assets. The inventory-heavy working capital profile may be a risk if demand weakens, but the overall liquidity position appears adequate to weather short-term stress.
Misapplied EV/EBITDA Multiple
EV/EBITDA is commonly used for RRX, but the high goodwill and intangible assets distort this metric, per balance sheet data. A more appropriate measure may be EV/EBIT or EV/EBITA to account for acquisition-related amortization.
EV/EBITDA is often misapplied to companies with significant acquisition-related intangibles because EBITDA excludes amortization, which is a real economic cost for such firms. For RRX, goodwill and intangibles constitute nearly half of total assets, and the amortization of these intangibles is a recurring expense that reduces earnings. Using EV/EBIT or EV/EBITA would provide a more conservative valuation that reflects the true cash-generating ability of the business. Investors should adjust for this when comparing RRX to peers with lower intangible intensity.