NYSE:RBC

Stock Analysis Report

Executive Summary

Regal Beloit Corporation, together with its subsidiaries, designs, manufactures, and sells electric motors, electrical motion controls, and power generation and transmission products worldwide.

Snowflake

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Regal Beloit's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RBC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

RBC

0.08%

US Electrical

0.3%

US Market


1 Year Return

8.0%

RBC

14.7%

US Electrical

12.5%

US Market

Return vs Industry: RBC underperformed the US Electrical industry which returned 14.7% over the past year.

Return vs Market: RBC underperformed the US Market which returned 12.5% over the past year.


Shareholder returns

RBCIndustryMarket
7 Day0.5%0.08%0.3%
30 Day14.9%9.9%4.1%
90 Day13.7%16.6%5.6%
1 Year9.7%8.0%17.1%14.7%15.0%12.5%
3 Year24.9%19.7%41.6%33.5%49.1%39.4%
5 Year22.6%14.1%45.5%30.8%62.8%44.7%

Price Volatility Vs. Market

How volatile is Regal Beloit's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Regal Beloit undervalued compared to its fair value and its price relative to the market?

13.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RBC ($82.5) is trading above our estimate of fair value ($76.51)

Significantly Below Fair Value: RBC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RBC is good value based on its PE Ratio (13.6x) compared to the Electrical industry average (17.3x).

PE vs Market: RBC is good value based on its PE Ratio (13.6x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: RBC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: RBC is good value based on its PB Ratio (1.5x) compared to the US Electrical industry average (1.6x).


Next Steps

Future Growth

How is Regal Beloit forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RBC's earnings are forecast to decline over the next 3 years (-0.4% per year).

Earnings vs Market: RBC's earnings are forecast to decline over the next 3 years (-0.4% per year).

High Growth Earnings: RBC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: RBC's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: RBC's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RBC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Regal Beloit performed over the past 5 years?

27.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RBC has high quality earnings.

Growing Profit Margin: RBC's current net profit margins (7.6%) are higher than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: RBC's earnings have grown significantly by 27.7% per year over the past 5 years.

Accelerating Growth: RBC's earnings growth over the past year (13.5%) is below its 5-year average (27.7% per year).

Earnings vs Industry: RBC earnings growth over the past year (13.5%) exceeded the Electrical industry 11.3%.


Return on Equity

High ROE: RBC's Return on Equity (11.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Regal Beloit's financial position?


Financial Position Analysis

Short Term Liabilities: RBC's short term assets ($1.7B) exceeds its short term liabilities ($589.2M)

Long Term Liabilities: RBC's short term assets (1.7B) exceeds its long term liabilities (1.6B)


Debt to Equity History and Analysis

Debt Level: RBC's debt to equity ratio (51.5%) is considered high

Reducing Debt: RBC's debt to equity ratio has increased from 31.7% to 51.5% over the past 5 years.

Debt Coverage: RBC's debt is well covered by operating cash flow (32%).

Interest Coverage: RBC's interest payments on its debt are well covered by EBIT (6.9x coverage).


Balance Sheet

Inventory Level: RBC has a high level of physical assets or inventory.

Debt Coverage by Assets: RBC's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is Regal Beloit's current dividend yield, its reliability and sustainability?

1.45%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Regal Beloit before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: RBC's dividend (1.45%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: RBC's dividend (1.45%) is low compared to the top 25% of dividend payers in the US market (3.67%).


Stability and Growth of Payments

Stable Dividend: RBC's dividends per share have been stable in the past 10 years.

Growing Dividend: RBC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.1%), RBC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RBC's dividends in 3 years are forecast to be well covered by earnings (20.6% payout ratio).


Next Steps

Management

What is the CEO of Regal Beloit's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Regal Beloit has no CEO, or we have no data on them.


Management Age and Tenure

3.8yrs

Average Tenure

53yo

Average Age

Experienced Management: RBC's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

9.3yrs

Average Tenure

62yo

Average Age

Experienced Board: RBC's board of directors are considered experienced (9.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$482,42319 Feb 19
Henry Knueppel
EntityIndividual
Shares5,742
Max PriceUS$84.02

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Bob Lazzerini (52yo)

    Principal Accounting Officer & VP

    • Tenure: 2.6yrs
  • Rob Cherry

    Vice President of Business Development & Investor Relations

    • Tenure: 4.1yrs
  • Thomas Valentyn (60yo)

    VP, General Counsel & Secretary

    • Tenure: 3.5yrs
    • Compensation: US$1.31m
  • John Avampato (58yo)

    VP & Chief Information Officer

    • Tenure: 11.8yrs
    • Compensation: US$1.01m
  • Jon Schlemmer (53yo)

    Chief Operating Officer

    • Tenure: 8.5yrs
    • Compensation: US$2.66m
  • Tom Beck

    CEO & President of Unico Inc

    • Tenure: 0yrs
  • Rob Rehard (50yo)

    VP & CFO

    • Tenure: 1.6yrs
    • Compensation: US$1.18m
  • Jason Longley

    VP & Corporate Controller

    • Tenure: 0yrs

Board Members

  • Dean Foate (61yo)

    Independent Director

    • Tenure: 14.1yrs
    • Compensation: US$230.02k
  • Curt Stoelting (59yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$237.77k
  • Jane Warner (72yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$235.02k
  • Chris Doerr (69yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$225.02k
  • Rakesh Sachdev (63yo)

    Chairman of the Board

    • Tenure: 0.6yrs
    • Compensation: US$250.02k
  • Steve Burt (54yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$240.02k
  • Tom Fischer (72yo)

    Independent Director

    • Tenure: 15.6yrs
    • Compensation: US$225.02k
  • Jan Bertsch (62yo)

    Director

    • Tenure: 0.4yrs
  • Anesa Chaibi (53yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$225.02k

Company Information

Regal Beloit Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Regal Beloit Corporation
  • Ticker: RBC
  • Exchange: NYSE
  • Founded: 1955
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: US$3.378b
  • Shares outstanding: 40.94m
  • Website: https://www.regalbeloit.com

Number of Employees


Location

  • Regal Beloit Corporation
  • 200 State Street
  • Beloit
  • Wisconsin
  • 53511
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RBCNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1973
RB8DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1973

Biography

Regal Beloit Corporation, together with its subsidiaries, designs, manufactures, and sells electric motors, electrical motion controls, and power generation and transmission products worldwide. It operates ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 23:38
End of Day Share Price2019/11/11 00:00
Earnings2019/09/28
Annual Earnings2018/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.