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Regal Beloit

NYSE:RBC
Snowflake Description

Undervalued established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RBC
NYSE
$3B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Regal Beloit Corporation, together with its subsidiaries, designs, manufactures, and sells electric motors, electrical motion controls, and power generation and transmission products worldwide. The last earnings update was 11 days ago. More info.


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RBC Share Price and Events
7 Day Returns
-1.3%
NYSE:RBC
-2.3%
US Electrical
-0.7%
US Market
1 Year Returns
-6.2%
NYSE:RBC
-1.4%
US Electrical
3%
US Market
RBC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Regal Beloit (RBC) -1.3% -10.9% -9.9% -6.2% 39.2% -1.7%
US Electrical -2.3% -6.5% -1.5% -1.4% 32.3% 10.1%
US Market -0.7% -2% 2.4% 3% 39.2% 42%
1 Year Return vs Industry and Market
  • RBC underperformed the Electrical industry which returned -1.4% over the past year.
  • RBC underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
RBC
Industry
5yr Volatility vs Market

Value

 Is Regal Beloit undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Regal Beloit to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Regal Beloit.

NYSE:RBC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:RBC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electrical Unlevered Beta Simply Wall St/ S&P Global 1.12
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.124 (1 + (1- 21%) (40.44%))
1.323
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.32
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.323 * 5.96%)
10.62%

Discounted Cash Flow Calculation for NYSE:RBC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Regal Beloit is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:RBC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.62%)
2019 278.42 Analyst x5 251.70
2020 335.74 Analyst x5 274.39
2021 406.00 Analyst x1 299.96
2022 456.26 Est @ 12.38% 304.74
2023 499.54 Est @ 9.48% 301.63
2024 536.79 Est @ 7.46% 293.01
2025 569.21 Est @ 6.04% 280.89
2026 597.94 Est @ 5.05% 266.75
2027 623.96 Est @ 4.35% 251.64
2028 648.08 Est @ 3.87% 236.28
Present value of next 10 years cash flows $2,760.99
NYSE:RBC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $648.08 × (1 + 2.73%) ÷ (10.62% – 2.73%)
$8,441.96
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $8,441.96 ÷ (1 + 10.62%)10
$3,077.84
NYSE:RBC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,760.99 + $3,077.84
$5,838.82
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,838.82 / 42.82
$136.36
NYSE:RBC Discount to Share Price
Calculation Result
Value per share (USD) From above. $136.36
Current discount Discount to share price of $75.45
= -1 x ($75.45 - $136.36) / $136.36
44.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Regal Beloit is available for.
Intrinsic value
45%
Share price is $75.45 vs Future cash flow value of $136.36
Current Discount Checks
For Regal Beloit to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Regal Beloit's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Regal Beloit's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Regal Beloit's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Regal Beloit's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:RBC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-30) in USD $5.98
NYSE:RBC Share Price ** NYSE (2019-05-17) in USD $75.45
United States of America Electrical Industry PE Ratio Median Figure of 30 Publicly-Listed Electrical Companies 16.21x
United States of America Market PE Ratio Median Figure of 3,088 Publicly-Listed Companies 17.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Regal Beloit.

NYSE:RBC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:RBC Share Price ÷ EPS (both in USD)

= 75.45 ÷ 5.98

12.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Regal Beloit is good value based on earnings compared to the US Electrical industry average.
  • Regal Beloit is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Regal Beloit's expected growth come at a high price?
Raw Data
NYSE:RBC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.61x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
3.1%per year
United States of America Electrical Industry PEG Ratio Median Figure of 19 Publicly-Listed Electrical Companies 2.01x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NYSE:RBC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.61x ÷ 3.1%

4.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Regal Beloit is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Regal Beloit's assets?
Raw Data
NYSE:RBC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-30) in USD $56.42
NYSE:RBC Share Price * NYSE (2019-05-17) in USD $75.45
United States of America Electrical Industry PB Ratio Median Figure of 63 Publicly-Listed Electrical Companies 1.91x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NYSE:RBC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:RBC Share Price ÷ Book Value per Share (both in USD)

= 75.45 ÷ 56.42

1.34x

* Primary Listing of Regal Beloit.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Regal Beloit is good value based on assets compared to the US Electrical industry average.
X
Value checks
We assess Regal Beloit's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electrical industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electrical industry average (and greater than 0)? (1 check)
  5. Regal Beloit has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Regal Beloit expected to grow at an attractive rate?
  • Regal Beloit's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Regal Beloit's earnings growth is positive but not above the United States of America market average.
  • Regal Beloit's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:RBC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:RBC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 3.1%
NYSE:RBC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 1.4%
United States of America Electrical Industry Earnings Growth Rate Market Cap Weighted Average 10.1%
United States of America Electrical Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:RBC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:RBC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 3,624 499 302 2
2020-12-31 3,597 435 291 9
2019-12-31 3,508 377 294 9
NYSE:RBC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-30 3,621 339 259
2018-12-29 3,646 363 231
2018-09-29 3,585 307 227
2018-06-30 3,516 287 238
2018-03-31 3,426 284 225
2017-12-30 3,360 292 213
2017-09-30 3,298 347 207
2017-07-01 3,250 415 205
2017-04-01 3,220 434 208
2016-12-31 3,225 442 203
2016-10-01 3,240 444 139
2016-07-02 3,313 422 142
2016-04-02 3,416 422 149

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Regal Beloit's earnings are expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).
  • Regal Beloit's revenue is expected to grow by 1.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:RBC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Regal Beloit Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:RBC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 7.42 7.42 7.42 1.00
2020-12-31 6.85 7.10 6.70 6.00
2019-12-31 6.83 6.91 6.70 6.00
NYSE:RBC Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-30 5.98
2018-12-29 5.30
2018-09-29 5.17
2018-06-30 5.38
2018-03-31 5.06
2017-12-30 4.78
2017-09-30 4.63
2017-07-01 4.57
2017-04-01 4.65
2016-12-31 4.55
2016-10-01 3.10
2016-07-02 3.19
2016-04-02 3.32

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Regal Beloit will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Regal Beloit's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Regal Beloit has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Regal Beloit performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Regal Beloit's growth in the last year to its industry (Electrical).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Regal Beloit has delivered over 20% year on year earnings growth in the past 5 years.
  • Regal Beloit's 1-year earnings growth is less than its 5-year average (15% vs 26.5%)
  • Regal Beloit's earnings growth has not exceeded the US Electrical industry average in the past year (15% vs 33.8%).
Earnings and Revenue History
Regal Beloit's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Regal Beloit Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:RBC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-30 3,620.60 258.70 552.90 29.30
2018-12-29 3,645.60 231.20 558.40 29.30
2018-09-29 3,584.60 227.10 573.70 29.90
2018-06-30 3,516.10 238.00 546.70 29.90
2018-03-31 3,425.60 225.10 544.70 29.50
2017-12-30 3,360.30 213.00 538.60 29.50
2017-09-30 3,297.70 207.10 500.50 29.50
2017-07-01 3,250.40 204.50 528.20 29.50
2017-04-01 3,219.80 208.10 504.70 29.50
2016-12-31 3,224.50 203.40 519.20 29.50
2016-10-01 3,239.90 138.50 545.90 30.10
2016-07-02 3,312.60 142.30 529.90 30.10
2016-04-02 3,416.20 148.50 559.10 30.10
2016-01-02 3,509.70 143.30 551.90 30.10
2015-10-03 3,511.90 46.10 536.40 32.90
2015-07-04 3,459.40 30.20 526.90 32.90
2015-04-04 3,367.60 23.60 500.30 32.90
2015-01-03 3,257.10 31.00 483.40 32.90
2014-09-27 3,208.70 114.30 468.40 28.30
2014-06-28 3,147.10 119.40 459.10 28.30
2014-03-29 3,118.70 114.30 462.50 28.30
2013-12-28 3,095.70 120.00 465.90 28.30
2013-09-28 3,084.00 183.10 447.80 28.50
2013-06-29 3,095.30 184.80 439.40 28.50
2013-03-30 3,137.20 196.40 431.50 28.50
2012-12-29 3,166.90 195.60 429.30 28.50
2012-09-29 3,178.30 199.20 429.80 21.80
2012-06-30 3,135.70 190.50 416.00 21.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Regal Beloit has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Regal Beloit used its assets less efficiently than the US Electrical industry average last year based on Return on Assets.
  • Regal Beloit has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Regal Beloit's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electrical industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Regal Beloit has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Regal Beloit's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Regal Beloit's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Regal Beloit is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Regal Beloit's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Regal Beloit's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Regal Beloit Company Filings, last reported 1 month ago.

NYSE:RBC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-30 2,444.00 1,306.40 264.30
2018-12-29 2,338.50 1,307.10 248.60
2018-09-29 2,359.50 1,278.90 184.40
2018-06-30 2,340.70 1,335.60 175.60
2018-03-31 2,420.20 1,182.30 169.90
2017-12-30 2,354.70 1,141.10 139.60
2017-09-30 2,302.40 1,214.40 186.60
2017-07-01 2,248.80 1,301.30 243.70
2017-04-01 2,173.80 1,371.70 262.30
2016-12-31 2,078.20 1,414.80 284.50
2016-10-01 2,102.30 1,515.10 281.60
2016-07-02 2,049.90 1,620.10 271.50
2016-04-02 2,036.20 1,712.40 249.10
2016-01-02 1,982.80 1,729.70 252.90
2015-10-03 2,030.50 1,823.30 254.60
2015-07-04 2,037.80 1,903.20 247.60
2015-04-04 1,989.80 1,958.50 229.70
2015-01-03 1,979.30 644.40 334.10
2014-09-27 2,176.70 689.50 344.80
2014-06-28 2,194.40 783.30 466.40
2014-03-29 2,131.50 786.60 407.50
2013-12-28 2,102.40 789.20 466.00
2013-09-28 2,116.20 793.70 471.30
2013-06-29 2,054.10 795.90 422.90
2013-03-30 2,042.90 854.20 411.90
2012-12-29 1,996.50 853.90 383.60
2012-09-29 1,776.90 903.90 189.00
2012-06-30 1,690.80 950.40 190.90
  • Regal Beloit's level of debt (53.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (36.9% vs 53.5% today).
  • Debt is well covered by operating cash flow (25.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.3x coverage).
X
Financial health checks
We assess Regal Beloit's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Regal Beloit has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.59%
Current annual income from Regal Beloit dividends. Estimated to be 1.57% next year.
If you bought $2,000 of Regal Beloit shares you are expected to receive $32 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Regal Beloit's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Regal Beloit's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Upcoming dividend payment

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

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:RBC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United States of America Electrical Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 2.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:RBC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.21 1.00
2020-12-31 1.21 6.00
2019-12-31 1.16 6.00
NYSE:RBC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-29 1.200 1.476
2019-01-22 1.120 1.372
2018-10-25 1.120 1.523
2018-07-23 1.120 1.367
2018-04-30 1.120 1.402
2018-01-22 1.040 1.407
2017-10-30 1.040 1.345
2017-05-01 1.040 1.304
2017-01-23 0.960 1.280
2016-10-27 0.960 1.392
2016-07-29 0.960 1.592
2016-04-25 0.960 1.645
2016-01-25 0.920 1.572
2015-10-30 0.920 1.556
2015-07-24 0.920 1.433
2015-04-27 0.920 1.228
2015-01-26 0.880 1.154
2014-10-31 0.880 1.221
2014-07-25 0.880 1.282
2014-04-28 0.880 1.144
2014-01-27 0.800 1.096
2013-11-04 0.800 1.082
2013-07-26 0.800 1.175
2013-04-29 0.800 1.195
2013-01-25 0.760 0.974
2012-10-26 0.760 1.092
2012-07-27 0.760 1.106
2012-05-01 0.760 1.225
2012-01-30 0.720 1.095
2011-10-28 0.720 1.382
2011-07-29 0.720 1.371
2011-05-02 0.720 1.066
2011-01-31 0.680 0.943
2010-10-29 0.680 1.083
2010-07-23 0.680 1.151
2010-04-26 0.680 1.128
2010-02-02 0.640 1.095
2009-10-26 0.640 1.276
2009-07-28 0.640 1.365

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Regal Beloit's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.8x coverage).
X
Income/ dividend checks
We assess Regal Beloit's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Regal Beloit afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Regal Beloit has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Louis Pinkham
AGE 47
TENURE AS CEO 0.1 years
CEO Bio

Mr. Louis Vernon Pinkham has been the Chief Executive Officer of Regal Beloit Corporation since April 01, 2019 and its Director since May 1, 2019. Mr. Pinkham was Senior Vice President at Crane Co. from December 8, 2014 to March 29, 2019. Mr. Pinkham served as President of Fluid Handling Group at Crane Co. since October 15, 2012 until December 2014. Mr. Pinkham served as Senior Vice President and General Manager of the Critical Power Solutions Division at Electrical Group. He served as Vice President and General Manager of Low Voltage Components at Eaton Electrical Suzhou. He served as General Manager of the Electrical Group for North Asia based in Shanghai, China. He served as Managing Director of the Electrical Group based in Le Lieu, Switzerland. His experience as Business Development Manager focused on the aerospace and hydraulics industry. He served as an Executive Director of Senyuan International Holdings Limited from October 23, 2006 to February 21, 2007. Mr. Pinkham holds a Bachelor of Science in Engineering from Duke University, majoring in Biomedical Engineering and specializing in Mechanical and Electrical Engineering. He also holds a dual MBA and Masters in Engineering from Northwestern University's Kellogg Graduate School of Management and McCormick School of Engineering.

CEO Compensation
  • Insufficient data for Louis to compare compensation growth.
  • Insufficient data for Louis to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Regal Beloit management team in years:

2.5
Average Tenure
51
Average Age
  • The tenure for the Regal Beloit management team is about average.
Management Team

Rob Rehard

TITLE
VP & CFO
COMPENSATION
$1M
AGE
49
TENURE
1.1 yrs

Jon Schlemmer

TITLE
Chief Operating Officer
COMPENSATION
$3M
AGE
52
TENURE
8 yrs

Thomas Valentyn

TITLE
VP, General Counsel & Secretary
COMPENSATION
$1M
AGE
59
TENURE
3 yrs

Louis Pinkham

TITLE
CEO & Director
AGE
47
TENURE
0.1 yrs

Bob Lazzerini

TITLE
Principal Accounting Officer & VP
AGE
51
TENURE
2.1 yrs

John Avampato

TITLE
VP & Chief Information Officer
COMPENSATION
$1M
AGE
57
TENURE
11.3 yrs

Rob Cherry

TITLE
Vice President of Business Development & Investor Relations
TENURE
3.6 yrs

Tim Oswald

TITLE
Vice President of Corporate Human Resources
AGE
41
TENURE
0.3 yrs

Tom Beck

TITLE
CEO & President of Unico Inc

Jason Longley

TITLE
VP & Corporate Controller
Board of Directors Tenure

Average tenure and age of the Regal Beloit board of directors in years:

8.8
Average Tenure
60
Average Age
  • The tenure for the Regal Beloit board of directors is about average.
Board of Directors

Rakesh Sachdev

TITLE
Chairman of the Board
COMPENSATION
$250K
AGE
62
TENURE
0.1 yrs

Louis Pinkham

TITLE
CEO & Director
AGE
47
TENURE
0.1 yrs

Curt Stoelting

TITLE
Director
COMPENSATION
$238K
AGE
58
TENURE
14.3 yrs

Steve Burt

TITLE
Director
COMPENSATION
$240K
AGE
53
TENURE
8.8 yrs

Jane Warner

TITLE
Director
COMPENSATION
$235K
AGE
71
TENURE
5.8 yrs

Chris Doerr

TITLE
Director
COMPENSATION
$225K
AGE
68
TENURE
16.3 yrs

Dean Foate

TITLE
Director
COMPENSATION
$230K
AGE
60
TENURE
13.6 yrs

Tom Fischer

TITLE
Director
COMPENSATION
$225K
AGE
71
TENURE
15.1 yrs

Anesa Chaibi

TITLE
Director
COMPENSATION
$225K
AGE
52
TENURE
4.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
19. Feb 19 Sell Henry Knueppel Individual 15. Feb 19 15. Feb 19 -5,742 $84.02 $-482,423
13. Aug 18 Sell Christopher Doerr Individual 09. Aug 18 10. Aug 18 -6,085 $82.20 $-495,497
X
Management checks
We assess Regal Beloit's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Regal Beloit has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Regal Beloit Corporation (NYSE:RBC) Can Impact Your Portfolio Volatility

Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … Given that it has a beta of 1.56, we can surmise that the Regal Beloit share price has been fairly sensitive to market volatility (over the last 5 years).

Simply Wall St -

Should You Be Concerned About Regal Beloit Corporation's (NYSE:RBC) ROE?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every $1 worth of shareholders' equity, it generated $0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Why Regal Beloit Corporation (NYSE:RBC) Should Be In Your Dividend Portfolio

Dividend paying stocks like Regal Beloit Corporation (NYSE:RBC) tend to be popular with investors, and for good reason - some research shows that a significant amount of all stock market returns come from reinvested dividends.. … Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments.. … Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1

Simply Wall St -

Here's What Regal Beloit Corporation's (NYSE:RBC) P/E Ratio Is Telling Us

We'll apply a basic P/E ratio analysis to Regal Beloit Corporation's (NYSE:RBC), to help you decide if the stock is worth further research. … Based on the last twelve months, Regal Beloit's P/E ratio is 15.91. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

How Financially Strong Is Regal Beloit Corporation (NYSE:RBC)?

However, an important fact which most ignore is: how financially healthy is the business? … Evaluating financial health as part of your investment thesis is. … Let's work through some financial health checks you may wish to consider if you're interested in this stock.

Simply Wall St -

Does Regal Beloit Corporation (NYSE:RBC) Generate Enough Cash?

I’ve analysed below, the health and outlook of Regal Beloit’s cash flow, which will help you understand the stock from a cash standpoint. … Regal Beloit’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … There are two methods I will use to evaluate the quality of Regal Beloit’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

What Is Regal Beloit Corporation's (NYSE:RBC) Share Price Doing?

Regal Beloit Corporation (NYSE:RBC), which is in the electrical business, and is based in United States,. … led the NYSE gainers with a relatively large price hike in the past couple of weeks. … Let’s take a look at Regal Beloit’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

How Does Regal Beloit Corporation's (NYSE:RBC) Earnings Growth Stack Up Against Industry Performance?

Today I will assess RBC's recent performance announced on 29 December 2018 and evaluate these figures to its long-term trend and industry movements. … Did RBC beat its long-term earnings growth trend and its industry. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 25%, indicating the rate at which RBC is growing has slowed down

Simply Wall St -

Is Regal Beloit Corporation's (NYSE:RBC) Balance Sheet Strong Enough To Weather A Storm?

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Regal Beloit Corporation (NYSE:RBC), with a market cap of US$3.5b, often get neglected by retail investors. … This article will examine RBC’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look further.

Simply Wall St -

Does The Data Make Regal Beloit Corporation (NYSE:RBC) An Attractive Investment?

Attractive stocks have exceptional fundamentals. … In the case of Regal Beloit Corporation (NYSE:RBC), there's

Simply Wall St -

Company Info

Description

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 through three segments: Commercial and Industrial Systems, Climate Solutions, and Power Transmission Solutions. The Commercial and Industrial Systems segment provides AC and DC motors, controls, fans and blowers, and integrated electronic control solutions for commercial and industrial applications. This segment also offers precision stator and rotor kits; hazardous duty motors; and electric alternators, automatic transfer switches, power generation and distribution switch gears, and components and system controls. It serves commercial heating, ventilation, and air conditioning (HVAC); pool and spa; standby and critical power; and oil and gas system markets. The Climate Solutions segment offers fractional motors, electronic variable speed controls, and blowers, as well as capacitors, precision stators, and rotor sets for residential and light commercial HVAC, water heaters, and commercial refrigeration markets. The Power Transmission Solutions segment provides mounted and unmounted bearings; conveyor products; disc products, diaphragms, gear couplings, transmission elements, gears, grids, jaws, elastomers, and joints; mechanical power transmission drives, and components; and worm gearing, shaft mount reducer, helical concentric and right angle, bevel and miter gearing, center pivot gearing, and open gearing products, as well as modular plastic belts, conveying chains, and hydraulic pump drives. It serves beverage, bulk handling, metals, special machinery, energy, and aerospace and general industrial markets. The company sells its products directly to original equipment manufacturers, as well as through direct and independent sales representatives, and distributors. Regal Beloit Corporation was founded in 1955 and is headquartered in Beloit, Wisconsin.

Details
Name: Regal Beloit Corporation
RBC
Exchange: NYSE
Founded: 1955
$3,230,604,066
42,817,814
Website: http://www.regalbeloit.com
Address: Regal Beloit Corporation
200 State Street,
Beloit,
Wisconsin, 53511,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE RBC Common Stock New York Stock Exchange US USD 16. Oct 1973
DB RB8 Common Stock Deutsche Boerse AG DE EUR 16. Oct 1973
Number of employees
Current staff
Staff numbers
24,600
Regal Beloit employees.
Industry
Electrical Components and Equipment
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 01:40
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/17
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/30
Last annual earnings reported: 2018/12/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.