NYSE:RBC

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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 Analysis

Excellent balance sheet average dividend payer.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.4%

RBC

8.2%

US Electrical

3.8%

US Market


1 Year Return

14.6%

RBC

13.1%

US Electrical

9.7%

US Market

Return vs Industry: RBC exceeded the US Electrical industry which returned 10% over the past year.

Return vs Market: RBC exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

RBCIndustryMarket
7 Day12.4%8.2%3.8%
30 Day22.9%18.5%11.4%
90 Day17.6%7.3%6.8%
1 Year16.5%14.6%15.6%13.1%12.1%9.7%
3 Year13.3%8.4%27.2%19.7%36.2%27.2%
5 Year24.5%15.5%38.7%24.9%63.7%45.4%

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?

18.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RBC ($89.42) is trading above our estimate of fair value ($60.52)

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


Price To Earnings Ratio

PE vs Industry: RBC is poor value based on its PE Ratio (18.6x) compared to the Electrical industry average (18.4x).

PE vs Market: RBC is poor value based on its PE Ratio (18.6x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: RBC is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: RBC is good value based on its PB Ratio (1.6x) compared to the US Electrical industry average (2x).


Next Steps

Future Growth

How is Regal Beloit forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RBC's forecast earnings growth (12.8% per year) is above the savings rate (2.2%).

Earnings vs Market: RBC's earnings (12.8% per year) are forecast to grow slower than the US market (22.3% per year).

High Growth Earnings: RBC's earnings are forecast to grow, but not significantly.

Revenue vs Market: RBC's revenue (3.5% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: RBC's revenue (3.5% per year) is forecast to grow slower than 20% 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?

22.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RBC has high quality earnings.

Growing Profit Margin: RBC's current net profit margins (6.4%) are lower than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: RBC's earnings have grown significantly by 22.1% per year over the past 5 years.

Accelerating Growth: RBC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RBC had negative earnings growth (-23.1%) over the past year, making it difficult to compare to the Electrical industry average (-8.7%).


Return on Equity

High ROE: RBC's Return on Equity (8.8%) is considered low.


Next Steps

Financial Health

How is Regal Beloit's financial position?


Financial Position Analysis

Short Term Liabilities: RBC's short term assets ($1.8B) exceed its short term liabilities ($580.3M).

Long Term Liabilities: RBC's short term assets ($1.8B) exceed its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: RBC's debt to equity ratio (59.3%) is considered high.

Reducing Debt: RBC's debt to equity ratio has reduced from 94.8% to 59.3% over the past 5 years.

Debt Coverage: RBC's debt is well covered by operating cash flow (36.2%).

Interest Coverage: RBC's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet


Next Steps

Dividend

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

1.34%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: RBC's dividend (1.34%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: RBC's dividend (1.34%) is low compared to the top 25% of dividend payers in the US market (4.32%).


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 reasonably low payout ratio (25%), 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 (23% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Louis Pinkham (48yo)

1.17yrs

Tenure

US$6,390,215

Compensation

Mr. Louis Vernon Pinkham has been the Chief Executive Officer of Regal Beloit Corporation since April 01, 2019 and its Director since April 30, 2019. Mr. Pinkham was Senior Vice President at Crane Co. from ...


CEO Compensation Analysis

Compensation vs Market: Louis's total compensation ($USD6.39M) is about average for companies of similar size in the US market ($USD5.84M).

Compensation vs Earnings: Insufficient data to compare Louis's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Louis Pinkham
CEO & Director1.17yrsUS$6.39m0.017% $623.2k
Robert Rehard
VP & CFO2.17yrsUS$1.57m0.0068% $246.4k
John Avampato
VP & Chief Information Officer12.42yrsUS$1.12m0.023% $820.7k
Thomas Valentyn
VP, General Counsel & Secretary4.08yrsUS$1.19m0.012% $423.6k
Robert Barry
Vice President of Investor Relationsno datano datano data
Cheryl Lewis
VP & Chief Human Resource Officer0.25yrno datano data
Scott Brown
Group President of Commercial Systems Segment1yrno data0.019% $673.2k
Jerrald Morton
Group President of Power Transmission Solutions Segment1yrno data0.014% $498.2k
John Kunze
Group President of Climate Solutions Segment1yrno data0.022% $805.1k
Eric Mcginnis
Group President of Industrial System Segment1yrno data0.012% $426.8k

1.0yrs

Average Tenure

56.5yo

Average Age

Experienced Management: RBC's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Louis Pinkham
CEO & Director1.17yrsUS$6.39m0.017% $623.2k
Dean Foate
Independent Director14.67yrsUS$237.47k0.081% $2.9m
Curtis Stoelting
Independent Director15.42yrsUS$268.47k0.078% $2.8m
Christopher Doerr
Independent Director17.42yrsUS$254.97k0.044% $1.6m
Rakesh Sachdev
Independent Chairman1.17yrsUS$342.47k0.053% $1.9m
Stephen Burt
Independent Director9.92yrsUS$250.72k0.048% $1.8m
Michael Hilton
Independent Director0.50yrUS$36.28k0.0061% $219.9k
Jan Bertsch
Independent Director1yrUS$95.00k0.0074% $268.8k
Anesa Chaibi
Independent Director5.58yrsUS$236.22k0.027% $972.1k

5.6yrs

Average Tenure

61yo

Average Age

Experienced Board: RBC's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$3.623b
  • Shares outstanding: 40.52m
  • 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 through four segments: Commercial Systems, Industrial Systems, Climate Solutions, and Power Transmission Solutions. The Commercial Systems segment provides AC and DC motors, electronic variable speed controls, fans, blowers, and precision stator and rotor kits. The Industrial Systems segment offers AC motors for industrial applications; electric alternators for prime and standby power applications to data centers, marine, agriculture, healthcare, mobile, and defense markets; and power generation switchgear for prime and standby power, distributed generation, and cogeneration applications, as well as residential, automatic, and bypass isolation transfer switches. The Climate Solutions segment provides fractional motors, electronic variable speed controls, and blowers, as well as fractional horsepower motors for residential and light commercial HVAC, water heater, and commercial refrigeration markets. The Power Transmission Solutions segment offers mounted and unmounted bearings; conveyor products; disc, diaphragms, gear and flexible couplings, transmission elements, gears, grids, jaws, elastomers, and joints; mechanical power transmission drives, and components; and worm gearing, shaft configuration, helical offset, 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, metal, special machinery, energy, and aerospace and general industrial markets. The company sells its products directly to original equipment manufacturers and end-users through a network of direct and independent sales representatives, and distributors. Regal Beloit Corporation was founded in 1955 and is based in Beloit, Wisconsin. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 02:48
End of Day Share Price2020/06/05 00:00
Earnings2020/03/28
Annual Earnings2019/12/28


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.