NYSE:RXN

Stock Analysis Report

Executive Summary

Rexnord Corporation designs, manufactures, and markets process and motion control, and water management products worldwide.


Snowflake Analysis

Adequate balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.5%

RXN

1.9%

US Machinery

2.0%

US Market


1 Year Return

32.8%

RXN

18.6%

US Machinery

23.6%

US Market

Return vs Industry: RXN exceeded the US Machinery industry which returned 22.4% over the past year.

Return vs Market: RXN exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

RXNIndustryMarket
7 Day4.5%1.9%2.0%
30 Day2.0%1.8%3.9%
90 Day21.0%10.5%12.0%
1 Year32.8%32.8%20.8%18.6%26.2%23.6%
3 Year51.1%51.1%46.1%36.7%53.2%43.3%
5 Year30.7%30.7%78.2%56.7%75.7%56.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.04%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RXN ($32.99) is trading below our estimate of fair value ($33.5)

Significantly Below Fair Value: RXN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RXN is good value based on its PE Ratio (19x) compared to the Machinery industry average (23.4x).

PE vs Market: RXN is poor value based on its PE Ratio (19.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: RXN is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: RXN is overvalued based on its PB Ratio (2.7x) compared to the US Machinery industry average (2.5x).


Next Steps

Future Growth

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

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RXN's forecast earnings growth (15.8% per year) is above the savings rate (1.7%).

Earnings vs Market: RXN's earnings (15.8% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: RXN's revenue (2.5% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: RXN's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RXN's Return on Equity is forecast to be low in 3 years time (15.7%).


Next Steps

Past Performance

How has Rexnord performed over the past 5 years?

19.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RXN has high quality earnings.

Growing Profit Margin: RXN's current net profit margins (8.9%) are lower than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: RXN's earnings have grown by 19.5% per year over the past 5 years.

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

Earnings vs Industry: RXN had negative earnings growth (-12.6%) over the past year, making it difficult to compare to the Machinery industry average (9.6%).


Return on Equity

High ROE: RXN's Return on Equity (15.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rexnord's financial position?


Financial Position Analysis

Short Term Liabilities: RXN's short term assets ($1.0B) exceed its short term liabilities ($344.8M).

Long Term Liabilities: RXN's short term assets ($1.0B) do not cover its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: RXN's debt to equity ratio (92.6%) is considered high.

Reducing Debt: RXN's debt to equity ratio has reduced from 331.5% to 92.6% over the past 5 years.

Debt Coverage: RXN's debt is well covered by operating cash flow (22%).

Interest Coverage: RXN's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: RXN's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate RXN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RXN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RXN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RXN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RXN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

7.6yrs

Average management tenure


CEO

Todd Adams (48yo)

10.3yrs

Tenure

US$6,773,334

Compensation

Mr. Todd A. Adams serves as the Chief Executive Officer and President at Rexnord Industries, LLC. Mr. Adams has been the Chief Executive Officer and President of RBS Global Inc., Rexnord Corporation and Re ...


CEO Compensation Analysis

Compensation vs Market: Todd's total compensation ($USD6.77M) is above average for companies of similar size in the US market ($USD4.99M).

Compensation vs Earnings: Todd's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.6yrs

Average Tenure

52yo

Average Age

Experienced Management: RXN's management team is seasoned and experienced (7.6 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

62yo

Average Age

Experienced Board: RXN's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

Insider Buying: RXN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$87,78112 Dec 19
Kevin Zaba
EntityIndividual
Role
Senior Key Executive
Group Executive and President of Process & Motion Control Platform
Shares2,777
Max PriceUS$31.61
SellUS$173,54712 Nov 19
Craig Wehr
EntityIndividual
Role
Unit President
Group President of Zurn
Shares5,671
Max PriceUS$30.60
SellUS$129,36005 Jun 19
Patricia Whaley
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares4,620
Max PriceUS$28.00
SellUS$8,42329 May 19
Rodney Jackson
EntityIndividual
Role
Head of Corporate Development
Senior Vice President of Business & Corporate Development
Shares317
Max PriceUS$26.57
SellUS$11,87729 May 19
George Powers
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares447
Max PriceUS$26.57
SellUS$7,25429 May 19
Craig Wehr
EntityIndividual
Role
Unit President
Group President of Zurn
Shares273
Max PriceUS$26.57
SellUS$32,36229 May 19
Kevin Zaba
EntityIndividual
Role
Senior Key Executive
Group Executive and President of Process & Motion Control Platform
Shares1,218
Max PriceUS$26.57
SellUS$8,18429 May 19
Michael Troutman
EntityIndividual
Role
Chief Information Officer
Chief Information Officer
Shares308
Max PriceUS$26.57
SellUS$32,57529 May 19
Patricia Whaley
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares1,226
Max PriceUS$26.57
SellUS$11,42529 May 19
Sudhanshu Chhabra
EntityIndividual
Shares430
Max PriceUS$26.57
SellUS$146,45429 May 19
Todd Adams
EntityIndividual
Role
Chief Executive Officer
President
Shares5,512
Max PriceUS$26.57
SellUS$141,38315 May 19
Kevin Zaba
EntityIndividual
Role
Senior Key Executive
Group Executive and President of Process & Motion Control Platform
Shares5,124
Max PriceUS$27.59
SellUS$64,95215 May 19
Patricia Whaley
EntityIndividual
Role
Chief Legal Officer
VP, General Counsel & Secretary
Shares2,354
Max PriceUS$27.59
SellUS$67,73415 May 19
Craig Wehr
EntityIndividual
Role
Unit President
Group President of Zurn
Shares2,454.8
Max PriceUS$27.59
SellUS$65,86315 May 19
Michael Troutman
EntityIndividual
Role
Chief Information Officer
Chief Information Officer
Shares2,387
Max PriceUS$27.59
SellUS$76,45815 May 19
George Powers
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares2,771
Max PriceUS$27.59
SellUS$201,56215 May 19
Mark Peterson
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares7,305
Max PriceUS$27.59
SellUS$109,02315 May 19
Rodney Jackson
EntityIndividual
Role
Head of Corporate Development
Senior Vice President of Business & Corporate Development
Shares3,951.2
Max PriceUS$27.59
SellUS$192,42915 May 19
Sudhanshu Chhabra
EntityIndividual
Shares6,974
Max PriceUS$27.59
SellUS$2,875,97315 May 19
Todd Adams
EntityIndividual
Role
Chief Executive Officer
President
Shares104,231
Max PriceUS$27.59
BuyUS$92,75004 Feb 19
David Longren
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$26.50

Ownership Breakdown

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


Management Team

  • Todd Adams (48yo)

    President

    • Tenure: 10.3yrs
    • Compensation: US$6.77m
  • Patricia Whaley (60yo)

    VP, General Counsel & Secretary

    • Tenure: 18yrs
    • Compensation: US$1.18m
  • Mark Peterson (47yo)

    Senior VP & CFO

    • Tenure: 8.2yrs
    • Compensation: US$2.06m
  • Craig Wehr (54yo)

    Group President of Zurn

    • Tenure: 7yrs
    • Compensation: US$1.07m
  • Kevin Zaba (52yo)

    Group Executive and President of Process & Motion Control Platform

    • Tenure: 3.8yrs
    • Compensation: US$1.83m
  • Rodney Jackson (49yo)

    Senior Vice President of Business & Corporate Development

    • Tenure: 5.3yrs
    • Compensation: US$911.21k
  • Rob McCarthy

    Vice President of Investor Relations

    • George Powers (52yo)

      Chief Human Resources Officer

      • Tenure: 5yrs
      • Compensation: US$1.26m
    • Mike Troutman (52yo)

      Chief Information Officer

      • Tenure: 13yrs
    • Angela Hersil

      Director of Corporate Communications


      Board Members

      • Paul Jones (70yo)

        Non-Executive Chairman

        • Tenure: 4.5yrs
        • Compensation: US$250.00k
      • John Stroup (53yo)

        Independent Director

        • Tenure: 11.3yrs
        • Compensation: US$200.00k
      • Thomas Christopoul (54yo)

        Independent Director

        • Tenure: 6.9yrs
        • Compensation: US$200.00k
      • George Moore (64yo)

        Independent Director

        • Tenure: 4.9yrs
        • Compensation: US$190.00k
      • Ted Crandall (64yo)

        Independent Director

        • Tenure: 4.3yrs
        • Compensation: US$190.00k
      • Todd Adams (48yo)

        President

        • Tenure: 10.3yrs
        • Compensation: US$6.77m
      • David Longren (60yo)

        Independent Director

        • Tenure: 3.9yrs
        • Compensation: US$190.00k
      • Robin Walker-Lee (65yo)

        Independent Director

        • Tenure: 4.5yrs
        • Compensation: US$190.00k
      • Mark Bartlett (68yo)

        Independent Director

        • Tenure: 7.6yrs
        • Compensation: US$205.00k
      • Rose Schooler (51yo)

        Independent Director

        • Tenure: 0.7yrs

      Company Information

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


      Key Information

      • Name: Rexnord Corporation
      • Ticker: RXN
      • Exchange: NYSE
      • Founded: 2006
      • Industry: Industrial Machinery
      • Sector: Capital Goods
      • Market Cap: US$4.087b
      • Shares outstanding: 121.94m
      • Website: https://www.rexnordcorporation.com

      Number of Employees


      Location

      • Rexnord Corporation
      • 511 West Freshwater Way
      • Milwaukee
      • Wisconsin
      • 53204
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      RXNNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2012
      4RXDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2012

      Biography

      Rexnord Corporation designs, manufactures, and markets process and motion control, and water management products worldwide. It operates in two segments, Process & Motion Control Platform and Water Management Platform. The company offers table top conveying chain and related accessories, metal conveying and engineered woven metals, gearing and gear drives, conveying equipment, industrial chain, and custom assemblies; custom-engineered, application-specific miniature gearboxes, and motion control assemblies and components used in aerospace, defense, medical equipment, robotics, semiconductor, instrumentation, and satellite communications; and shaft management products, including couplings, torque limiters, electromagnetic clutches and brakes, industrial bearings, and shaft locking assemblies. It also provides aerospace components for use in door systems, engine accessories and controls, engine mounts, flight control systems, gearboxes, landing gears, and rotor pitch controls. In addition, the company offers valve, distribution and drainage, and site work products; water conservation products; and commercial electric hand dryers. It sells products through distribution partners, independent sales representatives, plumbing wholesalers, industry-specific distributors, and sales agencies to commercial construction, institutional, infrastructure, and residential construction end market, as well as to original equipment manufacturers and end users. The company offers its products under the Rexnord, Rex, Addax, Euroflex, Falk, FlatTop, Cambridge, Link-Belt, Omega, PSI, Shafer, Stearns, Highfield, Thomas, Centa, and Tollok, Zurn, Wilkins, Green Turtle, and World Dryer, Aquaflush, AquaSense, AquaVantage, AquaSpec, EcoVantage, Zurn One, and Zurn One Systems names. Rexnord Corporation was incorporated in 2006 and is headquartered in Milwaukee, Wisconsin. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/19 00:21
      End of Day Share Price2020/01/17 00:00
      Earnings2019/09/30
      Annual Earnings2019/03/31


      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.