NYSE:RXN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

3.6%

NYSE:RXN

2.2%

US Machinery

0.6%

US Market


1 Year Return

-2.7%

NYSE:RXN

5.4%

US Machinery

3.2%

US Market

RXN underperformed the Machinery industry which returned 5.2% over the past year.

RXN underperformed the Market in United States of America which returned 3.8% over the past year.


Share holder returns

RXNIndustryMarket
7 Day3.6%2.2%0.6%
30 Day1.0%2.1%2.1%
90 Day3.3%1.9%2.0%
1 Year-2.7%-2.7%7.6%5.4%5.5%3.2%
3 Year35.6%35.6%56.4%46.1%46.8%37.2%
5 Year4.7%4.7%52.5%33.6%61.5%43.6%

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 based on future cash flows and its price relative to the stock market?

22%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Rexnord's share price is below the future cash flow value, and at a moderate discount (> 20%).

Rexnord's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Rexnord is good value based on earnings compared to the US Machinery industry average.

Rexnord is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Rexnord is poor value based on expected growth next year.


Price Based on Value of Assets

Rexnord is overvalued based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

How is Rexnord expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Rexnord's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

Rexnord's earnings are expected to grow by 13% yearly, however this is not considered high growth (20% yearly).

Rexnord's revenue growth is positive but not above the United States of America market average.

Rexnord's earnings growth is positive but not above the United States of America market average.

Rexnord's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Rexnord is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Rexnord performed over the past 5 years?

10.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Rexnord's year on year earnings growth rate has been positive over the past 5 years.

Rexnord's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Rexnord's 1-year earnings growth is negative, it can't be compared to the US Machinery industry average.


Return on Equity

Rexnord has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Rexnord used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Rexnord has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Rexnord's financial position?


Financial Position Analysis

Rexnord is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Rexnord's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Rexnord's level of debt (100.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (351.2% vs 100.6% today).

Debt is well covered by operating cash flow (20.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.6x coverage).


Balance Sheet

High level of physical assets or inventory.

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 and Payments Analysis

Unable to evaluate Rexnord's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Rexnord's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Rexnord has not reported any payouts.

Unable to verify if Rexnord's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Rexnord has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Rexnord's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Todd Adams (48yo)

9.8yrs

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

Todd's remuneration is higher than average for companies of similar size in United States of America.

Todd's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.5yrs

Average Tenure

52yo

Average Age

The average tenure for the Rexnord management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.2yrs

Average Tenure

62yo

Average Age

The tenure for the Rexnord board of directors is about average.


Insider Trading

Rexnord individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$56,14728 Jun 19
Michael Troutman
EntityIndividual
Shares2,724
Max PriceUS$29.50
SellUS$244,23024 Jun 19
Michael Troutman
EntityIndividual
Shares11,845
Max PriceUS$29.51
SellUS$3,007,23520 Jun 19
Todd Adams
EntityIndividual
Role
President
Member of the Board of Directors
Shares124,032
Max PriceUS$29.08
BuyUS$362,66420 Jun 19
Todd Adams
EntityIndividual
Role
President
Member of the Board of Directors
Shares75,492
Max PriceUS$4.80
BuyUS$636,15517 Jun 19
Todd Adams
EntityIndividual
Role
President
Member of the Board of Directors
Shares132,422
Max PriceUS$4.80
SellUS$4,011,14717 Jun 19
Todd Adams
EntityIndividual
Role
President
Member of the Board of Directors
Shares167,578
Max PriceUS$28.74
SellUS$734,06110 Jun 19
Mark Peterson
EntityIndividual
Role
Senior VP & CFO
Shares76,495
Max PriceUS$28.33
SellUS$159,10705 Jun 19
Patricia Whaley
EntityIndividual
Role
VP, General Counsel & Secretary
Shares8,325
Max PriceUS$28.00
SellUS$129,36005 Jun 19
Patricia Whaley
EntityIndividual
Role
VP, General Counsel & Secretary
Shares4,620
Max PriceUS$28.00
SellUS$8,42329 May 19
Rodney Jackson
EntityIndividual
Role
Senior Vice President of Business & Corporate Development
Shares317
Max PriceUS$26.57
SellUS$11,87729 May 19
George Powers
EntityIndividual
Role
Chief Human Resources Officer
Shares447
Max PriceUS$26.57
SellUS$7,25429 May 19
Craig Wehr
EntityIndividual
Role
Group President of Zurn
Shares273
Max PriceUS$26.57
SellUS$32,36229 May 19
Kevin Zaba
EntityIndividual
Role
Group Executive and President of Process & Motion Control Platform
Shares1,218
Max PriceUS$26.57
SellUS$8,18429 May 19
Michael Troutman
EntityIndividual
Shares308
Max PriceUS$26.57
SellUS$32,57529 May 19
Patricia Whaley
EntityIndividual
Role
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
President
Member of the Board of Directors
Shares5,512
Max PriceUS$26.57
SellUS$332,32221 May 19
Mark Peterson
EntityIndividual
Role
Senior VP & CFO
Shares19,663
Max PriceUS$28.01
SellUS$141,38315 May 19
Kevin Zaba
EntityIndividual
Role
Group Executive and President of Process & Motion Control Platform
Shares5,124
Max PriceUS$27.59
SellUS$64,95215 May 19
Patricia Whaley
EntityIndividual
Role
VP, General Counsel & Secretary
Shares2,354
Max PriceUS$27.59
SellUS$67,73415 May 19
Craig Wehr
EntityIndividual
Role
Group President of Zurn
Shares2,454.8
Max PriceUS$27.59
SellUS$65,86315 May 19
Michael Troutman
EntityIndividual
Shares2,387
Max PriceUS$27.59
SellUS$76,45815 May 19
George Powers
EntityIndividual
Role
Chief Human Resources Officer
Shares2,771
Max PriceUS$27.59
SellUS$201,56215 May 19
Mark Peterson
EntityIndividual
Role
Senior VP & CFO
Shares7,305
Max PriceUS$27.59
SellUS$109,02315 May 19
Rodney Jackson
EntityIndividual
Role
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
President
Member of the Board of Directors
Shares104,231
Max PriceUS$27.59
BuyUS$92,75004 Feb 19
David Longren
EntityIndividual
Role
Member of the Board of Directors
Shares3,500
Max PriceUS$26.50
SellUS$347,10503 Dec 18
Craig Wehr
EntityIndividual
Role
Group President of Zurn
Shares14,964
Max PriceUS$28.00
SellUS$181,41608 Nov 18
Craig Wehr
EntityIndividual
Role
Group President of Zurn
Shares7,500
Max PriceUS$28.99
SellUS$177,72006 Nov 18
Craig Wehr
EntityIndividual
Role
Group President of Zurn
Shares7,500
Max PriceUS$28.50
BuyUS$111,37602 Nov 18
Theodore Crandall
EntityIndividual
Role
Member of the Board of Directors
Shares4,000
Max PriceUS$27.84
BuyUS$484,14719 Sep 18
Todd Adams
EntityIndividual
Role
President
Member of the Board of Directors
Shares100,780
Max PriceUS$4.80
SellUS$3,270,75619 Sep 18
Todd Adams
EntityIndividual
Role
President
Member of the Board of Directors
Shares124,005
Max PriceUS$31.18

Ownership Breakdown


Management Team

  • Craig Wehr (54yo)

    Group President of Zurn

    • Tenure: 6.5yrs
    • Compensation: $1.07m
  • Michael Troutman (52yo)

    Chief Information Officer

    • Tenure: 12.5yrs
  • Rodney Jackson (49yo)

    Senior Vice President of Business & Corporate Development

    • Tenure: 4.8yrs
    • Compensation: $911.21k
  • Todd Adams (48yo)

    President

    • Tenure: 9.8yrs
    • Compensation: $6.77m
  • Patricia Whaley (60yo)

    VP, General Counsel & Secretary

    • Tenure: 17.5yrs
    • Compensation: $1.18m
  • George Powers (52yo)

    Chief Human Resources Officer

    • Tenure: 4.5yrs
    • Compensation: $1.26m
  • Mark Peterson (47yo)

    Senior VP & CFO

    • Tenure: 7.7yrs
    • Compensation: $2.06m
  • Jay Jeyarajah (51yo)

    Senior Advisor

    • Tenure: 4.9yrs
    • Compensation: $1.06m
  • Rob McCarthy

    Vice President of Investor Relations

  • Kevin Zaba (52yo)

    Group Executive and President of Process & Motion Control Platform

    • Tenure: 3.3yrs
    • Compensation: $1.83m

Board Members

  • Mark Bartlett (68yo)

    Director

    • Tenure: 7.1yrs
    • Compensation: $205.00k
  • Robin Walker-Lee (65yo)

    Director

    • Tenure: 4.0yrs
    • Compensation: $190.00k
  • Ted Crandall (64yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: $190.00k
  • Paul Jones (70yo)

    Non-Executive Chairman

    • Tenure: 4.0yrs
    • Compensation: $250.00k
  • Todd Adams (48yo)

    President

    • Tenure: 9.8yrs
    • Compensation: $6.77m
  • David Longren (60yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: $190.00k
  • Thomas Christopoul (54yo)

    Director

    • Tenure: 6.4yrs
    • Compensation: $200.00k
  • John Stroup (53yo)

    Director

    • Tenure: 10.8yrs
    • Compensation: $200.00k
  • Rose Schooler (51yo)

    Director

    • Tenure: 0.2yrs
  • George Moore (64yo)

    Director

    • Tenure: 4.4yrs
    • Compensation: $190.00k

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$3.073b
  • Shares outstanding: 105.29m
  • Website: Click here

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
RXN.PRANYSE (New York Stock Exchange)DEP SHS PFD AUSUSDDec 2016

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 Manageme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/24 02:17
End of Day Share Price2019/07/23 00:00
Earnings2019/03/31
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.