Rexnord Corporation designs, manufactures, and markets process and motion control, and water management products worldwide. More Details
Proven track record with mediocre balance sheet.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: RXN's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: RXN exceeded the US Machinery industry which returned 51.1% over the past year.
Return vs Market: RXN exceeded the US Market which returned 39% over the past year.
Long-Term 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
1 week ago | Simply Wall StShareholders Are Thrilled That The Rexnord (NYSE:RXN) Share Price Increased 139%
3 weeks ago | Simply Wall StDon't Ignore The Fact That This Insider Just Sold Some Shares In Rexnord Corporation (NYSE:RXN)
3 weeks ago | Simply Wall StCalculating The Intrinsic Value Of Rexnord Corporation (NYSE:RXN)
Is Rexnord undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RXN ($49) is trading above our estimate of fair value ($45.82)
Significantly Below Fair Value: RXN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RXN is good value based on its PE Ratio (32.8x) compared to the US Machinery industry average (33.8x).
PE vs Market: RXN is poor value based on its PE Ratio (32.8x) compared to the US market (19.2x).
Price to Earnings Growth Ratio
PEG Ratio: RXN is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: RXN is overvalued based on its PB Ratio (3.9x) compared to the US Machinery industry average (3.1x).
How is Rexnord forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RXN's forecast earnings growth (15.3% per year) is above the savings rate (2%).
Earnings vs Market: RXN's earnings (15.3% per year) are forecast to grow slower than the US market (15.6% per year).
High Growth Earnings: RXN's earnings are forecast to grow, but not significantly.
Revenue vs Market: RXN's revenue (5.7% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: RXN's revenue (5.7% 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 (16.2%).
How has Rexnord performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RXN has high quality earnings.
Growing Profit Margin: RXN's current net profit margins (9.5%) are higher than last year (8.1%).
Past Earnings Growth Analysis
Earnings Trend: RXN's earnings have grown by 17.9% per year over the past 5 years.
Accelerating Growth: RXN's earnings growth over the past year (6.9%) is below its 5-year average (17.9% per year).
Earnings vs Industry: RXN earnings growth over the past year (6.9%) exceeded the Machinery industry -6.4%.
Return on Equity
High ROE: RXN's Return on Equity (12%) is considered low.
How is Rexnord's financial position?
Financial Position Analysis
Short Term Liabilities: RXN's short term assets ($1.0B) exceed its short term liabilities ($356.3M).
Long Term Liabilities: RXN's short term assets ($1.0B) do not cover its long term liabilities ($1.6B).
Debt to Equity History and Analysis
Debt Level: RXN's debt to equity ratio (74.9%) is considered high.
Reducing Debt: RXN's debt to equity ratio has reduced from 329.9% to 74.9% over the past 5 years.
Debt Coverage: RXN's debt is not well covered by operating cash flow (18.7%).
Interest Coverage: RXN's interest payments on its debt are well covered by EBIT (6.3x coverage).
What is Rexnord current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RXN's dividend (0.73%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.29%).
High Dividend: RXN's dividend (0.73%) is low compared to the top 25% of dividend payers in the US market (3.45%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether RXN's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if RXN's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (22.1%), RXN's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RXN's dividends in 3 years are forecast to be well covered by earnings (17.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Todd Adams (49 yo)
Mr. Todd A. Adams serves as Chairman of the Board at Rexnord Corporation since July 23, 2020. He serves as the Chief Executive Officer and President at Rexnord Industries, LLC. Mr. Adams has been the Chief...
CEO Compensation Analysis
Compensation vs Market: Todd's total compensation ($USD8.92M) is above average for companies of similar size in the US market ($USD6.67M).
Compensation vs Earnings: Todd's compensation has been consistent with company performance over the past year.
Experienced Management: RXN's management team is seasoned and experienced (8.4 years average tenure).
Experienced Board: RXN's board of directors are considered experienced (5.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: RXN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Rexnord Corporation's company bio, employee growth, exchange listings and data sources
- Name: Rexnord Corporation
- Ticker: RXN
- Exchange: NYSE
- Founded: 2006
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: US$5.866b
- Shares outstanding: 119.72m
- Website: https://www.rexnordcorporation.com
Number of Employees
- Rexnord Corporation
- 511 West Freshwater Way
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/23 15:25|
|End of Day Share Price||2021/06/22 00:00|
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.