Rexnord Corporation Fundamental Analysis (NYSE: RXN)
Rexnord Corporation (NYSE: RXN) shows weak financial fundamentals with a PE ratio of 39.85, profit margin of 15.59%, and ROE of 16.16%. The company generates $1.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze RXN's fundamental strength across five key dimensions:
Efficiency Score
WeakRXN struggles to generate sufficient returns from assets.
Valuation Score
ModerateRXN shows balanced valuation metrics.
Growth Score
WeakRXN faces weak or negative growth trends.
Financial Health Score
ExcellentRXN maintains a strong and stable balance sheet.
Profitability Score
ExcellentRXN achieves industry-leading margins.
Key Financial Metrics
Is RXN Expensive or Cheap?
P/E Ratio
RXN trades at 39.85 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RXN's PEG of 1.31 indicates fair valuation.
Price to Book
The market values Rexnord Corporation at 6.54 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 29.07 times EBITDA. This signals the market has high growth expectations.
How Well Does RXN Make Money?
Net Profit Margin
For every $100 in sales, Rexnord Corporation keeps $15.59 as profit after all expenses.
Operating Margin
Core operations generate 21.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.16 in profit for every $100 of shareholder equity.
ROA
Rexnord Corporation generates $9.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rexnord Corporation generates strong operating cash flow of $491.53M, reflecting robust business health.
Free Cash Flow
Rexnord Corporation generates strong free cash flow of $484.89M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.75 in free cash annually.
FCF Yield
RXN converts 4.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
39.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.32
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How RXN Stacks Against Its Sector Peers
| Metric | RXN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 39.85 | 20.17 | Worse (Expensive) |
| ROE | 16.16% | 999.00% | Weak |
| Net Margin | 15.59% | -702.00% (disorted) | Strong |
| Debt/Equity | 0.32 | 1.75 | Strong (Low Leverage) |
| Current Ratio | 3.05 | 1.71 | Strong Liquidity |
| ROA | 9.38% | 4551305.00% | Weak |
RXN outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rexnord Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Income
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Income
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Income