Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Regal Rexnord Corporation (RRX)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$144.78 - $768.90$287.33
Multi-Stage$82.05 - $89.70$85.81
Blended Fair Value$186.57
Current Price$143.44
Upside30.07%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS13.72%9.42%1.401.391.375.040.730.730.710.670.630.60
YoY Growth--0.22%2.09%-72.91%589.12%-0.41%3.60%6.07%5.70%4.73%6.35%
Dividend Yield--1.23%0.79%0.97%3.39%0.50%1.24%0.87%0.91%0.84%0.95%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)257.30
(-) Cash Dividends Paid (M)92.80
(=) Cash Retained (M)164.50
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)51.4632.1619.30
Cash Retained (M)164.50164.50164.50
(-) Cash Required (M)-51.46-32.16-19.30
(=) Excess Retained (M)113.04132.34145.20
(/) Shares Outstanding (M)66.5566.5566.55
(=) Excess Retained per Share1.701.992.18
LTM Dividend per Share1.391.391.39
(+) Excess Retained per Share1.701.992.18
(=) Adjusted Dividend3.093.383.58
WACC / Discount Rate7.75%7.75%7.75%
Growth Rate5.50%6.50%7.50%
Fair Value$144.78$287.33$768.90
Upside / Downside0.93%100.31%436.05%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)257.30274.02291.84310.81331.01352.52363.10
Payout Ratio36.07%46.85%57.64%68.43%79.21%90.00%92.50%
Projected Dividends (M)92.80128.39168.21212.67262.20317.27335.87

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.75%7.75%7.75%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)118.03119.15120.27
Year 2 PV (M)142.17144.88147.61
Year 3 PV (M)165.24169.99174.82
Year 4 PV (M)187.29194.49201.90
Year 5 PV (M)208.34218.41228.85
PV of Terminal Value (M)4,639.434,863.525,096.18
Equity Value (M)5,460.515,710.445,969.64
Shares Outstanding (M)66.5566.5566.55
Fair Value$82.05$85.81$89.70
Upside / Downside-42.80%-40.18%-37.46%

High-Yield Dividend Screener

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