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Regal Rexnord Corporation (RRX)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$90.69 - $240.58$138.68
Multi-Stage$62.93 - $68.71$65.77
Blended Fair Value$102.22
Current Price$143.44
Upside-28.73%
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 Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$90.69$138.68$240.58
Upside / Downside-36.77%-3.32%67.72%

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 Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)116.58117.68118.79
Year 2 PV (M)138.69141.33144.00
Year 3 PV (M)159.21163.78168.44
Year 4 PV (M)178.23185.08192.13
Year 5 PV (M)195.82205.28215.10
PV of Terminal Value (M)3,399.463,563.653,734.13
Equity Value (M)4,187.994,376.814,572.59
Shares Outstanding (M)66.5566.5566.55
Fair Value$62.93$65.77$68.71
Upside / Downside-56.13%-54.15%-52.10%

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