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$156.89 - $768.90$333.65
Multi-Stage$85.35 - $93.33$89.27
Blended Fair Value$211.46
Current Price$143.44
Upside47.42%
DecisionBuy

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 Rate7.58%7.58%7.58%
Growth Rate5.50%6.50%7.50%
Fair Value$156.89$333.65$768.90
Upside / Downside9.38%132.61%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 Rate7.58%7.58%7.58%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)118.22119.34120.46
Year 2 PV (M)142.63145.35148.09
Year 3 PV (M)166.05170.81175.67
Year 4 PV (M)188.51195.76203.21
Year 5 PV (M)210.03220.18230.71
PV of Terminal Value (M)4,854.865,089.355,332.82
Equity Value (M)5,680.305,940.796,210.96
Shares Outstanding (M)66.5566.5566.55
Fair Value$85.35$89.27$93.33
Upside / Downside-40.50%-37.77%-34.94%

High-Yield Dividend Screener

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