Regal Beloit Corporation logo

Regal Beloit Corporation(RRX)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
2-STAR RATING
PASS
LAST CLOSE
$156.18
09/25/2026
(24-hour delay)

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*as per simulation (see disclosures)
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Upturn Advisory & Investor View for RRX

09/25/2026: RRX (2-star) is currently NOT-A-BUY. Pass it for now.

Regal Beloit Corporation is a major manufacturer of electric motors, motion control products, and power transmission components used in critical industrial and climate control applications. The company has a leading position in the industrial equipment sector, bolstered by a strategic merger that expanded its technical capabilities and market reach. Its primary growth opportunity lies in capitalizing on energy efficiency regulations and the increasing automation of data centers and factories. However, investors should monitor risks associated with high integration costs, cyclical industrial demand, and intense global competition. The stock may suit value-oriented investors seeking steady dividend income, provided they are comfortable with the volatility inherent in industrial machinery sectors.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitGrowth is largely driven by macro industrial trends rather than rapid, disruptive technological shifts.
Momentum investorStrong fit while signal remains positiveThe stock can track industrial cyclicality and positive news on cost synergy realization.
Value investorStrong fitThe company often trades at valuations that reflect industrial cyclicality, potentially offering value entry points.
Dividend investorStrong fitThe company offers a consistent dividend stream supported by strong free cash flow from its industrial base.
Low-risk investorMixed fitSensitivity to industrial cycles and high debt levels from past M&A can introduce volatility.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highThe stock is highly sensitive to broad industrial sector performance and macroeconomic reports.
Valuation riskMediumMarket expectations for synergy realization can lead to fluctuations in the company's valuation multiples.
Competition risk (Industrial Automation)Medium / highCompeting against global titans like ABB requires constant innovation in motor efficiency.
Business qualityStrongThe company maintains a strong franchise in critical industrial components with high switching costs.
Dividend incomeMediumDividends are reliable but capital allocation often prioritizes debt reduction and growth reinvestment.
Execution riskMedium / highManaging a complex, decentralized manufacturing network is critical to sustaining profit margins.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Choppy
PRICE STABILITY

Choppy

The stock has experienced frequent reversals and pronounced short-term price swings.

Analysis of Past Performance

Type Stock
Historic Profit 19.73%
Avg. Invested days 39
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 2.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
RRX receives a 4-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
RRX has solid overall fundamentals (4 stars), with moderate financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+42.5%) and strong cash generation (FCF margin 15.0%) are partially offset by slightly negative revenue growth (-1.6%), soft profitability (net margin 4.7%), very low insider ownership of 0.50%.

Financial Health Rating

★★★★★
RRX's financial health is supported by solid cash strength, including free-cash-flow generation (15.0% of revenue). Profitability is moderate (3 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is RRX's strongest growth driver at +78.7% FY2025 versus FY2024 (strong, 5 stars). By comparison, earnings growth (+42.5%, strong) is also strong, while revenue growth (-1.6%, slightly negative) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 111.3% and approximately 94.2% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership is only 0.50%, which materially reduces the ownership score.

Top 5 Institutional Investors

BlackRock Inc 8.96%
FMR Inc 7.06%
Victory Capital Management Inc. 6.73%
Viking Global Investors LP 4.72%
Vanguard Capital Management, LLC 4.48%

Unit Economics (Per $1K Revenue)

★★★★★
RRX generates approximately $374 of gross profit, $115 of operating income, and $150 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: 20.34%

Quantitative Style Profile

★★★★★
RRX has a large-cap, liquid profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedLarge / Mega Cap StabilityShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 10.40B USD
Price to earnings Ratio 32.14
1Y Target Price 248.2
Price to earnings Ratio 32.14
1Y Target Price 248.2
Volume (30-day avg) 1.2M shares
Beta 1.04
52 Weeks Range 127.19 - 247.80
Updated Date 09/27/2026
52 Weeks Range 127.19 - 247.80
Updated Date 09/27/2026
Dividends yield (FY) 0.93%
Basic EPS (TTM) 4.86

How Company Makes Money

Business areaWhat it includesRetail investor read
Motion Control SolutionsBearings, gears, and mechanical components for industrial automation.The company makes steady income by keeping industrial machinery moving.
Climate SolutionsEnergy-efficient motors for HVAC and refrigeration.The move toward 'greener' HVAC systems drives demand for their products.
Geography: North AmericaPrimary manufacturing and distribution hubs.A large portion of revenue is tied to the strength of the North American industrial base.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 32.14
Forward PE 11.38
Enterprise Value 14.49B
Price to Sales(TTM) 1.72
Enterprise Value 14.49B
Price to Sales(TTM) 1.72
Enterprise Value to Revenue 2.39
Enterprise Value to EBITDA 11.76
Shares Outstanding 66.57M
Shares Floating 62.68M
Shares Outstanding 66.57M
Shares Floating 62.68M
Percent Insiders 0.5
Percent Institutions 111.29

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Regal Beloit Corporation

Exchange NYSE
Headquarters Milwaukee, WI, United States
IPO Launch date 1983-12-01
CEO & Director Mr. Aamir Paul
Sector Industrials
Industry Specialty Industrial Machinery
Full time employees 28700
Full time employees 28700

Regal Rexnord Corporation provides sustainable solutions for power, transmit, and control motion products in the North America, Asia, Europe, and internationally. The company operates through Automation & Motion Control, Industrial Powertrain Solutions, and Power Efficiency Solutions. The Automation & Motion Control segment provides conveyor products, conveying automation subsystems, aerospace components, precision motion control solutions, miniature servo motors, controls, drives, and linear actuators, as well as power management products that include automatic transfer switches, paralleling switchgear, and customized modular electric pod solutions that comprise relevant power and thermal management content. The Industrial Powertrain Solutions segment offers mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes and gear motors, clutches, brakes, and industrial powertrain components and solutions, as well as industrial powertrain solutions. The Power Efficiency Solutions segment produces fractional to approximately 5 horsepower AC and DC motors, electronic variable speed controls, electronic drives, fans and blowers, as well as integrated air moving subsystems. It serves factory automation, food and beverage, aerospace, general industrial, medical, data center, general industrial, metals and mining, energy, discrete automation, commercial HVAC, and general commercial applications. The company was formerly known as Regal Beloit Corporation. Regal Rexnord Corporation was founded in 1955 and is based in Milwaukee, Wisconsin.