Regal Rexnord Corporation (RRX): a likely value trap?

Avoid for now — the beat was propped up by one-off tariff refunds while margins, free cash flow, and core demand are all quietly weakening.

⚠ TRAP Fundamentals63/100

Fell 17% in 1 trading day(s) — now $183.24

Why RRX dropped

RRX crashed after Q2 earnings even though adjusted EPS beat estimates, because revenue missed and management cut key underlying guidance — free cash flow guidance was trimmed by $50M and margin guidance was reduced due to inflation and weak segments.

Fwd P/E 13.8Op margin 13.8%Rev growth 4.2%Debt/equity 68.8%Analyst upside 43.3%

How this scored 63/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 5.3%

✅ Generates cash Free cash flow $460M

✅ Not drowning in debt Debt/equity 68.8% (limit 200%)

✅ Can pay its bills Current ratio 2.3 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 7/25

Operating margin 13.8% 5/9

Net profit margin 5.3% 2/8

Return on equity 4.8% 0/8

Growth Is it getting bigger, or dying? 19/25

Revenue growth 4.2% 3/9

Earnings growth 46.2% 8/8

Expected profit change 207.8% 8/8

Value Is it cheap right now? 16/25

Forward P/E 13.8 8/10

PEG ratio 2.1 3/8

Analyst target upside 43.3% 5/7

Balance sheet Will it survive? 21/25

Debt / equity 68.8% 7/10

Current ratio 2.3 7/8

Free cash flow $460M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-08-06. Research only — not financial advice.