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Rexnord Corp
RXN : NYSE : Industrial Goods
$19.53 up0.03 | 0.15%
Today's Range: 19.43 - 20.04
Avg. Daily Volume: 803,900
09/02/15 - 11:29 AM ET

Financial Analysis


REXNORD CORP's gross profit margin for the first quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. REXNORD CORP has strong liquidity. Currently, the Quick Ratio is 1.65 which shows the ability to cover short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 5.43% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY15 Q1 FY14
Net Sales ($mil)485.1503.6
EBITDA ($mil)83.388.5
EBIT ($mil)55.160.3
Net Income ($mil)21.312.1


Balance Sheet Q1 FY15 Q1 FY14
Cash & Equiv. ($mil)329.7311.3
Total Assets ($mil)3329.13354.4
Total Debt ($mil)1935.61972.3
Equity ($mil)541.2572.3


Profitability Q1 FY15 Q1 FY14
Gross Profit Margin37.8738.3
EBITDA Margin17.1717.57
Operating Margin11.3611.97
Sales Turnover0.610.62
Return on Assets2.790.84
Return on Equity18.734.91
Debt Q1 FY15 Q1 FY14
Current Ratio2.732.74
Debt/Capital0.780.78
Interest Expense21.622.5
Interest Coverage2.552.68


Share Data Q1 FY15 Q1 FY14
Shares outstanding (mil)100.35101.31
Div / share0.00.0
EPS0.20.11
Book value / share5.395.65
Institutional Own % n/a n/a
Avg Daily Volume803307.0666577.0

Valuation


HOLD. REXNORD CORP's P/E ratio indicates a discount compared to an average of 20.46 for the Machinery industry and a value on par with the S&P 500 average of 20.03. For additional comparison, its price-to-book ratio of 3.62 indicates a premium versus the S&P 500 average of 2.67 and a premium versus the industry average of 3.46. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. The valuation analysis reveals that, REXNORD CORP seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RXN 20.10 Peers 20.46   RXN 8.02 Peers 13.47

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

RXN is trading at a valuation on par with its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

RXN is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
RXN 11.40 Peers 17.01   RXN 0.28 Peers 4.83

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

RXN is trading at a discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

RXN trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RXN 3.62 Peers 3.46   RXN 304.16 Peers 2.37

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

RXN is trading at a valuation on par with its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

RXN is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RXN 0.96 Peers 1.52   RXN -2.18 Peers 0.38

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

RXN is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

RXN significantly trails its peers on the basis of sales growth

 

 

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