Rexnord Corp.

Find Ratings Reports
RXN : NYSE : Producer Manufacturing
$29.0 | %
Today's Range: 28.8 - 29.36
Avg. Daily Volume: 872900.0
02/23/18 - 4:02 PM ET

Financial Analysis


REXNORD CORP's gross profit margin for the third quarter of its fiscal year 2017 has increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. REXNORD CORP has average liquidity. Currently, the Quick Ratio is 1.43 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 23.76% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)492.3451.8
EBITDA ($mil)88.770.3
EBIT ($mil)67.048.3
Net Income ($mil)81.63.2


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)234.8429.3
Total Assets ($mil)3350.03461.0
Total Debt ($mil)1323.11626.9
Equity ($mil)1254.11013.3


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin39.8137.67
EBITDA Margin18.0115.55
Operating Margin13.6110.69
Sales Turnover0.60.55
Return on Assets4.931.33
Return on Equity11.334.55
Debt Q3 FY17 Q3 FY16
Current Ratio2.493.01
Debt/Capital0.510.62
Interest Expense18.722.9
Interest Coverage3.582.11


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)103.93103.42
Div / share0.00.0
EPS0.670.02
Book value / share12.079.8
Institutional Own % n/a n/a
Avg Daily Volume903859.0882685.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 81.54 for the Machinery industry and a discount compared to the S&P 500 average of 25.51. To use another comparison, its price-to-book ratio of 2.32 indicates a discount versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 5.71. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, REXNORD CORP proves to trade 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 21.37 Peers 81.54   RXN 14.93 Peers 20.81

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

RXN is trading at a significant discount to 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 16.66 Peers 19.76   RXN 0.19 Peers 1.69

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

RXN is trading at a valuation on par with 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 2.32 Peers 5.71   RXN 191.11 Peers 192.95

Discount. 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 significant discount to its peers.

 

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

RXN is expected to keep pace with its peers on the basis of earnings growth.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RXN 1.46 Peers 2.24   RXN 4.57 Peers 11.16

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

 

 

Latest Stock Upgrades/Downgrades