Rexnord Corp

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RXN : NYSE : Industrial Goods
$21.1 up 0.86 | 4.25%
Today's Range: 20.125 - 21.2
Avg. Daily Volume: 667400.0
12/08/16 - 4:02 PM ET

Financial Analysis


REXNORD CORP's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. REXNORD CORP has average liquidity. Currently, the Quick Ratio is 1.44 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 18.42% 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.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)491.0485.9
EBITDA ($mil)81.286.6
EBIT ($mil)56.958.2
Net Income ($mil)24.622.6


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)208.5374.7
Total Assets ($mil)3318.03323.2
Total Debt ($mil)1822.71932.7
Equity ($mil)645.4545.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin38.2537.76
EBITDA Margin16.5317.82
Operating Margin11.5911.98
Sales Turnover0.580.6
Return on Assets2.032.35
Return on Equity10.6715.79
Debt Q2 FY16 Q2 FY15
Current Ratio2.522.86
Debt/Capital0.740.78
Interest Expense22.821.9
Interest Coverage2.52.66


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)102.75100.36
Div / share0.00.0
EPS0.240.22
Book value / share6.285.43
Institutional Own % n/a n/a
Avg Daily Volume664338.0645036.0

Valuation


HOLD. REXNORD CORP's P/E ratio indicates a premium compared to an average of 29.43 for the Machinery industry and a premium compared to the S&P 500 average of 25.79. To use another comparison, its price-to-book ratio of 3.22 indicates a premium versus the S&P 500 average of 2.86 and a discount versus the industry average of 4.50. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RXN 30.21 Peers 29.43   RXN 9.80 Peers 14.60

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 13.06 Peers 24.38   RXN 0.30 Peers 4.00

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 significant 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 3.22 Peers 4.50   RXN -18.30 Peers -24.82

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.

 

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 1.09 Peers 1.95   RXN -3.58 Peers -4.94

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

RXN has a sales growth rate that significantly exceeds its peers.

 

 

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