Rexnord Corp

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RXN : NYSE : Industrial Goods
$21.52 -0.03 | -0.14%
Today's Range: 21.34 - 21.66
Avg. Daily Volume: 650,900
07/27/16 - 4:02 PM ET

Financial Analysis


REXNORD CORP's gross profit margin for the fourth quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. REXNORD CORP has strong liquidity. Currently, the Quick Ratio is 1.99 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 6.45% 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 Q4 FY15 Q4 FY14
Net Sales ($mil)492.6518.5
EBITDA ($mil)70.666.9
EBIT ($mil)41.338.2
Net Income ($mil)-0.432.3


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)484.6370.3
Total Assets ($mil)3354.83412.5
Total Debt ($mil)1920.11950.5
Equity ($mil)588.6552.9


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin37.1139.32
EBITDA Margin14.3312.9
Operating Margin8.387.37
Sales Turnover0.570.6
Return on Assets2.022.45
Return on Equity11.7716.6
Debt Q4 FY15 Q4 FY14
Current Ratio2.912.53
Debt/Capital0.770.78
Interest Expense23.421.5
Interest Coverage1.771.78


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)101.44101.78
Div / share0.00.0
EPS0.010.34
Book value / share5.85.43
Institutional Own % n/a n/a
Avg Daily Volume649650.0456235.0

Valuation


HOLD. REXNORD CORP's P/E ratio indicates a premium compared to an average of 24.52 for the Machinery industry and a premium compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 3.66 indicates a premium versus the S&P 500 average of 2.81 and a discount versus the industry average of 3.79. 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 31.66 Peers 24.52   RXN 9.82 Peers 16.07

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

RXN is trading at a significant premium 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 12.36 Peers 21.65   RXN 0.26 Peers 3.66

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 3.66 Peers 3.79   RXN -22.99 Peers -27.70

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.

 

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

However, RXN is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RXN 1.12 Peers 1.63   RXN -6.17 Peers -5.12

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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