Regal Rexnord (FRA:RB8) Financial Strength: 5 (As of Jun. 2026) — 17% Below Median

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Director of Data and Quant Analytics at GuruFocus
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FRA:RB8 Regal Rexnord Corp FRA:RB8
84 GF Score
Price €138.60
GF Value €130.64
Valuation Fairly Valued
! 4 Warning Signs
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What is Regal Rexnord Financial Strength?

Regal Rexnord FRA:RB8 -3.01% 84 Financial Strength is 5 as of Jun. 2026, which is 17% below its 10-year median of 6.00. GuruFocus rates FRA:RB8 with a GF Score™ of 84/100 and a GF Value™ of €130.64 (Fairly Valued). The stock has 4 warning signs investors should review.

Regal Rexnord has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Regal Rexnord's Interest Coverage for the quarter that ended in Jun. 2026 was 2.78. Regal Rexnord's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.76. As of today, Regal Rexnord's Altman Z-Score is 1.95.


Regal Rexnord  (FRA:RB8) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Regal Rexnord has the Financial Strength Rank of 5.


Regal Rexnord Financial Strength Related Terms


FRA:RB8 vs DCI, FLS, GNRC: Financial Strength Comparison

For the Specialty Industrial Machinery subindustry, Regal Rexnord's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Regal Rexnord Financial Strength vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Regal Rexnord's Financial Strength distribution charts can be found below:

* The bar in red indicates where Regal Rexnord's Financial Strength falls into.


FRA:RB8
84GF Score
Regal Rexnord Corp FRA:RB8
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Regal Rexnord Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Regal Rexnord's Interest Expense for the months ended in Jun. 2026 was €-67 Mil. Its Operating Income for the months ended in Jun. 2026 was €187 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was €4,081 Mil.

Regal Rexnord's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*186.794/-67.183
=2.78

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Regal Rexnord's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(56.333 + 4080.902) / 5410.764
=0.76

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Regal Rexnord has a Z-score of 1.95, indicating it is in Grey Zones. This implies that Regal Rexnord is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 1.95 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 5 mean?
Regal Rexnord (FRA:RB8) has a Financial Strength of 5 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Regal Rexnord and its competitors. This is 17% below median its historical median of 6.00. Over the past decade, Regal Rexnord's Financial Strength has ranged from 4.00 to 8.00.
Is Regal Rexnord's Financial Strength too high?
Regal Rexnord's current Financial Strength of 5 is 17% below median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 8.00. Overall, Regal Rexnord has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Regal Rexnord's Financial Strength compare to DCI and FLS?
Regal Rexnord's Financial Strength of 5 can be compared against companies in the Industrial Products industry. Historically, Regal Rexnord's own Financial Strength has ranged from 4.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Industrial Products company?
A good Financial Strength depends on the Industrial Products industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Regal Rexnord and its competitors. Regal Rexnord's current Financial Strength is 5, which is 17% below median its own 10-year median of 6.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Regal Rexnord stock overvalued right now?
Based on GuruFocus' analysis, Regal Rexnord (FRA:RB8) is currently considered Fairly Valued. The stock's GF Value™ is €130.64, compared to a current price of €138.60 — trading 6.1% above its estimated fair value. The current Financial Strength is 5, which is 17% below median its 10-year median of 6.00. Regal Rexnord's overall GF Score™ is 84/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Regal Rexnord (FRA:RB8), the current Financial Strength is 5 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Regal Rexnord (FRA:RB8) Overvalued in 2026?

Based on GuruFocus' analysis, Regal Rexnord stock appears to be overvalued. The current stock price of €138.60 is trading 6.1% above its estimated GF Value™ of €130.64. GuruFocus considers Regal Rexnord to be Fairly Valued.

Key valuation signals for FRA:RB8:

  • Financial Strength: 5 (17% below median its 10-year median of 6.00)
  • GF Value™: €130.64 vs. price of €138.60 (6.1% above fair value)
  • GF Score™: 84/100 with 4 warning signs

No single metric tells the full story. See the FRA:RB8 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Regal Rexnord Business Description

Address 111 West Michigan Street, Milwaukee, WI, USA, 53203
Regal Rexnord Corp is in the engineering and manufacturing of industrial powertrain solutions, power transmission components, electric motors, electronic controls, air-moving products, and specialty electrical components and systems, serving customers around the world. The three operating segments include Automation & Motion Control (AMC) segment; Industrial Powertrain Solutions (IPS) segment, which derives maximum revenue; and Power Efficiency Solutions (PES) segment. Geographically, the company operates in North America, Europe, Asia, and Rest of the world, of which it derives maximum revenue from North America.
84GF Score

Get the complete analysis for FRA:RB8

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€138.60
Price
€130.64
GF Value