Rexnord Corporation is comprised of two strategic platforms, Process & Motion Control and Water Management. The Process & Motion Control platform designs, manufactures, markets and services specified, highly-engineered mechanical components used within complex systems. The Water Management platform designs, procures, manufactures and markets products that provide and enhance water quality, safety, flow control and conservation. The company was founded in 2006 and is based in Milwaukee, Wisconsin.
RXN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Rexnord Corp. To summarize, we found that Rexnord Corp ranked in the 49th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 5.5%. In terms of the factors that were most noteworthy in this DCF analysis for RXN, they are:
As a business, RXN is generating more cash flow than 67.09% of positive cash flow stocks in the Industrials.
Rexnord Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 17.44% of tickers in our DCF set.
Rexnord Corp's effective tax rate, as measured by taxes paid relative to net income, is at 17 -- greater than 65.03% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as RXN, try LDL, LAWS, MRCY, PH, and SOTK.
Consistent with prior quarters, we will speak to core growth, adjusted EBITDA, adjusted earnings per share and free cash flow as we believe these non-GAAP metrics provide a better understanding of our operating results. With that, I'm pleased to turn the call over to Todd Adams, Chairman and CEO of Rexnord.
Rexnord (RXN) declares $0.08/share quarterly dividend, in line with previous.Forward yield 1.06%Payable Sept. 8; for shareholders of record Aug. 20; ex-div Aug. 19.See RXN Dividend Scorecard, Yield Chart, & Dividend Growth....