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:
We started the process of determining a valid price forecast for Rexnord Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Rexnord Corp ranked in the 42th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for RXN, they are:
The company has produced more trailing twelve month cash flow than 64.9% of its sector Industrials.
Rexnord Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 19.71% 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 65.84% 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 CW, DCI, EBF, ALLE, and IAA.