Technology • NYSE
According to Zyberno, REGAL REXNORD CORP (RRX) shows a Value Trap signal — WEAK BUSINESS (45/100) with an apparent Margin of Safety of +49.0%, but a Brina Gap of -13.0% reveals the current price still assumes faster growth than the business can deliver.
According to Zyberno's DCF model, REGAL REXNORD CORP (RRX) trades at $158.35 against an estimated intrinsic value per share of $310.28 — a +49.0% Margin of Safety based on Owner Earnings of $805.10M TTM, projected at 15.8% growth for 10 years with a 2.5% terminal growth rate. The Brina Gap of -13.0% weakens the case: based on the company's ROIC (5.2%) and reinvestment rate (-43.8%), the business can fundamentally grow at -2.3% — but the current enterprise value implies the market expects 10.7%. This places RRX in the Value Trap quadrant of the Brina Matrix — a value-trap signal where the apparent discount is undermined by overpriced growth expectations. Zyberno's model translates this into a 5-year expected return of 32.5% annually.
Over the trailing twelve months, RRX generated $805.10M in Owner Earnings. Capital was deployed as follows: $92.90M paid as dividends, $98.30M invested in capital expenditures. Reinvestment rate: -43.8%. Owner Earnings have grown at 15.8% annually over the trailing five years using log-linear regression.