Regal Rexnord Corporation (RRX) exhibits 37.4% gross margins and 4.9% return on invested capital within Industrials (Industrial Machinery/Components), balanced against a 19.8x enterprise multiple and 6.8% implied options volatility.
Sustained 37.4% gross profitability converts into 11.5% operating margin and 4.9% ROIC, outpacing sector cost of capital.
ROIC: 4.9% // GM: 37.4%YoY revenue trajectory of +1.1% paired with 8.20% free cash flow yield supports self-funded R&D and capital return.
REV YOY: +1.1% // FCF YLD: 8.20%Altman Z-Score of 1.92 and Piotroski F-Score of 8/9 indicate low near-term refinancing stress.
ALTMAN Z: 1.92 // F-SCORE: 8/9Trading at 39.0x trailing P/E (36.3x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 39.0x // EV/EBITDA: 19.8xOptions market prices a ±6.8% implied move with a 0.81 put/call ratio around $160.00 max pain.
IMPL MOVE: ±6.8% // P/C: 0.81Elevated industry capital intensity and customer concentration in Industrial Machinery/Components require continuous execution to defend 4.7% net margins.
NET MARGIN: 4.7% // D/E: 0.70x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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