RBC - Embedded Expectations Analysis - 2020 01 17
Regal Beloit Corporation (RBC:USA) trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 14.5x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about the growth potential of new markets, their leverage levels, and the progress of their business review and restructuring effortsSpecifically, management is confident in the growth potential of new markets, and they are confident that the 80/20 and Lean principles ensure they make good and timely data-driven decisions. In addition, they are confident their business review and restructuring efforts will allow them to operate more efficiently and provide a clear path to sustained financial performance, and they are confident that they are focused on improving operational performance. Moreover, they are confident their
debt-to-adjusted EBITDA ratio was at 1.9x to end the quarter, and that they continue to find cost-out opportunities in the C&I segment
Regal Beloit is a manufacturer of electric motors, electrical motion controls, power generation and power transmission products. The company is comprised of four operating segments: Commercial Systems, which produces AC and DC motors, electronic variable speed controls, fans, and blowers for commercial applications; Industrial Systems, which produces motors, generators, alternators and switchgear for industrial applications, along with aftermarket parts and kits to support such products; Climate Solutions, which produces small motors, electronic variable speed controls and air moving solutions; and Power Transmission Solutions, which produces, sells and services belt and chain drives.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.