Rockwell Automation vs Regal Rexnord
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KIRA’s take AI analyst
I put Rockwell Automation and Regal Rexnord side by side, using each one’s latest annual report. Here is what stands out:
- Rockwell Automation is the larger business, with $8.3B of revenue in fiscal 2025 against $5.9B for Regal Rexnord.
- Rockwell Automation grew revenue faster (0.9%, against −1.7%).
- Rockwell Automation kept more of each dollar of sales as operating profit (20.4% operating margin, against 11.5%).
- Rockwell Automation turned more of its sales into free cash flow (16.3% FCF margin, against 15.1%).
- Rockwell Automation earned a higher return on the capital invested in it (20.9%, against 4.8%).
- Investors pay more for each dollar of Rockwell Automation’s earnings: a P/E of 40.3x against 31.0x for Regal Rexnord.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Rockwell Automation
ROK
9/11
Revenue growthGross marginOperating marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDAShare count change
Regal Rexnord
RRX
1/11
5-year growth
Side by side
Best in the row
| Latest fiscal year | ROK FY25 | RRX FY25 |
|---|---|---|
| Size | ||
| Market cap | $48.0B | $10.1B |
| Revenue | $8.3B | $5.9B |
| Free cash flow | $1.4B | $893M |
| Net income | $869M | $280M |
| Growth | ||
| Revenue growth | 0.9% | −1.7% |
| 5-year growth | 5.7% | 15.3% |
| Share count change | −1.2% | −0.2% |
| Profitability | ||
| Gross margin | 48.1% | 37.4% |
| Operating margin | 20.4% | 11.5% |
| Net margin | 10.4% | 4.7% |
| FCF margin | 16.3% | 15.1% |
| Return on capital | 20.9% | 4.8% |
| Return on equity | 24.3% | 4.3% |
| Balance sheet | ||
| Net debt | $2.8B | $4.4B |
| Net debt / EBITDA | 1.4x | 3.7x |
| Dividends and buybacks | $1.0B | $93.0M |
| Valuation & quality | ||
| P/E | 40.3x | 31.0x |
| Piotroski F-score | 8 | 8 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.