How do you interpret commercialand industrial systems — goodwill impairment?

An increase signals that previous acquisitions are underperforming or that market conditions have negatively impacted the segment's valuation.

How does commercialand industrial systems — goodwill impairment compare across companies?

Standard impairment metric reported by companies with significant acquisition history.

Regal Rexnord RRX Commercialand Industrial Systems — Goodwill Impairment

Discontinued — last reported Q4 '18

Similar metrics at other companies

MODCommercial And Industrial Solutions — Goodwill Impairment

$0—

GNRCCommercial And Industrial — Goodwill Impairment

$0—

MOG.BIndustrial Systems — Goodwill Impairment

$0—

GGGIndustrial — Goodwill, Impairment Loss

$0—

CWCommercial/Industrial — Goodwill, Impairment Loss

$2.4M—

IES

IESCCommercial and Industrial — Goodwill impairment expense

$0-100%

Other financials

Income statement

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Revenue$1.5B+4.3%

Gross profit$549.9M+4.2%

Operating income$152.7M-4.4%

Net income$64.3M+12.2%

EPS (diluted)$0.96+11.6%

Balance sheet

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Cash & equivalents$401.0M+31.3%

Total debt$5.0B-9.9%

Total equity$6.8B+6.0%

Total assets$13.8B-1.8%

Cash flow

See full

Operating cash flow$14.9M-85.4%

CapEx$17.4M+3.6%

Free cash flow-$2.5M-103%

Valuation

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Market cap$15.1B+65.1%

Enterprise value$19.67B+33.4%

P/E52.7×+13.5×

P/S2.5×+1.0×

Profitability

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Gross margin37.4%+0.7pp

Operating margin11.2%+0.1pp

Net margin4.8%+0.8pp

FCF margin13.4%+4.6pp

Returns & leverage

See full

Return on equity4.3%+0.6pp

Debt / equity0.7×-0.1×

Current ratio2.2×-0.1×

Where this comes from

Reported directly by Regal Rexnord in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: Regal Rexnord’s 10-K, filed February 26, 2019, on SEC EDGAR. View the filing →

Questions, answered.

What does commercialand industrial systems — goodwill impairment mean?: A write-down of the value of acquired businesses within the Commercial and Industrial Systems segment.
How do you interpret commercialand industrial systems — goodwill impairment?: An increase signals that previous acquisitions are underperforming or that market conditions have negatively impacted the segment's valuation.
How does commercialand industrial systems — goodwill impairment compare across companies?: Standard impairment metric reported by companies with significant acquisition history.