RRX Stock Analysis — RRX
Sector: Industrials
AI Verdict
RRX trades at 16.5x next year's earnings with triple-digit EPS growth expected, so it's cheap for the growth you're getting if its entrenched automation contracts keep delivering.
Competitive Moat
RRX specializes in mission-critical industrial automation and control systems, embedding its technology deep within customer operations. Its defensibility comes from high switching costs and long-term service contracts that make it difficult for customers to replace RRX solutions without major operational disruptions.
Summary
RRX is drawing attention for a projected 156.8% jump in earnings next year, slashing its forward P/E to 16.5x.
Where It Stands
RRX trades at 16.5x next year's earnings, well below the 20x industrials sector median, with analysts forecasting 156.8% EPS growth — a rare combination of low multiple and explosive growth.
Key Metrics
- Trailing P/E: 42.3x
- Forward P/E: 16.5x
- PEG Ratio: 0.27
- Earnings Growth: +1.6%
- Revenue Growth: +0.0%
- Dividend Yield: 0.01%
- 52-Week High: $247.80
- 52-Week Low: $127.96
Analyst Consensus
14 Buy · 2 Hold · 0 Sell (16 analysts)
Bull Case
With a forward P/E of 16.5x and consensus for 156.8% EPS growth, you're paying a bargain price for the jump in profitability if those estimates hold.
Bear Case
If the 156.8% EPS surge fails to materialize, the trailing P/E of 42.3x leaves plenty of room for the stock to fall back toward the sector median of 20x, implying a potential halving in valuation.
Catalyst to Watch
Watch for the next earnings release — any sign that EPS growth is tracking below the 156.8% forecast could trigger a sharp rerating.