Balancing Dividends and Fundamentals: The Case of NYSE:ROK.

Last update: Jun 25, 2024

Our stock screening tool has identified ROCKWELL AUTOMATION INC (NYSE:ROK) as a strong dividend contender with robust fundamentals. NYSE:ROK exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

A Closer Look at Dividend for NYSE:ROK

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:ROK scores a 7 out of 10:

ROK's Dividend Yield is rather good when compared to the industry average which is at 2.28. ROK pays more dividend than 93.02% of the companies in the same industry.
ROK has paid a dividend for at least 10 years, which is a reliable track record.
ROK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
ROK's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Evaluating Health: NYSE:ROK

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:ROK, the assigned 5 reflects its health status:

ROK has an Altman-Z score of 4.77. This indicates that ROK is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ROK (4.77) is better than 81.40% of its industry peers.
The Debt to FCF ratio of ROK is 3.50, which is a good value as it means it would take ROK, 3.50 years of fcf income to pay off all of its debts.
ROK's Debt to FCF ratio of 3.50 is fine compared to the rest of the industry. ROK outperforms 74.42% of its industry peers.

Profitability Assessment of NYSE:ROK

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:ROK, the assigned 9 is a significant indicator of profitability:

With an excellent Return On Assets value of 10.39%, ROK belongs to the best of the industry, outperforming 90.70% of the companies in the same industry.
ROK has a better Return On Equity (33.31%) than 96.51% of its industry peers.
The Return On Invested Capital of ROK (15.23%) is better than 94.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ROK is above the industry average of 11.21%.
The last Return On Invested Capital (15.23%) for ROK is above the 3 year average (14.22%), which is a sign of increasing profitability.
ROK's Profit Margin of 13.15% is amongst the best of the industry. ROK outperforms 90.70% of its industry peers.
ROK's Profit Margin has improved in the last couple of years.
ROK has a Operating Margin of 17.34%. This is amongst the best in the industry. ROK outperforms 91.86% of its industry peers.
Looking at the Gross Margin, with a value of 40.08%, ROK belongs to the top of the industry, outperforming 90.70% of the companies in the same industry.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of ROK

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.