Why NYSE:ROK is a Top Pick for Dividend Investors.

ROCKWELL AUTOMATION INC (NYSE:ROK) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:ROK demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Analyzing Dividend Metrics

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:ROK was assigned a score of 7 for dividend:

• ROK's Dividend Yield is rather good when compared to the industry average which is at 2.37. ROK pays more dividend than 94.57% of the companies in the same industry.
• ROK has been paying a dividend for at least 10 years, so it has a reliable track record.
• ROK has not decreased their dividend for at least 10 years, which is a reliable track record.
• ROK's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Health Assessment of NYSE:ROK

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:ROK, the assigned 5 for health provides valuable insights:

• An Altman-Z score of 4.65 indicates that ROK is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.65, ROK belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
• The Debt to FCF ratio of ROK is 3.52, which is a good value as it means it would take ROK, 3.52 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 3.52, ROK is in the better half of the industry, outperforming 73.91% of the companies in the same industry.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:ROK scores a 9 out of 10:

• ROK's Return On Assets of 9.04% is amongst the best of the industry. ROK outperforms 88.04% of its industry peers.
• ROK's Return On Equity of 30.42% is amongst the best of the industry. ROK outperforms 95.65% of its industry peers.
• The Return On Invested Capital of ROK (14.43%) is better than 95.65% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for ROK is above the industry average of 11.16%.
• The 3 year average ROIC (14.22%) for ROK is below the current ROIC(14.43%), indicating increased profibility in the last year.
• ROK's Profit Margin of 11.51% is amongst the best of the industry. ROK outperforms 90.22% of its industry peers.
• ROK's Profit Margin has improved in the last couple of years.
• ROK has a better Operating Margin (16.34%) than 92.39% of its industry peers.
• The Gross Margin of ROK (39.56%) is better than 90.22% of its industry peers.

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Check the latest full fundamental report of ROK for a complete fundamental analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.