Why NYSE:ROK provides a good dividend, while having solid fundamentals.

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.

How do we evaluate the Dividend for NYSE:ROK?

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:ROK has been awarded a 7 for its dividend quality:

• Compared to an average industry Dividend Yield of 2.34, ROK pays a better dividend. On top of this ROK pays more dividend than 94.44% of the companies listed in the same industry.
• ROK has paid a dividend for at least 10 years, which is 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.

How We Gauge Health for NYSE:ROK

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:ROK was assigned a score of 5 for health:

• An Altman-Z score of 4.77 indicates that ROK is not in any danger for bankruptcy at the moment.
• ROK has a Altman-Z score of 4.77. This is amongst the best in the industry. ROK outperforms 82.22% of its industry peers.
• ROK has a debt to FCF ratio of 3.52. This is a good value and a sign of high solvency as ROK would need 3.52 years to pay back of all of its debts.
• ROK has a better Debt to FCF ratio (3.52) than 73.33% of its industry peers.

How do we evaluate the Profitability for NYSE:ROK?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:ROK has achieved a 9:

• Looking at the Return On Assets, with a value of 9.04%, ROK belongs to the top of the industry, outperforming 87.78% of the companies in the same industry.
• The Return On Equity of ROK (30.42%) is better than 95.56% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 14.43%, ROK belongs to the top of the industry, outperforming 95.56% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for ROK is above the industry average of 10.97%.
• The 3 year average ROIC (14.22%) for ROK is below the current ROIC(14.43%), indicating increased profibility in the last year.
• The Profit Margin of ROK (11.51%) is better than 90.00% of its industry peers.
• ROK's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 16.34%, ROK belongs to the top of the industry, outperforming 92.22% of the companies in the same industry.
• Looking at the Gross Margin, with a value of 39.56%, ROK belongs to the top of the industry, outperforming 91.11% of the companies in the same industry.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

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.