ROCKWELL AUTOMATION INC (ROK)
US7739031091 - Common Stock
Overall ROK gets a fundamental rating of 5 out of 10. We evaluated ROK against 91 industry peers in the Electrical Equipment industry. ROK scores excellent on profitability, but there are some minor concerns on its financial health. ROK is valued correctly, but it does not seem to be growing. ROK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ROK had positive earnings in the past year.
ROK had a positive operating cash flow in the past year.
Of the past 5 years ROK 4 years were profitable.
Of the past 5 years ROK 4 years had a positive operating cash flow.
1.2 Ratios
ROK's Return On Assets of 9.04% is amongst the best of the industry. ROK outperforms 91.11% of its industry peers.
The Return On Equity of ROK (30.42%) is better than 95.56% of its industry peers.
ROK's Return On Invested Capital of 14.43% is amongst the best of the industry. ROK outperforms 93.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ROK is above the industry average of 10.64%.
The 3 year average ROIC (14.22%) for ROK is below the current ROIC(14.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.04% | ||
| ROE | 30.42% | ||
| ROIC | 14.43% |
ROA(3y)11.18%
ROA(5y)11.79%
ROE(3y)43.21%
ROE(5y)80.2%
ROIC(3y)14.22%
ROIC(5y)14.24%
1.3 Margins
The Profit Margin of ROK (11.51%) is better than 88.89% of its industry peers.
In the last couple of years the Profit Margin of ROK has grown nicely.
ROK has a better Operating Margin (16.34%) than 92.22% of its industry peers.
In the last couple of years the Operating Margin of ROK has declined.
The Gross Margin of ROK (39.56%) is better than 90.00% of its industry peers.
ROK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.34% | ||
| PM (TTM) | 11.51% | ||
| GM | 39.56% |
OM growth 3Y1.42%
OM growth 5Y-4.19%
PM growth 3Y-1.88%
PM growth 5Y13.7%
GM growth 3Y0.03%
GM growth 5Y-1.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ROK is creating some value.
ROK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
ROK has an Altman-Z score of 4.82. This indicates that ROK is financially healthy and has little risk of bankruptcy at the moment.
ROK's Altman-Z score of 4.82 is amongst the best of the industry. ROK outperforms 83.33% of its industry peers.
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.
With a decent Debt to FCF ratio value of 3.52, ROK is doing good in the industry, outperforming 74.44% of the companies in the same industry.
A Debt/Equity ratio of 1.02 is on the high side and indicates that ROK has dependencies on debt financing.
ROK has a worse Debt to Equity ratio (1.02) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 4.82 |
ROIC/WACC1.49
WACC9.7%
2.3 Liquidity
A Current Ratio of 1.04 indicates that ROK should not have too much problems paying its short term obligations.
ROK's Current ratio of 1.04 is on the low side compared to the rest of the industry. ROK is outperformed by 82.22% of its industry peers.
A Quick Ratio of 0.68 indicates that ROK may have some problems paying its short term obligations.
ROK has a Quick ratio of 0.68. This is in the lower half of the industry: ROK underperforms 78.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The earnings per share for ROK have decreased strongly by -19.80% in the last year.
Measured over the past 5 years, ROK shows a small growth in Earnings Per Share. The EPS has been growing by 2.34% on average per year.
EPS 1Y (TTM)-19.8%
EPS 3Y1.01%
EPS 5Y2.34%
EPS Q2Q%-32.14%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-20.58%
3.2 Future
The Earnings Per Share is expected to grow by 17.86% on average over the next years. This is quite good.
ROK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.21% yearly.
EPS Next Y6.49%
EPS Next 2Y10.26%
EPS Next 3Y12.05%
EPS Next 5Y17.86%
Revenue Next Year1.76%
Revenue Next 2Y3.61%
Revenue Next 3Y4.95%
Revenue Next 5Y7.21%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.63, the valuation of ROK can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ROK indicates a somewhat cheap valuation: ROK is cheaper than 71.11% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, ROK is valued at the same level.
Based on the Price/Forward Earnings ratio of 26.89, the valuation of ROK can be described as expensive.
Based on the Price/Forward Earnings ratio, ROK is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
ROK's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.63 | ||
| Fwd PE | 26.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROK is valued a bit cheaper than the industry average as 74.44% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ROK is valued a bit cheaper than 74.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.13 | ||
| EV/EBITDA | 19.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ROK may justify a higher PE ratio.
A more expensive valuation may be justified as ROK's earnings are expected to grow with 12.05% in the coming years.
PEG (NY)4.41
PEG (5Y)12.26
EPS Next 2Y10.26%
EPS Next 3Y12.05%
5. Dividend
5.1 Amount
ROK has a Yearly Dividend Yield of 1.83%. Purely for dividend investing, there may be better candidates out there.
ROK's Dividend Yield is rather good when compared to the industry average which is at 2.18. ROK pays more dividend than 95.56% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, ROK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
5.2 History
The dividend of ROK has a limited annual growth rate of 5.95%.
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.
Dividend Growth(5Y)5.95%
Div Incr Years14
Div Non Decr Years25
5.3 Sustainability
ROK pays out 55.83% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of ROK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP55.83%
EPS Next 2Y10.26%
EPS Next 3Y12.05%
ROCKWELL AUTOMATION INC
NYSE:ROK (11/21/2024, 8:04:00 PM)
After market: 278.3 0 (0%)278.3
-1.78 (-0.64%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap31.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.63 | ||
| Fwd PE | 26.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.41
PEG (5Y)12.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.04% | ||
| ROE | 30.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.34% | ||
| PM (TTM) | 11.51% | ||
| GM | 39.56% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-19.8%
EPS 3Y1.01%
EPS 5Y
EPS Q2Q%
EPS Next Y6.49%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y