ROCKWELL AUTOMATION INC (ROK) Stock Fundamental Analysis
NYSE:ROK - New York Stock Exchange, Inc. - US7739031091 - Common Stock
Taking everything into account, ROK scores 6 out of 10 in our fundamental rating. ROK was compared to 93 industry peers in the Electrical Equipment industry. ROK has an excellent profitability rating, but there are some minor concerns on its financial health. ROK has a decent growth rate and is not valued too expensively.
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.
In the past 5 years ROK has always been profitable.
ROK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.44%, ROK belongs to the best of the industry, outperforming 90.11% of the companies in the same industry.
ROK has a Return On Equity of 27.10%. This is amongst the best in the industry. ROK outperforms 94.51% of its industry peers.
ROK's Return On Invested Capital of 9.89% is amongst the best of the industry. ROK outperforms 86.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ROK is above the industry average of 10.46%.
The last Return On Invested Capital (9.89%) for ROK is well below the 3 year average (14.47%), which needs to be investigated, but indicates that ROK had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.44% | ||
| ROE | 27.1% | ||
| ROIC | 9.89% |
ROA(3y)9.77%
ROA(5y)11.21%
ROE(3y)33.33%
ROE(5y)51.23%
ROIC(3y)14.47%
ROIC(5y)14.27%
1.3 Margins
ROK's Profit Margin of 11.47% is amongst the best of the industry. ROK outperforms 89.01% of its industry peers.
In the last couple of years the Profit Margin of ROK has grown nicely.
Looking at the Operating Margin, with a value of 14.98%, ROK belongs to the top of the industry, outperforming 87.91% of the companies in the same industry.
ROK's Operating Margin has improved in the last couple of years.
The Gross Margin of ROK (38.64%) is better than 90.11% of its industry peers.
In the last couple of years the Gross Margin of ROK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.98% | ||
| PM (TTM) | 11.47% | ||
| GM | 38.64% |
OM growth 3Y-3.09%
OM growth 5Y10.1%
PM growth 3Y-16.03%
PM growth 5Y2.02%
GM growth 3Y-2.28%
GM growth 5Y-2.26%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ROK is still creating some value.
ROK has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ROK has been reduced compared to 5 years ago.
Compared to 1 year ago, ROK has a worse debt to assets ratio.
2.2 Solvency
ROK has a debt to FCF ratio of 5.69. This is a neutral value as ROK would need 5.69 years to pay back of all of its debts.
ROK has a better Debt to FCF ratio (5.69) than 71.43% of its industry peers.
A Debt/Equity ratio of 1.04 is on the high side and indicates that ROK has dependencies on debt financing.
The Debt to Equity ratio of ROK (1.04) is worse than 70.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.69 | ||
| Altman-Z | N/A |
ROIC/WACC0.93
WACC10.67%
2.3 Liquidity
ROK has a Current Ratio of 1.84. This is a normal value and indicates that ROK is financially healthy and should not expect problems in meeting its short term obligations.
ROK has a Current ratio (1.84) which is comparable to the rest of the industry.
ROK has a Quick Ratio of 1.17. This is a normal value and indicates that ROK is financially healthy and should not expect problems in meeting its short term obligations.
ROK has a Quick ratio (1.17) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The earnings per share for ROK have decreased strongly by -19.80% in the last year.
The Earnings Per Share has been growing slightly by 2.34% on average over the past years.
Looking at the last year, ROK shows a decrease in Revenue. The Revenue has decreased by -8.76% in the last year.
Measured over the past years, ROK shows a small growth in Revenue. The Revenue has been growing by 4.30% on average per year.
EPS 1Y (TTM)-19.8%
EPS 3Y1.01%
EPS 5Y2.34%
EPS Q2Q%-32.14%
Revenue 1Y (TTM)-8.76%
Revenue growth 3Y5.7%
Revenue growth 5Y4.3%
Sales Q2Q%-20.58%
3.2 Future
ROK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.57% yearly.
ROK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.31% yearly.
EPS Next Y-3.57%
EPS Next 2Y6.97%
EPS Next 3Y9.67%
EPS Next 5Y11.57%
Revenue Next Year-1.43%
Revenue Next 2Y2.46%
Revenue Next 3Y4.12%
Revenue Next 5Y5.31%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.91, the valuation of ROK can be described as expensive.
Based on the Price/Earnings ratio, ROK is valued a bit cheaper than 73.63% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, ROK is valued at the same level.
The Price/Forward Earnings ratio is 31.02, which means the current valuation is very expensive for ROK.
Based on the Price/Forward Earnings ratio, ROK is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
ROK's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.91 | ||
| Fwd PE | 31.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ROK indicates a somewhat cheap valuation: ROK is cheaper than 71.43% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROK indicates a somewhat cheap valuation: ROK is cheaper than 70.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.43 | ||
| EV/EBITDA | 22.17 |
4.3 Compensation for Growth
ROK has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)12.8
EPS Next 2Y6.97%
EPS Next 3Y9.67%
5. Dividend
5.1 Amount
ROK has a Yearly Dividend Yield of 1.87%.
ROK's Dividend Yield is rather good when compared to the industry average which is at 3.40. ROK pays more dividend than 95.60% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, ROK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
The dividend of ROK has a limited annual growth rate of 5.23%.
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)5.23%
Div Incr Years15
Div Non Decr Years26
5.3 Sustainability
60.23% of the earnings are spent on dividend by ROK. This is not a sustainable payout ratio.
ROK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP60.23%
EPS Next 2Y6.97%
EPS Next 3Y9.67%
ROCKWELL AUTOMATION INC
NYSE:ROK (1/21/2025, 8:24:30 PM)
After market: 290.77 0 (0%)290.77
+4.17 (+1.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners85.25%
Inst Owner Change-0.92%
Ins Owners0.16%
Ins Owner Change1.94%
Market Cap32.87B
Analysts69.09
Price Target298.93 (2.81%)
Short Float %2.67%
Short Ratio3.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
Yearly Dividend5.01
Dividend Growth(5Y)5.23%
DP60.23%
Div Incr Years15
Div Non Decr Years26
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.36%
Min EPS beat(2)1.59%
Max EPS beat(2)29.13%
EPS beat(4)3
Avg EPS beat(4)5.5%
Min EPS beat(4)-23.44%
Max EPS beat(4)29.13%
EPS beat(8)6
Avg EPS beat(8)8.1%
EPS beat(12)9
Avg EPS beat(12)5.05%
EPS beat(16)13
Avg EPS beat(16)6.98%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-2.42%
Max Revenue beat(2)-1.51%
Revenue beat(4)1
Avg Revenue beat(4)-1.18%
Min Revenue beat(4)-3.2%
Max Revenue beat(4)2.41%
Revenue beat(8)4
Avg Revenue beat(8)0.46%
Revenue beat(12)5
Avg Revenue beat(12)-0.53%
Revenue beat(16)7
Avg Revenue beat(16)-0.83%
PT rev (1m)3.18%
PT rev (3m)8.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-35.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.91 | ||
| Fwd PE | 31.02 | ||
| P/S | 3.98 | ||
| P/FCF | 51.43 | ||
| P/OCF | 38.05 | ||
| P/B | 9.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.17 |
EPS(TTM)9.72
EY3.34%
EPS(NY)9.37
Fwd EY3.22%
FCF(TTM)5.65
FCFY1.94%
OCF(TTM)7.64
OCFY2.63%
SpS73.12
BVpS30.95
TBVpS-13.81
PEG (NY)N/A
PEG (5Y)12.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.44% | ||
| ROE | 27.1% | ||
| ROCE | 13.32% | ||
| ROIC | 9.89% | ||
| ROICexc | 10.36% | ||
| ROICexgc | 21.18% | ||
| OM | 14.98% | ||
| PM (TTM) | 11.47% | ||
| GM | 38.64% | ||
| FCFM | 7.73% |
ROA(3y)9.77%
ROA(5y)11.21%
ROE(3y)33.33%
ROE(5y)51.23%
ROIC(3y)14.47%
ROIC(5y)14.27%
ROICexc(3y)15.92%
ROICexc(5y)15.82%
ROICexgc(3y)43.2%
ROICexgc(5y)39.24%
ROCE(3y)18.35%
ROCE(5y)17.96%
ROICexcg growth 3Y2.91%
ROICexcg growth 5Y5.23%
ROICexc growth 3Y0.81%
ROICexc growth 5Y-4.72%
OM growth 3Y-3.09%
OM growth 5Y10.1%
PM growth 3Y-16.03%
PM growth 5Y2.02%
GM growth 3Y-2.28%
GM growth 5Y-2.26%
F-Score5
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.69 | ||
| Debt/EBITDA | 2.34 | ||
| Cap/Depr | 70.79% | ||
| Cap/Sales | 2.72% | ||
| Interest Coverage | 8.08 | ||
| Cash Conversion | 55.54% | ||
| Profit Quality | 67.41% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | N/A |
F-Score5
WACC10.67%
ROIC/WACC0.93
Cap/Depr(3y)64.65%
Cap/Depr(5y)64.66%
Cap/Sales(3y)2.1%
Cap/Sales(5y)1.97%
Profit Quality(3y)76.22%
Profit Quality(5y)82.26%
High Growth Momentum
Growth
EPS 1Y (TTM)-19.8%
EPS 3Y1.01%
EPS 5Y2.34%
EPS Q2Q%-32.14%
EPS Next Y-3.57%
EPS Next 2Y6.97%
EPS Next 3Y9.67%
EPS Next 5Y11.57%
Revenue 1Y (TTM)-8.76%
Revenue growth 3Y5.7%
Revenue growth 5Y4.3%
Sales Q2Q%-20.58%
Revenue Next Year-1.43%
Revenue Next 2Y2.46%
Revenue Next 3Y4.12%
Revenue Next 5Y5.31%
EBIT growth 1Y-23.22%
EBIT growth 3Y2.43%
EBIT growth 5Y14.83%
EBIT Next Year22.56%
EBIT Next 3Y15.43%
EBIT Next 5Y14.21%
FCF growth 1Y-47.36%
FCF growth 3Y-17.56%
FCF growth 5Y-9.44%
OCF growth 1Y-37.16%
OCF growth 3Y-11.85%
OCF growth 5Y-6.08%