ROCKWELL AUTOMATION INC (ROK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ROK - US7739031091 - Common Stock
398.39 USD
-0.45 (-0.11%)
Taking everything into account, ROK scores 6 out of 10 in our fundamental rating. ROK was compared to 91 industry peers in the Electrical Equipment industry. ROK scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
In the past year ROK had a positive cash flow from operations.
In the past 5 years ROK has always been profitable.
In the past 5 years ROK always reported a positive cash flow from operatings.
1.2 Ratios
ROK has a better Return On Assets (7.73%) than 84.62% of its industry peers.
ROK's Return On Equity of 23.73% is amongst the best of the industry. ROK outperforms 94.51% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.89%, ROK belongs to the top of the industry, outperforming 91.21% of the companies in the same industry.
ROK had an Average Return On Invested Capital over the past 3 years of 14.04%. This is above the industry average of 9.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.73% | ||
| ROE | 23.73% | ||
| ROIC | 12.89% |
ROA(3y)9.46%
ROA(5y)9.94%
ROE(3y)29.87%
ROE(5y)36.09%
ROIC(3y)14.04%
ROIC(5y)13.73%
1.3 Margins
Looking at the Profit Margin, with a value of 10.39%, ROK belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
ROK's Profit Margin has declined in the last couple of years.
ROK's Operating Margin of 15.43% is amongst the best of the industry. ROK outperforms 87.91% of its industry peers.
ROK's Operating Margin has declined in the last couple of years.
ROK has a Gross Margin of 48.14%. This is amongst the best in the industry. ROK outperforms 92.31% of its industry peers.
In the last couple of years the Gross Margin of ROK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.43% | ||
| PM (TTM) | 10.39% | ||
| GM | 48.14% |
OM growth 3Y-3.43%
OM growth 5Y-1.99%
PM growth 3Y-4.61%
PM growth 5Y-8.43%
GM growth 3Y6.4%
GM growth 5Y3.27%
2. Health
2.1 Basic Checks
ROK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ROK has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ROK has less shares outstanding
Compared to 1 year ago, ROK has an improved debt to assets ratio.
2.2 Solvency
ROK has an Altman-Z score of 5.40. This indicates that ROK is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.40, ROK belongs to the top of the industry, outperforming 80.22% of the companies in the same industry.
ROK has a debt to FCF ratio of 2.37. This is a good value and a sign of high solvency as ROK would need 2.37 years to pay back of all of its debts.
ROK has a better Debt to FCF ratio (2.37) than 84.62% of its industry peers.
ROK has a Debt/Equity ratio of 0.88. This is a neutral value indicating ROK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.88, ROK is doing worse than 62.64% of the companies in the same industry.
Although ROK does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 2.37 | ||
| Altman-Z | 5.4 |
ROIC/WACC1.52
WACC8.46%
2.3 Liquidity
ROK has a Current Ratio of 1.14. This is a normal value and indicates that ROK is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ROK (1.14) is worse than 70.33% of its industry peers.
ROK has a Quick Ratio of 1.14. This is a bad value and indicates that ROK is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.77, ROK is not doing good in the industry: 67.03% of the companies in the same industry are doing better.
ROK does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
ROK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.41%.
ROK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.33% yearly.
Looking at the last year, ROK shows a small growth in Revenue. The Revenue has grown by 0.94% in the last year.
ROK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.68% yearly.
EPS 1Y (TTM)7.41%
EPS 3Y3.2%
EPS 5Y6.33%
EPS Q2Q%35.22%
Revenue 1Y (TTM)0.94%
Revenue growth 3Y2.44%
Revenue growth 5Y5.68%
Sales Q2Q%13.78%
3.2 Future
Based on estimates for the next years, ROK will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.11% on average per year.
The Revenue is expected to grow by 6.35% on average over the next years.
EPS Next Y15.57%
EPS Next 2Y14.67%
EPS Next 3Y13.85%
EPS Next 5Y11.11%
Revenue Next Year7.49%
Revenue Next 2Y6.74%
Revenue Next 3Y6.69%
Revenue Next 5Y6.35%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 38.16, ROK can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ROK is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ROK to the average of the S&P500 Index (26.50), we can say ROK is valued slightly more expensively.
ROK is valuated quite expensively with a Price/Forward Earnings ratio of 33.02.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROK indicates a somewhat cheap valuation: ROK is cheaper than 69.23% of the companies listed in the same industry.
ROK is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.93, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.16 | ||
| Fwd PE | 33.02 |
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 70.33% of the companies listed in the same industry.
ROK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ROK is cheaper than 74.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.94 | ||
| EV/EBITDA | 29.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ROK does not grow enough to justify the current Price/Earnings ratio.
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 13.85% in the coming years.
PEG (NY)2.45
PEG (5Y)6.03
EPS Next 2Y14.67%
EPS Next 3Y13.85%
5. Dividend
5.1 Amount
ROK has a Yearly Dividend Yield of 1.41%.
ROK's Dividend Yield is rather good when compared to the industry average which is at 0.28. ROK pays more dividend than 93.41% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 1.87, ROK is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
The dividend of ROK has a limited annual growth rate of 5.15%.
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)5.15%
Div Incr Years15
Div Non Decr Years26
5.3 Sustainability
68.17% 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.
DP68.17%
EPS Next 2Y14.67%
EPS Next 3Y13.85%
NYSE:ROK (12/24/2025, 11:33:55 AM)
398.39
-0.45 (-0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners86.72%
Inst Owner Change5.62%
Ins Owners0.17%
Ins Owner Change1.11%
Market Cap44.73B
Revenue(TTM)8.34B
Net Income(TTM)867.00M
Analysts75.15
Price TargetN/A
Short Float %2.57%
Short Ratio3.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend5.24
Dividend Growth(5Y)5.15%
DP68.17%
Div Incr Years15
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.62%
Min EPS beat(2)4.56%
Max EPS beat(2)12.68%
EPS beat(4)4
Avg EPS beat(4)11.82%
Min EPS beat(4)4.56%
Max EPS beat(4)15.82%
EPS beat(8)7
Avg EPS beat(8)8.66%
EPS beat(12)10
Avg EPS beat(12)9.34%
EPS beat(16)13
Avg EPS beat(16)6.74%
Revenue beat(2)2
Avg Revenue beat(2)3.46%
Min Revenue beat(2)2.78%
Max Revenue beat(2)4.14%
Revenue beat(4)3
Avg Revenue beat(4)1.72%
Min Revenue beat(4)-1%
Max Revenue beat(4)4.14%
Revenue beat(8)4
Avg Revenue beat(8)0.27%
Revenue beat(12)7
Avg Revenue beat(12)0.88%
Revenue beat(16)8
Avg Revenue beat(16)0.03%
PT rev (1m)9.81%
PT rev (3m)11.77%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)2.78%
EPS NY rev (1m)3.89%
EPS NY rev (3m)4.36%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.16 | ||
| Fwd PE | 33.02 | ||
| P/S | 5.36 | ||
| P/FCF | 32.94 | ||
| P/OCF | 28.97 | ||
| P/B | 12.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.11 |
EPS(TTM)10.44
EY2.62%
EPS(NY)12.07
Fwd EY3.03%
FCF(TTM)12.1
FCFY3.04%
OCF(TTM)13.75
OCFY3.45%
SpS74.3
BVpS32.55
TBVpS-9.34
PEG (NY)2.45
PEG (5Y)6.03
Graham Number87.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.73% | ||
| ROE | 23.73% | ||
| ROCE | 16.56% | ||
| ROIC | 12.89% | ||
| ROICexc | 13.65% | ||
| ROICexgc | 33.64% | ||
| OM | 15.43% | ||
| PM (TTM) | 10.39% | ||
| GM | 48.14% | ||
| FCFM | 16.28% |
ROA(3y)9.46%
ROA(5y)9.94%
ROE(3y)29.87%
ROE(5y)36.09%
ROIC(3y)14.04%
ROIC(5y)13.73%
ROICexc(3y)15.4%
ROICexc(5y)14.97%
ROICexgc(3y)40.79%
ROICexgc(5y)39.65%
ROCE(3y)17.7%
ROCE(5y)17.31%
ROICexgc growth 3Y-7.6%
ROICexgc growth 5Y-0.38%
ROICexc growth 3Y-4.85%
ROICexc growth 5Y-6.39%
OM growth 3Y-3.43%
OM growth 5Y-1.99%
PM growth 3Y-4.61%
PM growth 5Y-8.43%
GM growth 3Y6.4%
GM growth 5Y3.27%
F-Score7
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 2.37 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 57.23% | ||
| Cap/Sales | 2.23% | ||
| Interest Coverage | 8.2 | ||
| Cash Conversion | 95.78% | ||
| Profit Quality | 156.63% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 5.4 |
F-Score7
WACC8.46%
ROIC/WACC1.52
Cap/Depr(3y)64.04%
Cap/Depr(5y)62.91%
Cap/Sales(3y)2.24%
Cap/Sales(5y)2.05%
Profit Quality(3y)103.98%
Profit Quality(5y)93.89%
High Growth Momentum
Growth
EPS 1Y (TTM)7.41%
EPS 3Y3.2%
EPS 5Y6.33%
EPS Q2Q%35.22%
EPS Next Y15.57%
EPS Next 2Y14.67%
EPS Next 3Y13.85%
EPS Next 5Y11.11%
Revenue 1Y (TTM)0.94%
Revenue growth 3Y2.44%
Revenue growth 5Y5.68%
Sales Q2Q%13.78%
Revenue Next Year7.49%
Revenue Next 2Y6.74%
Revenue Next 3Y6.69%
Revenue Next 5Y6.35%
EBIT growth 1Y3.96%
EBIT growth 3Y-1.07%
EBIT growth 5Y3.57%
EBIT Next Year41.85%
EBIT Next 3Y19.13%
EBIT Next 5Y11.76%
FCF growth 1Y112.49%
FCF growth 3Y25.81%
FCF growth 5Y6.17%
OCF growth 1Y78.75%
OCF growth 3Y23.33%
OCF growth 5Y6.62%
ROCKWELL AUTOMATION INC / ROK FAQ
Can you provide the ChartMill fundamental rating for ROCKWELL AUTOMATION INC?
ChartMill assigns a fundamental rating of 6 / 10 to ROK.
What is the valuation status of ROCKWELL AUTOMATION INC (ROK) stock?
ChartMill assigns a valuation rating of 4 / 10 to ROCKWELL AUTOMATION INC (ROK). This can be considered as Fairly Valued.
How profitable is ROCKWELL AUTOMATION INC (ROK) stock?
ROCKWELL AUTOMATION INC (ROK) has a profitability rating of 8 / 10.
What is the financial health of ROCKWELL AUTOMATION INC (ROK) stock?
The financial health rating of ROCKWELL AUTOMATION INC (ROK) is 7 / 10.
How sustainable is the dividend of ROCKWELL AUTOMATION INC (ROK) stock?
The dividend rating of ROCKWELL AUTOMATION INC (ROK) is 6 / 10 and the dividend payout ratio is 68.17%.