ROCKWELL AUTOMATION INC (ROK)
US7739031091 - Common Stock
ROK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 88 industry peers in the Electrical Equipment industry. While ROK has a great profitability rating, there are some minor concerns on its financial health. ROK is not valued too expensively and it also shows a decent growth rate.
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
ROK has a Return On Assets of 8.44%. This is amongst the best in the industry. ROK outperforms 90.91% of its industry peers.
ROK's Return On Equity of 27.10% is amongst the best of the industry. ROK outperforms 95.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.89%, ROK belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
ROK had an Average Return On Invested Capital over the past 3 years of 14.47%. This is significantly above the industry average of 9.38%.
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
With an excellent Profit Margin value of 11.47%, ROK belongs to the best of the industry, outperforming 89.77% of the companies in the same industry.
In the last couple of years the Profit Margin of ROK has grown nicely.
ROK has a Operating Margin of 14.98%. This is amongst the best in the industry. ROK outperforms 88.64% of its industry peers.
ROK's Operating Margin has improved in the last couple of years.
ROK has a better Gross Margin (38.64%) than 89.77% 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.
Compared to 1 year ago, ROK has less shares outstanding
The number of shares outstanding for ROK has been reduced compared to 5 years ago.
ROK has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of ROK is 5.69, which is a neutral value as it means it would take ROK, 5.69 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ROK (5.69) is better than 70.45% 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.
ROK has a worse Debt to Equity ratio (1.04) than 70.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | 5.69 | ||
| Altman-Z | N/A |
ROIC/WACC1
WACC9.87%
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 of 1.84. This is comparable to the rest of the industry: ROK outperforms 46.59% of its industry peers.
A Quick Ratio of 1.17 indicates that ROK should not have too much problems paying its short term obligations.
ROK's Quick ratio of 1.17 is in line compared to the rest of the industry. ROK outperforms 43.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
ROK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.80%.
ROK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.34% yearly.
The Revenue has decreased by -8.76% in the past 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.
Based on estimates for the next years, ROK will show a small growth in Revenue. The Revenue will grow by 5.31% on average per year.
EPS Next Y-3.57%
EPS Next 2Y6.97%
EPS Next 3Y9.67%
EPS Next 5Y11.57%
Revenue Next Year-1.43%
Revenue Next 2Y2.44%
Revenue Next 3Y4.12%
Revenue Next 5Y5.31%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.81, the valuation of ROK can be described as expensive.
Based on the Price/Earnings ratio, ROK is valued a bit cheaper than 71.59% of the companies in the same industry.
ROK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 30.92 indicates a quite expensive valuation of ROK.
ROK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ROK is cheaper than 71.59% of the companies in the same industry.
ROK is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.81 | ||
| Fwd PE | 30.92 |
4.2 Price Multiples
70.45% of the companies in the same industry are more expensive than ROK, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROK indicates a somewhat cheap valuation: ROK is cheaper than 69.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.19 | ||
| EV/EBITDA | 22.38 |
4.3 Compensation for Growth
The excellent profitability rating of ROK may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)12.76
EPS Next 2Y6.97%
EPS Next 3Y9.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.83%, ROK has a reasonable but not impressive dividend return.
ROK's Dividend Yield is rather good when compared to the industry average which is at 2.89. ROK pays more dividend than 95.45% of the companies in the same industry.
ROK's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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
ROK pays out 60.23% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ROK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP60.23%
EPS Next 2Y6.97%
EPS Next 3Y9.67%
ROCKWELL AUTOMATION INC
NYSE:ROK (12/20/2024, 8:04:00 PM)
After market: 289.79 0 (0%)289.79
+3.79 (+1.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners85.25%
Inst Owner Change0.78%
Ins Owners0.16%
Ins Owner Change2.02%
Market Cap32.72B
Analysts67.88
Price Target289.71 (-0.03%)
Short Float %2.27%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Dividend Growth(5Y)5.23%
DP60.23%
Div Incr Years15
Div Non Decr Years26
Ex-Date
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)3.29%
PT rev (3m)6.01%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-35.55%
EPS NY rev (1m)-9.45%
EPS NY rev (3m)-14.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.16%
Revenue NY rev (1m)-3.13%
Revenue NY rev (3m)-5.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.81 | ||
| Fwd PE | 30.92 | ||
| P/S | 3.96 | ||
| P/FCF | 51.19 | ||
| P/OCF | 37.88 | ||
| P/B | 9.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.38 |
EPS(TTM)9.72
EY3.35%
EPS(NY)9.37
Fwd EY3.23%
FCF(TTM)5.66
FCFY1.95%
OCF(TTM)7.65
OCFY2.64%
SpS73.2
BVpS30.99
TBVpS-13.83
PEG (NY)N/A
PEG (5Y)12.76
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
WACC9.87%
ROIC/WACC1
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 2Y2.44%
Revenue Next 3Y4.12%
Revenue Next 5Y5.31%
EBIT growth 1Y-23.22%
EBIT growth 3Y2.43%
EBIT growth 5Y14.83%
EBIT Next Year23.42%
EBIT Next 3Y15.88%
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%