LSE:ROR

Stock Analysis Report

Executive Summary

Rotork plc designs, manufactures, and markets actuators and flow control products worldwide.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Rotork's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.0%

ROR

-2.7%

GB Machinery

-0.4%

GB Market


1 Year Return

-0.1%

ROR

-2.2%

GB Machinery

2.9%

GB Market

Return vs Industry: ROR exceeded the UK Machinery industry which returned -2.2% over the past year.

Return vs Market: ROR underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

RORIndustryMarket
7 Day-3.0%-2.7%-0.4%
30 Day-6.5%-7.6%-1.4%
90 Day-1.6%-9.3%-2.1%
1 Year1.9%-0.1%0.7%-2.2%7.9%2.9%
3 Year46.5%38.0%18.1%9.4%18.0%3.6%
5 Year34.2%20.2%23.0%6.3%35.8%6.4%

Price Volatility Vs. Market

How volatile is Rotork's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rotork undervalued compared to its fair value and its price relative to the market?

28.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: ROR (£2.99) is trading above our estimate of fair value (£2.12)

Significantly Undervalued: ROR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ROR is poor value based on its PE Ratio (28.8x) compared to the Machinery industry average (17.7x).

PE vs Market: ROR is poor value based on its PE Ratio (28.8x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: ROR is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: ROR is overvalued based on its PB Ratio (5.1x) compared to the GB Machinery industry average (1.8x).


Next Steps

Future Growth

How is Rotork forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROR's forecast earnings growth (11.2% per year) is above the savings rate (1.2%).

Earnings vs Market: ROR's earnings (11.2% per year) are forecast to grow slower than the UK market (12.6% per year).

High Growth Earnings: ROR's earnings are forecast to grow, but not significantly.

Revenue vs Market: ROR's revenue (4.7% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: ROR's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ROR's Return on Equity is forecast to be high in 3 years time (21%)


Next Steps

Past Performance

How has Rotork performed over the past 5 years?

-5.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ROR's earnings have declined by -5.8% per year over the past 5 years.

Accelerating Growth: ROR's earnings growth over the past year (52%) exceeds its 5-year average (-5.8% per year).

Earnings vs Industry: ROR earnings growth over the past year (52%) exceeded the Machinery industry 8%.


Return on Equity

High ROE: ROR's Return on Equity (17.7%) is considered low.


Return on Assets

ROA vs Industry: ROR has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: ROR has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Rotork's financial position?


Financial Position Analysis

Short Term Liabilities: ROR's short term assets (£330.6M) exceeds its short term liabilities (£155.1M)

Long Term Liabilities: ROR's short term assets (330.6M) exceeds its long term liabilities (52.5M)


Debt to Equity History and Analysis

Debt Level: ROR's debt to equity ratio (4.1%) is considered satisfactory

Reducing Debt: ROR's debt to equity ratio has reduced from 16.4% to 4.1% over the past 5 years.

Debt Coverage: ROR's debt is well covered by operating cash flow (628.3%).

Interest Coverage: ROR's interest payments on its debt are well covered by EBIT (71.1x coverage).


Balance Sheet

Inventory Level: ROR has a high level of physical assets or inventory.

Debt Coverage by Assets: ROR's debt is covered by short term assets (assets are 15.772370x debt).


Next Steps

Dividend

What is Rotork's current dividend yield, its reliability and sustainability?

1.97%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%2.0%markettop25%5.4%industryaverage3.0%forecastin3Years2.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ROR's dividend (1.97%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: ROR's dividend (1.97%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

Stable Dividend: ROR's dividend payments have been volatile in the past 10 years.

Growing Dividend: ROR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.7%), ROR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ROR's dividends in 3 years are forecast to be well covered by earnings (44.3% payout ratio).


Next Steps

Management

What is the CEO of Rotork's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Kevin Hostetler (51yo)

1.6yrs

Tenure

UK£1,439,500

Compensation

Mr. Kevin G. Hostetler is the Chief Executive Officer and Director at Rotork plc since March 12, 2018 and February 12, 2018 respectively. Mr. Hostetler served as the Chief Executive Officer of FDH Velocite ...


CEO Compensation Analysis

Compensation vs. Market: Kevin has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

Compensation vs Earnings: Insufficient data to compare Kevin's compensation with company performance.


Management Age and Tenure

2.8yrs

Average Tenure

51yo

Average Age

Experienced Management: ROR's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

53yo

Average Age

Experienced Board: ROR's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: ROR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£1,43623 Sep 19
Jonathan Davis
EntityIndividual
Role
Member of the Board of Directors
Finance Director
Shares449
Max PriceUK£3.20
BuyUK£1,43722 Aug 19
Jonathan Davis
EntityIndividual
Role
Member of the Board of Directors
Finance Director
Shares473
Max PriceUK£3.04
BuyUK£1,43623 Jul 19
Jonathan Davis
EntityIndividual
Role
Member of the Board of Directors
Finance Director
Shares474
Max PriceUK£3.03
BuyUK£1,43924 Jun 19
Jonathan Davis
EntityIndividual
Role
Member of the Board of Directors
Finance Director
Shares463
Max PriceUK£3.11
BuyUK£1,43625 Apr 19
Jonathan Davis
EntityIndividual
Role
Member of the Board of Directors
Finance Director
Shares453
Max PriceUK£3.17
BuyUK£1,43725 Mar 19
Jonathan Davis
EntityIndividual
Role
Member of the Board of Directors
Finance Director
Shares488
Max PriceUK£2.94
BuyUK£1,43827 Feb 19
Jonathan Davis
EntityIndividual
Role
Member of the Board of Directors
Finance Director
Shares501
Max PriceUK£2.87
BuyUK£1,43721 Dec 18
Jonathan Davis
EntityIndividual
Role
Member of the Board of Directors
Finance Director
Shares584
Max PriceUK£2.46
BuyUK£1,43923 Nov 18
Jonathan Davis
EntityIndividual
Role
Member of the Board of Directors
Finance Director
Shares508
Max PriceUK£2.83

Ownership Breakdown


Management Team

  • Kevin Hostetler (51yo)

    CEO & Director

    • Tenure: 1.6yrs
    • Compensation: UK£1.44m
  • Jonathan Davis (53yo)

    Finance Director

    • Tenure: 9.8yrs
    • Compensation: UK£1.24m
  • David Littlejohns (51yo)

    MD of Rotork Gears Division & Member of Management Board

    • Tenure: 12.8yrs
  • Grant Wood

    Managing Director of Rotork Controls division and Member of Management Board

    • Tenure: 8.6yrs
  • Tim Bessex

    Interim Group Sales & Marketing Director and Member of the Management Board

    • Tenure: 0yrs
  • Alan Paine

    MD of North America & Member of Management Board

    • Tenure: 6.8yrs
  • Paul Burke

    Chief Information Officer & Member of Management Board

    • Tenure: 2.8yrs
  • Peter Matton

    MD of Fluid Systems & Member of Management Board

    • Tenure: 1.8yrs
  • Kiet Huynh

    MD of Instruments & Member of Management Board

    • Tenure: 1.8yrs
  • Kathy Callaghan

    Group Human Resources Director & Member of Management Board

    • Tenure: 1.3yrs

Board Members

  • Martin Lamb (59yo)

    Chairman

    • Tenure: 4.5yrs
    • Compensation: UK£353.00k
  • Lucinda Bell (54yo)

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: UK£57.00k
  • Kevin Hostetler (51yo)

    CEO & Director

    • Tenure: 1.6yrs
    • Compensation: UK£1.44m
  • Tim Cobbold (56yo)

    Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£4.00k
  • Jonathan Davis (53yo)

    Finance Director

    • Tenure: 9.8yrs
    • Compensation: UK£1.24m
  • Peter Dilnot (50yo)

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: UK£47.00k
  • Sally James

    Senior Independent Director

    • Tenure: 2.7yrs
    • Compensation: UK£61.00k
  • Gjerdseth Andersen (53yo)

    Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£4.00k

Company Information

Rotork plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rotork plc
  • Ticker: ROR
  • Exchange: LSE
  • Founded: 1957
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: UK£2.607b
  • Shares outstanding: 871.45m
  • Website: https://www.rotork.com

Number of Employees


Location

  • Rotork plc
  • Brassmill Lane
  • Bath
  • Somerset
  • BA1 3JQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RTOX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1993
RORLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 1993
RO41DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1993
RORLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 1993
RTOX.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDApr 2011

Biography

Rotork plc designs, manufactures, and markets actuators and flow control products worldwide. It operates through four segments: Controls, Fluid Systems, Gears, and Instruments. The company offers electric  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:33
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.