ROR

RotorkLSE:ROR Stock Report

Market Cap

UK£3.1b

7D

3.1%

1Y

22.0%

Updated

16 Sep, 2021

Data

Company Financials +
ROR fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance3/6
Financial Health6/6
Dividends4/6

ROR Overview

Rotork plc designs, manufactures, and markets flow control and instrumentation solutions for the oil and gas, water and wastewater, power, chemical, process, and industrial markets worldwide.

Rotork Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Rotork
Historical stock prices
Current Share PriceUK£3.64
52 Week HighUK£2.75
52 Week LowUK£3.81
Beta1.09
1 Month Change8.65%
3 Month Change7.75%
1 Year Change21.97%
3 Year Change8.14%
5 Year Change66.07%
Change since IPO2,190.57%

Recent News & Updates

Sep 03
Rotork (LON:ROR) Knows How To Allocate Capital Effectively

Rotork (LON:ROR) Knows How To Allocate Capital Effectively

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a...

Jun 14
Calculating The Intrinsic Value Of Rotork plc (LON:ROR)

Calculating The Intrinsic Value Of Rotork plc (LON:ROR)

In this article we are going to estimate the intrinsic value of Rotork plc ( LON:ROR ) by taking the expected future...

Shareholder Returns

RORGB MachineryGB Market
7D3.1%0.4%-0.4%
1Y22.0%45.7%19.2%

Return vs Industry: ROR underperformed the UK Machinery industry which returned 46.6% over the past year.

Return vs Market: ROR exceeded the UK Market which returned 18.7% over the past year.

Price Volatility

Is ROR's price volatile compared to industry and market?
ROR volatility
ROR Beta1.09
Industry Beta0.95
Market Beta1

Stable Share Price: ROR is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ROR's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19573,400Kevin Hostetlerhttps://www.rotork.com

Rotork plc designs, manufactures, and markets flow control and instrumentation solutions for the oil and gas, water and wastewater, power, chemical, process, and industrial markets worldwide. It operates through three segments: Oils & Gas; Water & Power; and Chemical, Process & Industrial segments. The company offers electric, fluid power, and process control actuators.

Rotork Fundamentals Summary

How do Rotork's earnings and revenue compare to its market cap?
ROR fundamental statistics
Market CapUK£3.13b
Earnings (TTM)UK£95.98m
Revenue (TTM)UK£609.57m

32.9x

P/E Ratio

5.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ROR income statement (TTM)
RevenueUK£609.57m
Cost of RevenueUK£324.81m
Gross ProfitUK£284.76m
ExpensesUK£188.79m
EarningsUK£95.98m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.11
Gross Margin46.71%
Net Profit Margin15.74%
Debt/Equity Ratio0.1%

How did ROR perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

79%

Payout Ratio

Valuation

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

32.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ROR (£3.6) is trading above our estimate of fair value (£3.15)

Significantly Below Fair Value: 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 (32.6x) compared to the UK Machinery industry average (29.9x).

PE vs Market: ROR is poor value based on its PE Ratio (32.6x) compared to the UK market (23x).


Price to Earnings Growth Ratio

PEG Ratio: ROR is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: ROR is overvalued based on its PB Ratio (5.5x) compared to the GB Machinery industry average (2.3x).


Future Growth

How is Rotork forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROR's forecast earnings growth (8.7% per year) is above the savings rate (0.9%).

Earnings vs Market: ROR's earnings (8.7% per year) are forecast to grow slower than the UK market (13.2% per year).

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

Revenue vs Market: ROR's revenue (3.9% per year) is forecast to grow slower than the UK market (4.9% per year).

High Growth Revenue: ROR's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ROR's Return on Equity is forecast to be low in 3 years time (18.1%).


Past Performance

How has Rotork performed over the past 5 years?

10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROR has high quality earnings.

Growing Profit Margin: ROR's current net profit margins (15.7%) are higher than last year (14.6%).


Past Earnings Growth Analysis

Earnings Trend: ROR's earnings have grown by 10% per year over the past 5 years.

Accelerating Growth: ROR's earnings growth over the past year (3.8%) is below its 5-year average (10% per year).

Earnings vs Industry: ROR earnings growth over the past year (3.8%) underperformed the Machinery industry 7.3%.


Return on Equity

High ROE: ROR's Return on Equity (16.9%) is considered low.


Financial Health

How is Rotork's financial position?


Financial Position Analysis

Short Term Liabilities: ROR's short term assets (£361.3M) exceed its short term liabilities (£117.4M).

Long Term Liabilities: ROR's short term assets (£361.3M) exceed its long term liabilities (£30.2M).


Debt to Equity History and Analysis

Debt Level: ROR's debt to equity ratio (0.1%) is considered satisfactory.

Reducing Debt: ROR's debt to equity ratio has reduced from 34.2% to 0.1% over the past 5 years.

Debt Coverage: ROR's debt is well covered by operating cash flow (15906.6%).

Interest Coverage: ROR earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

2.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ROR's dividend (2.4%) is higher than the bottom 25% of dividend payers in the UK market (1.3%).

High Dividend: ROR's dividend (2.4%) is low compared to the top 25% of dividend payers in the UK market (3.91%).


Stability and Growth of Payments

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: At its current payout ratio (78.6%), ROR's 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 (47.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Kevin Hostetler (53 yo)

3.5yrs

Tenure

UK£2,203,000

Compensation

Mr. Kevin G. Hostetler is the Chief Executive Officer and Director at Rotork plc since March 12, 2018 and February 12, 2018 respectively and serves as its Member of Management Board since 2018. Mr. Hostetl...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD3.05M) is above average for companies of similar size in the UK market ($USD1.67M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ROR's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: ROR's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Rotork plc's 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£3.126b
  • Shares outstanding: 867.49m
  • Website: https://www.rotork.com

Number of Employees


Location

  • Rotork plc
  • Rotork House
  • Brassmill Lane
  • Bath
  • Avon
  • BA1 3JQ
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 17:34
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.