LSE:ROR

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with proven track record and pays a dividend.


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

Stable Share Price: ROR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.4%

ROR

1.2%

GB Machinery

0.04%

GB Market


1 Year Return

-5.1%

ROR

-7.1%

GB Machinery

-15.1%

GB Market

Return vs Industry: ROR exceeded the UK Machinery industry which returned -6.2% over the past year.

Return vs Market: ROR exceeded the UK Market which returned -14.6% over the past year.


Shareholder returns

RORIndustryMarket
7 Day0.4%1.2%0.04%
30 Day-2.9%-2.4%-4.4%
90 Day14.8%13.7%6.3%
1 Year-4.4%-5.1%-5.8%-7.1%-11.1%-15.1%
3 Year24.1%18.4%7.4%0.4%-4.0%-15.8%
5 Year51.1%36.9%41.8%24.5%13.8%-11.6%

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?

26.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ROR (£2.86) is trading above our estimate of fair value (£2.66)

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 (26.5x) compared to the Machinery industry average (14.8x).

PE vs Market: ROR is poor value based on its PE Ratio (26.5x) compared to the UK market (15x).


Price to Earnings Growth Ratio

PEG Ratio: ROR is poor value based on its PEG Ratio (80.1x)


Price to Book Ratio

PB vs Industry: ROR is overvalued based on its PB Ratio (4.6x) compared to the GB Machinery industry average (1.7x).


Next Steps

Future Growth

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

0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROR's forecast earnings growth (0.3% per year) is below the savings rate (1.2%).

Earnings vs Market: ROR's earnings (0.3% per year) are forecast to grow slower than the UK market (21.4% per year).

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

Revenue vs Market: ROR's revenue is expected to decline over the next 3 years (-0.05% per year).

High Growth Revenue: ROR's revenue is forecast to decline over the next 3 years (-0.05% 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 (16.8%).


Next Steps

Past Performance

How has Rotork performed over the past 5 years?

-1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROR has high quality earnings.

Growing Profit Margin: ROR's current net profit margins (14.1%) are higher than last year (13.2%).


Past Earnings Growth Analysis

Earnings Trend: ROR's earnings have declined by -1% per year over the past 5 years.

Accelerating Growth: ROR's earnings growth over the past year (2.6%) exceeds its 5-year average (-1% per year).

Earnings vs Industry: ROR earnings growth over the past year (2.6%) exceeded the Machinery industry -2%.


Return on Equity

High ROE: ROR's Return on Equity (17.4%) is considered low.


Next Steps

Financial Health

How is Rotork's financial position?


Financial Position Analysis

Short Term Liabilities: ROR's short term assets (£355.5M) exceed its short term liabilities (£129.4M).

Long Term Liabilities: ROR's short term assets (£355.5M) exceed its long term liabilities (£53.2M).


Debt to Equity History and Analysis

Debt Level: ROR's debt to equity ratio (0.2%) is considered satisfactory.

Reducing Debt: ROR's debt to equity ratio has reduced from 5.7% to 0.2% over the past 5 years.

Debt Coverage: ROR's debt is well covered by operating cash flow (17791.6%).

Interest Coverage: ROR's interest payments on its debt are well covered by EBIT (101.8x coverage).


Balance Sheet


Next Steps

Dividend

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

2.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ROR's dividend (2.06%) is higher than the bottom 25% of dividend payers in the UK market (1.98%).

High Dividend: ROR's dividend (2.06%) is low compared to the top 25% of dividend payers in the UK market (5.44%).


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: With its low payout ratio (21.3%), ROR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ROR's dividends in 3 years are forecast to be well covered by earnings (49.4% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Kevin Hostetler (52yo)

2.33yrs

Tenure

UK£1,422,000

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 ($USD1.79M) is about average for companies of similar size in the UK market ($USD2.36M).

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Hostetler
CEO, Member of Management Board & Director2.33yrsUK£1.42m0.015% £374.7k
Jonathan Davis
Finance Director10.25yrsUK£1.19m0.042% £1.0m
Grant Wood
Operations Director & Member of Management Board0.58yrno datano data
Paul Burke
Chief Information Officer & Member of Management Board3.5yrsno datano data
Kiet Huynh
MD of Chemical2.5yrsno datano data
Kathy Callaghan
Group Human Resources Director & Member of Management Board2.08yrsno datano data
Vijay Rao
Director of Strategy and Mergers & Acquisitions and Member of Management Board1.75yrsno datano data
Neil Manning
Director of Rotork Site Services & Member of Management Board2.5yrsno datano data
Sandra Forbes
Interim Group General Counsel0.25yrno datano data
Oliver Wiese
MD of Water & Power and Member of Management Board0.50yrno datano data

2.2yrs

Average Tenure

Experienced Management: ROR's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Hostetler
CEO, Member of Management Board & Director2.33yrsUK£1.42m0.015% £374.7k
Jonathan Davis
Finance Director10.25yrsUK£1.19m0.042% £1.0m
Martin Lamb
Chairman5.25yrsUK£234.00k0.017% £436.3k
Lucinda Bell
Independent Non-Executive Director6yrsUK£66.00k0.00082% £20.5k
Timothy Cobbold
Independent Non-Executive Director1.58yrsUK£62.00kno data
Peter Dilnot
Independent Non-Executive Director2.83yrsUK£56.00kno data
Sally James
Senior Independent Non-Executive Director3.42yrsUK£66.00k0.0015% £37.4k
Ann-Christin Andersen
Independent Non-Executive Director1.58yrsUK£56.00kno data

3.1yrs

Average Tenure

54.5yo

Average Age

Experienced Board: ROR's board of directors are considered experienced (3.1 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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£2.495b
  • Shares outstanding: 871.61m
  • Website: https://www.rotork.com

Number of Employees


Location

  • Rotork plc
  • Brassmill Lane
  • Bath
  • Avon
  • 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 flow control and instrumentation solutions for the oil and gas, water and wastewater, power, chemical process, and industrial applications worldwide. It operates through four segments: Controls, Fluid Systems, Gears, and Instruments. The company offers electric, pneumatic, and hydraulic actuators. It also provides gearboxes and valve accessories comprising multi-turn and quarter-turn gearboxes, smart position indicators, direct mount chain wheels, valve accessories, roto hammers, and master gear products. In addition, the company offers instrumentation and control products, such as instrument valves, controllers, and measurement products; and pneumatic valves and manifolds, which include air preparation equipment, poppet valves, spool valves, ancillaries, direct acting solenoid valves, slide valves, and impact pneumatic manifolds. Further, it provides power transmission products; and actuator workshop overhaul, field support, client support programme, planned shutdown support, valve automation center, technical support, and training services. The company serves oil and gas, power generation, water and sewage, marine, and mining sectors. Rotork plc was incorporated in 1957 and is headquartered in Bath, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 20:55
End of Day Share Price2020/07/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.