LSE:ROR

Stock Analysis Report

Executive Summary

Rotork plc designs, manufactures, and markets actuators and flow control products 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.8%

ROR

-0.7%

GB Machinery

0.3%

GB Market


1 Year Return

10.0%

ROR

8.9%

GB Machinery

6.5%

GB Market

Return vs Industry: ROR exceeded the UK Machinery industry which returned 8.6% over the past year.

Return vs Market: ROR exceeded the UK Market which returned 6.4% over the past year.


Shareholder returns

RORIndustryMarket
7 Day1.8%-0.7%0.3%
30 Day-0.7%-0.5%-0.5%
90 Day-3.1%2.6%3.8%
1 Year12.2%10.0%12.0%8.9%12.0%6.5%
3 Year40.5%32.4%30.0%19.8%18.7%3.8%
5 Year42.0%27.2%43.8%23.5%35.0%4.1%

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?

30.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ROR (£3.12) is trading above our estimate of fair value (£2.55)

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 (30x) compared to the Machinery industry average (17.6x).

PE vs Market: ROR is poor value based on its PE Ratio (30x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: ROR is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: ROR is overvalued based on its PB Ratio (5.3x) compared to the GB Machinery industry average (1.6x).


Next Steps

Future Growth

How is Rotork forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROR's forecast earnings growth (9.3% per year) is above the savings rate (0.5%).

Earnings vs Market: ROR's earnings (9.3% per year) are forecast to grow slower than the UK market (12.9% per year).

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

Revenue vs Market: ROR's revenue (3.3% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: ROR's revenue (3.3% 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%).


Next Steps

Past Performance

How has Rotork performed over the past 5 years?

-5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROR has high quality earnings.

Growing Profit Margin: ROR's current net profit margins (13.2%) are higher than last year (8.8%).


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 2.6%.


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rotork's financial position?


Financial Position Analysis

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

Long Term Liabilities: ROR's short term assets (£330.6M) exceed 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 15.8x debt).


Next Steps

Dividend

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

1.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ROR's dividend (1.89%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: ROR's dividend (1.89%) is low compared to the top 25% of dividend payers in the UK market (5.1%).


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 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 (45.6% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Kevin Hostetler (51yo)

1.9yrs

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 and serves as its Member of Management Board since 2018. Mr. Hostetl ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD1.87M) is about average for companies of similar size in the UK market ($USD2.27M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Hostetler
CEO, Member of Management Board & Director1.9yrsUK£1.44m0.015% £407.4k
Jonathan Davis
Finance Director10.1yrsUK£1.24m0.036% £991.1k
Grant Wood
Operations Director & Member of Management Board0.2yrsno datano data
Paul Burke
Chief Information Officer & Member of Management Board3.1yrsno datano data
Peter Matton
MD of Fluid Systems & Member of Management Board2.1yrsno datano data
Kiet Huynh
MD of Chemical2.1yrsno datano data
Kathy Callaghan
Group Human Resources Director & Member of Management Board1.7yrsno datano data
Vijay Rao
Director of Strategy and Mergers & Acquisitions and Member of Management Board1.3yrsno datano data
Helen Barrett-Hague
Group General Counsel1.1yrsno datano data
Neil Manning
Director of Rotork Site Services & Member of Management Board2.1yrsno datano data

2.0yrs

Average Tenure

Experienced Management: ROR's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Hostetler
CEO, Member of Management Board & Director1.9yrsUK£1.44m0.015% £407.4k
Jonathan Davis
Finance Director10.1yrsUK£1.24m0.036% £991.1k
Martin Lamb
Chairman4.8yrsUK£353.00k0.017% £475.7k
Lucinda Bell
Non-Executive Director5.6yrsUK£57.00k0.00082% £22.3k
Timothy Cobbold
Non-Executive Director1.2yrsUK£4.00kno data
Peter Dilnot
Non-Executive Director2.4yrsUK£47.00kno data
Sally James
Senior Independent Director3yrsUK£61.00k0.0015% £40.5k
Ann-Christin Andersen
Non-Executive Director1.2yrsUK£4.00kno data

2.7yrs

Average Tenure

53yo

Average Age

Experienced Board: ROR's board of directors are not considered experienced ( 2.7 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: ROR 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£2.721b
  • Shares outstanding: 871.95m
  • 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 actuators and control systems, including intelligent multi-turn and part-turn valve actuators, part-turn/rotary and linear control valve actuators, heavy-duty part-turn/rotary and linear valve actuators, small part-turn/rotary valve actuators, and network control systems, as well as explosion proof actuators, sensors, switches, and controls. It also provides pneumatic and hydraulic rotary and linear, electro-hydraulic, subsea, and vane-type pneumatic valve actuators, as well as smart valve monitoring and control systems. In addition, the company offers manual and motorized multi-turn gearboxes and quarter-turn gearboxes; and worm gear quarter-turn, subsea quarter-turn, and override quarter-turn gear operators, as well as mounting brackets, extension shafts, pedestals, and accessories for the valve and actuator industry. Further, it provides instrumentation and control products, such as pneumatic pressure regulators, electro-pneumatic transducers, pneumatic air volume boosters, and pneumatic relays. Additionally, the company offers pneumatic valves and manifolds, which include air preparation, poppet valves, spool valves, ancillaries, direct acting solenoid valves, slide valves, and impact pneumatic manifolds. It also provides emergency and planned service, including installation, commissioning, and upgrading control systems, as well as troubleshooting and repair of damaged or deteriorating assets; and actuator overhauls, shutdown outages, preventative maintenance, technical support, and training services. It primarily serves power generation, oil and gas, water and sewage, marine, mining, and other industries. The company 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 Analysis2020/02/22 20:35
End of Day Share Price2020/02/21 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.