NYSE:ROK

Stock Analysis Report

Executive Summary

Rockwell Automation, Inc. provides industrial automation and information solutions worldwide.

Snowflake

Fundamentals

Established dividend payer with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

4.6%

ROK

1.9%

US Electrical

0.5%

US Market


1 Year Return

5.1%

ROK

3.8%

US Electrical

6.8%

US Market

Return vs Industry: ROK matched the US Electrical industry which returned 3.8% over the past year.

Return vs Market: ROK underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

ROKIndustryMarket
7 Day4.6%1.9%0.5%
30 Day5.9%0.9%-0.8%
90 Day2.9%2.4%-0.9%
1 Year7.6%5.1%6.1%3.8%9.2%6.8%
3 Year52.7%43.4%41.7%33.3%45.6%36.2%
5 Year77.8%59.0%37.2%23.4%63.2%45.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

19.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ROK ($171.62) is trading above our estimate of fair value ($131.76)

Significantly Below Fair Value: ROK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ROK is poor value based on its PE Ratio (19.9x) compared to the Electrical industry average (14.9x).

PE vs Market: ROK is poor value based on its PE Ratio (19.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: ROK is poor value based on its PEG Ratio (7.9x)


Price to Book Ratio

PB vs Industry: ROK is overvalued based on its PB Ratio (17.4x) compared to the US Electrical industry average (1.6x).


Next Steps

Future Growth

How is Rockwell Automation forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROK's forecast earnings growth (2.5% per year) is below the savings rate (2.7%).

Earnings vs Market: ROK's earnings (2.5% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: ROK's revenue (2.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ROK's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ROK's Return on Equity is forecast to be very high in 3 years time (129.4%).


Next Steps

Past Performance

How has Rockwell Automation performed over the past 5 years?

-3.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ROK's earnings have declined by -3.3% per year over the past 5 years.

Accelerating Growth: ROK's earnings growth over the past year (162.2%) exceeds its 5-year average (-3.3% per year).

Earnings vs Industry: ROK earnings growth over the past year (162.2%) exceeded the Electrical industry 16.3%.


Return on Equity

High ROE: Whilst ROK's Return on Equity (89.37%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Rockwell Automation's financial position?


Financial Position Analysis

Short Term Liabilities: ROK's short term assets ($2.9B) exceeds its short term liabilities ($2.0B)

Long Term Liabilities: ROK's short term assets (2.9B) do not cover its long term liabilities (3.0B)


Debt to Equity History and Analysis

Debt Level: ROK's debt to equity ratio (193.7%) is considered high

Reducing Debt: ROK's debt to equity ratio has increased from 43.6% to 193.7% over the past 5 years.

Debt Coverage: ROK's debt is well covered by operating cash flow (47.7%).

Interest Coverage: ROK's interest payments on its debt are well covered by EBIT (20.7x coverage).


Balance Sheet

Inventory Level: ROK has a low level of unsold assets or inventory.

Debt Coverage by Assets: ROK's debt is covered by short term assets (assets are 1.314790x debt).


Next Steps

Dividend

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

2.26%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Years2.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ROK's dividend (2.26%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ROK's dividend (2.26%) is low compared to the top 25% of dividend payers in the US market (3.73%).

Stable Dividend: ROK's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.4%), ROK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ROK's dividends in 3 years are forecast to be well covered by earnings (48.6% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Blake Moret (56yo)

3.3yrs

Tenure

US$9,188,851

Compensation

Mr. Blake D. Moret has been a Director of PTC Inc. since July 19, 2018. He has been the Chief Executive Officer and President of Rockwell Automation Inc. since July 1, 2016 and its Chairman since January 1 ...


CEO Compensation Analysis

Compensation vs. Market: Blake's total compensation ($USD9.19M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

2.7yrs

Average Tenure

56yo

Average Age

Experienced Management: ROK's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

59yo

Average Age

Experienced Board: ROK's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: ROK insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$531,92530 Jul 19
John Miller
EntityIndividual
Shares3,250
Max PriceUS$163.67
SellUS$9,39306 May 19
Robert Murphy
EntityIndividual
Shares53
Max PriceUS$177.22
SellUS$1,345,70925 Feb 19
Sujeet Chand
EntityIndividual
Role
Chief Technology Officer
CTO & Senior VP
Shares7,500
Max PriceUS$179.43
SellUS$218,74722 Feb 19
Frank Kulaszewicz
EntityIndividual
Role
Senior Key Executive
Senior VP and Head of Control Products & Solutions segment
Shares1,231
Max PriceUS$177.70
SellUS$475,29903 Dec 18
Frank Kulaszewicz
EntityIndividual
Role
Senior Key Executive
Senior VP and Head of Control Products & Solutions segment
Shares2,750
Max PriceUS$172.84

Ownership Breakdown


Management Team

  • Jessica Kourakos

    Head of Investor Relations

    • Tenure: 0yrs
  • Sujeet Chand (61yo)

    CTO & Senior VP

    • Tenure: 14.1yrs
    • Compensation: US$2.24m
  • Blake Moret (56yo)

    Chairman

    • Tenure: 3.3yrs
    • Compensation: US$9.19m
  • Frank Kulaszewicz (55yo)

    Senior VP and Head of Control Products & Solutions segment

    • Tenure: 0yrs
    • Compensation: US$3.04m
  • Thomas Donato

    Senior Vice President

    • Tenure: 0.8yrs
  • Patrick Goris (47yo)

    Senior VP & CFO

    • Tenure: 2.7yrs
    • Compensation: US$2.49m
  • Becky House (46yo)

    Senior VP

    • Tenure: 2.8yrs
  • Chris Nardecchia (57yo)

    Senior VP for IT & Chief Information Officer

    • Tenure: 1.9yrs
  • Bruce Quinn

    Vice President Public Affairs

    • Tenure: 0yrs
  • Mike Laszkiewicz (58yo)

    Senior Vice President of Operations & Engineering Services

    • Tenure: 1.3yrs

Board Members

  • Lisa Payne (60yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$263.27k
  • Jim Keane (60yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$265.19k
  • Don Parfet (66yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$284.53k
  • Steve Kalmanson (67yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$241.83k
  • J. Holloman (64yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$265.63k
  • Larry Kingsley (56yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$253.19k
  • Pam Murphy (46yo)

    Director

    • Tenure: 0.3yrs
  • Blake Moret (56yo)

    Chairman

    • Tenure: 3.3yrs
    • Compensation: US$9.19m
  • Tom Rosamilia (58yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$242.50k
  • Patty Watson (53yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$246.50k

Company Information

Rockwell Automation, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rockwell Automation, Inc.
  • Ticker: ROK
  • Exchange: NYSE
  • Founded: 1903
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: US$20.081b
  • Shares outstanding: 117.01m
  • Website: https://www.rockwellautomation.com

Number of Employees


Location

  • Rockwell Automation, Inc.
  • 1201 South 2nd Street
  • Milwaukee
  • Wisconsin
  • 53204
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ROKNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
0KXALSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
RWLDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
ROK *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968

Biography

Rockwell Automation, Inc. provides industrial automation and information solutions worldwide. It operates in two segments, Architecture & Software; and Control Products & Solutions. The Architecture & Soft ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:42
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.