Rockwell Automation
Market Cap
US$17.1b
Last Updated
2020/04/05 00:54 UTC
Data Sources
Company Financials +
Executive Summary
Rockwell Automation, Inc. provides industrial automation and digital transformation solutions.
Rewards
Risk Analysis
Snowflake Analysis
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
Stable Share Price: ROK's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-3.1%
ROK
-3.4%
US Electrical
-3.8%
US Market
1 Year Return
-20.8%
ROK
-26.2%
US Electrical
-15.9%
US Market
Return vs Industry: ROK exceeded the US Electrical industry which returned -24.8% over the past year.
Return vs Market: ROK underperformed the US Market which returned -15.1% over the past year.
Shareholder returns
| ROK | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.1% | -3.4% | -3.8% |
| 30 Day | -17.9% | -24.2% | -17.4% |
| 90 Day | -28.1% | -32.9% | -24.1% |
| 1 Year | -19.0%-20.8% | -24.7%-26.2% | -14.1%-15.9% |
| 3 Year | 0.6%-5.5% | -8.5%-13.9% | 10.0%2.8% |
| 5 Year | 47.1%31.6% | 2.9%-7.3% | 27.6%13.5% |
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
2 weeks ago | Simply Wall St
What Is Rockwell Automation's (NYSE:ROK) P/E Ratio After Its Share Price Tanked?3 weeks ago | Simply Wall St
Is Rockwell Automation, Inc.'s (NYSE:ROK) CEO Being Overpaid?1 month ago | Simply Wall St
Rockwell Automation (NYSE:ROK) Shareholders Booked A 63% Gain In The Last Five YearsValuation
Is Rockwell Automation undervalued compared to its fair value and its price relative to the market?
12.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ROK ($146.78) is trading below our estimate of fair value ($167.57)
Significantly Below Fair Value: ROK is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ROK is poor value based on its PE Ratio (18.6x) compared to the Electrical industry average (13.7x).
PE vs Market: ROK is poor value based on its PE Ratio (18.6x) compared to the US market (12.4x).
Price to Earnings Growth Ratio
PEG Ratio: ROK is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: ROK is overvalued based on its PB Ratio (23.8x) compared to the US Electrical industry average (1.2x).
Next Steps
Future Growth
How is Rockwell Automation forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
7.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ROK's forecast earnings growth (7.5% per year) is above the savings rate (1.7%).
Earnings vs Market: ROK's earnings (7.5% per year) are forecast to grow slower than the US market (13.4% per year).
High Growth Earnings: ROK's earnings are forecast to grow, but not significantly.
Revenue vs Market: ROK's revenue (5.2% per year) is forecast to grow slower than the US market (7.1% per year).
High Growth Revenue: ROK's revenue (5.2% 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 (115.8%).
Next Steps
Past Performance
How has Rockwell Automation performed over the past 5 years?
-1.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ROK has high quality earnings.
Growing Profit Margin: ROK's current net profit margins (13.7%) are higher than last year (12.7%).
Past Earnings Growth Analysis
Earnings Trend: ROK's earnings have declined by -1.6% per year over the past 5 years.
Accelerating Growth: ROK's earnings growth over the past year (8.7%) exceeds its 5-year average (-1.6% per year).
Earnings vs Industry: ROK earnings growth over the past year (8.7%) exceeded the Electrical industry -1.4%.
Return on Equity
High ROE: Whilst ROK's Return on Equity (89.81%) is outstanding, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Rockwell Automation's financial position?
Financial Position Analysis
Short Term Liabilities: ROK's short term assets ($3.0B) exceed its short term liabilities ($2.1B).
Long Term Liabilities: ROK's short term assets ($3.0B) do not cover its long term liabilities ($4.0B).
Debt to Equity History and Analysis
Debt Level: ROK's debt to equity ratio (219.7%) is considered high.
Reducing Debt: ROK's debt to equity ratio has increased from 55.1% to 219.7% over the past 5 years.
Debt Coverage: ROK's debt is well covered by operating cash flow (52.7%).
Interest Coverage: ROK's interest payments on its debt are well covered by EBIT (14.1x coverage).
Balance Sheet
Inventory Level: ROK has a high level of physical assets or inventory.
Debt Coverage by Assets: ROK's debt is covered by short term assets (assets are 1.3x debt).
Next Steps
Dividend
What is Rockwell Automation's current dividend yield, its reliability and sustainability?
2.78%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ROK's dividend (2.78%) is higher than the bottom 25% of dividend payers in the US market (2.05%).
High Dividend: ROK's dividend (2.78%) is low compared to the top 25% of dividend payers in the US market (5.71%).
Stability and Growth of Payments
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 (49.8%), 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 (45.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.2yrs
Average management tenure
CEO
Blake Moret (56yo)
3.75s
Tenure
US$11,710,165
Compensation
Mr. Blake D. Moret has been a Independent Director of PTC Inc. since July 19, 2018. He has been the Chief Executive Officer and President of Rockwell Automation Inc. since July 1, 2016 and its Chairman sin ...
CEO Compensation Analysis
Compensation vs Market: Blake's total compensation ($USD11.71M) is about average for companies of similar size in the US market ($USD11.95M).
Compensation vs Earnings: Blake's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 3.75yrs | US$11.71m | 0.040% $6.8m | |
| Senior VP & CFO | 3.17yrs | US$2.93m | 0.0097% $1.7m | |
| Senior VP | 3.25yrs | US$1.89m | 0.0036% $608.8k | |
| Senior VP and Head of Control Products & Solutions segment | no data | US$4.34m | 0.021% $3.5m | |
| Senior Vice President | 1.75yrs | US$2.82m | no data | |
| Senior Vice President of Operations & Engineering Services | 0.42yr | no data | 0.0051% $876.5k | |
| CTO & Senior VP | 14.58yrs | US$2.24m | 0.033% $5.5m | |
| Senior VP for IT & Chief Information Officer | 2.42yrs | no data | 0.0032% $544.0k | |
| Head of Investor Relations | no data | no data | no data | |
| Vice President Public Affairs | no data | no data | no data |
3.2yrs
Average Tenure
54.5yo
Average Age
Experienced Management: ROK's management team is considered experienced (3.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 3.75yrs | US$11.71m | 0.040% $6.8m | |
| Independent Director | 5.25yrs | US$267.63k | 0.0046% $787.9k | |
| Independent Director | 9.25yrs | US$263.00k | 0.0094% $1.6m | |
| Lead Independent Director | no data | US$288.22k | 0.010% $1.8m | |
| Independent Director | 9.25yrs | US$252.31k | 0.0094% $1.6m | |
| Independent Director | 7yrs | US$279.09k | 0.0014% $231.9k | |
| Independent Director | 7yrs | US$279.34k | 0.0066% $1.1m | |
| Independent Director | 0.83yr | US$97.84k | 0.0011% $184.2k | |
| Independent Director | 4yrs | US$255.00k | 0.0035% $595.2k | |
| Independent Director | 2.75yrs | US$257.50k | 0.0023% $388.8k |
5.3yrs
Average Tenure
59yo
Average Age
Experienced Board: ROK's board of directors are considered experienced (5.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ROK insiders have only sold shares 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
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$17.053b
- Shares outstanding: 116.18m
- Website: https://www.rockwellautomation.com
Number of Employees
Location
- Rockwell Automation, Inc.
- 1201 South 2nd Street
- Milwaukee
- Wisconsin
- 53204
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ROK | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| 0KXA | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| RWL | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| RWL | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jan 1968 |
| ROK * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
| RWL | BRSE (Berne Stock Exchange) | Yes | Common Stock | CH | CHF | Jan 1968 |
| RWL | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jan 1968 |
| R1OK34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
Rockwell Automation, Inc. provides industrial automation and digital transformation solutions. It operates in two segments, Architecture & Software, and Control Products & Solutions. The Architecture & Software segment offers a portfolio of automation and information platforms, including hardware and software. Its products include programmable automation controllers; design, visualization, and simulation software; and human machine interface products, networking products, industrial computers, sensing devices, machine safety devices, motion control products, and independent cart technology products. This segment also offers manufacturing execution systems and analytics software to enhance operational productivity and meet regulatory requirements. The Control Products & Solutions segment offers low and medium voltage electro-mechanical and electronic motor starters, AC/DC variable frequency drives, motor control and circuit protection devices, operator and signaling devices, termination and protection devices, relays and timers, and electrical control accessories. This segment also provides pre-configured line and load power solutions, packaged drives, motor control centers, and intelligent packaged power and engineered to order automation equipment solutions; and professional lifecycle services, such as safety, security, and digital transformation consulting, as well as automation and information project delivery capabilities, plant network, cloud, cybersecurity, asset management and predictive analytics, and remote, on-site, and managed support services. It primarily serves a range of industries, which include the automotive, semiconductor, and warehousing and logistics; food and beverage, and life sciences; and oil and gas, metals, and chemicals through independent distributors and direct sales force worldwide. Rockwell Automation, Inc. was founded in 1903 and is headquartered in Milwaukee, Wisconsin.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/05 00:54 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/09/30 |
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.