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ROK

Rockwell AutomationNYSE:ROK Stock Report

Last Price

US$314.25

Market Cap

US$36.5b

7D

-3.3%

1Y

18.2%

Updated

22 Jan, 2022

Data

Company Financials +
ROK fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance3/6
Financial Health3/6
Dividends5/6

ROK Stock Overview

Rockwell Automation, Inc. provides industrial automation and digital transformation solutions in the United States and internationally.

Rockwell Automation Competitors

Eaton

NYSE:ETN

US$64.0b

Emerson Electric

NYSE:EMR

US$55.4b

AMETEK

NYSE:AME

US$31.6b

Sensata Technologies Holding

NYSE:ST

US$9.3b

Price History & Performance

Summary of all time highs, changes and price drops for Rockwell Automation
Historical stock prices
Current Share PriceUS$314.25
52 Week HighUS$354.99
52 Week LowUS$237.14
Beta1.36
1 Month Change-7.61%
3 Month Change-0.65%
1 Year Change18.15%
3 Year Change88.90%
5 Year Change108.46%
Change since IPO1,195.88%

Recent News & Updates

Nov 30

Rockwell Automation: Investor Day Supports The Case For Further Outperformance

Rockwell recently held an upbeat annual investor conference, highlighting a clear path toward continued medium to longer-term growth. Key growth drivers include cyber security and software, while M&A and partnerships could also underpin further outperformance ahead. While shares trade at a valuation premium to peers, I view the multiple as warranted considering the range of growth drivers at hand.

Sep 09

Rockwell Automation Stands Out On Growth... And Valuation

Rockwell outperformed its peers in the most recent quarter, with strong growth in discrete and hybrid automation markets and above-average growth in process automation as well. Management was an early mover in areas like hybrid automation and has done well in growing markets like semiconductors, logistics, food/beverage, and life sciences. The acquisition of Plex was an expensive admission that Rockwell's capabilities in MES weren't up to snuff, and excellence on execution is an absolute must here. Rockwell enjoys a valuation that seems out of sync with its growth outlook; while the company looks positioned as a long-term winner in automation, it's not going to run away from the pack.

Jul 09

Rockwell Automation: Adding More Software, More Growth

Rockwell Automation continues to be long-term quality, driven by a sound positioning. The company trades at premium multiple because of this positioning and its track record. ROK recently made a relatively expensive software deal, one which I like a lot. At the current highs, the appeal is not readily seen at 30 times earnings, but there is real quality here.

Shareholder Returns

ROKUS ElectricalUS Market
7D-3.3%-6.7%-6.1%
1Y18.2%-9.8%4.2%

Return vs Industry: ROK exceeded the US Electrical industry which returned -9.8% over the past year.

Return vs Market: ROK exceeded the US Market which returned 4.2% over the past year.

Price Volatility

Is ROK's price volatile compared to industry and market?
ROK volatility
ROK Average Weekly Movement3.5%
Electrical Industry Average Movement9.3%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

Stable Share Price: ROK is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

FoundedEmployeesCEOWebsite
190324,500Blake Morethttps://www.rockwellautomation.com

Rockwell Automation, Inc. provides industrial automation and digital transformation solutions in the United States and internationally. The company operates in three segments, Intelligent Devices, Software & Control, and Lifecycle Services. Its solutions include hardware and software products, and services.

Rockwell Automation Fundamentals Summary

How do Rockwell Automation's earnings and revenue compare to its market cap?
ROK fundamental statistics
Market CapUS$36.46b
Earnings (TTM)US$1.36b
Revenue (TTM)US$7.00b

26.9x

P/E Ratio

5.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ROK income statement (TTM)
RevenueUS$7.00b
Cost of RevenueUS$4.10b
Gross ProfitUS$2.90b
ExpensesUS$1.54b
EarningsUS$1.36b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 27, 2022

Earnings per share (EPS)11.69
Gross Margin41.41%
Net Profit Margin19.38%
Debt/Equity Ratio147.5%

How did ROK perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

37%

Payout Ratio

Valuation

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

26.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ROK ($314.25) is trading above our estimate of fair value ($298.7)

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 (26.9x) compared to the US Electrical industry average (23x).

PE vs Market: ROK is poor value based on its PE Ratio (26.9x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: ROK is poor value based on its PEG Ratio (5.4x)


Price to Book Ratio

PB vs Industry: ROK is overvalued based on its PB Ratio (15.3x) compared to the US Electrical industry average (2.3x).


Future Growth

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

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ROK's forecast earnings growth (5% per year) is above the savings rate (2%).

Earnings vs Market: ROK's earnings (5% per year) are forecast to grow slower than the US market (12.9% per year).

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

Revenue vs Market: ROK's revenue (7.2% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: ROK's revenue (7.2% 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 high in 3 years time (37.5%)


Past Performance

How has Rockwell Automation performed over the past 5 years?

17.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROK has a large one-off gain of $467.4M impacting its September 30 2021 financial results.

Growing Profit Margin: ROK's current net profit margins (19.4%) are higher than last year (16.2%).


Past Earnings Growth Analysis

Earnings Trend: ROK's earnings have grown by 17.6% per year over the past 5 years.

Accelerating Growth: ROK's earnings growth over the past year (32.6%) exceeds its 5-year average (17.6% per year).

Earnings vs Industry: ROK earnings growth over the past year (32.6%) underperformed the Electrical industry 56.7%.


Return on Equity

High ROE: Whilst ROK's Return on Equity (49.9%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Rockwell Automation's financial position?


Financial Position Analysis

Short Term Liabilities: ROK's short term assets ($3.1B) exceed its short term liabilities ($3.0B).

Long Term Liabilities: ROK's short term assets ($3.1B) do not cover its long term liabilities ($5.0B).


Debt to Equity History and Analysis

Debt Level: ROK's net debt to equity ratio (122.9%) is considered high.

Reducing Debt: ROK's debt to equity ratio has increased from 98.7% to 147.5% over the past 5 years.

Debt Coverage: ROK's debt is well covered by operating cash flow (31.7%).

Interest Coverage: ROK's interest payments on its debt are well covered by EBIT (12.4x coverage).


Balance Sheet


Dividend

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

1.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ROK's dividend (1.43%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: ROK's dividend (1.43%) is low compared to the top 25% of dividend payers in the US market (3.61%).


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 (36.6%), 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 (37.1% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Blake Moret (58 yo)

5.5yrs

Tenure

US$13,583,470

Compensation

Mr. Blake D. Moret has been an Independent Director of PTC Inc. since July 19, 2018. Mr. Moret has been the Chief Executive Officer and President of Rockwell Automation Inc. since July 1, 2016 and has been...


CEO Compensation Analysis

Compensation vs Market: Blake's total compensation ($USD13.58M) is about average for companies of similar size in the US market ($USD11.47M).

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


Leadership Team

Experienced Management: ROK's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: ROK's board of directors are considered experienced (6.4 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 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
  • Implied Market Cap: US$36.457b
  • Shares outstanding: 116.01m
  • Website: https://www.rockwellautomation.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 23:29
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2021/09/30


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.