| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 2/6 |
| Past Performance | 3/6 |
| Financial Health | 3/6 |
| Dividends | 5/6 |
ROK Stock Overview
Rockwell Automation, Inc. provides industrial automation and digital transformation solutions in the United States and internationally.
Rockwell Automation Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$314.25 |
| 52 Week High | US$354.99 |
| 52 Week Low | US$237.14 |
| Beta | 1.36 |
| 1 Month Change | -7.61% |
| 3 Month Change | -0.65% |
| 1 Year Change | 18.15% |
| 3 Year Change | 88.90% |
| 5 Year Change | 108.46% |
| Change since IPO | 1,195.88% |
Recent News & Updates
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.
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.
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
| ROK | US Electrical | US Market | |
|---|---|---|---|
| 7D | -3.3% | -6.7% | -6.1% |
| 1Y | 18.2% | -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
| ROK volatility | |
|---|---|
| ROK Average Weekly Movement | 3.5% |
| Electrical Industry Average Movement | 9.3% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in US Market | 15.5% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1903 | 24,500 | Blake Moret | https://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
| ROK fundamental statistics | |
|---|---|
| Market Cap | US$36.46b |
| Earnings (TTM) | US$1.36b |
| Revenue (TTM) | US$7.00b |
26.9x
P/E Ratio5.2x
P/S RatioIs ROK overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ROK income statement (TTM) | |
|---|---|
| Revenue | US$7.00b |
| Cost of Revenue | US$4.10b |
| Gross Profit | US$2.90b |
| Expenses | US$1.54b |
| Earnings | US$1.36b |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Jan 27, 2022
| Earnings per share (EPS) | 11.69 |
| Gross Margin | 41.41% |
| Net Profit Margin | 19.38% |
| Debt/Equity Ratio | 147.5% |
How did ROK perform over the long term?
See historical performance and comparisonDividends
1.4%
Current Dividend Yield37%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/22 23:29 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2021/09/30 |
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.